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Navigating the Minimum Wage Increase: Impact, Budget Adjustments, and Funding Options

This article explains the implications of the minimum wage increase, including its impact on employee benefits and requirements. It provides insights on federal and state taxes, FDIC, medical, retirement, and union considerations. The article also discusses the budget breakdown for libraries, staffing costs, potential barriers, and strategies to afford the increase, such as debt payoff, maintenance adjustments, workflow realignment, and fundraising.

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Navigating the Minimum Wage Increase: Impact, Budget Adjustments, and Funding Options

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  1. By the Numbers: Explaining the Minimum Wage Increase Ryan A. Franklin Illinois State Library Michael Baumann Toulon Public Library

  2. Employee Portion Employee Benefits and Requirements • Federal Tax • State Tax • FDIC • Medical • Retirement • Union • etc

  3. Employer Portion * State unemployment rate various by business type, how long in business, number of employees, etc.

  4. Current Employee Example

  5. Current Staff Example

  6. $15 per hour by 2025 • Lifting Up American Working Families Act • Signed by Governor Pritzker 2.19.19 • SB-0001 • PA 101-0001

  7. Minimum Wage Outlook $7978.76 Increase in staffing budget

  8. Increase Across Staff $35,626.37 Increase in staffing over 6 years *Assumes retirement and medical benefits stay constant

  9. Equal Wage Increase Across Staff $52,081.38 Increase in staffing over 6 years *Assumes retirement and medical benefits stay constant

  10. Equal % Increase Across Staff $77,238.17 Increase in staffing over 6 years *Assumes retirement and medical benefits stay constant

  11. “Standard” Library Budget Breakdowns • 70% Staffing • 45% Salary • 25% Benefits • 12% Collection • 18% Everything Else • Example $100,000 • $70,000 Staff • $12,000 Collection • $18,000 Everything Else • Example $500,000 • $350,000 Staff • $60,000 Collection • $90,000 Everything Else *% from Standards for Illinois Libraries 3.0

  12. Standard Library Budget Increase 0-5% per year Minimum Wage Increase 6-12% per year

  13. Barriers in increasing the Library Budget • PTELL/Tax Caps • Referenda • Elections • Public Outcry

  14. How to Afford the increase • Payoff longstanding debt • Building maintenance • New Structures • Put off big projects • New structures • Department updating • Realign budget percentages • Put of long term maintenance • Lower collection budget • Decrease in programs or program spending • Realign workflow • Decrease staff and/or staff hours • Remove/lower benefits • Add more self service • Decrease service desks • Adjust Hours • Longer hours in winter, shorter in summer (or vice versa) • Permanent change in hours to shorter days, or fewer days open (pushes against current standards or various rules) • Other • Climatic changes in building • Decrease services • Increase or introduce fess for certain services • MASSIVE FUNDRAISING

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