Charlie Sykes: Sykes Writes

THE FALLOUT FROM "GAL GATE"

By Charlie Sykes

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Interesting report from the MacIver Institute:

As the Assembly Speaker deals with the fall out from revelations he has ‘dated’ a registered lobbyist for the payday lending industry (or as he said ’a gal’) look for Wisconsin businesses and our economy to bear the burden of any of his alleged personal indiscretions.

That some of the more liberal members of the Assembly caucus have been concerned with Sheridan’s tepid support for many of the anti-business planks of their agenda is well known in and around the Capitol. In fact, the much-reported lengthy caucus which took place last week centered on more than just Sheridan’s perceived reluctance to advance new regulations on the payday loan industry and included the airing of grievances on multiple issues. ...

Either way, look for the State Assembly to appease their labor union base during this turmoil and take up and pass three key pieces of legislation whose fates had otherwise been uncertain prior to “Gal Gate.”

*Wage Lien -  Establish the priority of a wage lien over the pre-existing lien of commercial lenders. This would remove the current $3,000 cap in the state’s wage claim lien law (already the most generous in the nation). This would make it impossible for a lender to calculate how much of a business’ collateral can be pledged against a line of credit or other loan. This severely hampers businesses’ access to credit at a time when we need businesses to expand and provide more jobs.

*Minimum Wage  - Increase the state minimum wage from $6.50 per hour to $7.60 per hour and indexes the rate as of June 1, 2009. In addition, the bill repeals the state preemption of local living wage ordinances in Wisconsin. Making it more expensive to create entry level jobs will prolong Wisconsin’s participation in the current economic crisis.

*Mental Health Parity - Require all group health plans to provide mental health and substance abuse disorder benefits at the same level as benefits for physical conditions. This would make it more expensive to employ any and every person, if the employer provides medical health benefits. Employers will either stop providing the benefits, or employ fewer people as they absorb this new cost.

All three of these bills have passed the State Senate and are awaiting action by the State Assembly. Out of necessity, if not out of conviction, look for the Assembly Democratic leadership to now move on these in the near future.