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Outsourcing! Outrageous!

By Ralph N. Galascione, La Jolla



Wednesday, June 25, 2008 | "Outsourcing" or "privatizing" local government functions as a means to reduce the cost of delivering that service or diminishing the liability for certain services on the city's books ranks as one of the most horrendous cons in this city's history!

What is so virtuous about the way private companies manage their business affairs? How many businesses go bankrupt each year or are up to their ears in debt notwithstanding the pretty and obtuse given to those arcane ruses? In a time when executive compensation is so excessive what lame-brain mayor or city official could conclude that "privatizing" will cost the city less?

My hope is that you keep pursuing this issue, in particular Mayor Sanders' ineptness as the custodian of our city's resources.




38 Comments so far on this story...

Who is this correspondent Galascione from La Jolla, speaking the truth about limitations in "the business model" and casting a gimlet eye on Mayor Sanders' ineptitude? We love him and we thank him for piping up.

Posted by Fed Up | reply to this comment
June 25, 2008 12:13 pm

In the case of many blue collar jobs, private industry--landscape maintenance, trash collection, road repair, etc--uses low paid, immigrant labor, providing no health insurance and no benefits, to keep costs low. It will be impossible for city workers to compete with them on a cost basis.

Posted by Steve K | reply to this comment
June 25, 2008 12:53 pm

Here--Here Mr. Galascione. The nail has now been hit on the head. Recall the adage: Two always a third? Well, we had Golding and Murphy. Now we have SANDERS> Why are we so lucky?

Posted by Pietro | reply to this comment
June 25, 2008 1:49 pm

Privatization earned its fame on the east coast in cities like Indianapolis where bloated payrolls and staffing due to corruption, graft and politics led to sky high government costs. The huge savings cited were for things like reducing six trash collectors on a truck to three (San Diego has one...sometimes two). So when San Diego had their "optimization" program some years ago, the first step was to review and improve the internal operation, then compete with private sector costs. This eliminated any "Indianapolis-type" savings and insured that city operations would be competitive. Under that model, very few functions were contracted out, but the cost savings of improved in-house operations were still tremendous. The potential of contracting a service out serves as a prudent tool to motivate city workers to accept new methods of conducting business and/or improving productivity to save money. The concept delivers, it's how it's managed.

Posted by Get A Clue | reply to this comment
June 25, 2008 3:59 pm

Ralph N. Galascione - In a time when executive compensation is so excessive what lame-brain mayor or city official could conclude that "privatizing" will cost the city less?......... . ...Err.... Ralph buddy, in case you mssed it, San Diego is compensating GED educated cops and FF with no prior experience $200K per year. It would be IMPOSSIBLE for the private sector not to save $$$ with those inflated gov employee numbers.

Posted by Billy Bob Henry | reply to this comment
June 25, 2008 4:28 pm

Privatizing city work is just another way to break the back of the unions, it is not about saving the city money.

Posted by zollner | reply to this comment
June 25, 2008 4:49 pm

So, Billy. We've been waiting for you to tell us YOUR - Education/Training - Career - and of course, your Annual Income, because you are such an "expert" at those subjects for other careers. Thank you for the raise - now I only have to work 5 years to get my next million. Next time, state that we earn 400k/year. I'll print it out and REALLY impress the women! Also, could you please add that every other year the City of S.D. gives us LEXUS SUV's? Thanks. Remember next post - YOUR CAREER - EDUCATION/TRAINING - ANNUAL INCOME.

Posted by Millionaire FF | reply to this comment
June 25, 2008 6:18 pm

Apparently BBH hasn't noticed that CEO compensation is at an all time high.The cost will be about the same -- the employee will suffer -- the employer will profit.Why do you think Ace Parking supported DeMaio for council?Do you think they want to put lots in Rancho Bernardo?Or do you think they want the contract for parking at Mission Beach?

Posted by JF | reply to this comment
June 25, 2008 6:44 pm

The purpose of outsourcing is to perform tasks at minimum cost without expenses for health insurance, pensions, or vacations. These benefits remain the provenance of the existing City employees.

Posted by nostalgic | reply to this comment
June 25, 2008 7:13 pm

8. JF wrote on June 25, 2008 6:44 PM: "Apparently BBH hasn't noticed that CEO compensation is at an all time high... . . . . ..AND what does that have to do with the price of eggs JF???? Are you saying that because CEO's of PRIVATE companies (companies that compete to make a profit in the FEE market) are overpaid that GED educated FF should also be overpaid??? WHAT DOES THE PAY OF A PRIVATE SECTOR CEO HAVE TO DO WITH SAN DIEGO TAXPAYERS SUPPOTING HS EDUCATED FF AT $200K PER YEAR???????? ....Dont tell me, next JF's comparision will be to Tiger Woods or Michael Jordan.......get serious.

Posted by Billy Bob Henry | reply to this comment
June 25, 2008 8:53 pm

I think we need to know what the real costs of outsourcing are. I do not want my taxes going to for-profit companies, with jobs done on the cheap (at least up-front), with the workers making low pay and no benefits - and taking away from the pool of low- to middle-wage jobs with benefits from my friends, neighbors, and our children. And who gets our money? For-profit companies with decently compensated CEOs. And, what happens when the workers get sick, and the only heath care coverage is the emergency room? Who pays what they can't? Oh, yeah, us.

Posted by Hank | reply to this comment
June 25, 2008 11:11 pm

Outsourcing is like this: Mom, you may love me and care for me, you may be sempre vigilant and all that, you may even die for me in times of emergency, but you know what, I'm outsourcing your job to the new babysitter who lets me stay up late, keep my room a mess, she never checks up to see if I do my chores or homework, and lets me get away with anything. Plus, we get to eat candy and junk food and watch TV 24/7. // So San Diego gets to learn all about outsourcing its own job to someone else -- and of course that job will be done using the cheapest materials and lowest skilled labor possible. And the golden rule about work will kick in: cheap, fast, good -- pick 2, you can't have all 3.

Posted by Christopher Hall | reply to this comment
June 26, 2008 6:45 am

I am all for outsourcing. Lets strat by turing over the misdemeanors to the DA and outsourcing the city attorneys office. We will get better legal advixce and for mush less cost. Since Mike makes $194,000 and spends even more to get good attorneys to litigate lets start there.

Posted by LogicWill Win | reply to this comment
June 26, 2008 7:25 am

..of taxpayer general funds and have government departments perform a service, when contractors for hire can set up privatization schemes and get $470,000 in non general fund fees to do the same job? Read this story: link Land Use's Economic Development division, which William Anderson lets run rampant, pays SCI Consulting and its phony engineer millions of dollars to devise privatization schemes. Money is taken from taxpayers as fees and is divided betwwen Economic Development and its director's corporate friends. They are all paid a large percentage to manage and waste the money. That's what Sanders' and his crony William Anderson love so much about privatization. It doesn't matter to them that real services aren't provided under their assessment district scams: their goal is to boost business income. Companies get endless contracts to make and hang banners. Look for one in front of your closed library.

Posted by Why Budget $80,000 | reply to this comment
June 26, 2008 7:39 am

BBH "Err.... Ralph buddy, in case you mssed it, San Diego is compensating GED educated cops and FF with no prior experience $200K per year. It would be IMPOSSIBLE for the private sector not to save $$$ with those inflated gov employee numbers." Public safety, including police and fire, have never been considered for outsourcing! I guess a privatizer would hire the cop that Coronado would like to be rid of.

Posted by NoFFhere | reply to this comment
June 26, 2008 7:47 am

It's amazing how many union city employees are posting here. The truth is citizens support outsourcing. And it only gets outsourced if there is a SIGNIFICANT savings to the city. As for those asking how much Billy makes, who cares? Don't attack the poster. Stay on topic. It's about time we have a Mayor willing to step up and do what is needed and address outsourcing.

Posted by logic lou | reply to this comment
June 26, 2008 7:58 am

CEO pay and privatization are not related. CEO pay is controlled by a board of directors, if the shareholders would revolt then pay would go down. It's private enterprise. Privatization of public jobs relives the taxpayer (US/taxpayers) from the rapidly escalating retirements and health care costs. Those companies could be compelled to provide certain pay levels and benefits. It would lessen the stranglehold unions have on elected officials. BRING IT ON.

Posted by Lee | reply to this comment
June 26, 2008 8:08 am

I have to agree with Lee. The stranglehold that the unions have on elected officials is tantamount to one saying, I'm a little bit pregnant. As a taxpayer who also is raising children, I'm tired of escalating retirements and health care costs. If outsourcing will save money for the city, for the taxpayer then I'm for it. It seems to me you all can talk about private CEO's and FF and Police and there salaries but I don't think the majority of workers out there are pulling in 200k a year. Its probably more like 50k a year and that's why it takes 2 incomes in San Diego to survive. The private sector doesn't pay that well for the average job and the benefits are not great. The top 1% get the money and the person who does all the work gets barely enough to survive.

Posted by nelson | reply to this comment
June 26, 2008 9:31 am

To Christopher Hall: Your conclusion is correct, but your analogy is backwards. It is more like your mom deciding that to save money she is going to take the child support payments she gets from her divorce (from the union) and hire a non-english speaking undocumented alien to care for you at below minimum wage. She is sure that the uneducated, undocumented, woefully underpaid worker living in a box in a side canyon near her house will raise and educate you to the same high standards that she would have personally, if she only had the time. She of course now doesn't have the time since she and her friends are so busy investing their savings in vacation homes and spa treatments, but she still calls to ask you once or twice a year if you are receiving quality care, to which you always answer: Si.

Posted by Mike P | reply to this comment
June 26, 2008 10:35 am

Billy Bruce Henry apparently spent alot of time in High School having his underwear pulled up to his armpits and getting stuffed into lockers by guys he now thinks are cops and firefighters. A pitiful obsession, driving him to lies ($200k a year.. right!)and rants in ALL CAPS to work through his "issues". Be nice to him, he needs help.

Posted by tseuG | reply to this comment
June 26, 2008 12:31 pm

Re outsourcing, has anyone considered the money the City has already spent on equipment for an entity that may be outsourced? Take parks for example, how much has been spent in vehicles and equipment that the City now owns that will no longer be used, but need to be stored before the City can sell it for cents on the dollar? What would those losses amount to? Also, while the equipment is being stored, the City will have to maintain and supply security for the buildings,property is stored in for non-use. Then once the City terminates all the workers for "privatization", sells the equipment, are you all aware that there will no longer be competitive bidding from City workers? There The workforce will no longer be there. Then the City will be forced to pay the cost for service demanded.

Posted by Gene | reply to this comment
June 26, 2008 4:12 pm

I do not believe that it will take very long for the residents of San Diego to raise up in anger over "poor service" following the implementation of "out-sourcing." They've been sold the Brooklyn Bridge. Rarely is the private sector able to achieve quality when providing service 7/24 on a shoe-string budget. Employees will be under-paid and under-trained. There will be no loyalty to the employer, let alone the City or its residents. If you think the service is bad now, just wait!!

Posted by Ralph of San Diego | reply to this comment
June 26, 2008 5:24 pm

20. tseuG wrote on June 26, 2008 12:31 PM: "Billy Bruce Henry apparently spent alot of time in High School having his underwear pulled up to his armpits and getting stuffed into lockers by guys he now thinks are cops and firefighters. A pitiful obsession, driving him to lies ($200k a year.. right!)------------ ----It is $200K per year in FULL compensation, Reg Pay = $70K, + O/T = 40K, + benefits= $20K, + Pensions = $50K-$70K TOTAL $200K, unless you're a Sgt. Lt. o Captain, then double those numbers(yes those million dollar pensions are not made out of funny money, that is real money and comes from real taxpayers). Nice try Zugggee.

Posted by Billy Bob Henry | reply to this comment
June 26, 2008 6:13 pm

I'll try this slowly, BBH.Instead of spreading the money between 12000 city workers, the CEO's of the companies the city contracts with will get rich.One person will get all the benefits rather than the benefits being spread out among many.

Posted by JF | reply to this comment
June 26, 2008 10:14 pm

22. Ralph of San Diego wrote on June 26, 2008 5:24 PM: Employees will be under-paid and under-trained. There will be no loyalty to the employer, let alone the City or its residents. If you think the service is bad now, just wait!!".....WE HAVE THIS NOW, we have bad service by under trained from cronyism/nepotism, the only difference is that we COMPENSATE the curent employees 10 times what a private contractor would pay, so if eveything is the same except the pay-I'm goign with lower pay and outsourcing.

Posted by Billy Bob Henry | reply to this comment
June 27, 2008 7:33 am

How has privatizing worked out so far for Aguirre? Paying private attorneys millions of taxpayer dollars for simply settling cases. How has it worked for the Feds with Halliburton and all the rest?

Posted by Caitlin | reply to this comment
June 27, 2008 10:08 am

If what BillyBobHenry is saying is true about the salaries and over-time I'm not sure how that fits with the discussion given that FF and Police are NOT part of the outsourcing. The private sector does NOT pay over-time and there is certainly cronyism/nepotism in the private sector also. Caitlin, apparently what Aguirre is doing is working and his department is contributing to the City's funds. You should know better than to assume that things are as they appear. No one has answered my questions, I guess I'm not part of the "click"--I'll keep asking anyway.

Posted by nelson | reply to this comment
June 27, 2008 10:53 am

Silly Billy. The full contribution, both employee and employer, for a firefighter or cop pension has never been higher than 18% of pay. It floats, depending on actuarially calculated requirements. Your little rant has the contribution at 100% of pay; another sign of your obsession driving you lying. Not to mention your convenient but silly assumption of $40k in OT. At least you appear to own up to your issues with those mean high school guys picking on you, and how you now project those memories to guys who save lives, that you grudgingly admire. That's a start.

Posted by tseuG | reply to this comment
June 27, 2008 11:04 am

Hmmm... private enterprise doesn't pay OT?So when there's a water main break at night they'd just let it flow until morning?Nelson, you're saying the same thing I am -- in the city system money is spread out among many workers.In a private system, yes, salaries and pensions go down -- except for those at the top.The total cost doesn't go down as much as you might think because the business owner has to make his boat payment or the CEO has to make shareholders happy.

Posted by JF | reply to this comment
June 27, 2008 5:28 pm

28. tseuG wrote on June 27, 2008 11:04 AM: "Silly Billy. The full contribution, both employee and employer, for a firefighter or cop pension has never been higher than 18% of pay...... That may be what the CONTRIBUTION rate is, but that is NOT the amount that is needed to FUND those multi million dollar GED job pensions. Why do you think the City is bankrupt????????

Posted by Billy Bob Henry | reply to this comment
June 28, 2008 9:18 am

SillyBill. The contribution rate is exactly what is required to fund the pensions. Are you now Mr. Actuary as well as all your other pretend jobs? The past problems (there are no current problems) with the CERS pension were from NOT making the actuarial contribution. I know you hurt inside, but delusion is not the answer.

Posted by tseuG | reply to this comment
June 29, 2008 8:18 am

Funding the pensions? The city didn't pay into the pension fund for ten years. Try that with YOUR home mortgage. (of course, this assumes you don't live with mommy and daddy.)

Posted by Billionaire FF | reply to this comment
June 29, 2008 10:31 pm

To all the people who bitch about our overtime. SD Fire - Rescue has sent approx. 7 crews to Northern California. The City of S.D. i.e. - Taxpayers, will get reimbursed for the costs incurred by the Fed. and State governments. If you don't want us to earn overtime, have San Diego get out from any Mutual Aid Agreements, and don't expect help from any other jurisdiction when San Diego burns again. Which it will, of course, either this month or the next. You might as well shut down a fire station for a day whenever someone on the crew calls in sick, goes on vacation, or goes to school to earn his GED. "How about volunteers?" - you ask. No problem - we'll take all the help we can get - SD only has .67 FF/1000 people. CERT is a good start.

Posted by Trillionaire FF | reply to this comment
June 30, 2008 7:45 pm

By the way Billy Bob Henry - we'd LOVE to have you join the ranks of the volunteers - (San Diego County Fire could use your help right now). Your help on the firelines would be invaluable, plus I'd love to see you "hump hose" up steep terrain in 110 degree heat and taking on flame lengths of 50 feet to save the homes and lives of people in harms way. I encourage you to join a CERT Team in your neighborhood. You would be appreciated by those in times of need. Don't hesitate - JUST DO IT!

Posted by Trillionaire FF | reply to this comment
June 30, 2008 8:21 pm

Nelson, I don't know what your questions are so I find it difficult to answer them for you. I can tell you your first mistake though. You assume what BBH is true. That is your first mistake. Do your own research and see if he has ever told the truth. Also, where do you get the idea the private sector doesn't pay overtime? Do some research on that as well. Another fallacy in your post is that Aguirre is bringing in revenue. NOTHING could be further from the truth. When you tally up all the good and the bad, he has cost the city tens of millions with more to follow. In his small victories (won by private attornys) he has even managed to give away much of those settlements to his cronies. That is an issue that should be investigated.

Posted by Caitlin | reply to this comment
July 1, 2008 11:22 pm

Sorry Ann, I am obligated under the rules of professional responsibility to always tell the truth...and I do!

Posted by Billy Bob Henry | reply to this comment
July 2, 2008 12:25 pm

"Professional responsibility? - Which profession?

Posted by Bazillionaire FF | reply to this comment
July 2, 2008 4:25 pm

Just dropped in to read on a holiday -- and it looks as if Billy Bob has run into bit of a buzz-saw. Hey, BB -- anytime you try to derail a gravy train, there is going to be a backlash. Public employee rice bowls are hard to break! It might be good to try outsourcing for a five-year period, so we can test the theories everyone has. We know the current system has brought us to the brink of bankruptcy -- it is possible that the outsourcing will be worse (I doubt it) -- but, lets try it and see.

Posted by Reardon | reply to this comment
July 4, 2008 12:50 pm


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