PEF Provides Cost Savings to DOT's Two-Year Capital Plan

ALBANY, NY - The New York State Public Employees Federation (PEF) today provided examples of ways the state can save an estimated $55.6 million to $84.3 million a year. The savings can be achieved by having state employees do between 50 percent and 90 percent of the work currently done by more expensive private consultants at the state Department of Transportation (DOT).

Edward Lucas, PEF Executive Board Member and DOT Civil engineer, testified at an Assembly hearing on DOT's two-year capital plan. Lucas provided testimony that showed how much the state can save by having state employees do the work currently being done at a much higher cost by consultants.

"Now more than ever the state simply can't afford to continue wasteful spending," Lucas said. "Our research shows the cost, on average, of a DOT engineer, including benefits, is $50.11 an hour. Comparable private consultant engineers charge the state $82.09 or $30 more an hour," Lucas testified.

DOT staffing levels are currently at the lowest levels in DOT history. The department lost nearly 750 employees through the retirement incentives and will shoulder more than 10 percent of Gov. David Paterson's December 31 layoffs. As a result of the work force reductions at DOT, the agency is increasing its reliance on costly consultant engineers.

PEF only has data for two-thirds of the current fiscal year, but it already indicates capital projects consultant spending is higher in three categories directly related to in-house staff employment levels.

"Consultant expenditures are approximately $10 million higher than at this time last year in the bridge inspection, engineering supervision and material testing expenditure categories," Lucas said.

PEF has proposed several solutions for savings at DOT and other agencies. PEF is strongly urging legislation that will require state agencies to perform a cost-benefit analysis before entering into any consultant contract valued at more than $500 thousand dollars. The union is calling on the Division of Budget to set savings targets for each state agency for consultant spending and to require penalties for failure to file reports under the contract disclosure law. PEF also issued a warning to legislators that work force reductions will further drive up costs as agencies like DOT rely on more costly consultants and contractors.

Full Text of Testimony

Statement of PEF President Kenneth Brynien on Renewed Threat of Layoffs

Albany - It is irresponsible for the Paterson administration to suggest the possibility of layoffs within the state workforce when it is still unclear how many state employees will be leaving state service through the early retirement incentive (ERI).

The director of the state Divison of Budget (DOB) is quoted in the press suggesting the early retirement program may fail to reach a savings goal of $250 million and if that is the case, plans for layoffs may have to be developed. Before deeming the ERI a failure, the DOB should, instead, be pressuring its agency directors to fully comply with the program.

As was the case with the voluntary severance program offered earlier this year, many PEF members who were willing to leave state service were denied the opportunity to participate in the program. We anticipate the same will hold true for the ERI.

It's unnecessary and irresponsible to threaten to layoff state employees at a time when so many people are turning to state services during these difficult financial times. We call on the Paterson administration to focus on making the ERI program a success, rather than planning for failure.

In addition, PEF reminds the governor of the millions the state could save by relying less on high-priced consultants when research proves state employees can often do the same work for less. One step in the direction of realizing recurring savings is passage of the cost-benefit analysis bill. The bill has already passed in the Assembly. It would require a cost-benefit analysis before contracting out state services. PEF is calling on the Senate to stop taypayer abuse and pass the cost-benefit bill.