Tip of the iceberg savings

The governor’s budget proposal would save up to $15M by reducing the use of private consultants.

But that’s just the tip of the iceberg.
Our proposal could save up to $480M.

The governor’s proposed budget calls for a quarter of a billion dollars in negotiated give-backs from state employees, when the savings could easily be achieved by reducing the state’s reliance on costly private consultants, instead.

The Public Employees Federation (PEF) recently released research showing the state could save up to $480M if it pursued a more aggressive consultant-reduction plan, a far better way to close the deficit.

The state continues to pay thousands of consultants an average of 62 percent more than public employees doing similar work, even including the cost of state-employee benefits.

The governor identifies some savings by reducing the use of consultants, but PEF’s proposal to replace about half the state’s expensive private consultants with state employees can save hundreds of millions more.

Our cost savings recommendations include:
- ENACT a cost-benefit requirement for contracting-out and a consultant reduction law, phased in over three years;

- REQUIRE a set savings target for each state agency;

- INSTITUTE a freeze on new and renewed state agency consultant contracts of more than $100,000 until a cost-benefit analysis is completed; and

- ENACT a law requiring the state Department of Transportation to rely on state employees to do at least 90 percent of the bridge inspection work.

Call 1-877-255-9417 today. Tell state lawmakers to support these cost-savings measures to help balance our state budget.

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