INTRODUCING THE SCHOOL AND LIBRARY CONSTRUCTION AFFORDABILITY ACT -- HON. RANDY ``DUKE'' CUNNINGHAM (Extensions of Remarks - June 30, 1999)

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HON. RANDY ``DUKE'' CUNNINGHAM OF CALIFORNIA IN THE HOUSE OF REPRESENTATIVES WEDNESDAY, JUNE 30, 1999

Mr. CUNNINGHAM. Mr. Speaker, today I am introducing the School and Library Construction Affordability Act to make high-quality construction and repairs less costly for our nation's communities, schools and citizens.

This measure would exempt public schools and libraries from the inflationary and costly effects of the federal Davis-Bacon prevailing wage laws.

I am offering this legislation specifically to address three issues.

First, 22 States have chosen not to impose state Davis-Bacon laws or have specifically exempted schools from coverage, so it is wise for us to make the federal laws to be more harmonious with state laws in this area.

Second, it is well-known that the AFL-CIO wants to use the President's school construction bond initiative as a vehicle to expand federal Davis-Bacon laws over a much larger number of local public schools than must abide by it today. At this time, the federal Davis-Bacon Act applies to public school construction in cases where the public school receives federal funds as general revenue. Impact Aid, for example, is such a general revenue program. By contrast, ``categorical'' programs like Title I, designated for a specific purpose, are not general revenue to a school, and do not trigger Davis-Bacon coverage of school construction and repair. Rather than to add to the immense federal regulatory burden on our schools, we need to work to reduce that burden so that they can focus their scarce resources on educating their children.

And third, Davis-Bacon increases construction cost 5-38 percent. Each year, the General Accounting Office makes note that eliminating the federal Davis-Bacon Act would save federal taxpayers billions of dollars. The federal Davis-Bacon Act is also well-known to be prone to extensive waste and abuse. With this legislation we will help ensure that each citizens' school bond dollar buys a dollar's worth of building and repairs.

The School and Library Construction Affordability Act allows schools and libraries to get more school buildings, and more school repairs, for their scarce taxpayer dollar. It respects the right of states and localities to establish their own labor practices, without imposing unnecessary regulations from Washington, D.C. It is neither pro-union or anti-union, for under this measure everyone will be able to compete fairly and equitably for school and library construction and repair work. It may not be construed to diminish the high quality of construction and repairs that the purchasers of these services--our communities and our local taxpayers--always and rightfully insist upon. This bill is simply in the best interests of America's children.

This legislation is supported by the Associated Builders and Contractors, and the National School Boards Association. I have attached below the texts of their letters of support. In introducing this measure, I am joined by a dozen original cosponsors from across the country.

I hope my colleagues will join me in support of our local schools and public libraries, in support of regulatory relief for our communities, and in support of our children by cosponsoring the School and Library Construction Affordability Act, and moving to enact it.

Associated Builders & Contractors,

Rosslyn, VA, June 15, 1999.
Hon. DUKE CUNNINGHAM,

House of Representatives,

Washington, DC.
DEAR CONGRESSMAN CUNNINGHAM: On behalf of Associated Builders and Contractors (ABC), and its more than 20,000 contractors, subcontractors, suppliers and related firms across the country, I would like to express our strong support for the ``School and Library Construction Affordability Act.'' This is much needed legislation to exempt public schools and libraries from the inflationary and costly effects of the federal Davis-Bacon Act.
By eliminating Davis-Bacon requirements for school and library construction, Congress will help lift outdated burdens and federal restrictions and help improve local control and flexibility in leveraging education dollars. It will give local school districts the ability to spend resources where they will most effectively meet students' educational needs.
As you know, Davis-Bacon inflates the cost of construction anywhere from 5 to 38 percent, thus hurting those who fund, provide, and receive public education by forcing school districts to pay more to provide students with less. Davis-Bacon siphons tax dollars which could be better spent on real efforts to help education--such as additional school repairs, more facilities, books, computers, and other services that actually improve classroom learning and benefit school children.
Twenty-two states have recognized the waste associated with federal restrictions like Davis-Bacon and have chosen not to have similar state restrictions on schools. Ohio, for example, exempted school construction and repair from the state's ``little Davis-Bacon Act'' in 1997, and has since found preliminary savings have averaged 10 percent lower costs. Davis-Bacon serves as an ``unfunded mandate'' on those states, by forcing them to work under a Depression-era labor law that mandates inefficient practices and inflates construction costs.
Additionally, eliminating Davis-Bacon restrictions will help give local residents entry-level job and training opportunities on projects in their own neighborhood, by allowing contractors to hire ``helpers,'' as they do for schools not hindered by Davis-Bacon. This will be an important step toward ensuring job opportunities for many low-skilled minorities, at-risk youth, and displaced workers to ``earn while they learn'' in their community.
ABC applauds your leadership in introducing the ``School and Library Construction Affordability Act'' to help improve use
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of our nation's tax dollars and ensure real educational improvements.
Sincerely,

Jennifer Boucher,

Director, Government Affairs. NATIONAL SCHOOL BOARDS ASSOCIATION,

Alexandria, VA, June 14, 1999.
Hon. DUKE CUNNINGHAM,

House of Representatives,

Washington, DC.
DEAR REPRESENTATIVE CUNNINGHAM: Thank you for the opportunity to comment on your proposed legislation that would exempt schools and libraries from federal Davis-Bacon prevailing wage provisions. We strongly support the intent of your legislation to keep federal support for school and library construction free from the constraints of Davis-Bacon prevailing wage requirements. The National School Boards Association, representing 95,000 school board members through its federation of 53 states and territories, believes that in both direct federal funding for school and library construction and indirect support through federal tax credits must be unencumbered by the inflationary factors associated with the Davis-Bacon law.
Throughout the United States public school students find themselves coping with intolerable conditions in school facilities. Many students attend schools with overcrowded classrooms, obsolete equipment, classrooms not wired for current computing technology, and other structural obstacles that impact student safety and learning.
According to a 1996 General Accounting Office report, 38 percent of urban schools, 30 percent of suburban schools, and 30 percent of rural schools have at least one building that needs extensive repair or total replacement. More than one-third of all public school students attend classes in school buildings that need serious repair or replacement. The estimated costs of these repairs and replacements are $112 billion.
Several proposals have been introduced, such as America's Better Classrooms Act of 1999 (H.R. 1760) by Congresswoman Nancy Johnson of Connecticut, to help local municipalities obtain funding to build desperately needed new schools and renovate outdated and unsafe classrooms. This legislation will provide tax credits for the interest of $25 billion in new public bonds for school construction and renovation. NSBA believes that this and similar legislation begins to address the magnitude of the school construction crisis. However, we are concerned that the inclusion of Davis-Bacon would severely undermine the real impact of such initiatives.
For instance, if Davis-Bacon prevailing wage requirements were explicitly applied to this tax provision, it would impact 38 states that either have no state prevailing wage laws, or have prevailing wage requirements substantially less intrusive than federal requirements. That means, for the most impoverished rural and inner-city school districts, construction and renovation costs would increase as much as 15 percent over current costs minimizing the assistance provided by the underlying tax credit.
In this light, we strongly support the intent of your proposed legislation to explicitly state that federal Davis-Bacon prevailing wage requirements will not be applied to school construction tax credits or direct funding for construction of schools and libraries.
We appreciate your support for our America's children.
Sincerely,

ANNE L. BRYANT,

Executive Director.

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