Halting Efforts to Privatize Design Functions of DOT Saves State Jobs
May 01, 2017
“The Governor made a wise choice to not spend precious state money on a privatization effort that will cost the state more money in the long run and undermine an essential function of the Department of Transportation and Public Facilities,” said Rep. Parish. “I want jobs for Alaskans in Alaska and the Governor’s decision does just that. Privatization has its place, but I looked at the states where similar privatization efforts have been implemented and found no evidence that it was saving any money at all.”
In addition to halting the privatization feasibility study, 76 positions within the Alaska Department of Transportation and Public Facilities (DOT&PF) that were considered for elimination will instead be maintained.
“Often, privatization of essential government services results in less service and more cost, which is exactly what we don’t need as we face some monumental fiscal challenges,” said Rep. Parish. “I want to thank the Governor for listening to the concerns raised about this privatization idea and coming to the same conclusion I did that any plan that would cost Alaskans jobs, money, and safety is not worth spending hundreds of thousands of dollars to study.”
Currently, over half of the design functions of the Alaska Department of Transportation and Public Facilities are outsourced to third parties. Rep. Parish has raised concerns that fully privatizing those functions could force resident talent out of state and negatively impact the availability of federal transportation money to offset personnel costs within DOT&PF.
Editing by Mary Kauffman, SitNews
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