Albany May 8, 2008 – Leaders of the New York State Public Employees Federation (PEF) released ground-breaking research during a press conference in Albany today that includes a plan to save the state more than three-quarters of a billion dollars over the next three years.

“Everyone is quick to throw out the popular and overused phrase ‘hiring freeze’ to solve the state’s budget gap,” said PEF President Ken Brynien. “Our report, based on research from the Office of the State Comptroller (OSC) proves the real savings is in a consultant freeze.”

The research, the result of analyzing data provided under the new contract disclosure law, for the first time reveals new insights into how much the state spends on consultants and how much the state could save by having state employees do the work, even when the cost of employee benefits are included.

“Prior administrations have made headlines cutting the size of state government,” Brynien said. “Meanwhile, no one was paying attention to the dramatic increase in the use and cost of professional consultant services.”

According to the OSC, more than 23,000 private consultants are employed by state agencies at an estimated cost of $704 million in 2006-07.

“Compounded over three years, our plan, which calls for eliminating about half of all consultants, would save state taxpayers $765 million,” Brynien said. “Half or more of the savings could come just by replacing information technology (IT) and engineering and architectural consultants with state employees. It’s a plan that can be easily implemented and would provide recurring and realistic savings,” Brynien added.

“Our audits of 1990 and 1998 on the use of consultants in the state Department of Transportation (DOT) found that the state could have saved money by having state employees do that work,” State Comptroller Thomas P. DiNapoli said. “Going forward, we should continue to look closely at the use of outside consultants to maximize those savings.”

Read the full report (PDF File): Report