For some reason, the Ohio House has amended a Senate Bill, SB 310, to get rid of a longstanding exemption to prevailing wage rules for “Transit Improvement Districts” – local areas targeted for infrastructure improvements.
The concept that is now needlessly under attack makes perfect sense. Prevailing wage drives up costs for local governments that are funding projects… so, don’t force them to pay inflated, non-competitive union wages. Voila, localities across the state can get the same projects funded, for far less money. This is a big win for taxpayers.
The states that maintain, and expand prevailing wage tend to have big, expensive governments, and taxpayers who are looking to flee. Take New York as an example. The Empire State continues to find ways to expand prevailing wage, and the result is a tax base that has fled and population loss.
The history of prevailing wage is also marred by racial discrimination, as unions sought to artificially block minority workers from competing with whites.
Ohioans already deal with a large number of local taxing jurisdictions. The existing prevailing wage exemption is a good measure of relief for local taxpayers. Instead of looking to trash it, Republicans in the legislature should look to eliminate prevailing wage. Eliminating this burdensome regulation is one thing Michigan beat Ohio on.
It is also cynical to throw this taxpayer-crushing measure into a coronavirus bill that aims to cut costs, and help Ohio get back on its feet. Increasing costs for local government only hurts recovery efforts, further burdening taxpayers at a terrible time.
The Senate should vote against concurrence so this costly measure can be removed.