Friday, July 20, 2012

(some) Governments Discover Outsourcing

In 2008, the town of Molalla, Oregon (population 8000) spent $507,973 on employee salaries and other expenses to handle its building permits, inspections and other construction red tape. In the fiscal year ended June 2012, it spent less than $150,000 for that work by outsourcing the tasks -- in this case to Clackamas County.

Kudos to the town of Molalla and city manager Ellen Barnes. Except why did it take her so long? Had it not been for the current budget squeeze the town would probably still be spending $350,000 ( ~$100 per household) of the taxpayers' money unnecessarily.

It's time government starting behaving like the businesses in their communities. Outsourcing is not a four letter word (it's actually eleven). Governments should not perform with its own employees work that can be done more efficiently with someone else's employees. The only entity not benefiting from this will be the American Federation of State County and Municipal Employees.

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