Orange County Register, September 14, 2007

These so-called prevailing wages – in effect, union wages – can be much higher than local wages

Specifically, unions want to block the city of Vista in San Diego County from exercising its right as a "charter city" to exempt its purely locally funded construction projects from inflated state prevailing-wage laws. For communities and taxpayers who believe that local control can save money, this lawsuit poses a huge threat.

There are in California 109 charter cities and 14 charter counties, which means they operate largely under their own charters, instead of being "general law" cities or counties operating largely under state law. When a city or county has its own charter, it gains more control over its municipal affairs. The right of citizens in cities or counties to adopt a charter comes from Article 11 of the California constitution.

Many of California's charter cities have exempted themselves from state prevailing-wage laws for projects funded solely with local money. The reason is financial: In California, prevailing wages are artificially inflated union wages based on collective bargaining agreements that cover large geographic areas for specific construction trades.

These so-called prevailing wages – in effect, union wages – can be much higher than local wages, especially in rural areas where the cost of living is lower than major cities. A 2004 study produced by the California Institute for County Government at Cal State Sacramento showed that state prevailing-wage requirements increase construction costs by an average of 11 percent. A 2005 federally funded study produced by the Program on Housing and Urban Policy at UC Berkeley estimated that new California prevailing-wage requirements signed into law in 2001 increased costs on state-subsidized low-income housing from 9 percent to 37 percent, cutting the construction of more than 3,100 housing units each year.

Earlier this year, the Vista City Council recognized that it could save taxpayers a significant amount of money by bidding a planned $100 million of local construction projects without state-mandated, prevailing-wage requirements. On June 5, about 67 percent of voters approved a proposition converting Vista to a charter city, despite an opposition campaign funded by construction unions. Three other cities in San Diego County were considering becoming charter cities to save money on their local construction projects.

Construction union officials resent citizens who reliably vote for local control. Obviously, unions have an easier time controlling public-works construction through the Legislature than fighting dozens of fiscally responsible local communities aiming to save money on their local projects.

Now construction unions are going to court to force Vista and the other charter cities and counties to surrender their local authority over contracting. Elected officials and municipal attorneys in California's 109 charter cities and 14 charter counties should consider legal support for Vista's defense of its rights under its charter and the state constitution. If the unions win, it will mean fewer fire stations, police stations, senior centers, and other public amenities for many Californians.