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2/26/2014
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Morgan calls for more efficient state and local spending
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 STATE HOUSE Feb 26- Representative Morgan (R-District 26 – Coventry, Warwick, West Warwick) filed legislation to alleviate repair and replacement costs at the state and local level.
“At this moment, our cities and towns are under heavy financial strain. Every dollar must be stretched to cover more goods and services. Before the General Assembly is a bill to help struggling cities and towns at no cost to the state.” said Representative Morgan.
This year, the House Republican Caucus has focused on a number of key areas where Rhode Island consistently ranks poorly, in their “Getting to 25” Legislative Program. Rhode Island is an outlier on prevailing wages. There are 18 states without prevailing wage laws and mandates. Of all the listed threshold amounts, Rhode Island and California tied with the lowest set prevailing wage limit, $1,000. The average prevailing wage threshold is $70,000, much higher than Rhode Island’s paltry $1,000 threshold.
According to state law, any publicly funded state or municipal project for construction or repair above $1,000 must incorporate prevailing wages into contract rates. Prevailing wages are regulated by the state and set a minimum base wage rate for every construction position. For example, a group 1 building construction laborer will received $27.55 per hour with $22.45 in fringe benefits. A basic laborer in this category cannot cost less than $50 per hour if prevailing wages are required.
The prevailing wage law was passed in 1935 and the threshold amount was enacted in 1955 but has never been changed to reflect current costs. “Imagine if we never changed minimum wages since 1955. Today, construction costs are much higher; $1,000 wouldn’t cover a basic kitchen remodeling job.” Initially, the General Legislature understood that small projects should not be required to bid at prevailing wage. “Unfortunately, this threshold amount has never been changed to reflect inflation and higher construction costs. RI’s minimum wage was $0.90 in 1956 and increased 26 times.” said Morgan. “My bill will increase the small $1,000 limit to $100,000.”
“There are small projects in our cities and towns that aren’t being done because there is little money and costs are high. We’re talking basic repair of sidewalks, public fixtures, light poles, and brick work. Small preventative measure projects can be implemented cheaply to prevent large future repair expenses.”
Increasing the prevailing wage threshold ceiling will help lower repair and replacement costs for our cities and towns. Both Ohio and Michigan temporarily changed prevailing wage requirements and saved 10-16% of project costs.
My district, West Warwick, is under large financial strain and spends over $300,000 in small projects annually. The town could save at least $30,000 to $40,000 every year in costs. “With high property taxes and a tight budget, we need to find areas to save money.”
“Our municipalities can’t complete small jobs at reasonable prices. As consumers, we must spend smart and shop around for products and services. At the municipal level, state law prevents shopping around for the best price. It’s your tax money-let’s ensure it’s spent wisely.”
For more information, contact:
Jeffrey Robert, House Minority Office
State House Room 106
Providence, RI 02903
(401) 222-2259
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