18 Organizations Call on Governor Cuomo and the Legislature and to Reject Expansion of Prevailing Wage Mandate

March 13th, 2018

18 of the state’s leading pro-business and pro-taxpayer organizations sent a letter to Governor Cuomo and the Legislature today detailing their collective opposition to the expansion of New York’s prevailing wage mandate.

The letter, which can be viewed here, states that expanding the costly mandate to private development projects that receive some degree of public support would dramatically increase state spending and jeopardize economic development projects. This proposal would be especially detrimental to projects in Upstate communities that are already lagging behind downstate regions and the nation.

According to a 2017 report published by the Empire Center, New York’s prevailing wage mandate increases the costs of construction projects by as much as 25 percent.

“In the last decade, more than 98 percent of new jobs created in New York State are located in New York City and its surrounding communities. One of the chief reasons for Upstate’s continued economic stagnation are short-sighted and anti-competitive policies from Albany,” said Greg Biryla, executive director of Unshackle Upstate. “New York’s existing prevailing wage mandate increases the cost of public construction by 15-25 percent, fueling state spending and our highest-in-the-nation tax burden, and is in no way representative of actual regional ‘prevailing wages’ across the state. Expanding this cost-driving mandate to private development or changing the existing definition of ‘public work’ to include private projects is an affront to taxpayers and will stop any Upstate economic progress dead in its tracks that will further harm the Upstate economy.”

“It’s already difficult to make private construction projects affordable in New York. It’s why we spend over $8 billion a year on economic incentives. In a perfect world, they wouldn’t be needed,” said Brian Sampson, president of Associated Builders & Contractors. “We have some of the highest taxes, some of the most expensive energy rates and our fuel costs are growing. Why would any elected official think it’s a good idea to make construction more costly? Applying prevailing wage to certain private projects is bad policy that will lead to an abrupt decline in private construction in New York.”

In December 2017, leading organizations from the state’s business community called for reforms to New York State’s prevailing wage mandate to accurately reflect regional wages and make it more affordable for New York to meet its future infrastructure, transit and water needs.

Click here to view the letter in opposition to the expansion of prevailing wage.