Proposed legislation that would offer subsidies to companies the state contracts with if those companies hire Michigan-based workers would increase costs, Fiscal Policy Director Michael LaFaive told WEYI-TV25.

“We know that prevailing wage adds 15 percent to 20 percent to the cost of constructing new school buildings, for instance,” LaFaive said.

While LaFaive thinks such a law would increase unemployment in Michigan, he does see some bright spots that can help the state’s economy rebound, including these specific policies Gov. Rick Snyder is pursuing.

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