Statement by PEF President Kenneth Brynien on proposed state budget

Albany - The governor's proposed 2010-11 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 New York State Public Employees Federation (PEF) applauds the governor for recognizing savings can be achieved by reducing the use of consultants. The governor recently proposed to reduce the use of information technology consultants for an estimated savings of as much as $15 million per year.The governor also identifies a savings in his proposed budget by reducing the state's use of more costly private contract insurance examiners.

However, the governor's consultant reduction plan is only the tip of the iceberg and does not go far enough. Our more aggressive proposal to cut the use of consultants across-the-board in state government can easily achieve the quarter of a billion dollars the governor is targeting from the state work force to close the budget gap.

I cannot and will not go to my members and ask them to reopen the contract we negotiated with the state in good faith when many of my members are sitting alongside more costly private contractors doing the same work. However, we are always willing to discuss issues that do not involve reopening our contract.

We await more details on the closures and consolidations the governor is proposing for the Office of Children and Family Services. We will seek to preserve the vital services our members provide to the state's troubled youths and ensure that troubled and sometimes dangerous youths are not recklessly cast into our communities without adequate support.

PEF has identified significant potential savings for the state, such as the reduction in the use of consultants and reducing workplace injuries and their associated costs and has communicated these proposals to the governor.

PEF plan reveals millions in cost-savings

Albany - The New York State Public Employees Federation (PEF) today released comprehensive research that reveals the state can save $656 million over three years by implementing PEF’s cost-savings recommendations. The research also includes examples of irresponsible uncontrolled spending by some state agencies, a complete disregard of state law by others, and sloppy and incomplete record keeping by many.

“At a time when the state is facing severe fiscal constraints, spending on consultants rose to $2.9 billion; a $100 million increase,” said PEF President Kenneth Brynien. “That’s the equivalent of 23,329 full-time consultants working for the state, over 2,500 more consultants than the previous fiscal year. If that many state employees were added to the payroll during this fiscal crisis, there would be outrage.”

PEF’s research revealed some state agencies incurred astronomical consultant costs. The Racing Association Oversight Board paid a New York City law firm $689,901 for 1,275.40 hours of legal services which breaks out to $541 an hour. The same board paid paralegals even more. The law firm billed the state $51,535 for 93.20 hours of work by paralegals. That comes to $553 an hour! These are just some of the examples of irresponsible spending.

The biggest savings is in replacing Information Technology (IT) and engineering consultants with state employees. This week, the governor announced an effort to in-source IT consultants for an estimated savings of as much as $3 million. While we applaud the governors acknowledgement of what PEF has been saying for years that state employees can do the same work for much less than consultant, the governors plan doesn’t go far enough. PEF’s proposal to cut the use of IT consultants is much more aggressive and can save the state a minimum of $116.9 million by replacing half of the IT consultants with state employees. Our plan to replace engineering consultants can achieve a minimum savings of $95 million annually.

The potential future savings from PEF’s consultant reduction plan could be even more because only 20 percent of total consultant expenditures are filed properly with the state Comptrollers Office as required by the contract disclosure law. Some reports that were filed are so riddled with errors and typos that the New York State Research Foundation reported paying a consultant less than a penny per hour.

“This out-of-control spending, and improper and sloppy filing is costing the state millions. New York’s professional workforce has come up with ways to change that. Now it’s up to the governor and legislative leaders to make that change happen,” Brynien said.

PEF Statement on State of the State

Albany -"The New York State Public Employees Federation (PEF) is very supportive of the governor’s initiatives to build New York’s economy," said PEF President Kenneth Brynien.

"We are optimistic the governor’s call to merge agencies that duplicate services is directed to New York’s shadow government of unaccountable and off-budget authorities. PEF members know where these cuts can be made and how best to achieve efficiencies through mergers.

"As the details of the budget unfold, we stand ready to offer the governor and the state’s taxpayers savings that will help close the state’s budget gap while maintaining the vital services New York’s citizens rely on.

"We look forward to working with the governor and have, in fact, shared with him many ways to save money and make the state more efficient particularly in the area of reducing wasteful contracting-out.

"We remain hopeful when the Executive Budget is released some of our cost-saving proposals will be included," Brynien said.