State employees are offering solutions to reform government, save money
As a youth specialist at Maxey Training School in Livingston County, I enjoy working with youth and helping them get back on their feet, seize opportunities and succeed in society.
I have spent 24 years working with children and youth who have come through the juvenile system in Michigan. My colleagues and I want to make a positive difference in these young lives. It can be hard work. Sometimes, it’s physically and emotionally grueling.
And it’s worth every minute of our time and effort.
State employees like me want to make sure that we can continue providing essential services to our fellow Michiganders. During tough budget times, we have stepped up and made sacrifices, including taking wage cuts and paying more for health benefits. Some of us have even lost our jobs. We believe in sharing in the sacrifices. We also believe in offering solutions.
David Baker
The report, “New Solutions for Michigan,” identifies three opportunities to streamline government, reform our budget and save taxpayer dollars.
According to publicly available data, Michigan is one of the most manager-heavy states in the nation, with an average of one manager for nearly six frontline employees. In comparison, Texas today has one manager for every 14 employees, under a streamlining plan that has bipartisan support in the Lone Star State. Iowa’s legislature has set a goal of 20 frontline workers for every manager by 2016. Oregon is moving toward an 11:1 ratio.
In comparison with other states, Michigan has proportionally more managers than the frontline employees who provide services day in and day out.
By streamlining government and reducing bureaucracy, we can also save taxpayer dollars. According to the “New Solutions” report, an increase in staff-to-manager ratio saves money. Going from a 6:1 employee-manager ratio to a 7:1 ratio will save an estimated $75 million a year. If Michigan went to an 11:1 ratio like some states, we could save hundreds of millions of dollars every year - and still have the frontline workers we need to provide vital services.
“New Solutions” also sheds new light on what Michigan spends on private contracts: 26 cents for every $1 of taxpayer money. In comparison, state employee salary and benefits cost 10 cents for every dollar, according to data newly available on the Michigan Transparency website (apps.michigan.gov/MiTransparency/).
Michigan spends two-and-a-half times more on contractors than its own workforce, spending billions of dollars in long-term contracts with out-of-state firms.
Michigan can save around $110 million every year with a modest 10 percent cut in the $1.1-billion-per-year contract costs outside of community health and higher education, through savings from vendors or reducing agencies’ dependence on contractors.
Everybody else is tightening their belts. We believe state government can do the same with contractors, by performing a comprehensive cost-benefit analysis of contracts to ensure agencies are providing services in the most cost-effective manner.
Closer partnership between employees and managers can also lead to cost-savings. Frontline service providers are often the first ones to spot efficiencies, and we should encourage their hands-on cost-saving innovations.
As a frontline worker, I want to make sure I can continue to give back to our state and help my fellow Michiganders. These are all common-sense reforms can help protect vital services, by streamlining government and saving hundreds of millions of taxpayer dollars every.
Dave Baker lives in Tecumseh and is president of AFSCME Local 1327.The New Solutions for Michigan report can be found at www.seiu517m.org/2011/05/23/new-solutions-report .
Comments
Mick52
Sun, Jun 5, 2011 : 3:58 p.m.
Use state workers or privatize? Here is your answer: <a href="http://www.youtube.com/watch?v=f8qFvo2qJOU" rel='nofollow'>http://www.youtube.com/watch?v=f8qFvo2qJOU</a>
SonnyDog09
Sun, Jun 5, 2011 : 2:49 p.m.
and of course, every "contract" employee that is converted to a state employee becomes another dues paying union member. Talk about a win, win!!! Of course, the union president would be in favor of this.
braggslaw
Sun, Jun 5, 2011 : 3:47 p.m.
exactly I cannot trust a union employed worker's opinion on efficiency. It is against their self interest.
Elno Lewis
Sun, Jun 5, 2011 : 2:30 p.m.
Lousy managerial types are NEVER fired in Mich. They are just promoted or transfered.
braggslaw
Sun, Jun 5, 2011 : 12:20 p.m.
tail can suggest how to wag the dog... but it should not determine how to wag the dog.
Craig Lounsbury
Sun, Jun 5, 2011 : 11:59 a.m.
""New Solutions" also sheds new light on what Michigan spends on private contracts: 26 cents for every $1 of taxpayer money. In comparison, state employee salary and benefits cost 10 cents for every dollar, according to data newly available on the Michigan Transparency website (apps.michigan.gov/MiTransparency/). " The link you provide takes me to a rather broad based jumble of information. Can you help me zero in on your specific contention?
Craig Lounsbury
Sun, Jun 5, 2011 : 1:06 p.m.
according to your link below (pie chart on page 10 ) the 26 cents to private contractors is for services, supplies and materials. So not only does that 26 cents cover salary and benefits, it would seem to cover concrete, asphalt, steel, mops, buckets, cleaning supplies, depreciation on earth movers, cranes, trucks...... In other words your not comparing apples to apples by any stretch. Intellectual honesty is, sadly, often the first casualty in any agenda. <a href="http://www.seiu517m.org/files/2011/05/Fair-Economy-New-Solutions-for-Michigan-FINAL.pdf" rel='nofollow'>http://www.seiu517m.org/files/2011/05/Fair-Economy-New-Solutions-for-Michigan-FINAL.pdf</a>
northside
Sun, Jun 5, 2011 : 11:16 a.m.
The work done by the Maxey School can by itself save the state money. If the youth there end up in prison the cost to the state is around $30,000/year and they'd of course not be earning wages/paying taxes. Social services may cost money in the short term but funding them often saves it in the longterm.