Prevailing wages are government-mandated minimum wages for workers on public construction projects.
Nearly a decade ago, Kentucky was part of a small wave of states that opted to do away with the minimums, arguing their removal would increase bids on projects and drive down costs. But that's not the story they heard from representatives with trade groups and Midwest Economic Policy Institute economist Frank Manzo.
In a presentation, Manzo said repealing the prevailing wage has had a number of negative effects on the industry.
"In Kentucky, repeal didn't save money or add competition, but it did lower wages, it caused safety and productivity to deteriorate, and it did send work to out-of-state or out-of-area companies and workers," he said. "Reinstating prevailing wage or adding federal Davis-Bacon rates on other types of projects, that could ensure that Kentucky is built locally with highly-trained workers."
Manzo said several states, including Virginia, Colorado, and Michigan, have since reinstated prevailing wage.
Some lawmakers on the Interim Joint Committee on Economic Development and Workforce Investment questioned how Manzo arrived at his data in the testimony, but none disputed the findings.
Discussion was limited, and none of the committee members suggested the body consider legislation reinstating the prevailing wage.