|Posted:||January 30, 2019 04:02 PM|
|From:||Representative Barbara Gleim|
|To:||All House members|
|Subject:||Prevailing Wage Uniformity & Fairness (Previously HB1226)|
|I will be re-introducing legislation which will ensure uniformity and fairness with respect to all other taxpayer-funded projects currently subject to the Prevailing Wage Law. Under my bill, the prevailing wage threshold will be raised from $25,000 to $150,000 on any projects not already covered by the historic threshold increase embodied in the Act 89 of 2013 transportation bill.
Raising the prevailing wage threshold in a fair and uniform manner for all covered projects will avoid the unnecessary administrative complexity and expense imposed by a two-tiered threshold, while allowing school districts and municipal entities (and the property tax payers who fund them) to avail themselves of substantial savings and efficiency.
Numerous credible studies have shown that the use of prevailing wage rates generally raises the cost of public construction projects anywhere from 5% - 20%. As a result, many municipalities are struggling to keep costs down, keep property taxes under control and balance their budgets. During my time as a member of the Cumberland Valley School Board, our district paid approximately $300,000 for a simple concession stand with two restrooms, originally quoted at approximately $200,000, due to the restrictions within the Prevailing Wage Act. If these types of small projects were not subject to the stifling requirements under current law, districts would be able to consider new avenues, such as Vo-tech, Jr. ROTC, scouts and other groups, for completing small projects for real-life service projects.
This legislation would have an even greater impact on smaller schools within the Commonwealth.
Small projects that are not subject to cumbersome prevailing wage restrictions will also allow for new business and entrepreneurship to flourish within the workplace.
Please join me in co-sponsoring this legislation to restore prevailing wage uniformity and fairness.
Introduced as HB560