New plan combines abatement, living wage

Proposal to be discussed at Tuesday meeting

The living wage battle isn’t over yet.

Lawrence city commissioners will revisit the issue Tuesday with a recommendation from staff to wrap living wage and tax abatement policies into one ordinance.

That move helps appease living wage proponents angered by the commission’s stated willingness to make the living wage requirement part of a policy resolution instead of a law enshrined in city codes.

“That’s good to hear,” said Graham Kreicker, one proponent. “The feeling of the Living Wage Alliance is that the voters were voting for people who would create an ordinance.”

And it appears business proponents, who had opposed an ordinance, are willing to drop their objections.

“I think that a stand-alone living wage ordinance … was not palatable to myself or chamber (of commerce) people or business people because of the negative implications of that,” Commissioner Sue Hack said. “But to incorporate the wage floor requirement within the tax abatement resolution, and then codify that, I think that’s more agreeable to people.”

Commissioners agreed in August that companies receiving tax abatements would be required to pay their employees a “living wage” of 130 percent of the federal poverty line for a family of three — about $9.53 an hour.

Despite weeks of negotiations among city staff, the alliance and the Lawrence Chamber of Commerce, questions remain:

Which employees will be covered by the living wage requirement? Commissioners will have to decide between requiring the wage only for employees on projects covered by the tax abatement or for all of a company’s Lawrence employees.

“The city’s past practice has been to view tax abatements as only applying to the abated portion of a particular company or facility, not the entire company or facility,” Assistant City Manager Dave Corliss said in a memorandum.

Who qualifies for the wage? Chamber representatives want an employee to work at least 520 hours a year — 10 hours a week, or 13 weeks of full-time employment. Living wage proponents prefer 480 hours, one fewer week.
How is a company penalized if it fails to meet the living wage requirement? There are several methods proposed for reducing the size of the company’s tax abatement.
Should companies that do particularly well in meeting requirements be granted an extra tax credit?

Officials said negotiations would continue through the weekend.

“We’re trying to create something businesses can deal with and that’s beneficial to workers at the entry level,” said Larry McElwain, chamber president. “I look at it as win-win.”

Living wage proponents are leery of the chamber’s efforts, though.

“The chamber has largely opposed this measure for the last three years,” Kreicker said. “I don’t think all their suggestions for weakening the ordinance should have equal weight” with alliance positions.

Commissioner Boog Highberger, who campaigned in favor of the living wage, said both viewpoints must be heard.

“I think the process is working pretty well,” he said. “Both sides are talking to each other and staff, working toward an ordinance that takes everybody’s concerns into account.”

The commission takes up the issue at its next meeting, 6:35 p.m. Tuesday at City Hall, Sixth and Massachusetts streets.

6News reporter Jeff Golimowski contributed to this report.