Interesting Op-ed on DOT contracting mess

By John McDaid | Saturday, 30 June 2007

Tom Sgouros, who publishes the informative Rhode Island Policy Reporter has an insightful piece in the Woonsocket Call discussing the larger implications of the "$120K typist" and the Governor's subsequent investigation of contracting practices. Turns out not to be as much an aberration as business as usual:

Large parts of the agency's responsibilities are now handled by similar contractors, with similar markups, and it turns out that DOT no longer has any qualified bridge inspectors on its staff. Outraged, the Governor says he'll get to the bottom of this, and promises to investigate his own administration.

But what no one seems to be asking is why so much of DOT is run by contractors. The department spends almost $36 million each year on contracted services, a third of its personnel budget. (Contractors were only about a fifth of its budget in 1997.) There's a reason why, and it means DOT is a bigger and more expensive mess than has already been reported, brought to you by Governors who tried to do everything they could think of to keep your taxes down - and in the process did more than they should. [...]

Ten years ago, then-Governor Lincoln Almond was also outraged, by DOT's practice of paying some employees' salaries with borrowed funds. Vowing to end the madness, he ordered that the practice be halted. But he didn't add the money into the budget to pay for those employees. DOT, faced with the order to stop paying salaries with borrowed money, but provided with little extra money to make up for the borrowed funds, started replacing its employees with contractors. The expense of contractors, you see, can be moved into the "capital" accounting column, or hidden under "supplies," while employees can only go under "personnel." In other words, having been ordered to make the problem go away, DOT only made it appear as if the problem went away, and set the stage for the contracting scandal now unfolding. So, about that $102,858 typist? The real scandal is that we probably paid 20 percent of her 2007 cost with borrowed money, making her a $125,000 typist by the time we pay back her cost - in the year 2037.
— via the Woonsocket Call

A Department of Transportation with no bridge inspectors. No wonder RI is dead last in bridges.

Makes you feel really, really safe, no?

Tags: 
Localblogging, 02871

Comments

Delilah

Sat, 06/30/2007 - 1:05pm

This doesn't surprise me at all. Sadly to say. It is just one more case of our(hard earned) tax dollars going to pay OUTRAGEOUS amounts to employee's,leaving very little(bare to the bone) left to get the jobs done. Now ...before anyone jumps down my throat, I DO know that everyone must get paid,and paid accordingly to the rise in economy, however...when a typist gets paid $102,858 ,this is a royal rip off,and slap in the face, to all of us,(only leaves you to just imagine what the others salaries are,eh?). Nothing short of a damn crime!

They have NO problem with doing this knowing that are roads,and bridges, are not safe.They can sleep at night,with their pillow cases full of our tax dollars,while we all run a serious risk everyday of another tragic accident happening. As if there hasn't been TOO many already.

Oh... and don't even bother to try and fight them, you will not get anywhere. Not even an army of marines can penetrate the unions!
This is why Rhody has the reputation as being the most corrupt little state on the map. Politicians,Lawyers,Unions,Contractors,Mobsters,all wrapped up in one pretty package!Running the state,and just doing as they please with our tax dollars. Why? Simply ...because they KNOW they can.

It has become a VERY dangerous place out there my friends,that is why most of us are well practiced in...Hear no evil,Speak no evil,See no evil. I know it is a sad statement to make, but a SAFE one!

Lije

Sat, 06/30/2007 - 2:02pm

Delilah said, "Not even an army of marines can penetrate the unions!"

First, I'm not so sure! I love the mental image of U.S. Marines storming some collective bargaining session shouting "Freeze!" and putting everyone on the ground, hands behind their heads, and giving command orders about health care co-pays.

But I digress -- in any event I just want to note that it's not the unions this time.

Just for the record, the famous $102K typist wans't a union position, it was a non-union placement agency position. In fact, most of the scandal at DOT right now is with these types of arrangements where instead of hiring "employees" which wouldbe union positions, the DOT has engaged "contractors" which don't have to be union jobs.

The justification by the governor and DOT for going the contractor route was that hiring contractors saves money. Turns out not to be the case, I guess.

Maybe we really should call out the Marines!

Viking

Sat, 06/30/2007 - 5:23pm

Delilah is right. The things happening on the state (and national) level are outrageous. Fortunately here in Portsmouth, we have good people. Good teachers, good students, good famiily, good elders, beautiful countryside, and (a majority of) elected officials who are dedicated to preserving and protecting this beautiful town of ours. Let us not assume that the corruption and incompetance that bedevils most of the country is equally at force here. We are different. Hoo-Ray Portsmouth!