Questionable Promises
Published: Monday, April 28, 2008 4:04 PM PDT
The promise of the managed competition program is to maintain service quality at the same time as saving taxpayers money. Both of these promises are questionable.
Some key problems with the program are:
(1) Quality of public services is lost in spin. The public in San Diego has not been given a meaningful way to provide input on services. In fact, quality of services is not defined anywhere. So there is no way for the public to hold elected officials accountable for their actions.
(2) No independent way to validate cost savings for taxpayers. The whole point of this exercise is to save money. But, as we know from the federal contracting practices, the cost of oversight and monitoring is frequently underestimated. Often contracts themselves are poorly written which leads to contractors overcharging the government.
(3) Privatization results in workers losing health insurance. This is especially true for blue collar workers cleaning our streets and trimming our trees. Our analysis shows that the buildings and grounds maintenance industry does an abysmal job of providing health coverage, leaving almost a third of workers completely uninsured. Converting jobs that have healthcare into those do not ultimately cost us all in overcrowded emergency rooms and higher insurance premiums.
(4) Our core capacity to provide public services is weakened. When market conditions change, so that it is no longer profitable to fill potholes, private contractors will pack their bags and leave for Dubai. What is our insurance policy when the city crews who know how to provide the services have been disbanded?
(5) Our public sector employees deserve fair treatment. The guy who picks up your trash every week from your residence, the firefighter who puts his life at risk to save our homes, the librarian who answers our questions with great depth of knowledge. They do their jobs serving San Diego residents with dedication, public spirit, and pride in their work.
The entire process reminds me of Dutch artist M.C. Escher’s depiction of a Penrose staircase “Ascending and Descending.” You can keep people moving infinitely (either up or down) but you never get anywhere.
City’s Privatization Loop
For those candidates touting the program, let me ask a simple question: Which comes first, reengineering or competition? If you can figure that out, send me an email.
-- MURTAZA BAXAMUSA
Reader Feedback
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Comments so far on this story: 1. Ian Towbridge wrote on April 28, 2008 3:40 PM:
"As a research scientist by training, I rely on provable facts. The city still does not have any parameters that measure worker efficiency in any meaningful way. This means that the faith-based statements that the private sector would be more efficient has no meaning since there is no way to measure efficiency at the city. By the same token reengineering is also impossible without measurable goals. All reengineering is,is a politic piece of propaganda that Fred Sainz can communicate without inserting the F-word. The mayor, of course has no clue what it means" 2. District 5 Voter wrote on April 28, 2008 4:28 PM:
"Mr. Baxamusa, I still don't know what you're suggesting. Do you think the billion dollar+ pension deficit is the answer? Let the unions keep their powerful lobby at city hall so city workers "feel good" and have a "happy work environment"? Does any privatization work? Or should all services be done by city union workers only?" 3. Captain T wrote on April 28, 2008 5:27 PM:
"One D5 voter to another, This goes to the point of a union lobby on the council: I think if you look at George George's record, you'll find that as the Assistant Chief of SDFD, he saved the city 10's of millions after the Fair Labor Standards Act was passed by Congress (FLSA required overtime for anything over 204 hours/month, firefighters work on average 240). Chief George found a way to maintain fully staffed fire companies and reduce the city's exposure to federally mandated overtime. His staffing configuration is in force to this day, saving tons in OT costs. I think the unions would've preferred the status quo, but George did the right thing. DeMaio hasn't saved the city a dime. And has private contractors he's beholden to, if elected" 4. Happy Bunny wrote on April 28, 2008 9:47 PM:
"District 5 Voter wrote "Mr. Baxamusa, I still don't know what you're suggesting. Do you think the billion dollar+ pension deficit is the answer?" It was the City who wanted to NOT pay it's annual pension obligation, not the employees." 5. Billy Bob Henry wrote on April 29, 2008 12:55 PM:
"4. Happy Bunny wrote on April 28, 2008 9:47 PM: "District 5 Voter wrote "Mr. Baxamusa, I still don't know what you're suggesting. Do you think the billion dollar+ pension deficit is the answer?" It was the City who wanted to NOT pay it's annual pension obligation, not the employees.....IT was the empoloyees and their unions who enagaged in a quid pro quo pension scam."
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