Loudoun’s PLA Folly Already Costing Taxpayers
Loudoun’s PLA costs are only just beginning.
A recently released Request for Proposal (RFP) by Loudoun County shows that Loudoun taxpayers are already shouldering new costs for the Board of Supervisors’ Project Labor Agreement (PLA) mandate on two county construction projects. According to the RFP, taxpayers will soon be on the hook for a consultant to “assist the County in the development, implementation, and oversight” of PLAs.
But the PLA fleecing of Loudoun taxpayers has only just begun. That’s because PLAs so depress bid competition that, on average, project costs go up between 12 and 20 percent, sometimes more. These increased costs typically mean tens of millions of dollars in new taxes from residents will be necessary merely to maintain current service levels.
In the absence of new tax increases, government-mandated PLAs will crowd out spending for other critical public infrastructure needs like roads, schools, and affordable housing. Just ask parents in Prince George’s County, Maryland where the school system recently considered cuts to academic programming because of PLAs placed on the construction of six new schools in the county; or homeless families in Los Angeles, where a PLA placed on the construction of 10,000 new units of affordable housing by the City Council added $140 million to the project, forcing local officials to cut over 800 units from the scope.
This is why California’s Democratic Governor Gavin Newsom vetoed a PLA bill last week, arguing that the state could not afford the added costs of the mandate. That follows a similar veto by Maine Governor Janet Mills (D) of a PLA mandate last year. Closer to home, D.C. Mayor Muriel Bowser (D) chastised the D.C. Council over the unfunded cost increases associated it earlier this year.
The new RFP for a “PLA Consultant” signals that PLA induced cost creep has already started in Loudoun. But it was avoidable. In fact, prior to approving two PLAs, the Board of Supervisors asked its staff to study the issue, which they did. After studying the issue, the County’s Finance & Procurement Department and the County Attorney’s Office concluded that Loudoun County would not benefit from PLAs for major public works projects, citing several issues, especially an increase in costs.
Grab your checkbooks Loudoun County!