
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
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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. |