News Flash


Posted on: March 17, 2023

Expansion of Prevailing Wage Requirements to PILOT Projects

The Senate Budget committee was scheduled to consider a bill expanding prevailing wage requirements to PILOT projects, however, after outreach by the League and other stakeholders, sponsor Senator Gopal held S-2798 for additional review and possible amendments. 

S-2798, as amended, expands prevailing wage requirements to projects that have received financial assistance in the form of grants; loans; loan guarantees; expenditures; investments; tax abatements, exemptions, incentives, or rebates; incentives; or other financial assistance, any of which are provided, authorized, facilitated, or administered by public bodies, or by agencies or authorities of public bodies with the exception of projects financed by NJHMFA. 

The bill, which the League opposes, was initially scheduled for consideration by the Senate Budget and Appropriations Committee on Thursday. However, after outreach by the League and other stakeholders the sponsor, Senator Gopal, held the bill for further consideration and possible amendments. 

Payment in Lieu of Taxes (PILOTs) are the single most powerful tool available to municipalities to encourage property owners and developers to make improvements to property or to locate a project in a distressed or blighted area. With respect to long term tax exemptions in particular, exemptions are granted only where the municipality has determined that the project would not occur but for the PILOT. Increasing the cost of already challenged projects by requiring a private property owner to pay prevailing wage for improvements on their property will prompt a greater demand on the municipality for a lower PILOT (thereby diminishing municipal revenue and property tax relief) and may even prevent a project from moving forward.

This is of particular concern where a project’s revenues will be limited, as in the construction of affordable housing, or where a project bears additional costs to meet other public needs or interests, such as environmental remediation, historic preservation, or the installation of infrastructure.

We also believe that the bill has a potential for unintended consequences. As one example, where a municipality has adopted an ordinance permitting five-year exemptions and abatements for improvements to residential properties, it appears that individual homeowners making improvements to their residences would be required to pay prevailing wage. 

The requirements proposed in S-2798 will significantly weaken the ability of municipalities to spur economic development in blighted areas, and will also impede private investment that generates jobs, quality housing, environmental cleanup, and other public goods. We thank Senator Gopal for his reconsideration and look forward to working with him and other stakeholders to address our concerns. 

Contact: Lori Buckelew, Deputy Executive Director & Director of Government Affairs,, 609-695-3481, x112.

Facebook Twitter Email

Other News in Home

CY 2022 Audit Deadline Extended

Posted on: May 12, 2023

House Passes Debt Limit Bill

Posted on: April 28, 2023

GFOA Women@Work Event

Posted on: April 21, 2023

President Biden Proposes FY24 Budget

Posted on: March 10, 2023

SHBC Plan Design Committee Meeting Summary

Posted on: February 24, 2023

FY2023 Federal Omnibus Budget Passed

Posted on: January 9, 2023

SHBP Update: No Relief In New Year

Posted on: December 30, 2022

Federal Budget Update

Posted on: December 23, 2022

LEAP Grants Now Available

Posted on: December 23, 2022

Federal Budget Update

Posted on: December 19, 2022

State Health Benefits Update

Posted on: December 5, 2022

Revised Model Procurement Forms

Posted on: December 5, 2022

SHBP Rate Increase Adopted

Posted on: September 27, 2022

Blog Post: Available Federal Grants

Posted on: September 27, 2022

President Signs CHIPS and Science Act

Posted on: August 12, 2022

Ground Broken on Portal North Bridge

Posted on: August 8, 2022

Energy Tax Receipt Funding Update

Posted on: June 29, 2022

FY2023 Budget Update

Posted on: June 29, 2022

Second Tranche of ARP SLRF Expected

Posted on: June 13, 2022