[Congressional Record Volume 141, Number 63 (Wednesday, April 5, 1995)]
[Senate]
[Pages S5269-S5270]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


                     INVEST NOW, OR PAY MORE LATER

 Mrs. FEINSTEIN. Mr. President, I respectfully submit into the 
Congressional Record a statement from Mayor Richard J. Riordan of Los 
Angeles on the issue of the Davis-Bacon Act and Prevailing Wage laws.
  Mr. President, I ask that Mayor Riordan's full statement be printed 
in the Record.
  The statement follows:

                     Invest Now, or Pay More Later

                     (By Mayor Richard J. Riordan)

       ``You can pay now or pay later'' is more than grandmotherly 
     advice. It is a healthy dose of financial wisdom which all 
     levels of government ought to heed. In fact, the pay now 
     approach is a goal-oriented investment strategy that 
     considers current and future needs. The pay later scenario is 
     highly reactive, unpredictable and void of strategy.
       Unfortunately for Angelenos and our local businesses 
     community, Los Angeles city government is too reliant on the 
     pay later approach, which really translates to ``pay more 
     later.'' The cost to the city by failing to invest is 
     hundreds of millions of dollars in deferred maintenance and 
     the taking of precious investment dollars for short-term 
     crises. For example, due to years of inadequate funding for 
     street maintenance, 111 miles of Los Angeles City streets are 
     beyond repair and must be totally reconstructed at an 
     estimated cost of $150 million. It costs five times as much 
     to reconstruct a street as it does to maintain it.
       Investment in affordable housing, streets, sidewalks, 
     parks, library buildings, schools, water storage, railways, 
     airports and port facilities is good business. Directly, this 
     investment in infrastructure generates tens of thousands of 
     construction jobs. Over the long-term, it creates a climate 
     where businesses will stay and come out of their own self-
     interest because the quality of life is better--streets are 
     safer, long term economic 
     [[Page S5270]] investment is more secure and more jobs are 
     available.
       But it takes a lot more taxpayer dollars to build 
     infrastructure.
       It takes investment in human capital, too, and the same 
     ``invest now or pay more later'' logic should apply. There 
     are some existing strong partnerships between the public and 
     private sectors and organized labor which have wisely adopted 
     a goal-oriented strategy. Prevailing wage laws--created by 
     the federal, state and local governments, in partnership with 
     the building trades and business--have attracted skilled 
     labor with the expertise and experience to complete projects 
     on time and within budget. The Santa Monica Freeway is a 
     shining example; it was reconstructed to the highest quality 
     standards, ahead of schedule and under budget in the 
     aftermath of the Northridge earthquake. Public infrastructure 
     projects have also expanded career opportunities for young 
     people. Some of the best technical training in our region is 
     available through the organized building trades. The 
     facilities are first rate, and the curriculum is fully up-to-
     date and forward looking.
       Against the strong arguments for pay-now versus pay more 
     later, those in the Washington beltway who would eliminate 
     the Davis Bacon Act are shortsighted in their thinking. 
     According to a recent study by the University of Utah 
     Economics Department, in the nine states which have repealed 
     prevailing wage laws, the pay more later rule has kicked in, 
     with the net result being reduced wages for construction 
     workers, increased workplace injuries and deaths, a decline 
     in job training, a loss of tax revenue to the state and 
     increased cost overruns.
       Retaining the Davis-Bacon Act and our prevailing wage laws 
     is critical to the public private partnership which has 
     worked so well in developing our public infrastructure and 
     the highly skilled workforce upon which it depends. In so 
     doing, we can continue to build great projects, produce the 
     good paying jobs and careers our economy must have, and save 
     millions of taxpayer dollars in the process. And we can all 
     rest a little easier knowing that the next time the earth 
     moves, we will still have skilled contractors and 
     construction workers needed to get the job done.
     

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