NEW GLARUS - The Village of New Glarus passed a resolution April 7, opposing a proposed change to Wisconsin's prevailing wage law.
In his proposed biennial budget proposal, Wisconsin Governor Jim Doyle is recommending lowering the threshold for local and state public works projects subject to the prevailing wage rate to $2,000, and eliminating the annual threshold adjustments that reflect changes in construction costs.
The Governor is also proposing to establish a prevailing wage law for publicly funded private construction projects, with the same $2,000 threshold.
The changes and definitions have put municipalities at odds with unions.
According to the League of Wisconsin Municipalities, an organization that represents 577 villages and cities, the new law would make economic development more expensive and threaten to turn away corporations from the state. Municipalities are also questioning how the bill will affect their revolving loan programs for homeowners and businesses.
Supporters, however, say residents would benefit from taxpayer-financed projects, if it's going to raise the wages of employees in their communities.
A publicly funded private construction project would be defined as "a construction project, other than a project of public works, that receives financial assistance from a local government unit."
Financial assistance would be defined as any grant, cooperative agreement, loan, certain contracts, or "any other arrangement" a local government would want to make to provide, or make available, assistance. Assistance would include funding, transfer or lease of real or personal property for less than fair market value, proceeds from such a transfer or lease, a redevelopment contract, economic development agreement, revenue agreement or any assistance under specific municipal law.
Opponents of the prevailing wage law changes are asking the bill be taken out of the budget and considered separately.
The prevailing wage law is just one of a number of items in the budget which do not add to or reduce the state's finances, according to Wisconsin Taxpayers Alliance.
Currently, prevailing wages, set by the state Department of Workforce Development, apply to projects costing more than $48,000 if one trade is involved and $234,000 if numerous trades are involved.
Doyle's budget bill for 2009 to 2011 was introduced February 18.
New Glarus is just one of the municipalities recently attempting to have the changes stricken, a move backed by the League of Wisconsin Municipalities.
Other municipalities are attempting to knock down the changes, including Little Chute, Town of Dellona in Sauk County, and Platteville.
A coalition of business groups and municipal associations have also joined the campaign with League of Municipalities.
The coalition is made up of construction, economic development, small business and local government organizations, including the Wisconsin Manufacturers and Commerce.
New Glarus' resolution is based on a template prepared by the assistant director of the League of Wisconsin Municipalities, Curt Witynski.
The City of Monroe Common Council was poised to vote on a similar resolution April 8, but City Attorney Rex Ewald told members of the Common Council that the wording of the resolution didn't track the proposed changes, and asked that the resolution vote be postponed.
Other proposals in the budget with no monetary purpose include three years of high school math and science to graduate, union rights for university faculty, a statewide smoking ban and domestic partner coverage for state employees and faculty.
The state Joint Committee on Finance finished its public hearings on the budget bill April 6 and is expected to started its executive sessions reviewing the details of the budget this week. A final committee vote on the whole package will come probably in late May or early June.
In his proposed biennial budget proposal, Wisconsin Governor Jim Doyle is recommending lowering the threshold for local and state public works projects subject to the prevailing wage rate to $2,000, and eliminating the annual threshold adjustments that reflect changes in construction costs.
The Governor is also proposing to establish a prevailing wage law for publicly funded private construction projects, with the same $2,000 threshold.
The changes and definitions have put municipalities at odds with unions.
According to the League of Wisconsin Municipalities, an organization that represents 577 villages and cities, the new law would make economic development more expensive and threaten to turn away corporations from the state. Municipalities are also questioning how the bill will affect their revolving loan programs for homeowners and businesses.
Supporters, however, say residents would benefit from taxpayer-financed projects, if it's going to raise the wages of employees in their communities.
A publicly funded private construction project would be defined as "a construction project, other than a project of public works, that receives financial assistance from a local government unit."
Financial assistance would be defined as any grant, cooperative agreement, loan, certain contracts, or "any other arrangement" a local government would want to make to provide, or make available, assistance. Assistance would include funding, transfer or lease of real or personal property for less than fair market value, proceeds from such a transfer or lease, a redevelopment contract, economic development agreement, revenue agreement or any assistance under specific municipal law.
Opponents of the prevailing wage law changes are asking the bill be taken out of the budget and considered separately.
The prevailing wage law is just one of a number of items in the budget which do not add to or reduce the state's finances, according to Wisconsin Taxpayers Alliance.
Currently, prevailing wages, set by the state Department of Workforce Development, apply to projects costing more than $48,000 if one trade is involved and $234,000 if numerous trades are involved.
Doyle's budget bill for 2009 to 2011 was introduced February 18.
New Glarus is just one of the municipalities recently attempting to have the changes stricken, a move backed by the League of Wisconsin Municipalities.
Other municipalities are attempting to knock down the changes, including Little Chute, Town of Dellona in Sauk County, and Platteville.
A coalition of business groups and municipal associations have also joined the campaign with League of Municipalities.
The coalition is made up of construction, economic development, small business and local government organizations, including the Wisconsin Manufacturers and Commerce.
New Glarus' resolution is based on a template prepared by the assistant director of the League of Wisconsin Municipalities, Curt Witynski.
The City of Monroe Common Council was poised to vote on a similar resolution April 8, but City Attorney Rex Ewald told members of the Common Council that the wording of the resolution didn't track the proposed changes, and asked that the resolution vote be postponed.
Other proposals in the budget with no monetary purpose include three years of high school math and science to graduate, union rights for university faculty, a statewide smoking ban and domestic partner coverage for state employees and faculty.
The state Joint Committee on Finance finished its public hearings on the budget bill April 6 and is expected to started its executive sessions reviewing the details of the budget this week. A final committee vote on the whole package will come probably in late May or early June.