MIDDLETOWN — Newtown officials offered constructive comments along with members of the local legislative delegation at a public hearing in Middletown Tuesday, February 24, urging lawmakers in Hartford to grant municipalities relief from having to hire workers under a nearly quarter-century-old threshold that mandates prevailing wage consideration on most large municipal or state subsidized construction projects.

With increasing concerns about unfunded state mandates, the recent escalation of unemployment costs, and budget constraints on local and state levels, Representatives Mitch Bolinsky and J.P. Sredzinski testified in support of state prevailing wage reform. They were joined by Newtown Legislative Council member Ryan Knapp, who was speaking on behalf of the town, and First Selectman Pat Llodra, who had to attend a local budget hearing that evening, but submitted written remarks.

According to a release from Rep Sredzinski, the legislation HB-6650, An Act Increasing the Threshold Amounts Requiring Public Works Projects to Abide by the Prevailing Wage Laws, would provide immediate local tax relief and assist to facilitate public works projects by increasing the current threshold amounts to $1 million that determine when public works projects must abide by prevailing wage laws.

In a packed and often raucous Middletown City Hall Council Chambers, Rep Sredzinski testified in front of the Labor and Public Employees Committee.

“Let’s be clear, I am not against fair wages, I am simply asking for a common sense change which will permit our municipalities to have some much needed relief,” he said. “The bill I proposed would decrease the cost to taxpayers while continuing the important school renovation projects and improvements to infrastructure that our towns need.”

Rep Bolinsky also testified on the need for prevailing wage reform and proposed a bill to double the prevailing wage thresholds.

“The goal of this proposal is to make an inflationary adjustment to prevailing wage thresholds, allowing towns to properly value needed projects on an ‘apples to apples’ basis,” Rep Bolinsky said. “Coincidently, at year-end 2014, the US Bureau of Labor Statistics’ Consumer Price Index [CPI] rose to 236.7 and is now exactly 100 basis points greater than when the last [prevailing wage] threshold calibration was made, in 1991, when CPI was 136.2. It’s time to use real numbers that make sense for the town.”

Escalating Construction Costs

Prevailing wage is a higher, state-regulated cost applied to construction or remodeling efforts of any public building, such as schools and town halls. Under this law, the cost of construction increases by nearly a third of what the original estimated cost would be.

As an example, a project estimated to cost taxpayers $1 million will end up costing $1.3 million because of prevailing wages. 

Currently, under the Connecticut General Statues, prevailing wage legislation applies to each contract for the construction, remodeling, refinishing, refurbishing, rehabilitation, alteration, or repair of any public works project by the state or its agents, or by any political subdivision of the state. 

Additionally, Rep Bolinsky testified on HB 6250, An Act Concerning Private Contributions to Public Works Projects and the Prevailing Wage Standard, which would encourage and reward private, charitable investment in projects where a benefactor or benefactress seeks to “give back” to a community.

The Newtown lawmaker highlighted Newtown’s own “town benefactress” Mary Elizabeth Hawley, whose generosity and love the town in the 1920s and early 1930s resulted in bequests of Edmond Town Hall, The C.H. Booth Memorial Library, Hawley School, Newtown Community Cemetery, Hawley Pond, and Hawley Bridge.

The proposal would exempt such philanthropically funded projects from the calculation used to determine whether a public works project must abide by prevailing wage laws permitting people like Mary Elizabeth Hawley to play a role in guiding such projects forward.

Mrs Llodra told The Bee via e-mail that local officials have made a concerted effort this year to re-engage both town staffers and local officials in the legislative process as much as possible to try to influence certain bills or regulations of concern.

“I have had longstanding concerns about the prevailing wage thresholds and the absence of consideration for volunteer organizations in public service or public safety,” Mrs Llodra said. “Ryan Knapp of the Legislative Council is representing me and Newtown. Ryan has expressed interest in this topic and I am very pleased to have him step forward.”

Combative Atmosphere

Contacted following the hearing, Mr Ryan said the atmosphere at the hearing was combative, with a lot of emotion, raised voices, and even a few whispered threats being directed toward some of those testifying in favor of the rollback or repeal of prevailing wage standards.

Mr Ryan said, as an engineer who has worked on public projects, he was able to add his front line perspective to Mrs Llodra’s written comments.

The first selectman pointed out that in 1991 the most recent thresholds were set at $100,000 for renovation and $400,000 for new construction. Since then, she stated that the legislature has failed to take action, despite repeated pleas of municipalities for some relief from the unreasonable burdens created by a standard that has no relevance to today’s economy. 

Mrs Llodra indicated that the reality for Newtown is:

*Typical projects have 40 percent cost for labor and 60 percent cost for materials;

*Labor costs under prevailing wage rules can increase by about 50 percent;

*A project with those conditions, “priced” at $500,000, ends up costing $600,000.

“This is a situation we are confronting right now — as we struggle to find resources to complete a critical project for our Fairfield Hills campus,” she said in her statement. “That particular project may well have to be scrapped. The additional cost of $100,000 is just too much to bear.”

Mrs Llodra said every dollar that increases the cost of a project, but not its value, is an unfair burden placed directly on the backs of local taxpayers.

“Those additional costs for labor are not justifiable,” she added, “there is no evidence of value added, and are creating a condition in our community in which important projects are being derailed, delayed, or denied.”