Lawmakers debate "prevailing wage" law in Madison, and it could impact new Bucks arena in Milwaukee

MADISON (WITI) -- Lawmakers spent the day Tuesday, May 5th debating the prevailing wage law. Republicans are trying to repeal the law -- but one lawmaker says losing the prevailing wage law could help to win funding for a new downtown Milwaukee Bucks arena.

It is a familiar argument within the walls of the Capitol in Madison: Does a bill protect taxpayers, or does it harm the middle class?

"What I look at is who funds the 'government?' The taxpayers do -- so that money is coming out of everyone`s pockets and what it`s doing is going into the pockets of a select few," Senator Duey Stroebel (R-Saukville) said.

The prevailing wage law sets the minimum wage for contractors working on projects that involve a government bid.

Republicans trying to repeal the law say it artificially raises wages.

The law's supporters, including Senator Chris Larson (D-Milwaukee) say it protects workers.

"Having a prevailing wage standard ensures people are paid fairly. It ensures that we`re not getting cheap labor coming in from out of state gobbling up taxpayer dollars," Senator Larson said.

Stroebel says the prevailing wage law would affect construction of a new downtown Milwaukee arena. Citing a study by the Wisconsin Taxpayers Alliance, he says it would increase the cost by at least ten percent.

"No matter how this thing is funded, prevailing wage will apply and if we don`t have prevailing wage to contend with, on a $500 million project, we`re looking at a good $50 million savings to that project," Stroebel said.

Larson dismisses that study -- saying it isn't peer-reviewed. He says cheaper labor could lead to less-skilled workers building the arena.

"We don`t wanna spend that money and end up having to come back five years, 10 years later and say `oops we got it cheaper up front but now we have to go back, tear down the walls and fix some problems that happened,'" Larson said.

The Senate Committee on Labor and Government Reform will vote Thursday, May 7th on the bill to repeal the prevailing wage.

Stroebel says in a perfect world, there would not be any public funding for a new downtown arena but adds he has to be realistic and, in that manner, has to try to protect taxpayers in doing so.