A prominent construction industry organization is raising concerns with the state budget proposals released this week by the state Legislature over concerns the proposals could increase the cost of projects in New York.

The Associated Builders and Contractors pointed to the proposed expansion of prevailing wage measures to projects that are not traditionally included, as well as requirements for project labor agreements that are meant to favor labor unions. 

But labor organizations have generally praised the budget plans advanced this week as a way of helping working-class New Yorkers amid ongoing economic uncertainty. New York has one of the highest unionized workforces in the country, bucking a national trend of falling membership in a union. 

The state budget is due at the end of the month. 

Lawmakers want to boost spending for key infrastructure projects in order to improve roads, bridges and highways in the state. At the same time, lawmakers envision many of these projects being done by a unionized workforce. 

"While we welcome a major investment to improve the state’s failing infrastructure, mandating Project Labor Agreements will keep the more than 70 percent of the construction workforce that is non-union on the sidelines," said Tanner Schmidt, the group's public affairs manager. "When mandating PLAs – allowing only a small portion of the industry to work – our elected officials are choosing to delay many of these much-needed projects, like road and bridge repairs, which negatively impacts the quality of life for all New Yorkers."

Prevailing wage measures, meanwhile, could increase project costs by as much as 25%, Schmidt said. 

“These harmful mandates cannot be part of the state’s final enacted budget," he said. "New Yorkers need their elected representatives to stand up in opposition and make themselves heard. Those supporting these detrimental measures need to take a serious look at the harm they will inflict on the state’s workforce and its taxpayers and reconsider.”

Labor leaders have generally praised the budget plans released this week by the Legislature. 

New York AFL-CIO President Mario Cilento, however, praised the legislative proposals for focusing on child care as well as backing climate change-related projects that will be driven by union jobs. 

George Gresham, the president of the politically powerful 1199SEIU of service workers, pointed to proposals meant to increase wages for home care workers as "critical investments" following two years of the COVID pandemic.  

"From advancing Fair Pay for Home Care to increasing funding for safety-net hospitals, these budget bills provide the resources necessary to stabilize a healthcare system that has faced unprecedented challenges these past years," he said.