Weinberg Privatization Bill Faces Resistance From Republicans, Business

By Joe Tyrrell, NJSpotlight.com

State Senate Democrats are attempting to put together legislation that would ensure that privatizing public services translates into actual savings for taxpayers. But they're getting some pushback from across the aisle, with Republicans complaining there are too many strings attached, as well as from the business community.

It was expected that the bill would go before the Senate today, but it's not on the agenda.

Among other things, the legislation would require public agencies get a fiscal analysis before they contract for more than $250,000 with a private vendor to take over services.

Subsequent performance would be subject to a state audit, which could lead to penalties or even loss of the contract for failing to produce promised savings. The bill also would require that private vendors pay “comparable wages” to public employees and give hiring priority to those laid off because of the privatization.

A hearing on the measure before the Senate Labor Committee earlier this week quickly broke along partisan and ideological lines. The committee advanced a substitute version combining bills from Sens. Loretta Weinberg (D-Bergen) and Shirley Turner (D-Mercer).

The changes exempted some public works services and those performed by disabled workers in rehabilitation centers.

Almost no one mentioned the amendments. Instead, consumer and labor groups generally praised the effort, though some called for sterner measures. Some speakers anticipated future battles, and scandals, if Gov. Chris Christie proceeds with plans to let a private vendor run the New Jersey Lottery. But business groups said the measure would cost taxpayers instead of protecting them.

The arguments did not appear to change any minds. Sens. Fred Hadden (D-Gloucester), Richard Codey (D-Essex), and Sandra Cunningham (D-Hudson) all supported the measure. Sens. Dawn Marie Addiego (R-Burlington) and Anthony Bucco (R-Morris) opposed it.

The legislation “undercuts the underlying promise of privatization,” said David Brogan, first vice president of the New Jersey Business and Industry Association. The provisions for comparable salaries and hiring laid-off workers would discourage potential bidders and prevent savings, he said.

“We’re trying to promote transparency in contracting and accountability to the taxpayers of New Jersey,” said Eric Richard, legislative affairs director for the New Jersey AFL-CIO. Even a report from the governor’s privatization task force recommended a “rigorous cost-benefit analysis” before such contracts, he said.

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