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Outsourcing restrictions eased

Published (3/2/2012)
By Nick Busse
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State agencies would have an easier time outsourcing state jobs, under a bill that won committee approval .

Rep. Steve Drazkowski (R-Mazeppa) sponsors HF1975 that would remove a number of statutory restrictions on outsourcing. It would allow, but not require, state agencies to enter into service contracts regardless of whether state employees are able and available to perform the work.

The House State Government Finance Committee approved the bill Feb. 28. It now moves to the House Ways and Means Committee. A companion, SF2090, sponsored by Sen. Dave Thompson (R-Lakeville), awaits action by the Senate State Government Innovation and Veterans Committee.

Drazkowski said the bill would simply “untie the hands” of Gov. Mark Dayton and his commissioners and allow them to carry out state functions using a mix of public and private employees as they see fit. Opponents see potential risks, however.

Rep. Ryan Winkler (DFL-Golden Valley) said outsourcing could make the state dependent on contractors for work that might be better performed internally.

“Once the functions are gone, it’s almost impossible or extremely expensive to rebuild it and bring it back in-house again,” he said.

Rep. Steve Simon (DFL-St. Louis Park) objected to a provision that would remove a legal requirement that agencies consider rehiring laid off state workers before entering into contracts with private vendors.

“I don’t think it’s too much to ask that we at least give them a crack at doing the job that they once did,” Simon said.

Curt Yoakum, legislative director for the Department of Administration, said the department is concerned the bill could undermine the state’s own internal efforts to boost efficiency and productivity. He said reforms initiated last year have already resulted in several million dollars’ worth of savings.

“The department’s own efforts at reform … depend largely on the trust and engagement of state employees,” Yoakum said.

The bill was laid over at the request of Rep. Phyllis Kahn (DFL-Mpls), who said she plans to offer an amendment that would ban legislators from benefitting personally from state contracts.

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