STROUDSBURG - Pennsylvania's prevailing wage laws lead to higher taxes and to the elimination of jobs, according to testimony of municipal officials at a hearing before the House Labor and Industry Committee in Stroud Township, Monroe County.

Rep. Mario Scavello (R-Monroe), chairman of the committee, presided over the hearing. The large crowd at the hearing included not just municipal officials but also officials with organized labor organizations."Prevailing wage is a complex and often contentious issue," said Scavello. "I appreciate such a large turnout for a meeting on this issue and look forward to making progress toward a solution this fall."Topics discussed at the hearing included two bills that would update the Prevailing Wage Law. House Bill 796 would increase the $25,000 threshold beyond which projects would have to pay higher wages to $100,000. House Bill 665 would make it clear that the law would not apply to road repair projects. This was the case prior to the administration of Gov. Ed Rendell."I look at this bill being a huge help to small townships all over the state," said Rep. David Millard (R-Columbia), the author of House Bill 796. "It would represent a sort of stimulus for those rural areas."Pennsylvania's Prevailing Wage Law requires municipalities and school districts to pay the "prevailing minimum wage" to those individuals working on public construction projects.The Prevailing Wage Act does not specify how the "prevailing minimum wage" in a locality is to be determined, and the act leaves much discretion to the secretary of labor and industry in opting to use the area union wage rates as the prevailing wage to be paid on public projects. It is argued by Prevailing Wage Act reform proponents that union wage rates are more comparable to wage rates paid in larger cities and often do not reflect the actual prevailing wages paid in rural areas.Reform advocates believe that basing prevailing wage rates in rural counties on union wage rates inflates the costs of public projec ts."Cost estimates on projects can be up to 20 percent higher due to prevailing wage requirements," said Monroe County Commissioner Charles Garris. "Considering job growth, along with a fair wage, should be a priority in building projects."This was the second hearing held by the House Labor and Industry Committee on Pennsylvania's Prevailing Wage Law. Additional hearings are scheduled for Williamsport, Lycoming County, on Sept. 10, and Johnstown, Cambria County, on Sept. 16.