Bill passed by state Assembly
Union presses lawmakers to limit contracting out

By SHERRY HALBROOK
One of the most important bills PEF supported in this session of the state Legislature was S198/A1726A — a bill designed to regulate the process of awarding contracts for state services.

It would require state agencies to fully analyze and disclose the cost effectiveness of contracting the work out, versus having state employees do it in-house.

“We worked hard to educate the legislators about the need for this law to regulate irresponsible privatization of some state services,” Curran said.

“The Assembly passed it, but it didn’t make it out of the Senate Finance Committee in time to bring it to the floor for a vote in that house.”

PEF will use the legislative recess, he said, to reach out to state lawmakers in their districts to give them more information about this issue and other bills that couldn’t get through both houses before the Legislature recessed.
“We want every state senator to see the data which shows how some state agencies are wasting tax dollars on private contractors when state employees are ready and able to do the work better and for less money,” Curran said.

The state Health Department, for instance, has prepared a chart showing how much money it spent contracting out for temporary employees to inspect nursing homes.

An analysis of that data by PEF’s civil service enforcement and research staff reveals DOH spent an average of $114,649 per year for each of the private inspectors it hired from Island Peer Review Organization (IPRO).

PEF members who do the same inspections for DOH are usually at salary grade 18 or 19 and receive annual salaries plus benefits ranging from $68,638 to $72,241.

“On average, the state is wasting approximately $45,000 a year for every IPRO inspector it hires for this work,” Curran said.

PEF’s analysis of contracts awarded by the state Office of General Services for computer services showed that agency could have saved $200,440 per programmer annually by using a state employee, instead of a contractor.

In fact, that OGS contract authorizes the contractor to charge up to $260.50 per hour or $507,975 for a year of work by just one programmer.

Contrast that with the $88,276 the state pays its programmer 1 employees per year including their benefits, and you come up with a potential savings of nearly $420,000 per year by sticking with the state employee.

For years, state comptrollers from both parties have issued audits citing similar evidence regarding wasteful contracting out of engineering services by the state Transportation Department.

“The state cannot afford to continue throwing money away on costly consultants and private contractors. When state lawmakers understand the need to set rules for fiscal accountability in the awarding of such contracts, we’re confident they will pass this legislation,” Curran said.

Legislature passes 11 bills PEF supports

Call your reps in DC
Don’t let federal budget bills shortchange Empire State

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Inside This Issue:
Features
Lawmakers override all 119 budget vetoes
Set state safety, security standard
Thank your legislators

Departments
President's Message:Our work continues
You Said It: Member's letters this month
PS&T Contract Update: Pay hikes hot topic
Member Highlights;Keeping up the good fight
Retirees In Action: New officers take the reins
PEF Membership Benefits Program & Travel Corp
Nurses' Station:
- Derail unsafe staffing, put laws on the fast track
- Roswell Park honors nurses
- Nurses conference addresses timely topics
Legislative Action:
- Union presses lawmakers on contracting out
- Legislature passes 11 bills PEF supports
- Don’t let feds shortchange NY
Health Benefits:
- Feds aim to guard your privacy
- College students need shot in arm
- HMO applied wrong rule for disabled kids

Union Matters
PEF, OASAS train workers for emergencies
EAP Coordinator earns Quality Service Award
Making state park system a summer delight
Pre-Tax Transit pilot put on hold
Balloting brings 13 newcomers to E-Board
Convention 2003: Delegate preview
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