STOP STATE WASTE — PEF President Roger Benson and Vice President Patricia Baker urge lawmakers to pass a bill intended to protect taxpayers from wasteful privatization practices, during testimony before a state Senate Labor Committee hearing on outsourcing held in Manhattan in October. — Photo by Michael Paluszek

PEF president testifies against wasteful state spending

By DENYCE DUNCAN LACY

PEF President Roger Benson testified at a state Senate Labor Committee forum on “outsourcing” last month in Manhattan, telling lawmakers the state is wasting millions of dollars by contracting out and privatizing public services. Benson also urged the lawmakers to pass S.198/A.1726, a PEF-backed bill to protect taxpayers by requiring state agencies to perform a cost/benefit analysis before they execute a contract for services.

“The state wastes up to $250 million annually by hiring consultants to do the same work that professional state employees can do better and at a lower cost,” said Benson. “PEF has proposed legislation that will help protect the taxpayer by restricting the practice of wasteful contracting out, ensuring that cost efficiency does not fall victim to expedience or illusion.”

Laundry list of waste
Benson detailed examples of waste in several state agencies, including the Departments of Transportation and Health, the Office of General Services and the State University of New York among others, and showed how the state could save millions of dollars by hiring more state employees to do the same work. He cited the collapse of the Marcy Pedestrian Bridge last December, which resulted in an unnecessary death and permanent catastrophic injuries, as one of the worst examples of contracting out (See related story on page 4).

“Contracting out is not only financially costly, it can also cost lives,” Benson said.

“If the bridge had been designed by a fully staffed DOT team, this tragedy would not have happened.” And the union chief chided DOT officials for ignoring the recommendations of three separate audits, which concluded the state could save taxpayers money by hiring additional in-house engineers, instead of relying on more costly consultant engineers.

“The Department of Transportation has lost almost 500 engineering positions since last year and 800 since 1999,” Benson noted. “The impact of these reductions has been two-fold: it increases waste by increasing the state’s reliance on costly consultant engineers; and it jeopardizes the health and safety of the public by reducing the department’s review capability.”

Offers a solution
Benson told lawmakers several other state agencies are also wasting millions of taxpayers’ dollars on contracted services for computer programming, architectural design, construction management services and nursing home inspections. But, he added, the union has a solution to the problem.

“In order to provide a more rational approach to contracting out, PEF has proposed legislation that would protect state taxpayers by requiring a cost-benefit analysis before a contract for services is executed. Specifically, S.198 and A. 1726-A would prohibit an agency from entering into a contract for personal services unless it is demonstrated that services cannot be performed satisfactorily by civil service employees … or is of such a highly specialized nature the necessary ability is not available through the civil service system.

“In addition, a cost-benefit analysis would have to show the contract would result in actual overall cost savings to the state. This legislation will help protect the taxpayer by ensuring that cost efficiency does not lose out to expedience or a shell game with tax dollars,” Benson said.

And Benson noted that Massachusetts and Maine have already adopted similar legislation.

The forum was sponsored by state Senator Guy Velella.

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Inside This Issue
Features
Testifying on wasteful state spending
Contractor at fault in bridge collapse
Stop privatization dead in its tracks’
SEIU leads ‘Show Bush the Door in '04’
- PEF to show Bush the exit door
- How to help show Bush the door

Departments
President's Message: Bush must go
You Said It: Member's letters this month
Member Mobilization: Training gears up
Nurses' Station: protest-of-assignment
Legislative Update: Law buys time
Contact Update: Time clocks off limits
Nov. 19 Capitol Rally
Health Benefits: Roswell to the rescue
- HMO can help you stop smoking?
- Decide about your health benefits now
Retirees: Get HIP to health insurance
Health & Safety: Workplace books to go
PEF Membership Benefits & Travel Corp

Union Matters
PEF’s ’03 COPE All Stars shine
Keep hope alive at Bronx PC
PEF preps for battle to save OCFS jobs
PEF backs Gunther for state Assembly
Time clocks off the wall
OFCS member Dudley does write
Members Highlights

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