Approved January 11, 2022

RESOLUTION OF THE GREATER UTICA CHAMBER OF COMMERCE IN OPPOSITION TO PRIVATE SECTOR PREVAILING WAGE REQUIREMENTS

WHEREAS,  New York State currently has a law known as the “Prevailing Wage” mandate that requires publicly funded projects to pay workers a union scale and the union benefit package; and

WHEREAS,  the requirement precludes government projects from paying market-determined compensation, which adds 13-25% to the cost of the project according the Empire Center; and

WHEREAS,  former Governor Andrew Cuomo signed an executive order in April 2020 that takes effect January 1, 2022 that will now require “prevailing wage rates” to be paid on private sector project if the project includes 30% public funding; and

WHEREAS,  the term ‘public funding’ is broadly defined and includes tax incentives;  and

WHEREAS;  New York State relies heavily on tax incentives to attract development because it is, according to the Tax Foundation, ranked second most hostile to new business development behind California and just ahead of New Jersey; and

WHEREAS,  the added cost of the prevailing wage rates will offset the tax incentives and/or grant funding, which will continue to drive private sector development away from New York State and result in lost jobs;

NOW THEREFORE BE IT RESOLVED that the Greater Utica Chamber of Commerce is opposed any requirement for private sector developers to pay so-called “prevailing wages” for private projects even if they receive public funding or tax incentives totaling 30% or more.