Requests the Division of Administration to study the feasibility of contracting with the United States Department of Agriculture's National Finance Center for payroll and personnel services. (EN SEE FISC NOTE GF EX See Note)
Should SCR67 be enacted, it may shift Louisiana's payroll services from its current system to a streamlined operation through the NFC. This transition could facilitate substantial operational cost savings, with reports indicating that clients of the NFC have saved up to fifty percent on payroll expenses. Such a move aligns with broader government initiatives to improve efficiency and reduce expenditures during financially challenging times, potentially reshaping how state employee compensation is managed.
SCR67 is a Senate Concurrent Resolution that requests the division of administration to assess the feasibility of contracting with the United States Department of Agriculture's National Finance Center (NFC) to provide payroll and personnel services for over 50,000 state employees in Louisiana. In light of the state's current budget shortfall, this resolution seeks to explore potential cost savings associated with such a contract. The NFC is recognized for its extensive experience in the federal payroll sector, serving numerous agencies and processing significant payroll volumes, which positions it as a capable provider for state-level payroll needs.
The sentiment around SCR67 appears generally supportive from legislative circles, particularly among those advocating for fiscal responsibility and cost-saving measures. The awareness of the ongoing budget shortfalls may drive positive reception towards solutions that promise efficiency. However, there may be concerns among employees or stakeholders about the transition process and the implications it may have on existing payroll practices, raising potential contention amongst affected parties.
Despite the anticipated benefits, some stakeholders may question the shift to a federal provider like the NFC, debating the risks associated with reliance on outsourced payroll services and the effectiveness in addressing state-specific needs. Potential issues around job security and changes in service delivery could also become focal points of contention as the state begins to explore this resolution further. The conclusion of the assessment will be presented to the legislature and the governor, including specific recommendations which could lead to further discussions on the feasibility and implications of this shift.