Unshackle Upstate and Partners Urge Lawmakers to Hold Hearings on Proposed Prevailing Wage Expansion
June 13th, 2019
ALBANY, NY – With less than one week remaining in the 2019 legislative session, Unshackle Upstate and its partner organizations are urging the Legislature to support inclusive and transparent discussions on potential prevailing wage legislation. Given the significant impact this proposal will have on the state’s economy, particularly Upstate, stakeholders deserve the opportunity to voice their concerns to lawmakers in hearings across the state.
“The proposed expansion of prevailing wage mandates on private development would be a killer for economic development efforts across Upstate New York. In a region already struggling with anemic job growth and continued outmigration, this added economic burden could be the final straw for many Upstate communities,” said Michael Kracker, executive director at Unshackle Upstate. “Given the potential consequences of this proposal, lawmakers should reject eleventh hour, closed door negotiations. Instead, they should provide opportunities for all stakeholders to share their legitimate concerns about this costly proposal. Our leaders in Albany, especially those representing Upstate, should demand their constituents have the chance to be heard on this critical issue.”
Prominent business leaders from across Upstate New York sounded the alarm about the negative impacts of the proposed legislation.
“Due to the high cost of taxes in this state, every major project in the Southern Tier requires some level of incentives to assist developers – most of them locally owned and locally employing labor to build them – to get started,” said Jennifer Conway, president and CEO of the Greater Binghamton Chamber of Commerce. “With the proposed expansion of prevailing wage, most of these projects would not happen due to increasing the cost of labor upwards to 30 percent. We need the Legislature to look at the big picture, not just union interests.”
“Thanks to Governor Cuomo’s leadership, Upstate New York has seen billions of dollars in economic development and investment. The language being proposed would prove detrimental for Upstate, effectively negating the benefit of existing incentives,” said Bob Duffy, president and CEO of the Greater Rochester Chamber of Commerce. “This is not a one-size-fits-all issue. Lawmakers, labor, and developers should sit together and hold public hearings to ensure that the final language benefits all parties. We would look forward to helping facilitate such meetings in the Finger Lakes region.”
“Expanding New York’s prevailing wage mandate to private projects will stall Buffalo Niagara’s momentum and stymie progress and job creation throughout Upstate. Given Upstate’s anemic business climate, most private development does not materialize without some form of public support,” said Dottie Gallagher, president and CEO of the Buffalo Niagara Partnership. “Attaching prevailing wages to these projects will raise construction costs by as much as 20 percent in Buffalo Niagara. Most of these projects can already be described as break-even and a drastic increase in total project costs will dramatically overtake the value of any incentive, turning the whole project financially upside down. Expanding prevailing wage will be a death blow to private investment in Buffalo Niagara and a significant step backwards for the revitalization of the region.”
“Everyone can understand wanting people to earn more money, but in regions like the North Country, construction employment is at risk of going down if projects that are already struggling to be viable are faced with mandates that keep them from happening,” said Garry Douglas, president of the North Country Chamber of Commerce. “The stakes are so high, we encourage great care, including delay until further examination of the real impact in areas like ours can be fully carried out.”
“Requiring prevailing wage on private projects will do nothing but stymie job growth across the entire state and stall all hopes of a more vibrant economy in New York State,” said Brian Sampson, president of the Associated Builders and Contractors Empire State Chapter. “Expanding this expensive mandate means fewer jobs and higher project costs. We shouldn’t be making New York more expensive. In fact, taxpayers are already pay a high price for so many unnecessary rules, regulations and laws, they don’t need to be responsible to bailout underfunded pensions which is exactly what supporters of this bill want but aren’t willing to admit.”
The proposed expansion of prevailing wage mandates would dramatically increase the cost of construction in communities across Upstate, meaning less development and fewer jobs. According to a report from the Empire Center, these mandates would increase construction as much as 25% conservatively in areas across the state.