Sponsored by:

Senator GERALD CARDINALE

District 39 (Bergen and Passaic)

Senator ANTHONY R. BUCCO

District 25 (Morris and Somerset)

SYNOPSIS

Encourages Governor to suspend the prevailing wage during current economic crisis.

CURRENT VERSION OF TEXT

Introduced Pending Technical Review by Legislative Counsel

A Senate Resolution encouraging the Governor to use his executive power to temporarily suspend application of the prevailing wage to public contracts.

Whereas, New Jersey is in the midst of a deep economic recession, unprecedented in its depth and scope; and

Whereas, The New Jersey Legislature has an obligation to act with due speed and prudence to enact measures to put more New Jerseyans back to work, to help small businesses during these trying economic times and to help move New Jersey out of the current economic recession and toward a path of recovery; and

Whereas, New Jersey law currently requires that the prevailing wage be applied to all municipal contracts in excess of $10,700 and all other public contracts in excess of $2,000, which threshold amount has not been adjusted since 1963; and

Whereas, New Jersey uniquely defines the prevailing wage as the rate paid by virtue of collective bargaining agreements, setting New Jersey's prevailing wage much higher than that paid in all other states, where the prevailing wage is defined as the average wage rate paid in each state for defined professions; and

Whereas, The cost of New Jersey's public projects are significantly increased by application of the prevailing wage, thereby increasing the cost of goods and services to New Jersey municipalities, counties and the State, which costs are ultimately borne by New Jersey taxpayers; and

Whereas, New Jersey small business owners, who are able to pay fair wages but not the prevailing wage, cannot bid on most public contracts; and

Whereas, New Jersey's small business employees receiving fair wages, but not prevailing wages, are precluded from working on contracts subject to the prevailing wage; and

Whereas, The unemployment rate in New Jersey currently exceeds 8%, one of the highest unemployment rates in the country; and

Whereas, In these trying economic times it is the obligation of New Jersey lawmakers to help small business owners, who make up the vast majority of New Jersey employers, not just large employers able to pay the prevailing wage; and

Whereas, Temporarily suspending application of the prevailing wage would help New Jersey's economy by lowering contract costs, stimulating small business growth and ensuring that projects are awarded to the most qualified and efficient bidder; now, therefore,

Be It Resolved by the Senate of the State of New Jersey:

1. This House urges the Governor to exercise his executive authority to suspend application of the prevailing wage for 12 months from the date of the adoption of this resolution and to thereafter reinstate the prevailing wage only after careful consideration of the overall economic health of the State and the best interest of New Jersey's taxpayers.

2. Duly authenticated copies of this resolution, signed by the President of the Senate and attested by the Secretary thereof, shall be transmitted to the Governor of the State of New Jersey.

STATEMENT

This Resolution encourages the Governor to exercise his executive powers to temporarily suspend the prevailing wage during the current economic crisis.