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Regular Session, 2010
SENATE CONCURRENT RESOLUTI ON NO. 33
BY SENATOR PETERSON
ADMINISTRATION DIVISION. Directs the division of administration to publicly disclose
the savings to be achieved by outsourcing services currently performed by state employees
and the benefits that the contractor will be providing its employees prior to entering any
contract outsourcing such services.
A CONCURRENT RESOLUTI ON1
To direct the division of administration to publicly disclose the savings to be achieved by2
outsourcing services currently performed by state employees and the benefits,3
including but not limited to health insurance and retirement benefits, that the4
proposed contractor will be providing its employees who will be performing such5
services before any contract is entered into which changes the manner in which the6
state provides services to its citizens.7
WHEREAS, as a result of the state of Louisiana facing a severe decline in revenues8
through fiscal year 2012, the Legislature of Louisiana created the Commission on9
Streamlining Government by Act No. 491 of the 2009 Regular Session; and10
WHEREAS, the Commission on Streamlining Government was established to11
examine each executive branch agency's constitutional and statutory activities, functions,12
programs, services, powers, duties, and responsibilities to determine which of them could13
be eliminated, streamlined, consolidated, privatized, or outsourced in an effort to reduce the14
size and cost of state government, and that among the duties assigned the commission was15
that of including recommendations for the use of alternative resources to provide a more16
cost-effective manner of providing state services without impacting the quality or17
availability of needed services; and18 SCR NO. 33
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WHEREAS, the commission met during the interim between the 2009 and 20101
regular sessions of the legislature and adopted a number of recommendations to streamline2
state government, among which were recommendations to outsource some programs and3
services currently performed by state employees; and4
WHEREAS, shifting funding away from the current system of providing state5
services to citizens through employees hired and trained by the state in favor of outsourcing6
those services to private companies will result in the state laying off state employees; and7
WHEREAS, some of those affected state employees may be vested in the state's8
retirement system but not yet eligible to retire; and9
WHEREAS, while some have suggested that companies to which state services may10
be outsourced will probably hire many displaced state employees to provide those services,11
there are no guarantees that those state employees will be hired to do those jobs in the12
private sector and no guarantees that, even if hired, they will be paid a salary and benefits13
commensurate with their state salary and benefits; and14
WHEREAS, shifting to a system of providing state services through outsourcing may15
lower the quality of services provided to citizens of the state, particularly during the16
transition period when new companies and their employees gear up to provide those17
services, and will likely result in displacing many state employees who will then be forced18
to seek other employment and, until that transition occurs, may seek unemployment benefits,19
thus creating a serious negative impact on the state's economy; and20
WHEREAS, the state should not end the current model of providing state services21
through state hired and trained employees without conducting a careful analysis of the true22
costs associated with outsourcing, and determine that cost before entering into any contract23
changing the manner in which the state provides such services to its citizens; and 24
WHEREAS, full disclosure of the savings to be achieved by outsourcing to private25
entities and companies programs and services currently performed by state employees is in26
the best interest of the state and its citizens; and 27
WHEREAS, full disclosure, as expressed herein, requires that there be disclosure of28
the employee benefits, including but not limited to health insurance and retirement benefits,29
provided to those employed by the private entities and companies to which the programs and30 SCR NO. 33
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services currently performed by state employees are to be outsourced, such that numerically1
relative comparisons, and a true cost comparison, can be conducted before any changes are2
made in the manner in which the state provides services to its citizens.3
THEREFORE, BE IT RESOLVED that the Legislature of Louisiana does hereby4
direct the division of administration to publicly disclose, as a part of the contracting process,5
the savings to be achieved by outsourcing any services currently performed by state6
employees and the benefits, including but not limited to health insurance and retirement7
benefits, that the proposed contractor will be providing its employees who will be8
performing such services before any contract is entered into which changes the manner in9
which the state provides services to its citizens.10
BE IT FURTHER RESOLVED that a copy of this Resolution be transmitted to the11
commissioner of administration.12
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Thomas F. Wade.
DIGEST
Peterson SCR No. 33
Directs the division of administration to publicly disclose, as a part of the contracting
process, the savings to be achieved by outsourcing through the proposed contract any
services currently performed by state employees and the benefits, including but not limited
to health insurance and retirement benefits, that the contractor will be providing its
employees that will be performing such services prior to entering into any contract
outsourcing such services.