On November 21, 2013, the House and Senate of the Pennsylvania General Assembly finally passed a $2.3 billion transportation bill. Governor Corbett is expected to sign the transportation bill on Monday, November 25, in State College, Pa.
The transportation bill includes a provision that increases the threshold for prevailing wages to $100,000, but only for “locally funded” highway and bridge projects. The increase is effective with contracts entered on or after January 1, 2014.
A “locally funded” highway or bridge project is defined as one that is “funded entirely by funds”:
1) paid to counties from the Liquid Fuels Tax Fund;
2) allocated to municipalities under Liquid Fuels Tax Municipal Allocation Law;
3) made available to municipalities from the Highway Bridge Improvement Restricted Account within the Motor License Fund for expenditure on bridge rehabilitation, replacement and removal projects;
4) awarded to municipalities as transportation enhancement grants (under red light enforcement systems);
5) allocated from municipal budgetary sources using revenues derived through municipal taxes or fees; and
6) allocated to municipalities under 58 Pa.C.S.(relating to oil and gas).
For all other public projects, the prevailing wages threshold remains at $25,000.
The full transportation bill can be found here.
Christopher I. McCabe, Esq.
