GLASS Report: Legislative Action Alert: House Bill 2449: Regular Session 2013-2014

Text [History] [Votes]

Short Title: An Act amending the act of August 15, 1961 (P.L.987, No.442), known as the Pennsylvania Prevailing Wage Act, in definitions, further providing for the definition of "public body."

Prime Sponsor: Representative TOPPER

Last Action: Referred to LABOR AND INDUSTRY, Sept. 4, 2014 [House]

Memo: Prevailing Wage School Exemption

Printer's No.
4012*

MEMORANDUM

Posted: August 13, 2014 03:37 PM

From:   Representative Jesse Topper

To:       All House members

Subject: Prevailing Wage School Exemption

In the near future I intend to introduce legislation which would exempt Pennsylvania school districts (as well as any authority, instrumentality, or agency established by a school district) from the requirements of the Prevailing Wage Act.

The Prevailing Wage Act requires that all public bodies pay the prevailing minimum wage, as determined by the Secretary of Labor and Industry, to workmen on a “public works project”. A “public work” is defined in the Act as any construction, repair, demolition, or alteration paid for in whole (or in part) out of the funds of a public body where the total estimated cost exceeds $25,000.

Because school construction and renovation projects are so costly, school districts are hit particularly hard by the prevailing wage mandate.

A 2001 study by the Journal of Education Finance examining the effect of Pennsylvania’s prevailing wage law on school construction found that school districts paid 17% higher labor costs under the Prevailing Wage Act when compared with private sector wages for all labor classifications.

According to the Department of Education’s PlanCon documentation, Pennsylvania school districts spent over $7 billion on school construction and renovation projects that were bid between February 2000 and May 2010. If school districts were to save 10%-17% of the construction costs on these projects (as suggested by the aforementioned Journal of Education Finance study), school districts could have saved Pennsylvania taxpayers over $700 million on these projects alone.

To maximize the value of every taxpayer dollar, we must give our school districts flexibility to forego burdensome, outdated requirements so that they may keep costs down and balance their budgets.  Please join me in cosponsoring this important piece of legislation.