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Oakland Tribune Editorial
November 2, 2000

In The News Sign


Prop. 35 opens state projects to private firms

WITH all the buzz about the benefits of public-private partnerships these days, you would think that such cooperative, cross-barrier ventures would be routine and universally accepted by now.

Not so if you are a member of PECG (the Professional Engineers in California Government) or CELSOC (the Consulting Engineers and Land Surveyors of California) concerned about the large, lucrative engineering and architectural contracts for a vast number of pending public works projects. And the biggest, richest nest egg of all in our state's push to rebuild and expand our infrastrucure has to do with -- what else -- transportation.

And that, dear citizens, is what Proposition 35 on next Tuesday's ballot is all about.

It is an amendment to the California Constitution that would allow state and local governments to routinely contract with qualified private architectural and engineering firms for public works projects. And, of course, PECG, the bargaining unit for Caltrans and other engineers, wants to continue using state employees as long as they can perform the task "adequately and competently" or it qualifies for an exception because it is temporary, not available through civil service or so specialized and technical that the agency doesn't have the necessary expertise.

The engineering and design of several Bay Area bridges currently in various stages of repair and reconstruction, for instance, was done by private firms.

In other words, the battle over Prop. 35 is a turf war. Private engineering firms want a bigger slice of the public works pie while state engineers prefer to hire more engineers and keep as much of the work in-house as possible. It's called job security.


At stake are millions, indeed billions, of dollars. In 1999 it was estimated that California had a backlog of highway and school projects worth $110 billion. And, Gov. Gray Davis has vowed to improve schools and ease traffic congestion to the tune of $6.8 billion over six years, further sweetening the pie filling.

The California Taxpayers Association says opening the process to more private participation could save Californians $2.5 billion a year and create 40,000 jobs over the next 10 years.

While those savings may be inflated, the rationale behind the figures makes sense. Breaking the backlog of projects by contracting with private engineering firms means you get to the task sooner and finish it earlier, expediting construction and saving money.

It also saves taxpayers the added cost of accommodating the rollercoaster effect of hiring and training more engineers during surges in construction and then having to whittle the number back when the good times go bye-bye.

Most of the arguments against private contracting are relatively feeble. Opponents argue, for instance, that it will delay projects -- "traffic congestion will get worse" -- even more and therefore cost taxpayers more. How could it cost more than $100 billion in backed-up projects? The backlog was so acute a year ago that the Legislative Analyst's Office urged Caltrans to do more contracting with private firms.

It's also downright inefficient and not in the public interest for a state union to keep resisting privatization when its workers can't keep up with demand, resulting in delayed, ultimately more expensive projects.

As for the argument that there will be more shoddy workmanship and perhaps shady dealings between state agencies and favored companies, that is what audits, inspections and close scrutiny of public projects is all about. The system will be as bad or good as the public and government lets it be.

Ditto for leaving all the work in the public sector. Tell us the absence of competition and bureaucratic tendencies doesn't result in a lot of wasted time and inefficiencies in Caltrans and other agencies? Yeah, right, and the eastern span of the Bay Bridge was replaced and opened less than a decade after the Loma Prieta earthquake!

State engineers and private firms have been feuding over this issue for years. It has been in and out of courts and in an earlier manifestation established the current structure favoring public servants.

It's time to level the playing field and give the private sector a better chance to compete for such public projects.

There appears to be plenty of work for everyone. The goal should be to find the best way to expedite and complete all the needed transportation, school and health projects in the quickest, safest, most economical way.

Proposition 35 will help that happen. We recommend you support it.



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