PEF:Makestateagenciesmeetconsultant-
reductiongoals,save$656Mby2012-13
BySHERRYHALBROOK statepaidthousandsofconsultants whenyougettheharddataandcrunch
ThankstotheContractDisclosureLaw performingprofessionalservicesan thenumbers,aswehave.”
of2006,someofthestate’soverspending averageof$160,719annually,62percent PEFrecommendedthestatetakethe
onprivateconsultantsiscominginto morethanpublicemployeesdoingsimilar followingstepstoachievethegreatest
sharperfocusandit’snotpretty. workevenafteryoufactorinthecostof potentialsavings:
BasedonreportsfiledwiththeOfficeof theirpensionsandbenefits. 1.EnactaConsultantReductionPlan
StateComptroller(OSC),PEFbelievesthe Whilethat62percentaveragedisparity withagoalofsaving$375millionannually
statecouldsavebetween$280millionand incostisstaggering,it’sdwarfedbythe byfiscalyear2012-13.Overthreeyears,
$480millionannuallybyreplacingjust profligacyofprivatecontractingbysome thisplancouldsavethestatemorethan
halftheconsultantswithstateemployees. agencies. $656million.
“Unfortunately,that’sstilljustthetipof Forexample,thestateElection Theplanshould:
theiceberg,”saidPEFPresidentKen Commissionpaidtheequivalentof12full- •RequirethestateDivisionof
Brynien,“becausethereportsfiledwiththe timeconsultantsworkingonthree Budget(DOB)tosetsavingstargets
OSCcoveronly20percentoftotal separatecontracts$5.7millionayear, foreachstateagencyforconsultant
consultantexpenditures.Manystate equatingtoanannualcostof$456,000per spending,focusingoninformation
agenciesareeitherfailingtofileany consultant. technologyandengineeringservices;
reportsontheirconsultantuse,ortheir ThestateInsuranceFundpaidan •Freezenewandrenewedstate-
reportsareincompleteorincorrect.” averageof$450,000ayeartothe agencyconsultantcontractsformore
Nevertheless,datareportedtotheOSC equivalentofthreefull-timeconsultants than$100,000untilacost-benefit
forthe2008-09statefiscalyearrevealsthe workingunderseparatecontracts. analysisiscompletedbyanagency
The“winner,”however,is andreviewed,andawaiveris
the$543.94averagehourly approvedbytheDOB;and
costforlegalconsultantsat •Requirethestate
theNYSRacingCommission TransportationDepartment,aspart
OversightBoard,including ofitsconsultant-reductionplan,to
paralegalservicesatacost conductatleast90percentofits
of$552anhour. bridgeinspectionswithstate
“Whentaxpayersare employeeswithinthreeyears.
cryingoutforrelief,andthe 2.Enactalawrequiringstateagencies
governorissearchingfor toperformacost-benefitanalysisbefore
waystoeconomizeand enteringintoanyconsultantcontractfor
makestategovernment morethan$100,000.
morecost-effective,howcan 3.Enactpenaltiesforfailuretofile
suchblatantoverspending reportsundertheContractDisclosure
persist?”Brynienasked. Law.TheDOBandOSCshouldimprove
POINTINGOUTSAVINGS— Atapressconferencein “Peopleliketoblamestate theconsultantreportingasrecommended
Albany, January14,PEFPresidentKenBrynienusesachart employeesfortheshortfall, bytheGovernor’sTaskForceonPersonal
toillustratecostsavingsifstateworkers
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Theblameiseasytoplace below.)
Gov’staskforce:Insourcetosavemoney
BySHERRYHALBROOK Thisinitialreportfocusedspecifically shouldbeaddedtoITcontractsregarding
It’safamiliarmessage,butanew oncontractingintransportation knowledgetransfer;
messenger. engineeringandinformationtechnology •Issuearevisedbudgetbulletin
InareportissuedDecember30,2009, (IT). providingforthecollectionofadditional
theGovernor’sTaskForceonPersonal Gov.DavidPatersonhailedthereport, informationfromstateagenciesontheir
ServiceContractingIssuesissuedareport andthankedthetaskforce,whichhe personal-servicescontracts;and
concludingthestatecouldandshould establishedinJune2008. •Developasingleconsolidatedcontract
savemoneybyreducingitsrelianceon Thetaskforce,whichwaschairedby databaseandreportingsystemtoimprove
privateconsultantsandgivingtheworkto stateBudgetDirectorRobertMegna, datacollectionandanalysis.
stateemployees,evenifthatmeanshiring recommendsthestate: Patersoncreditedthegroup’sworkfor
moreofthem. •Developaprocessbywhichagencies promptinganewlaw,passedin2009,
Thetaskforceischargedwith maydemonstratethathiringanemployee thatgivesstateagenciestheflexibilityto
reviewingstateagencypracticesin toperformnecessaryserviceswould insourceITjobswhenitwouldbecost-
contractingforpersonalservices, createacostsavingsbyreducing effective.
evaluatingthereasonsforthosecontracts contractingexpenses; Patersonsaid,“aninter-agencygroup
andrecommendingwhetherandhow •Developbestpracticesforagenciesto willmeetonaregularbasistoensure
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y2010—Page5
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