With the start of the new legislative session, like clockwork, House Democrats are back again supporting measures to make life more expensive for you, the Pennsylvania taxpayer.
The Pennsylvania House Labor and Industry Committee voted to advance House Bill 846, which seeks to expand the current PA Prevailing Wage Act. Put simply, prevailing wage is the minimum hourly wages, benefits, and overtime paid to workers on government-standardized public works projects. As state policymakers consider expanding these standards, it’s important to examine the potential economic and practical drawbacks. While drafted with positive intentions, these legislative mandates unintentionally undermine the very communities they aim to support by limiting competition and driving up costs.
This week, the inflation rate decreased significantly, reading at 2.3%, the lowest we’ve seen in the last four years. Given this news, Harrisburg should be making every effort to ensure that we continue to make life less expensive for our commonwealth’s residents. Instead: what we saw was a renewed call from House Democrats to make public projects more expensive—and taxpayers are footing the bill.
How does expanding prevailing wage law make life more expensive?
First, prevailing wage laws often inflate project costs by requiring contractors to pay artificially set wages, regardless of market conditions, restricting how far taxpayer dollars can stretch and resulting in fewer schools, roads, and public works projects that get built. These laws can also disempower small, locally owned businesses. By favoring larger, union-affiliated firms that can absorb compliance costs, prevailing wage rules reduce access for entrepreneurial contractors trying to grow from the ground up.
Additionally, the regulatory burden placed on businesses is another obstacle. Small businesses must navigate layers of paperwork and wage reporting just to qualify for public work. This process diverts time and energy from hiring, training, and innovation. Finally, in many cases the prevailing wage rates themselves are outdated or misaligned with real market conditions. Rather than reflecting local supply and demand, they are often set through hard to calculate, top-down processes that often distort wages and reduce flexibility.
Republican Labor & Industry Committee Chair Seth Grove shared, ““Pennsylvania’s outdated prevailing wage law drives up costs and adds unnecessary red tape, reducing the value taxpayers receive for their hard-earned dollars. By artificially inflating the cost of publicly funded projects by as much as 30%, this archaic law means fewer roads get repaired and new schools come with a higher price tag. Meanwhile, taxpayers are left shouldering the burden through rising income and property taxes. Rather than modernizing or repealing this costly mandate, House Democrats are doubling down on the same failed big-government approach by expanding it even further.”
Now is NOT the time for Harrisburg to make life more expensive for the taxpayer. After four years of reckless spending and record-high inflation, we need to protect against policies that drive up the cost of goods and services at the expense of the taxpayer.
Take action today. Tell House Democrats: stop making life more expensive and make sure that House Bill 846 stays far away from the House calendar! Head to americansforprosperity.org, sign your name here, and send a message to your representation in Harrisburg.
This is Emily Greene, State Director with Americans for Prosperity-PA.