Kentucky Club for Growth
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December 11, 2009

Prevailing Wage Repeal Could Save Raceland Hundreds Of Thousands

The Ashland Independent reports on plans to improve Campbell Elementary School in Raceland, Kentucky.

The renovation project will add four classrooms and a flexible room that can be used for special needs children in a wing attached by a corridor to the main body of the school.

The rest of the school will receive major upgrades, including new roof, heating and air conditioning, windows, lights and sprinkler system.

The added classrooms will enlarge the school, just enough that it can include four classes per grade level, which at Campbell include kindergarten through third grade, according to Superintendent Frank Melvin. The Raceland Independent School District, in keeping with its small-school character, doesn't want to grow any more than that, he said.

The renovation will bring the school, built in 1962, up to modern standards of energy efficiency, Melvin said. The heating and air conditioning system will be highly efficient, comparable to a heat pump system, and designers hope the school's energy bill will remain about the same even with the additional classrooms.

The project won't go out to contractors for bids until the state education department approves the design, but preliminary estimates come to around $2.7 million, project manager Don Nicholls said.

As noted in Senator Thayer's piece below, "According to a report by the Legislative Research Commission, Kentucky's prevailing wage laws artificially inflate school construction labor costs by 21 percent."

We'll reasonably estimate labor costs of 40% of the cost of these school construction projects. If prevailing wage requirements were suspended for this project at Campbell Elementary, over $200,000 could be saved and dedicated to other construction projects.

Later, the article notes that "The state is expected to kick in around $600,000," which would be 22% of the project. If prevailing wage was suspended, the state could save about $50,000 and dedicate that to other school construction. That's enough savings to build a additional thirteenth school for every twelve we have budgeted!

If the Governor and General Assembly are truly inspired to make good use of the tax dollars we provide them, a suspension of prevailing wage requirements for state construction should be one of the first things considered!

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06/23/09 : Session Could Finish Tonight; KEY VOTES

06/22/09 : KEY VOTE: HB 1

03/11/09 : Key Vote: HB 236 - Taxing IPTV

03/09/09 : Key Vote: HB 102 - Tolls

03/09/09 : Key Vote: HB 374 - Gas Tax Hike

03/03/09 : Key Votes: Some Good Legislation

03/03/09 : Key Votes: Driving Businesses Out of Kentucky

Drees: Raise gas tax to fund bridge - Pat Crowley, NKY.com

Ky. House nears tax vote - Pat Crowley, NKy.com


Donor records might have similarities - Lexington Herald-Leader

Club for Growth launches in Oregon

The Kentucky Club for Growth is proud to announce its 2007 scorecard rating members of the Kentucky General Assembly on fiscal issues.

How did your legislators do?


Club for Growth eyes spending - by Patrick Crowley, The Enquirer

Political group taking on state - by Stephenie Steitzer, Kentucky Post


Ky. jobless rate hits 11 percent - Courier-Journal...

The Governor's Budget Proposal
This is a reposting of the first article of email update sent out earlier today.  If you don't receive them, you may want to sign up.Here's the Governor's proposal:$147.1 million in spending cuts $81.5 million from a 70-cent cigarette tax...

$373 Million in Cuts
Governor Beshear has told agencies to plan for 4% budget cuts, suggesting that he's either expecting to raise taxes, or not expecting the $456 million shortfall to materialize.  4% of FY 2009 appropriated spending is only $373 million....

Governor Announces Administration Exploring Cuts, Taxes
Governor Steve Beshear announced that he is expecting a $294 million budget shortfall and is going to gauge public reaction before making a specific proposal to address it in December.  Cuts and taxes are on the table.Waiting until December is...

Strapped
The media is so sure there's a revenue problem, that it's hard to even fathom that the reality is that state revenue is increasing.

Business Tax Climate
We're #34 according to the Tax Foundation's 2009 State Business Tax Climate Index.

Financial Troubles
"The Negative Outlook reflects plans to continue to deplete fund balances and virtually drain the budget reserve trust in the current biennium. Further, Fitch remains concerned about the weakened pension funding levels and the commonwealth's rising debt position as an additional $1.65 billion in debt has been authorized for the biennium."

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