A local state rep’s bill that could save rural school districts money on construction costs has made it out of a House committee.
Marilyn Ruestman, R-Joplin, has introduced the school construction act which exempts the construction and maintenance work done for a school from the prevailing hourly wage rate requirement, except in counties with a charter form of government, upon the approval of the school board. Under the bill, should a district exempt itself, it must notify the Department of Labor and Industrial Relations’ division of labor standards.
Supporters say the bill will reduce the cost of school facility construction by 15 to 40 percent.
“Prevailing wage forces contractors to present costly paperwork and huge bid bonds,” Ruestman said. “Local contractors cannot, or will not, make that initial expense without a fair chance of winning the contract.”
This forces districts to go with non-local contractors, Ruestman indicated, and funnels local tax dollars out of the area economy.
The measure, if passed, would have other benefits as well, the state rep said.
“A smaller bond issue is also more likely to pass a vote of the people,” she said.
Ruestman mentioned many local districts have had to run school bond issues four to nine times before the issue meets voter approval.
Ruestman said 20 states either don’t have a prevailing wage law, or have repealed such laws. She added only 19 states have a prevailing law, with 11 excluding certain projects such as schools and transportation.
Several local school district officials have spoken recently to the House “do pass” panel in favor of the HB 1960, including Dr. Richard Page, Neosho R-5 Superintendent of Schools, and Sammy Helm, a member of the McDonald County R-1 Board of Education.
Others who have testified in favor of the proposal included Larry Snyder of Snyder Construction, Mike Reid of the Missouri School Boards Association, Rep. Maynard Wallace (R-Thornfield), Brian Blankenship, business manager of Branson Public Schools, Jim Kistler of the Association of Builders and Contractors, and Nathan Dampf of Associated Industries of Missouri.
Opponents say local contractors often fail to report required local wage rates, resulting in artificially high prevailing wage rates. They add the existing law prevents non-Missouri contractors from using unskilled labor at a low pay rate to unfairly win public construction contracts and that voluntary reporting of wage rates contributes to non-participation by local contractors.
Speaking against the measure were the Missouri AFL-CIO, Gary Kent of the Greater Kansas City Building and Construction Trade Council, the Plumbers and Pipefitters Local #562, Missouri
National Education Association, United Steelworkers District 11, and American Federation of Teachers Missouri.
“Some argue that the quality of construction will diminish,” Ruestman said. “This does not take into account the numerous inspectors that watch the job throughout construction. Professional architects design these jobs with safety and quality in mind [and] contractors are bonded.”
The measure has been referred to the House’s rules committee.
