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Michigan Entered 2020 Stronger

… development tool. And the recent repeal of the prevailing wage law should help the state save money on valuable, … instead grow at 2.8%, or 40% faster. Repealing prevailing wage laws means that government-financed construction projects need not pay higher than market wages, which should drive down the cost of building more …

How Much Will the Repeal of Prevailing Wage Save Taxpayers in Michigan?

It’s complicated, but a reasonable estimate is in the hundreds of millions

… Michigan has repealed its prevailing wage law, the big question … $250 million. If the prevailing wage added 10 percent to the … is how much mandated union wages have added to the cost of public … example, showed that the prevailing wage law led to 16 percent … affected each year by the prevailing wage law. According to the …

Michigan’s Prevailing Wage Law Needs to Go

… landscapers and many, many more, the wages they might earn are set by … a 1965 law known as “prevailing wage,” where hyper-specific union wages are set for anyone doing public … critique of repealing prevailing wage laws is that it doesn’t … repeal of Michigan’s prevailing wage law, and the Secretary …

The Legislative Clock is Ticking

It’s time for free-market reformers to act

… achievements, legislative leaders must take advantage of the opportunities they have. There is no shortage of good ideas. The state could repeal the prevailing wage law, which inflates the cost of public works projects by tens of millions of dollars. We should craft a long-term solution for unfunded liabilities …

Stretch Taxpayer Dollars and Promote Equality in Government: Repeal the Prevailing Wage

… to repeal Michigan’s prevailing wage law submitted almost 400,000 … schools to pay union-scale wages. It also requires these companies … classifications and reporting. Prevailing wage artificially increases … estimates that “Michigan’s prevailing wage law has increased the … billion lower without prevailing wage, according the to report. …

Five Road Funding Principles

… infrastructure. A second principle is that reforming inefficient road building practices must be part of any road funding deal. Repealing the prevailing wage law is a modest start. Raising the standard of quality for publicly funded road construction is also crucial. Policymakers should also retain, …

What the New Legislature Should Stand For — And What It Should Not

… unfunded liabilities to future taxpayers. Make good on the previously violated promise for income tax relief. Save money by eliminating arbitrary prevailing wage laws. Stop the failed corporate welfare machine. Eliminate licensing and regulatory barriers that impede entrepreneurs. Enforce the right-to-work …

The 12 Fiscal Policy Days of Christmas

… $5.8 billion per year. Repeal Michigan’s prevailing wage statute. Prevailing wage statutes mandate higher than market wages on government-funded projects such as roads and …

Budget Reform Ideas for 2015 and Beyond

… budget by a whopping $500 million. Repeal prevailing wage. Savings: $250 million. Prevailing wage mandates higher than market wages be paid on all projects funded by the government …

Balance Increased Road Spending with Cuts

… following five suggestions are means to fill this gap: Repeal Michigan’s prevailing wage law: estimated savings, $107 million. This state law punishes taxpayers … government construction projects pay an artificially high, union-related “prevailing wage.” The dollar estimate provided here comes from a 2007 Mackinac Center …

Gas Tax and Fee Discussion Worth Having

… listed in our 2007 transportation study include repealing the state prevailing wage law and competitive contracting for road maintenance. Prevailing wage laws artificially raise the cost of government construction projects. …

Shouldn’t Enhancing Your Neighborhood Be Up to You?

… argument for leaving it to the private sector. In units with local prevailing wage laws, money may be wasted simply by paying union scale wages for the construction projects or by government escaping its proper limits.  …

Nation’s Highest Gas Tax Coming to Michigan?

… diverted to subsidize city buses, and some is wasted by mandating above-market wages on road projects through the state’s “prevailing wage” law. Another seven-eighths-of-a-cent-per-gallon tax originally intended …

How to Find and Eliminate Wasted State Money

… with county sheriffs' deputies who have lower wages and benefits. For private contracting to produce … This can occur through legal mechanisms like prevailing wage laws, or as a result of collective bargaining negotiations establishing higher wages and benefits. If Michigan public-sector benefits …

A Christmas Wish List for Michigan Policymakers

… would put public school teachers and state employees on the same plan. This could save hundreds of millions of dollars annually. Repeal the "prevailing wage" law. This insidious requirement increases the cost of everything the government builds, from bridges to schools, by hundreds of millions of dollars …

How to Save $2.2 Billion

… services, car-sharing and more. Savings: $112 million. Repeal the "prevailing wage" law that requires above-market rate wages be paid on school construction projects. Savings: $150 million. The Mackinac …

Tax Day Highlights Burden of State Government

… reforms and spending cuts. Yet adopting cost-saving reforms — from ending ineffective economic development programs to repealing the state's prevailing wage law — would be an economically healthier solution. Encouraging high-earners to flee the state and inviting the revenue yo-yo effect that's a characteristic …

My Union Dues Paid For That?

… ostensibly based on the suspicion that Buist was violating the state’s prevailing wage law. Ultimately, Local 445 filed an allegation of prevailing wage violation with the Department of Labor and Economic Growth. After a …

Michigan Needs Worker Freedom of Choice

… choice is not an option in the current Legislature, which will not even seriously consider repealing the state’s costly union subsidy called the Prevailing Wage Act. Gov. Jennifer Granholm has shown utterly no leadership on such issues. The state’s public sector unions flexed their considerable muscle …

Budget Savings Can Replace Recent Tax Hikes

… and slice $32.4 million (20 percent) from local bus subsidies. Close nine Secretary of State offices to save $4.7 million. Repeal the state prevailing wage law to save more than $90 million on infrastructure projects. These common sense frugalities will save $211.3 million. Achievable Government-Wide …

Tax Increases Harmful to Michigan’s Health

… self-defense, legislators are now talking about unspecified “reforms.” If policymakers are serious, they should begin by repealing the state’s prevailing wage law, which benefits a small segment of mostly well-paid workers on state government construction contracts while adding $250 million annually …

Governor and Legislature Appear Unable To Judge Priorities

… continue to tolerate a state prevailing wage policy that mandates that contractors pay union wages — typically 40 percent to 60 percent above market wages, according to a recent study … that the higher construction wages don’t improve construction … Legislature have retained the prevailing wage, rejected numerous proposed …

Sweet Home Alabama

… of Michigan’s strict prevailing wage law, which requires the payment of union wages on state-financed construction, … also be helpful. The prevailing wage adds 10 percent to the … the cost of government. Prevailing wage also costs jobs; Alabama, … not have a restrictive prevailing wage law, added 5,000 construction …

Paying More to Protect the Privileged

… specialty/technical workers by a substantial margin. Failing to repeal an outmoded "prevailing wage" law that requires above-market wages on school construction projects may make union bosses happy, but adds an …

Bigger Taxes or Smaller Government — Let the People Decide

… privatization, $150 million that could be realized by repealing the so-called "prevailing wage" law on school construction projects and millions more dollars that … have asked employees to share the burden and thousands have made painful wage and benefit concessions. So, do the same with school employees. Open the …

Road Funding: Time for a New Direction

… changing current practices that drain money from the Michigan Transportation Fund; and enacting common-sense efficiency reforms like repealing prevailing wage requirements, consolidating the multiplicity of road agencies, and privatizing more maintenance functions through competitive contracting. Whatever …

Doom for Whom?

… with the systemwide spur of competition yielding as much as $200 million a year in savings from current levels; Because the state repeals its "prevailing wage" law, which currently increases the cost of government construction projects by around $200 million a year; or Because the state finally implements …

How To Replace the SBT With Nothing (Viewpoint on Public Issues)

… for transit users at a much lower cost: $112 million. Repeal the "prevailing wage" law that requires above-market-rate wages on school construction projects: $150 million. Don’t send extra money to …

Michigan’s Russian Roulette

… secondary schools; governmental setting of minimum wages; a government-run retirement savings plan for workers; … business owners and less-skilled workers can set wages independent of job-killing "prevailing wages" and mandatory union bargaining laws. It …

Watkins Debacle Shows Need for Basic Education Reforms

… without raising taxes: Exempt public schools from Michigan’s archaic Prevailing Wage Act. Mackinac Center research suggests that forcing school districts to contract with only those construction firms that pay "prevailing wages" inflates school renovation and building costs by $150 million annually …

Michigan at the Crossroads

… should also sell the state’s conference center for state employees, cut corporate welfare and save schools at least $150 million annually through prevailing-wage reform. The Mackinac Center has identified more than $2 billion in specific budget-savings opportunities. Meanwhile, Gov. Granholm needs to reverse …

Why Are Mighigan's School Districts Borrowing More?

… that every year at least a hundred million dollars of it is wasted. The reason: The governor and Legislature won’t get rid of the archaic 1965 Prevailing Wage Act, which mandates inflated construction costs as a favor to organized labor. Ohio public schools have saved hundreds of millions of dollars …

The Granholm Administration: A Review of Year One

… state employee unions and successfully secured more than $200 million in wage and benefit concessions, a necessary move in light of generous state compensation … programs back and not eliminated or redesigned very many. Michigan’s Prevailing Wage Act, for example, forces schools annually to spend upwards of $150 …

The Headlee Amendment: Serving Michigan for 25 Years

… liposuction. The fat in the Michigan budget still includes a state-owned ski resort, a lodge reserved primarily for government employees, and the 1965 “prevailing wage” law that mandates millions of dollars of needless spending on construction projects as a sop to organized labor. Michiganians need to watch how …

A Way to Ease the Pain of Budget Cuts

… to repeal Michigan’s Prevailing Wage Law of 1965 — which would … dollars every year. The prevailing-wage law applies whenever state … law, workers must receive the wage typical of those doing similar … which pay their workers prevailing market wages. But because of the prevailing wage law, all workers must …

Gov. Granholm: Profile in Budget Courage

… flourish afterwards. Indeed, the arts as a whole are too important to be dependent upon politics. Savings: $24 million per year. Repeal the 1965 Prevailing Wage Act. As the Mackinac Center for Public Policy has documented in numerous analyses, Michigan public schools are forced to waste $150 million annually …

Bypassing Proposal A Through the “Sinking Fund” Gambit

… at a time when hundreds of millions of dollars in potential savings are already available. Following Ohio’s example by exempting schools from “prevailing wage” rules would save at least $150 million every year. Teacher health insurance—a market dominated by the Michigan Education Association’s costly …

Michigan's Prevailing Wage Law Forces Schools to Waste Money

… return of Michigan's Prevailing Wage Act, a piece of special-interest … that has a so-called prevailing wage law.  Passed in 1965, … funds must pay contractors wages that are "prevailing" in the area in which the … actual effect of the prevailing wage law is to allow unionized …

New Year's Resolutions for Michigan's New Legislature

… their members before spending their money on politics. Repeal the Prevailing Wage Act of 1965.   This antiquated piece of special-interest legislation … on all state-funded construction projects in effect be paid union-scale wages and benefits.  This ignores the competitive compensation packages established …

When "Local Control" Means Control of the Locals

… legal and legitimate product that criminals abuse? Passing local "prevailing-wage" and "living-wage" ordinances that confer special benefits on organized labor at the expense …

Michigan's Prevailing Wage Act: Will Common Sense Prevail?

… other states, has a "prevailing wage" law that effectively … projects. Michigan's Prevailing Wage Act of 1965 mandates that "prevailing rates of wages and fringe benefits" be paid … The framework of the prevailing wage law also reflects the …

Minimum Wage Causes Maximum Pain

… law America’s first minimum wage: 25 cents an hour, rising to … another hike in the minimum wage. Now is a good time to reexamine … the impetus for the minimum wage actually began. The working … quality product for lower wages. Politicians in Massachusetts, … political muscle eventually prevailed and the national law was …

Union Racial Discrimination is Alive and Well

… Davis-Bacon Act-which mandates that prevailing (union) wages be paid on all federal construction … Construction unions are cartels: they lift wages above what the free market would pay … firms to say who can be hired and what wage they can earn. Local governments have …

Let's Get Moving on the Roads

… higher diesel fuel tax. Repeal Prevailing Wage. Beginning in 1965, the state's Prevailing Wage statute required that workers … funds be paid inflated, union-scale wages and benefits. A federal district court … contracts up for bid without prevailing wage provisions, but the legislature …

The Most Expensive Lottery Tickets in the Country?

… pay its workers the "prevailing wage." Since "prevailing wage" means the wage rate paid to unionized workers, … that doesn't pay union-scale wages. Instead of shopping for the … Another exception is the "Prevailing Wage Act" of 1965, which says …

Send the Cash, Keep the Change

… teacher union, his principal purpose is to secure the highest possible wages and benefits for his members. His organization opposes parental choice, … mediocrity. Send the cash, keep the change. If that sort of thinking prevails, the children of our state will be the real losers.

The High Cost of Bad Law

… here in Michigan: the Prevailing Wage Act of 1965. It's a classic … those projects to be paid "prevailing" wages and benefits. That invariably … more than they do. The prevailing wage nonsense has come home … Kelley would like the Prevailing Wage Act applied to construction …

Prevailing Wage Act Harms the Poor

… the state's so-called Prevailing Wage Act, which mandates that … true average construction wages, be tacked onto the rates paid … Lansing, through the Prevailing Wage Act, take the hard earned … those in need, the state Prevailing Wage Act is simply a reverse … involved at all here. The Prevailing Wage Act deserves repeal. Short …

Michigan's Prevailing Wage Act: A Disaster for the Taxpayers

… which requires that the "prevailing wage" be paid to workers on … Labor decides is the "prevailing wage" for each type of work done. This prevailing wage is determined by taking a survey of wages paid for a type of work in … Michigan passed its own Prevailing Wage Act in 1965 providing …