Matt Paprocki: Amendment 1 spells trouble for Illinois business owners

Illinois now knows its gubernatorial candidates for the upcoming November election, but voters might not know about another question on the ballot that threatens to impact businesses across the state.

Amendment 1, referred to as the "Workers' Rights Amendment," is a proposed change to the Illinois Constitution up for passage via referendum on Election Day, Nov. 8. The amendment would place a financial burden on Illinois business owners and change the operational landscape for many by giving government unions more power than any other state has granted.

How would that power look to business owners? Imagine a college student fresh out of finals and home for the summer. She starts her own small business mowing lawns for neighbors to make money to save for next year's tuition. Business is going well, so the student hires two friends to mow part time for the business.

But if Amendment 1 passes, the college student would receive a letter from the state demanding that she pay new business taxes that total more than the business makes in the three months of summer. In addition, her two part-time buddies now have the right to unionize, which means she would need to hire a labor lawyer to represent her in negotiations, costing even more money. Instead of focusing on saving up for school and managing the business' day-to-day operations, the student's energy shifts to managing the complicated, costly and potentially business-shuttering effects of this complex legislation.

Talk about a waste of time and money.

What's worse, the additional taxes and regulations will prevent the expansion of new jobs and stifle entrepreneurial growth.

Why would Amendment 1 result in these changes?

If the amendment passes, government unions would have an expanded right to negotiate virtually any "economic welfare" issue, emboldening them to demand provisions related to affordable housing or defunding the police. Negotiations would happen behind closed doors. Government unions would have a permanent right to strike, practically obligating government officials to acquiesce to the unions and fund their demands. What's more, those union contracts would be able to trump state law.

In turn, Illinois' business owners and other taxpayers would see more tax hikes on top of the $5.24 billion in extra taxes and fees they have paid since Gov. J.B. Pritzker took office. The amendment is expected to cost the average Illinois family at least $2,149 more in property taxes during the next four years. Any potential reforms to save taxpayers money or improve Illinois' business climate might also become unlikely.

In other words, it's not worth the risk.

How much more Illinois business owners would pay remains an open question, given that other fees for business owners - and a great deal of lost time - could result from the amendment's broad language.

Amendment 1 opens the door to costly and time-consuming lawsuits, as private-sector entities - already covered by federal collective bargaining regulations - try to decipher which law applies when. Following the tax hikes and economic effects of the past four years, business owners can't afford any more unnecessary and detrimental costs or hurdles.

As the lifeblood of employment in the state and nation, business owners have a powerful voice and vested interest in Illinois' future. Only a strong alliance of entrepreneurs from across the state can protect Illinois and its business community from the intended and unintended consequences of Amendment 1.

Businesses that do not learn more about the amendment before Election Day risk wasting money, time and the future of their state. Not good for the bottom line.

• Matt Paprocki is the president of the Illinois Policy Institute, a nonpartisan research organization.