Snyder uses his big govt to pick the pockets of its employees while his small govt lacks the funds needed to corral state contractors.
Are government contractors immune from Snyder’s ‘shared sacrifice’?
Workers asked for cuts while contractors collect big
By Eartha Jane Melzer
08.26.11 | 9:48 am
Though Michigan’s Republican leadership has focused on reducing the costs associated with state employees — just yesterday passing a law that requires them to pay more for health insurance — the bulk of state spending goes to businesses and so far they are not being asked to share in the sacrifice.
A report put together by the unions that represent state workers says that while the state has sharply reduced its workforce and cut benefits, it has not cut back on the tens of millions it spends on third-party contractors that are often out of state companies.
Using data from the Office of State Employer, the unions determined that in the first half of this year, $5.4 billion or 26 percent of all spending was on private contracts while $2.1 billion or 10 percent was spent on state employees.
The governor has demanded $145 million in concessions from state employees, but union groups say they are unwilling to accept further cuts before the administration acts to reign in spending on contracts.
“If you took ten percent of the service contracts existing it would represent over 100 million dollar in savings,” said Ken Moore, president of the Michigan State Employees Association, “yet the administration chooses not to look into it.”
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The Office of Auditor General has authority to audit all spending on contracts but has has itself suffered cuts that limit its ability to monitor contractor performance.
A review of the effectiveness and efficiency of contracts would be extremely labor intensive said Scott Strong, deputy auditor general.
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http://michiganmessenger.com/52018/are-government-contractors-immune-from-snyder’s-‘shared-sacrifice’