Anderson Economic Group Work

Will ending union wages on Michigan public projects save money, or just lower pay?

[Bridge Magazine, Lindsay VanHulle, June 12, 2018]

Researchers with Anderson at the time estimated that Michigan’s prevailing wage law covered as much as $2.1 billion in school construction costs on an annual basis, costs that won’t be subject to the law going forward.

“In general, there’s likely to be a modest savings on capital expenses,” Horwitz told Bridge.

But, he added, that doesn’t necessarily mean that spending on those types of building projects will go down. School districts, for instance, might put what they save from no longer having to pay prevailing wages into higher-quality materials, or into constructing more buildings or roads than initially planned.

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