New York state has gone public. On June 6, Gov. David Paterson signed an executive order requiring state agencies to conduct a cost-benefit analysis before contracting out state services to private consultants.

The executive order brings the New York State Public Employees Federation's (PEF) "Go Public" campaign full circle. The campaign centered around the enactment of four "Go Public" accountability bills, each seeking to increase transparency in government contracting practices. Three of the four bills have been enacted since PEF launched the campaign in 2005; Gov. Paterson's executive order mirrors the fourth piece of legislation.

According to the governor's office, the order "recommends the use of outside contractor work if the contractor will be more cost effective, efficient, or necessary to protect public health and safety. It also requires agencies to explain why outside consultants—and not state employees—are needed to perform a specific task." The order applies to consultant contracts under which personnel costs exceed $1 million annually.

"The governor's executive order is a major first step toward cutting a significant amount of waste in state spending," says PEF president Ken Brynien, who is also an AFT vice president. "It ensures the taxpayer gets the best value, and it's an acknowledgement of the efficiency of public employees."

In addition to setting stringent consultant contracting standards, the order establishes a task force to review and report on agencies' use of consultants.

"The state will spend hundreds of millions of dollars on consultants this year, and the public needs to know that contracting decisions are carefully considered and done only for good reason," said Gov. Paterson. "This executive order demands that we justify to the public our use of consultant contracts by requiring greater oversight and transparency from agencies. Agencies should only use contractors if it is clear they are necessary or will provide savings to taxpayers."

"Go Public" bills previously enacted are: the procurement lobbying bill, which requires lobbyists to disclose more information about their efforts to influence the award of state contracts; the contract disclosure bill, which requires the Department of Civil Service to annually report the number of contract workers hired to perform services for state agencies; and the accountability bill, which requires more oversight of state authorities and off-budget "shadow" agencies.

June 13, 2008