The Kentucky Opportunity Coalition has issued the following press release:
The Kentucky Opportunity Coalition calls for the Kentucky General Assembly to permanently repeal the prevailing wage provision on education projects. The special session has made the issue of school facility conditions a priority facing the Commonwealth. The Kentucky House of Representatives passed H.B. 2 which included almost $1.3 billion for education facilities, most of which will be used to rehabilitate or replace all of Kentucky's Category 5 schools, Category 4 schools that might be reclassified as Category 5 and to aid overcrowded schools.
"The Coalition firmly believes that we must invest in our children's future by investing in these schools," stated Kristen Webb Hill, Chair of the Kentucky Opportunity Coalition. "In order to do what's best for our students during these tough economic times, we should maximize those dollars instead of diverting one penny of these resources toward artificially inflated wages."
The Kentucky Legislative Research Commission (LRC) has reported that the wage portion of prevailing wage projects is more than 20% higher than if area market-based wages were utilized. That translates into an estimated 10% of total project costs that are underutilized due to the prevailing wage requirement.
"If we are going to make the commitment, let's maximize our investment dollar," said James E. Milliman, the Coalition's vice-chairman. "Instead of potentially directing nearly $130 million toward artificially inflated wages, let's invest that money in the next generation of Kentucky's minds."
The LRC report also revealed that 95% of school district respondents said that prevailing wage requirements increase the cost of construction while only 4% said that the prevailing wage enhanced the quality of construction.
"If we want economic stimulus, we must create opportunities for small businesses to compete," said Milliman. "Research shows that the prevailing wage requirement makes it hard for smaller businesses to bid on these projects."
The LRC report stated that, “If the prevailing wages for the area are higher than the wages being paid in the area, it might reduce local contractors’ ability to compete for public projects in the locality.”
"The Coalition firmly believes that we must invest in our children's future by investing in these schools," stated Kristen Webb Hill, Chair of the Kentucky Opportunity Coalition. "In order to do what's best for our students during these tough economic times, we should maximize those dollars instead of diverting one penny of these resources toward artificially inflated wages."
The Kentucky Legislative Research Commission (LRC) has reported that the wage portion of prevailing wage projects is more than 20% higher than if area market-based wages were utilized. That translates into an estimated 10% of total project costs that are underutilized due to the prevailing wage requirement.
"If we are going to make the commitment, let's maximize our investment dollar," said James E. Milliman, the Coalition's vice-chairman. "Instead of potentially directing nearly $130 million toward artificially inflated wages, let's invest that money in the next generation of Kentucky's minds."
The LRC report also revealed that 95% of school district respondents said that prevailing wage requirements increase the cost of construction while only 4% said that the prevailing wage enhanced the quality of construction.
"If we want economic stimulus, we must create opportunities for small businesses to compete," said Milliman. "Research shows that the prevailing wage requirement makes it hard for smaller businesses to bid on these projects."
The LRC report stated that, “If the prevailing wages for the area are higher than the wages being paid in the area, it might reduce local contractors’ ability to compete for public projects in the locality.”
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