Victory for the Taxpayer in the Prevailing Wage Saga

Monday, the House Majority leader switched his vote to “no” so he could file a motion to reconsider the bill and the speaker closed the vote. The bill failed with a final vote 49 aye – 49 no and 2 absent.

The bill effectively would require that the highest wage paid in the county or district will always be the union wage. Small contractors cannot possibly pay union wages, so it favors big city union contractors.

According to House Minority Leader Kraig Paulson (R-Cedar Rapids), the 4 main objections to the bill are:

1. It will require local governments and schools to spend more money than necessary for infrastructure projects thereby increasing property taxes.
2. It risks putting family-owned contractors out of business.
3. The bill takes immediate effect for Linn and Johnson counties and really hurts those areas trying to rebuild. It’s estimated this could raise the cost of flood rebuilding by as much as 20%.
4. The state will have to add at least 17 new employees and spend over $1.4 million just to administer this law.

Though the motion to reconsider has been filed, it is unlikely the House Democrats will get the 51 votes needed to pass it. This weekend Representative McKinley Bailey (D-Webster City) went on TV committing himself to his “no” vote, and Representative Larry Merek (D-Riverside) promised constituents at town meetings that he would stand strong in his opposition to the bill.