The Task Force Governor Paterson created will review all future consultant contracts with personnel costs of over $1 million per year. After entering into a contract covered by the Executive Order, a state agency will have 10 business days to provide the task force a written justification for why it has chosen to use consultants instead of state employees. If the reason for doing so is cost savings, the agency must also produce an analysis that supports this conclusion.
"I want to make it clear to the citizens of New York and also to our government leaders that we face serious economic difficulty in the coming months and years. Particularly in these challenging fiscal times, we must closely scrutinize every spending choice our state government makes," said Paterson. "Agencies should only use contractors if it is clear they are necessary or will provide savings to taxpayers. This Executive Order will help to ensure that."
The Executive Order applies to most consultant contracts where personnel costs exceed $1 million per year. The Order only recommends the use of outside contractor work if the contractor will be more cost effective, efficient, or necessary to protect public health and safety. It also requires agencies to explain why outside consultants - and not state employees - are needed to perform a specific task. This and any other justification would later be reviewed by the new task force. Furthermore, agencies will be required to post this information on their Web sites, including a full listing of consultant contracts covered by the order.
The Executive Order also seeks to improve the transparency of the consulting contracting process. Agencies must post a list of qualifying contracts, along with the estimated cost and justification for each, on their Web sites. Additionally, copies of the actual contracts must be made available to the public either on the agency's Web site or upon request.
The Task Force will meet at least quarterly and evaluate contracts submitted for their review. If the Task Force believes that an agency's use of consultants is unnecessary or in conflict with the provisions of this Executive Order, it will make recommendations to that entity for reforming its contracting procedures.
On October 1, 2009, and every year thereafter, the task force will issue a public report on the utilization of consultants by state agencies and their compliance with this Executive Order, as well as recommendations for preventing unwarranted contracts. Transportation engineering and information technology will be particular focuses of the report. Both are areas where the use of consulting services is widespread.
The task force created by this Executive Order will be composed of the following individuals:
- Director of the Budget, Laura Anglin, who will serve as chair
- Deputy Secretary for Labor, Charlotte Hitchcock
- Deputy Secretary for Economic Development, Timothy Gilchrist
- Commissioner of the Department of Taxation and Finance, Robert Megna
- Director of the Governor's Office of Employee Relations, Gary Johnson
- Commissioner of the Department of Civil Service, Nancy Groenwegen
- New York State Chief Information Officer, Dr. Melodie Mayberry-Stewart
New York State Comptroller Thomas P. Dinapoli said: "Our
audits have found that the use of consultants isn't always the most efficient use of tax dollars. We're facing difficult fiscal times. Every dollar matters. The Task Force will be looking at consultant contracts over $1 million, but every state agency should look at every consultant contract, regardless of its dollar value, to make sure it's the best way to spend tax dollars. It's 2008; we need to re-think the way New York operates. The Task Force is a good step in that direction."
Executive Director of the Fiscal Policy Institute Frank Mauro said: "Governor Paterson's Executive Order addresses an aspect of state government operations in which state spending can be reduced without reducing the level or quality of important public services. The effective implementation of this Executive Order could result in millions of dollars in savings each year."
President of the New York State Public Employees Federation (PEF), Kenneth Brynien said: "This is a great day for New York state taxpayers and its public servants. "The governor's executive order is a major step toward cutting a significant amount of waste in state spending. It ensures the taxpayer gets the best value, and it's an acknowledgement of the efficiency of public employees."
"The state will spend hundreds of millions of dollars on consultants this year, and the public needs to know that contracting decisions are carefully considered and done only for good reason," Governor Paterson said. "This Executive Order demands that we justify to the public our use of consultant contracts by requiring greater oversight and transparency from agencies."
