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DATE:	12/15/97 2:52 PM

RE:	Fwd: Oppose public employee initiative

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Subject: Fwd: Oppose public employee initiative
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Ah, here it is... from Dick Rider. Thanks, Dick.


Subject:     Oppose public employee initiative
Sent:        7/25/97 5:03 AM
Received:    7/24/97 11:20 PM
From:        ca-region-chairs(--nospam--at)
To:          CA Regions, caregion(--nospam--at)
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From:	DRider(--nospam--at)
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To:	caregion(--nospam--at) (Multiple recipients of)
In an effort to educate my fellow travelers on the upcoming California
initiatives, I forward this concise article on why we should oppose the
misnamed "Government Cost Savings and Taxpayers Protection Amendment".

"Keeping out the competition"



July 21, 1997 

Consider the motivation behind an upcoming statewide initiative and ask
yourself one simple question: Would a state bureaucrats' union really 
$2 million just to help taxpayers? 

Of course not. The so-called "Government Cost Savings and Taxpayers
Protection Amendment" is not about taxpayer protection or competitive

It's real name should be the "Competition Killer." What this initiative 
really do -- at the expense of California taxpayers -- is create a rigged
bidding system to block private sector competition when it comes to design
and engineering work, and ensure virtually all school, flood control,
highway, mass transit, prison and park projects are designed and 
only by state bureaucrats. 

And don't forget the motivation factor. The only reason the "Competition
Killer" is on the ballot is that a state bureaucrats' union (Professional
Engineers in California Government) spent nearly $2 million to write, 
and pay professional political operatives to gather enough signatures to 
their initiative before voters. 

Ask yourself one further question: If this measure is really the taxpayer
windfall its promoters claim, why is my organization -- the California
Chamber of Commerce -- and the Greater San Diego Chamber of Commerce,
California Taxpayers' Association and Alliance of California Taxpayers and
Involved Voters opposed to this initiative? 

We are opposed to the "Competition Killer" because only the special 

bankrolling it will win if it passes. 

Consider, if the "Competition Killer" becomes law, California would be 
to hire up to 12,000 new employees at a cost of $1.5 billion a year. 

How does this scheme of self-interest work? 

Buried deep in the fine print is a provision that rigs the bidding system 
virtually shutting out competition from private architects and engineers. 

The initiative would allow state bureaucrat costs to appear artificially 
by ignoring essential job expenses such as employee compensation, rent,
utilities, phone and office expenses as well as insurance, health and 
experts, legal and capital costs. 

No such breaks for private companies, however, who must include these
real-world expenses in their bids, plus pay hefty business taxes. 

For instance, if a project would take 10 people to complete, the state's
costs could exclude all overhead for those 10 plus their salaries and
benefits if they are existing employees. The state's cost would be zero. 

The private firm's cost would include every penny of overhead, salaries,
benefits and taxes. 

In addition, to protect the promoters' interest even more, the measure 
create a huge new bureaucracy to conduct this rigged bidding system. 

The initiative would create a virtual public works czar by giving one
politician -- the state controller -- enormous power to decide on tens of
thousands of projects worth billions of dollars. 

That is clearly too much power to give to one politician. 

Because the initiative specifies no deadline by which this public works 
must act, that office would become a "project bottleneck," indefinitely
delaying vital school, health, highway, transit, flood control and bridge

As a result, this "Competition Killer" has drawn opposition from the
California School Boards Association, California Healthcare Association,
League of California Cities and the Coalition for Adequate School 

These organizations opposed the initiative because they are concerned 
the loss of local control, as their most important projects could be held
hostage by an unaccountable state bureaucracy. 

The "Competition Killer" also would permit the state bureaucracy to ignore
the checks and balances of normal contracts. Conspicuously missing from 
language of the initiative is any reference to conditions such as 
a project on schedule or within the budget. Local governments would be
shut-out from the process, having no say in what might be a unique 
project in
their area: a round-about, a desalination plant or a state-of-the-art

Virtually every California school and hospital has been designed by 
firms. But under this initiative, school, hospitals, flood control levees,
jails and even golf courses would be designed by state employees. 

Promoters have even tried to confuse the issue -- using San Diego's I-805
interchange as an example of private contracts gone awry. While 
mistakes may have taken place at the interchange, never did the issue 
private sector design engineers.  And that -- "design and engineering" -- 
what this ill-conceived initiative is all about. 

Architectural and engineering services are the gateway to construction.
 Because of the delays that would be created if this initiative passes, 
up to
100,000 private construction and related jobs could be lost in the first 
years alone. 

When state bureaucrats, driven by self-interested, dictate a 
system and ignore normal contract conditions, taxpayers should beware. 

The promoters have written a deceptive, misleading measure, bankrolled by
their state bureaucrats union to feather their own nest at the expense of
California taxpayers. 

The "Competition Killer" would create a rigged bidding system, delay vital
projects, permit state bureaucrats to go unchecked while local control 
be lost and knock thousands of private sector employees out of work. 

The "Competition Killer" is a harmful scheme. It deserves your 
Kirk West is president of the California Chamber of Commerce. 


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Date:  Thu, 24 Jul 1997 10:31:52 -0400 (EDT)
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Subject:  Oppose public employee initiative