THURSDAY, OCTOBER 20, 2005 NATION THE UNIVERSITY DAILY KANSAN SA CONGRESS Proposal to raise minimum wage rejected Senate denies Democrats' wish for $1.10 increase BY JIM ABRAMS THE ASSOCIATED PRESS WASHINGTON — The Senate on Wednesday defeated a proposal to raise the minimum wage, rejecting arguments by Democrats that the current floor, $5.15 an hour for the past eight years, was perpetuating poverty. The proposal by Sen. Edward Kennedy to raise the lowest wage by $1.10 over an 18-month period was defeated on a near-partyline vote of 51-47 vote. The Senate was also voting Wednesday on a Republican alternative that combined the same $1.10 increase with various breaks and exemptions for small businesses. It was expected to lose. Kennedy, D-Mass., said Hurricane Katrina demonstrated the depth of poverty in the country and he pointed out that a single parent with two children working a minimum wage earns $10,700 a year, $4,500 below the poverty line. He said it was "absolutely unconscionable" that in the same period that Congress has denied a minimum wage increase, lawmakers have voted themselves seven pay raises worth $28,000. But Republican opponents, echoing the arguments of business groups, said higher minimum wages can work against the poor if they force small businesses to cut payrolls or go out of business. "Mandated hikes in the minimum wage do not cure poverty and they clearly do not create jobs," said Sen. Mike Enzi, R-Wyo., who offered the Republican alternative. White House spokesman Scott McClellan, asked Wednesday about Kennedy's measure, said President Bush "believes that we should look at having a reasonable increase in the minimum wage. ... But we need to make sure that, as we do that, that it is not a step that hurts small business or prices people out of the job market." Enzi's proposal would provide tax and regulatory relief for small business, permit tips to be credited in complying with minimum wage hikes and expand "Mandated hikes in the minimum wage do not cure poverty and they clearly do not create jobs." It also would have put into law a "flex-time" system, opposed by organized labor as an assault on overtime pay, under which workers could work more in one week and take time off the next. the small business exemption from the Fair Labor Standards Act. Both proposals, amendments Mike Enzi Wyoming senator to a fiscal 2006 spending bill, needed 60 votes to pass. Kennedy, who has campaigned relentlessly for a minimum wage increase, picked up one vote from the 46 votes for a similar measure in March. On Tuesday he modified his proposal, which originally called for a $2.15 increase over 26 months, in hopes of attracting more Republicans. The first minimum wage of 25 cents an hour was enacted under President Roosevelt in 1938. Congress has since voted eight times to increase it, including under Republican presidents Eisenhower, Ford and George H.W. Bush. Congress approved the last increase in 1996, with the second stage, boosting the rate to $5.15, taking effect in 1997. Sixteen states and the District of Columbia have minimum wages higher than the national level, including Washington State at $7.35, according to the Labor Department. Twenty-six states are the same as the federal level; two — Ohio and Kansas — are below; and six do not have state laws. Also on Wednesday, Sens. Jack Reed, D-R.I., and Susan Collins, R-Maine, proposed adding $3.1 billion to the administration's $2 billion request this year for emergency heating assistance for low income families. "We're about see a second tidal surge from Katrina and Rita," with rising energy costs, Reed said. A vote could take place Thursday, with GOP leaders saying an emergency spending bill to be taken up soon was a better venue for the heating assistance debate. Two killed in California car accident A car sits on a sidewalk after an accident Wednesday in Vacaville, Calif. Two children were killed and 11 other people were injured Wednesday when a speeding car struck a parked car, and both vehicles carved onto a sidewalk near an elementary school, police said. Mike McCov/FAIRFIELD DAILY REPUBLIC CONGRESS BY SUZANNE GAMBOA THE ASSOCIATED PRESS Court orders DeLay to jail for booking Leader will surrender in home county if charged with a felonv Two DeLay, R-Texas, could be fingerprinted and photographed, although his lawyers had hoped to avoid this step. DeLay will surrender in his home county, near Houston, although his court appearance will be in Austin. AUSTIN, Texas — A Texas court Wednesday issued a warrant for Rep. Tom DeLay, ordering him to appear at the Fort Bend County jail for booking on state conspiracy and money laundering charges. The warrant, known as a capias, is "a matter of routine and bond will be posted," said DeLav's lawyer, Dick DeGuerin. The court set an initial $10,000 bail as a routine step before the Texas Republican's first court appearance Friday. DeLay has stepped down as U.S. House majority leader — at least temporarily — under a Republican rule requiring him to relinquish the post Two grand juries have charged DeLay and two political associates in an alleged scheme to violate state election law, by funneling corporate donations to candidates for the Texas Legislature. State law prohibits use of corporate donations to finance state campaigns, although the money can be used for administrative expenses. The indictments charge that a DeLay-founded Texas political committee sent corporate donations to the Republican National Committee in Washington, and the national party sent funds back to the state for 2002 campaigns. DeLay has denied wrongdoing and accused Travis County District Attorney Ronnie Earle — a Democrat — of having partisan motives. Earle has denied the accusation. The Republican fundraising in 2002 had major political consequences, allowing the GOP to take control of the Texas Legislature. The Legislature then redrew congressional boundaries according to a DeLay-inspired plan, took command of the state's U.S. House delegation and helped the GOP retain its House majority.