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January 25, 2008

House passes university bonding bill after long debate

The state House, for the fourth year running, passed a measure allowing public universities to sell bonds for constructing campus projects without those moves counting against the state government's total debt.

While the bill -- sponsored by Rep. Bob Damron, D-Nicholasville -- passed the chamber unanimously by a 91-0 vote, it only sailed through after a lengthy debate over the concept of prevailing wage.

Rep. Tim Moore, R-Elizabethtown, said on the floor that he considered attaching an amendment to Damron's university bonding bill that would repeal prevailing wage, which sets a minimum pay rate for construction workers on public projects.

By rolling back prevailing wage, Moore argued, that would save 20 percent at a time when universities are having to cut back over budget concerns.

"Because of the 20 percent premium attached onto every university project, universities in this state this year will lay off faculty, universities this year will raise tuition," Moore said.

He described it as an "unnecessary burden that I think is shameful," which prompted a smattering of applause from mostly Republican lawmakers.

But it sparked a stream of opposition from Democrats, as speaker after speaker rose to rebut Moore.

Rep. Rick Nelson, D-Middlesboro, said "whether you're building a school house or an outhouse, you still deserve a living wage that you can provide for your family."

The normally mild mannered Rep. Jim Wayne, D-Louisville, rose to politely chide Moore, a freshman lawmaker, saying he would give Moore some latitude for a honeymoon period.

"I will attribute his misunderstanding of this to his process of education in this body," Wayne said.

Moore later joked that he understands the honeymoon period in Frankfort is short -- like "a one night stand."

On the merits of the actual bill, Damron described it as a way to give universities more financial flexibility while still allowing the General Assembly oversight.

University boards of trustees can approve a project and the proposed financing, then it goes to the Council on Postsecondary Education and later the legislature for approval.

- Ryan Alessi

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Prevailing wage requirements artificially inflate the labor cost of building public works projects. In this day and age of so-called government budget shortfalls, prevailing wage should be repealed. Ernie Fletcher was right on this one.

If prevailing wage was fair no one would be complaining. But why are the rates so high?

Could they just exclude school projects, like Ohio does?

Our brilliant lawmakers are at it again.

The state doesn't have enough money, but let's make sure the Universities can issue as much debt as they want.

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