MEMORANDUM Representative Ron Hood 78th House District Representative Bill Dean 74th House District TO: FROM: DATE: RE: All House Members Representatives Ron Hood and Bill Dean January 15, 2020 Co-Sponsor Request: Ohio Prevailing Wage Repeal Act We will soon be introducing legislation that will completely liberate Ohio from our onerous and archaic prevailing wage law. Undoubtedly, this will help our fiscally constrained local governments save valuable resources. Prevailing wage is a bureaucratically developed rate based on union wages from various geographic regions of the state. Ohio's prevailing wage laws force state and local governments to pay above market wages on major construction projects. Ohio's own experience proves that repeal would lower government costs. In 1997, to help Ohio's schools, the Ohio General Assembly exempted school construction and renovation projects from the state prevailing wage law. The Legislative Service Commission studied the impact of the exemption of school construction and renovation projects, and found that Ohio schools saved $487.9 million, which was 10.7% of construction spending. As an example, a Fire Chief in my district contacted me regarding his department’s financial difficulties funding the construction of a new fire station. This was due to the State prevailing wage laws increasing the cost of his construction project by over 30%. The prevailing wage laws are sometimes the difference between getting a project done and not doing it at all. This is especially true for our more rural and economically depressed areas. Eliminating Ohio’s prevailing wage laws would not only help individuals like my local Fire Chief, but local governments across Ohio fund construction projects in an age in which local governments are struggling with the funding levels they currently have. Eliminating Ohio's prevailing wage will also help contractors who were previously discouraged from bidding on government projects because they were unable to absorb the higher costs associated with prevailing wage laws (including minority-owned contracting companies and small businesses). Thus, leveling the playing field for all contractors, increasing competition, and ensuring our taxpayers are getting a fair deal for their investment into our communities. Just as we were able to provide relief for our Ohio schools in 1997, we now have the chance to help our local fire, police, and all Ohio government entities get more out of their tax dollars and improve opportunities for all contractors. If you would like to co-sponsor this legislation, please contact either Robert Knisley at (614) 466-1464 or robert.knisley@ohiohouse.gov or Emily Swedberg at (614) 466-1470 or emily.swedberg@ohiohouse.gov. The deadline for cosponsoring this legislation is January 29, 2020 at 5:00PM. Thank you for your consideration, Ron Hood State Representative 78th House District Bill Dean State Representative 74th House District