STUDY MINIMUM WAGE & CAPITAL OUTLAY

SM018

SENATE MEMORIAL 18

57
th legislature
- STATE OF NEW MEXICO -
second session
, 2026

INTRODUCED BY

Larry R. Scott

A MEMORIAL

REQUESTING THE DEPARTMENT OF FINANCE AND ADMINISTRATION, THE
DEPARTMENT OF TRANSPORTATION AND THE WORKFORCE SOLUTIONS
DEPARTMENT TO CONVENE A TASK FORCE TO STUDY THE IMPACT OF THE
PUBLIC WORKS MINIMUM WAGE ACT ON THE COST OF PUBLIC WORKS AND
CAPITAL OUTLAY PROJECTS IN NEW MEXICO.

WHEREAS, the Public Works Minimum Wage Act provides that
public works contracts entered into by the state or a political
subdivision that have a value in excess of sixty thousand
dollars ($60,000) shall provide for wages significantly higher
than those paid on private sector projects; and

WHEREAS, the federal Davis-Bacon Act requires paying local
prevailing wages for contractors and subcontractors performing
on federally funded or assisted contracts in excess of two
thousand dollars ($2,000) for the construction, alteration or
repair of public buildings or public works; and

WHEREAS, the prevailing wages for public works projects
are likely to be more than the minimum wage of twelve dollars
($12.00) per hour established by the Minimum Wage Act; and

WHEREAS, the Public Works Minimum Wage Act results in
higher costs for wages than required pursuant to the Minimum
Wage Act, thereby increasing the cost of many public works
contracts, including capital outlay projects approved by the
legislature, above what would be required by the Minimum Wage
Act; and

WHEREAS, a reduction in labor costs below what might
otherwise be required pursuant to the Public Works Minimum Wage
Act would result in more miles of road being built and more
square footage of public buildings being built per dollar of
project expenditure;

NOW, THEREFORE, BE IT RESOLVED BY THE SENATE OF THE STATE
OF NEW MEXICO that the department of finance and
administration, the department of transportation and the
workforce solutions department be requested to convene a task
force composed of representatives of labor, construction
industries, state and local government and the bureau of
business and economic research at the university of New Mexico
to study the impact of the Public Works Minimum Wage Act and
the federal Davis-Bacon Act on the cost of public works
projects and capital outlay projects in New Mexico and make
recommendations regarding changes to the Public Works Minimum
Wage Act; and

BE IT FURTHER RESOLVED that the task force be requested to
submit its report and recommendations to the appropriate
interim legislative committee by October 1, 2026; and

BE IT FURTHER RESOLVED that copies of this memorial be
transmitted to the secretary of finance and administration, the
secretary of transportation, the secretary of workforce
solutions and the director of the legislative finance
committee.

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