On Tuesday, the Bernalillo County Commission addressed a resolution supporting House Bill 6, currently under consideration in the New Mexico Legislature. The bill proposes imposing prevailing wages on Industrial Revenue Bond (IRB) projects, which could increase IRB costs and potentially redirect developer interests to other states.

Del Esparza, Chairman of the Board, and Terri Cole, President and CEO of the Greater Albuquerque Chamber of Commerce, expressed opposition to the resolution through a letter to commissioners. In their letter, they stated: “The Chamber opposes HB 6 because it will make New Mexico less competitive in attracting private investment for industrial development. States around us don’t impose prevailing wage rates on privately funded industrial revenue bonds. That’s because they understand developers are consumers like the rest of us – if they can get the same thing for a lower cost, they’ll shop there instead."

They further argued: "We all know that New Mexico already has trouble attracting capital, so we shouldn’t make the problem worse. We also know that raising the price of anything generally results in getting less of that thing – it’s among the basic laws of economics. Increasing the cost of industrial revenue bonds will not defy that basic law. There are bottom-line reasons economic development organizations, contractors, commercial real estate developers and private developers have all spoken out against the bill.”

During the meeting, Commissioner Eric Olivas supported the resolution by stating that receiving funds through an IRB requires paying a prevailing wage. He emphasized ensuring fair wages when public funds are involved: “You need to make sure people are paid a living wage if you are using public funds,” he said. “(This is) to ensure that our workers and our community is protected.”

Commissioner Barbara Baca also supported this view by highlighting efforts to improve living standards: “This is elevating our workers and provides incentives for businesses with the IRBs,” she said. “I think it’s a really thoughtful suggestion from our colleagues in Santa Fe.”

Conversely, Commissioner Walt Benson opposed the resolution: “New Mexico is the slowest-growing state economically,” he remarked. “The supporters for the bill aren’t job creators and they are representing laborers. This will slow down IRB applications, and I don’t think this will attract the jobs we want.”

Ultimately, the resolution passed with a 3-1 vote; Benson was alone in his opposition.