PEF: Sharpen your pencils or dodge January budget
bullets
By SHERRY HALBROOK
PEF is not waiting until next January when the next governor presents a 2007-08
Executive Budget proposal, to start developing a long list of ways the state can
save money without cutting jobs and endangering quality services.
“The best way for PEF to fight proposals that will negatively affect our members
— such as Republican gubernatorial candidate John Faso’s plan to reduce the
state workforce and add a new fifth tier to the state’s pension system — is to
identify and offer cost-saving alternatives to present to the governor-elect
immediately after the November 7 election,” said PEF President Ken Brynien.
In August, Brynien called on all PEF leaders of statewide labor-management
committees to add the 2007-08 budget issue to their agendas for meetings with
managers. “The goal is to suggest specific proposals that could make their
agencies more efficient and cost-effective,” he said.
The L-M chairs were asked to forward these cost-saving suggestions to PEF for
more study, along with the names of members willing to help with that.
Warning: Deficit ahead
The state may face a budget deficit of up to $13.9 billion over the next two
years. In addition, that figure does not include funding to comply with a state
Appeals Court order to dramatically improve funding for public education.
Faso’s plan to cut state pensions for new hires would also apply to new
employees of local governments, and is one of the ways he wants to reduce local
property taxes.
Democratic gubernatorial candidate Eliot Spitzer would use state revenues to
reduce local property taxes by $6 billion over the next three years, which makes
bridging the state’s projected budget gap even more challenging.
Spitzer — the frontrunner in the election campaign, and endorsed by PEF — has
come up with a plan to save nearly $11.1 billion over the next three fiscal
years.
This plan includes many proposals that PEF and the Fiscal Policy Institute have
previously made or supported, including a reduced reliance on consultants and
contractors to do work that could be done as well or better by state employees
and at less cost.
Studies by PEF and FPI found the state wastes approximately $500 million
annually by overspending for consultant and contract services, especially
engineering, design and information technology services. Spitzer is projecting
that he would save $522 million over three years by reducing that and other
waste identified by the state comptroller including state prison hubs and
excessive reliance on overtime.
Spitzer’s plan also picks up on recommendations by PEF, FPI and other members of
a coalition calling for legislation to close corporate tax loopholes. Spitzer
figures that would boost state revenues by $960 million over three years.
He is also in step with PEF on saving the state $990 million over three years by
purchasing prescription drugs in bulk and by other related reforms.
Other major features of Spitzer’s cost-cutting plan include:
• Freeing $555 million in state revenues over three years by expanding the
state’s Bottle Law to pay for environmental programs now funded from general tax
revenues;
• Saving $30 million over three years by consolidating agencies and programs
such as those at the Empire State Development Corporation and the state
departments of Economic Development, Labor and State; and
• Saving $375 million over three years by consolidating workforce training
programs.
L-M leaders on the spot
PEF has asked for more details of Spitzer’s consolidation proposals to be sure
they do not threaten state jobs or services. Analysis of the information
received so far indicates the risks to PEF members’ jobs is relatively low.
The plan to reduce the state’s reliance on outside consultants could boost state
hiring.
“Spitzer’s plan goes a long way, but it will not completely bridge the budget
gap,” Brynien said.
“We need to sharpen our pencils to find more cost savings and revenue options
now, so we won’t have to dodge so many budget bullets in January.”
Is your state agency wasting money on private consultants/ contractors? If it
is, get the facts and share them with PEF. Contact the PEF Department of Civil
Service Enforcement at (518) 785-1900 or (800) 342-4306, ext. 280.
So far, PEF and the NYS Fiscal Policy Institute have identified more than $500
million wasted annually by the state on “deals” with private contractors for
work that could be done better and for substantially less by state employees.
GO TO: WWW.STOPPRIVATAZATION.COM
The Communicator Oct. 2006
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