On Tuesday, the Bernalillo County Commission considered a resolution in support of House Bill 6, which is in the New Mexico Legislature and would impose prevailing wages on Industrial Revenue Bond projects, raising the cost of IRBs and potentially diverting developer interests to other states.
Del Esparza, Chairman of the Board, and Terri Cole, President and CEO, of the Greater Albuquerque Chamber of Commerce, sent a letter to commissioners in opposition of the resolution.
In the letter, Cole and Esparza wrote, “The Chamber opposes HB 6 because it will make New Mexico less competitive in attracting private investment for industrial development. States around us don’t impose prevailing wage rates on privately funded industrial revenue bonds. That’s because they understand developers are consumers like the rest of us – if they can get the same thing for a lower cost, they’ll shop there instead.
“We all know that New Mexico already has trouble attracting capital, so we shouldn’t make the problem worse. We also know that raising the price of anything generally results in getting less of that thing – it’s among the basic laws of economics. Increasing the cost of industrial revenue bonds will not defy that basic law. There are bottom-line reasons economic development organizations, contractors, commercial real estate developers and private developers have all spoken out against the bill.”
During Tuesday’s meeting, resolution sponsor Commissioner Eric Olivas said if you are receiving funds through an IRB, you are required to pay the prevailing wage. “You need to make sure people are paid a living wage if you are using public funds,” he said. “(This is) to ensure that our workers and our community is protected.”
Commissioner Barbara Baca said legislators are trying to elevate the standard of living for everyone.
“This is elevating our workers and provides incentives for businesses with the IRBs,” Baca said. “I think it’s a really thoughtful suggestion from our colleagues in Santa Fe.”
Meanwhile, Commissioner Walt Benson voiced his opposition to the resolution.
“New Mexico is the slowest-growing state economically,” Benson said. “The supporters for the bill aren’t job creators and they are representing laborers. This will slow down IRB applications, and I don’t think this will attract the jobs we want.”
The resolution passed on a vote of 3-1, with Benson as the lone opposing vote.