OUTAGAMIE COUNTY, WI (WTAQ-WLUK) – The number of out-of-state companies performing public projects in Wisconsin is on the rise.
Wisconsin Independent Businesses says there’s been a 42 percent increase in out-of-state contractors performing municipal jobs in the last four years.
However, digging through a list of those projects, FOX 11 found there are circumstances where the choice is being taken out of local control.
Throughout the state last year, $2.46 billion of municipal projects were contracted to private companies. 5.92% of that money was awarded to firms from outside Wisconsin.
That’s according to Wisconsin Independent Businesses, a group described as giving small and independent businesses a voice in government.
“We have really top-quality contractors and workers here,” said John Gard, president of WIB. “I think we want to at least create an environment where our folks are the first preference.”
Gard tells FOX 11 legislators should look at what other states are doing to give their own companies a competitive edge.
“Iowa has some homegrown preferences for some of their work to stay local if it’s within a certain margin.”
Outagamie County Executive Tom Nelson says the price isn’t always the deciding factor when his county awards a project bid. He says he’s introduced a responsible bidder ordinance for Outagamie County, similar to one in Brown County.
Nelson tells FOX he would support state legislation that helps local companies land local public jobs.
“I think we have a responsibility first and foremost to do what is right by the taxpayers of this county, but we also want to do right by those taxpayers.”
Last year, by WIB’s count, Outagamie County went out of state for two of its 29 public works projects. An Ohio company was awarded a $5 million project to build a new firefighting training center at the airport. However, it’s being paid for through a federal grant.
“Since we accepted federal grant money on this project, we are required to adhere to the federal bidding guidelines, which require us to use the lowest responsible bidder,” said Patrick Tracey, marketing manager for Appleton International Airport.
“I think those circumstances like that are very limited,” said Gard.
According to WIB, studies show for every dollar of construction value completed by an out-of-state contractor, $2.26 is lost in Wisconsin. That would mean the state lost $329 million last year in economic activity.
WIB plans to introduce a series of bills in the near future, in hopes of lowering the number of outside companies on local projects.
