Haslam Looking to More Privatizing

Despite a controversy over his outsourcing of state building operations, Republican Gov. Bill Haslam says he intends to continue privatizing state government operations where he believes it is practical, reports the Chattanooga TFP.
“I think our job is to deliver the very best service at the lowest price, and I’ve said that from the very beginning,” Haslam said last week, adding, “I think particularly this case with the real estate space is a great example of that.”
Haslam was referring to a contract with Chicago-based real estate services firm Jones Lang LaSalle to manage state office space.
…State employees and their representatives, meanwhile, argue that in at least some outsourcing ventures, the promised savings don’t materialize.
“As far as I know, state employees were doing a good job managing the buildings,” said Robert O’Connell, executive director of the Tennessee State Employees Association.
What employees “think we’re seeing here is an execution of a certain political philosophy” of privatization wherever possible of even “appropriate” public functions, O’Connell said.
Haslam said outsourcing state functions where it makes sense is one of several strategies his administration is using to keep government costs down.
“Right now we’re in a good revenue period, and the revenue’s always exceeding [estimates],” he said. “That doesn’t always last. When it doesn’t, we’re going to have to provide for that. This is a direct result of the top-to-bottom [reviews of state functions]” Haslam ordered after taking office.
The reviews have resulted in any number of cost-cutting measures and elimination of some state services.
Haslam argues the reviews don’t always lead to trimmed or eliminated programs, job cuts or privatization.
“There’s other things we’re taking back” from private vendors, Haslam said.
“I was talking to a highway contractor the other day who’s kind of mad about some things we used to let private contractors do that we’re bringing back in house” at the Department of Transportation.

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