Won’t get fooled again! Outsourcing plan goes down!
Good news gang. In California, a plan to ask Orange County voters to consider outsourcing county jobs to private contractors fell flat recently when three supervisors abstained from voting on the issue. Supervisor John Moorlach proposed managed outsourcing – as a way to lower the county’s unfunded pension liability – by reducing government workers and hiring contract employees. By doing that, the county could pay lower salaries and reduce pension costs more like those in the private sector, reducing the county’s overall expenditures, he said.
Moorlach noted examples of outsourcing in Los Angeles and San Diego counties. In San Diego, he said, recent reports show the county has saved hundreds of thousands of dollars by outsourcing through private companies. Moorlach also cited the Orange County Transportation System’s use of outsourcing.
Considering that Orange County’s debt is in excess of $60,000,000, and that most of the data indicates outsourcing (ie privatizing) government jobs costs way more in the long run, it’s hard to imagine someone pitching a plan to save hundreds of thousands as a solution with a straight face. It’s almost like the move is more political than concerned with economics.