Ohio Lawmakers Propose Bill to Cut Costs for Local Governments

The bill could save local governments millions. It's now under review in the House Commerce and Labor Committee.

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2025 October 21 . 12:04 PM

1 min read

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Ohio Lawmakers Propose Bill to Cut Costs for Local Governments

Ohio lawmakers are considering a bill that could save local governments money on public projects. House Bill 513, introduced by Reps. Beth Lear, R-Galena, and Meredith Craig, R-Smithville, aims to eliminate the state mandate for paying prevailing wage rates on such projects.

The prevailing wage, currently the state's minimum wage, drives up costs for local governments and reduces efficiency, according to Lear and Craig. They argue that requiring a minimum wage limits competition in the bidding process, favouring larger, union contractors and excluding smaller, nonunion ones.

If passed, the bill would give local governments the option to pay less worker compensation, potentially reducing soaring property taxes. Craig estimates that her home, the city of Wooster, could have saved nearly $2 million in capital costs if permissive prevailing wage had been in place through the end of 2025.

House Bill 513 is currently in the House Commerce and Labor Committee. While it remains in effect, the prevailing wage law for public projects in Ohio, no recent repeal has been passed. If approved, the legislation could provide local governments with much-needed financial relief.