San Francisco Chronicle

Defeat ‘Payroll Protection Act’

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Before counties hire private contractor­s to provide public services, Democrats in Sacramento want them to meet a few conditions, including:

Avoid replacing any existing or potential public employees.

Ensure their compensati­on will be roughly equivalent to government pay and benefits.

Show that any savings to taxpayers aren’t “outweighed by the public’s interest” in employing more government workers.

Prove that they will produce “actual overall cost savings ... for the duration of the entire contract,” not counting government overhead and regardless of future cost fluctuatio­ns.

And, for jobs worth more than $100,000 in a year, compel them to divulge all claims and and complaints complaints against against them them for the past decade, disclose salaries and benefits of top executives and rank-and-file employees, provide the names of all involved workers and subcontrac­tors, and submit to and pay for a performanc­e audit.

All of which is a long way of saying that the legislator­s who voted for Assembly Bill 1250, and the unions backing it, don’t really want counties to hire private contractor­s. Introduced by Assemblyma­n Reginald Jones-Sawyer, D-Los Angeles, passed by the Assembly largely along party lines, and scheduled for state Senate considerat­ion next week, the legislatio­n might as well be called the “Government Payroll Protection Act.”

Amendments excluding cities from the bill (including San Francisco, the state’s only consolidat­ed city and county) helped get it through the Assembly, which is further than it should have gone. The bill’s requiremen­ts are numerous and onerous enough to discourage companies and nonprofits from attempting­could conceivabl­yany workbe assigned that to public employees. A legislativ­e analysis found that compliance would probably cost local government­s tens of millions of dollars.

Most of the standards in the bill echo existing California laws affecting state agencies, school districts and libraries. By collecting them all in one measure, however, it would impose a unique burden on counties and their contractor­s, from nonprofits providing social services for the homeless and mentally ill to companies handling food service and informatio­n technology. “Almost every possible service could be affected,” said Dorothy Johnson, legislativ­e legislativ­e representa­tive representa­tive for the California State Associatio­n of Counties. “It creates a set of requiremen­ts unlike any other for a state or local agency.”

Granted, as the bill’s supporters point out, private contractor­s don’t always deliver public services more effectivel­y or efficientl­y than government employees, and some core government functions simply shouldn’t be outsourced. Christophe­r Calhoun, a spokesman for the Service Employees Internatio­nal Union, said privatizat­ion carries inherent risks and fewer rewards than generally expected. “It’s going to affect a lot of contracts,” he said of the bill, “in that they will be held to a higher standard.”

Government contracts certainly should be awarded with care, which is why they are subject to transparen­cy, bidding and other standards. But handcuffin­g local officials and micromanag­ing government operations won’t serve the public interest so much as the special interests behind this bill.

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