State high court clears way for private firms on public works jobs

San Francisco Chronicle ^ | 11/5/7 | Bob Egelko

[SmithL]

SAN FRANCISCO - The California Supreme Court overturned a state employee union's contract Monday that limited Caltrans' ability to assign engineering work to private companies, saying it violated a 2000 ballot initiative that removed legal barriers to such arrangements.

The unanimous ruling was the second time in seven months that the court has rejected an attempt by the union, Professional Engineers in California Government, to limit the scope of voter-approved Proposition 35.

The initiative, sponsored by a contractors organization, repealed state laws that had allowed California to use private firms for engineering and architectural jobs only when state employees were unavailable or companies could save the state money.

Implementation of Prop. 35 has been slowed by legal challenges, but it could shift substantial work from the public to the private sector, starting with projects funded by a $19.9 billion transportation bond that voters approved in November 2006.

The ruling means state agencies "will have the ability to contract out, if they need to, to get many of these roadway projects completed," said Deputy Attorney General Vickie Whitney, the state's lawyer in the case.

Bay Area projects that will be funded by the transportation bond include carpool lanes for Interstate 80 and 580 and a fourth bore for the Caldecott Tunnel.

"It is a victory for everyone who drives a car, rides public transit, needs water or sends kids to school," said Paul Meyer, executive director of the Consulting Engineers and Land Surveyors of California, a group of 1,200 companies that sponsored Prop. 35.

But Bruce Blanning of the engineers union said the ruling left some issues unresolved, including whether labor contracts with the state can give preference to public employees on the grounds that they cost less than private contractors.

"Prop. 35 requires the best value to the taxpayer,"

[businessprofessor]

This union thug is trying to mislead the public.

“But Bruce Blanning of the engineers union said the ruling left some issues unresolved, including whether labor contracts with the state can give preference to public employees on the grounds that they cost less than private contractors.”

The costs of pension and pre retiree health care of state employees are staggering. The rats and union thugs will try to hide these costs in any comparison between the public and private sector.

This ruling may be the hammer that is needed to reform defined benefit pensions. Local governments should threaten to contract work if defined benefit pensions are not drastically reduced or converted into define contribution plans.