MANAGING EDITOR / THE DAILY IBERIAN
Louisiana is looking to trim its spending as it anticipates falling revenues in the next couple of years, so a panel looking at streamlining government is considering the private sector as a solution.
Outsourcing some of the services that government does now makes sense and the idea should be fully explored. When the state makes its choices of what to privatize, however, those decisions should be done carefully.
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For example, the Department of Revenue contracting with a call center to handle tax questions or collection agencies to deal with delinquent accounts could work. If call centers are well-informed, the state could save the money and the specifically trained call handlers could probably take on a greater volume of callers, especially during tax season. Contracting with a private collector to handle delinquent accounts would be more tricky, but the incentive of getting a portion of the delinquent taxes and fees is motivation for those companies. The state apparently does not do a good job collecting from some folks as it is owed $1.12 billion in delinquent taxes and unpaid fees, according to the Louisiana Receivables Report from June 2008. Allowing a private company to go after that money might mean lost votes for some folks, but it would clear the books of what the state is owed.
One suggestion that might not work as well is having a private company perform background checks and process fingerprints for gaming licenses instead of the State Police. It seems with the perception of gaming in the state, a law enforcement agency would be the right place to keep that task.
The Associated Press report on the panel’s most recent meeting stated that not everyone is excited about privatizing government services. The labor union representative expressed concerns the move will cost jobs. Of course it will cost government jobs, but it would actually support jobs in the private sector. What’s wrong with that? Every job created in the private sector pays taxes. It would at least be a wash, right? Unless, of course, the private sector proves that not as many people are needed to perform the work.
C.B. Forgotston, former legislative fiscal advisor, also opposed privatization but not because the unions might lose a few members. He believes outsourcing and privatizing services only perpetuates programs. The state should justify having certain programs in the first place.
That might be true, but one would hope the services suggested deal only with services for which the state should be responsible.
It appears as though the streamlining commission is making some progress. Once the work is done, however, Gov. Bobby Jindal and the Legislature should have the courage to enact the best proposals, no matter the politics.
JEFF ZERINGUE
MANAGING EDITOR
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