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Unions urge Gov. Snyder of Michigan to examine state contracts

MahurinEcon_Thumb_1512.jpg
MahurinEcon_Thumb_1512.jpg

State employees are hoping that a new study that shows the high cost of federal contracts will move the Snyder administration to take a look at how contractors are billing the state of Michigan.

“The idea that we are saving money using outside contractors is not backed up by the evidence,” Phil Thompson, executive vice president of SEIU Local 517M, said in a statement. “We need to seriously look at whether our taxpayers are truly getting real value when it comes to the hundreds of millions the state spends on private contracts.”

This week the Project on Government Oversight published a report that detailed how the federal government is wasting billions by paying contractors for work that could be done for less by state employees.

Unions that represent state workers say that the federal findings are consistent with information they’ve gathered about the costs of outsourcing by the state of Michigan.

The New Solutions for Michigan, report released by public employee groups in May, suggested that $100 million could be raised if the state required contractors to share in the belt-tightening by reducing their prices by 10 percent.

In a release Thursday the union groups said the the POGO study should prompt Snyder to focus on finding savings in state contracts.

Snyder’s office has not responded to multiple requests for information about oversight of contractors.

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