Unshackle Upstate and Associated Builders and Contractors Call on Legislators to Reject Flawed Prevailing Wage Expansion

February 13th, 2020

Albany, NY– Today, Unshackle Upstate and the Associated Builders and Contractors Empire State Chapter called on legislators to reject the latest prevailing wage proposal to expand New York’s prevailing wage onto private projects. In testimony provided to legislators during a joint legislative hearing on economic development, Unshackle Upstate and ABC highlighted their objections to efforts to expand prevailing wage and benefit mandates to private construction projects and outlined specific concerns with the proposal included in the governor’s Executive Budget.

“Expanding the state’s prevailing wage onto private projects would be a fatal blow to the Upstate economy,” said Michael Kracker, executive director of Unshackle Upstate. “This costly mandate drives up construction costs, limits job growth and hurts efforts to revitalize the Upstate economy. Even worse, the Executive Budget proposal irresponsibly favors New York City development – imposing greater negative impact on areas outside the five-boroughs, including Upstate New York.”

One of the most concerning aspects of the Executive Budget proposal is the creation of a Public Subsidy Board. This unelected group, which will be largely appoint by the Governor, will have the power to alter minimum threshold percentages and minimum public funding thresholds. These and additional measures will ultimately give the Public Subsidy Board the power to modify the expanded mandate without legislative approval.

Brian Sampson, President of Associated Builders and Contractors, Empire State Chapter, also voiced opposition to the expanded mandate, “The proposal to create yet another arbitrary board that has lawmaking power is unacceptable and will lead to widespread unpredictability. We have consistently pointed out that the various flawed proposals to expand prevailing will dramatically increase construction costs and result in less construction and fewer jobs in particular for minority owners and workers alike.  We need real solutions and predictability, not political gamesmanship.”

The proposed expansion of New York’s prevailing wage mandate would dramatically increase the cost of construction in communities across Upstate, meaning less development and fewer jobs. According to a 2017 report from the Empire Center, qualifying projects would see a 13-25 percent increase based on location.

For additional information on the harmful impacts of the Executive Budget proposal on prevailing wage, read testimony from Unshackle Upstate and Associated Builders and Contractors.