This article is from Cal-Tax Digest, published
by the California Taxpayers' Association.
Cal-Tax Home Page | About Cal-Tax | Subscribe
 April 1998

Cal-Tax Commentary



Larry McCarthy

CALIFORNIA
TAXPAYERS'
ASSOCIATION

RICHARD A. HAYES
Chairman

LARRY McCARTHY
President

CAROL ROSS EVANS
Vice President

DAVID R. DOERR
Chief Tax Consultant

STEPHEN J. KROES
Director of Research

Wm. GREGORY TURNER
General Counsel

JOYCE SHOWALTER
Director - Corporate Relations

RON ROACH
Editor

Cal-Tax Digest (ISSN 0008-0543) is published monthly, except August and December, by the California Taxpayers Association, 921 11th Street, Suite 800, Sacramento, CA 95814. Subscriptions are $96 a year ($50 for libraries). Periodicals postage paid at Sacramento, CA. POSTMASTER: Send address changes to Cal-Tax Digest, at the above address.

Unless otherwise noted, original material in Cal-Tax Digest may be reproduced, with attribution. Anyone wishing to reprint an original article or commentary is requested to first contact the editor of Cal-Tax Digest.

Opinion in this publication is that of the authors and does not necessarily reflect the views of the California Taxpayers' Association.

Cal-Tax is a nonpartisan, nonprofit corporation, founded in 1926, and dedicated to advancing economy and efficiency in government. For membership and other information, please write or call (916) 441-0490. The editor of Cal-Tax Digest also may be reached by e-mail (rwroach@caltax.org).

Readers are invited to visit Cal-Tax Online at the Internet address of http://www.caltax.org. 

Prop. 224: Damaging Everyone
By Larry McCarthy

In Proposition 224, state-employed engineers are trying to feather their nest at the expense of everyone else. Their power-grabbing initiative on the June 2 ballot would increase the size and cost of government and at the same time make it more difficult, more expensive, and time consuming to build needed highways, schools, bridges, flood control facilities and parks.

Those behind this initiative, the bureaucrats at Caltrans, are trying to disguise this initiative as competitive bidding with claims that it would save taxpayer dollars. But voters should ask themselves, "Would a group of Caltrans bureaucrats really spend $2 million to get this on the ballot to save taxpayers money or promote competition?" Unlikely.

If this measure passes, thousands of private-sector employees would lose their jobs and it would force taxpayers to pay for up to 15,600 new bureaucrats. According to a study released by Taxpayers Against 224, the additional costs for salaries and overhead would amount to an astounding $1.7 billion annually.

The backers of this initiative are intent on deceiving voters into thinking they are doing something positive for taxpayers when the result would be just the opposite.

The proponents' concept of competition for engineering work on state and local public facilities is a rigged-bidding comparison. They want the state's costs to appear artificially low by ignoring rent, utilities, phone, insurance, and legal costs of doing business. Because private firms must include all real-world expenses in their bids, state bureaucrats would get all the design jobs because of the rigged-bidding process.

The initiative would force the state Controller's Office to create a $2.5 million-a-year bureaucracy to compare private vs. public bids on contracts for design and engineering work, according to the Legislative Analyst's Office.

The czar-like controller's office authority over billions of dollars in construction projects would cause expensive delays as projects must be funneled through that office. School districts, the state's largest teachers union and city and county governments are among opponents because they see delays in constructing needed facilities. They would no longer be able to contract with a private architect or engineer to build a new school.

The system sought by the Professional Engineers in California Government would work against parents who want schools for their children, workers who need to get to their jobs on safe bridges and highways free from gridlock, those Californians who need flood control protection, and those who want to see new libraries and adequate public safety facilities.

Opposing Proposition 224 is one of the broadest, most diverse coalitions in memory with more than 700 members, including taxpayers, businesses, organized labor, educators, hospitals, earthquake experts and professional engineers.

Taxpayers deserve quality government services. Competitive contracting with the private sector can be a key strategy when the job can be done for less without compromising quality. This initiative would kill competition and result in a bloated bureaucracy and higher costs that would damage every resident of California.

- Larry McCarthy is president of the California Taxpayers' Association.