FOR IMMEDIATE RELEASE: June 19, 2017
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Analysis of studies cited by advocates of prevailing wage repeal highlights massive social costs
Madison: While critics of Wisconsin’s prevailing wage law have long claimed that repeal would save money by cutting the wages of blue-collar construction workers, a Midwest Economic Policy Institute (MEPI) analysis of two reports frequently cited to support the claims of prevailing wage critics shows that repeal could actually cost Wisconsin taxpayers over $300 million each year.
Read the Report, entitled “The Social Cost of Repealing Wisconsin’s Prevailing Wage Law” here.
For its study, MEPI examined how construction wage cuts would affect overall state tax revenues and reliance on five different government assistance programs utilizing the Wisconsin Taxpayers Alliance’s recent claim of a 44% cut, and a 2015 Wisconsin Legislative Fiscal Bureau analysis that suggested repeal of prevailing would reduce wages by 14.1%.
“If an entire segment of Wisconsin’s blue-collar workforce faced a wage cut of 14% to 44%, it would mean thousands more Wisconsin workers would be on government assistance, and Wisconsin’s state government would have significantly less tax revenue to pay for these benefits,” said MEPI Policy Director Frank Manzo IV. “Using the wage cut figures promised by the law’s critics, we can assess that prevailing wage repeal would impose a potential social cost to Wisconsin taxpayers of hundreds of millions of dollars each year—without producing any real savings in total project costs.” Continue reading “Prevailing Wage Repeal Could COST Wisconsin Taxpayers Over $300 Million Per Year”