Sen. wants Neb. to 'buy American'

LINCOLN — If a state senator has his way, many of Nebraska's roads, bridges and other infrastructure will bear a "Made in America" stamp.

Omaha Sen. Heath Mello's proposal would require state agencies to use American-made steel, iron and manufactured goods for public works projects. That includes the construction, repair, renovation or maintenance of buildings, roads, bridges, waterways, airports and railways.

Mello said the bill would create jobs and put taxpayer money to better use. But it's unclear what effect the measure would ultimately have because he doesn't know how much the state currently spends on foreign goods. A few of the agencies that will be affected by the legislation have estimated that purchasing only U.S. products would cost them millions of dollars more each year.

Mello and other "buy American" supporters said new jobs and increased tax revenue from businesses and individuals would help compensate for the upfront expenses.

"We have a tendency to look at the fastest and cheapest way to get a good," Mello said. "But I think Nebraskans would rather see the state purchasing goods from homegrown manufacturers."

Mello said he has received "an outpouring of calls and emails" from Nebraskans in support of his "common-sense policy," Legislative Bill 923.

But the measure doesn't make economic sense, a University of Nebraska-Lincoln economist said, because it undermines competition, efficiency and free trade.

The Roads Department is evaluating the financial impact of the legislation, said spokeswoman Mary Jo Oie. The agency estimates that buying domestic materials would cost an extra $2 million a year.

The University of Nebraska estimated that it would spend up to an additional $8.5 million annually under Mello's bill.

The state's Department of Administrative Services expects up to $1.7 million in increased expenses.

Under Mello's bill, the U.S.-made requirement would be waived if purchasing U.S. products would increase a project's cost by more than 10 percent or if the goods weren't readily available.

Materials would be considered American if all manufacturing took place domestically.

It "hasn't been too difficult" for UNL to find U.S. products for its stimulus projects, said Gary Kraft, UNL's director of procurement services, although the university had to apply for a couple of waivers because some scientific equipment was made only overseas.

Nebraska is somewhat of a late patriot in the "Buy American" movement, which has been buoyed nationwide by the still-recovering economy and unemployment.

Manufacturers, steelworkers and their respective lobbying groups have pushed "Buy American" resolutions in at least 17 states and more than 500 cities, counties and school districts, saying such measures promote domestic jobs and reward U.S. companies that might otherwise be beat out by cheaper foreign bids.

The trade group Alliance for American Manufacturing helped shape Mello's bill.

Steven Capozzola, media director for the organization, said its studies show that a public works project that relies solely on U.S. goods creates 33 percent more American manufacturing jobs than one that doesn't.

Several economic groups, meanwhile, oppose the bill, arguing that the emphasis shouldn't be on where a good is produced but rather on its price and quality and that requiring government to purchase domestically comes at the risk of alienating foreign trade partners.

"The greater good to the economy would be to have government services provided in the most efficient way possible, even if some purchases are from a foreign source," said Eric Thompson, director of the Bureau of Business Research at UNL.

"If government contracts are written in a way that they don't yield the greatest combination in terms of cost and quality, that's a problem," he said.

A public hearing for the bill is scheduled for 1:30 p.m. Thursday.

Contact the writer: teresa.lostroh@owh.com

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