Frank Cagle: State's explanation on outsourcing makes no sense

Frank Cagle
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Frank Cagle

Let us assume that the outsourcing estimates of the Haslam administration are correct. The state would save $35 million by outsourcing the maintenance of state parks, universities and prisons. The next set of questions are a little bit complicated.

One would assume that the savings could come from a private company paying lower wages, not offering benefits and hiring a lot of people with green cards. But Finance Commissioner Larry Martin maintains that the private company would be required to “allow existing workers to transition” to the new setup, and give them equitable pay and health insurance.

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OK. So a private company hires the same state employees. Pays them the same. Offers benefits. Makes a profit (else why do it?) and saves the state $35 million. That's a trick unequaled since the Lord fed the multitude with five loaves and two fishes.

The savings to the state and the profit for the company have to come from somewhere. As usual, one assumes the devil is in the details. A lot fewer workers? Does equitable pay mean the same pay, or less? Older workers with seniority and higher pay not able to “transition?” Who knows? State employees must be wondering how this miracle will be achieved and not leave them worse off.

The state spent $300 million to recruit good jobs with benefits at the Volkswagen plant in Chattanooga. Raising wages, creating good jobs with benefits is the rationale for industrial recruitment and the expenditure of millions in state funds for Nissan, Volkswagen and the like. At the same time the state has started a process that may reduce such good wages and benefits for hundreds of state workers. All to save $35 million when the state has a $2 billion surplus. But they are saving taxpayers money! Well, taxpayer money is subsidizing Volkswagen, Nissan and several other enterprises to the tune of a lot more than $35 million. Gov. Bill Haslam wants to spend $45 million to expand broadband internet service into rural areas and create jobs. Any disconnect here?

Knox County and its metro area have a lot of workers employed by the state, notably the University of Tennessee. It is a given that locals develop industrial parks and office parks to try to lure jobs to the area. Jobs that enable families to prosper and spend money and generate sales tax and buy homes and pay property tax for schools and all the other things a thriving economy makes possible.

Why then are we threatening the livelihoods of hundreds of our fellow citizens to allegedly save some money for the state? The money that would have gone to local state employees instead being sent to the home office of an out-of-state company.

Oh, I forgot. Nothing will change. Everybody will keep their jobs. Make the same money. Keep the same benefits. And the state will save money. OK. I guess I just don't understand how business works. I'm just an English literature major who wandered into a newspaper 45 years ago and got a job.

Speaking of outsourcing, new UT Chancellor Beverly Davenport hasn't even gotten to town from Cincinnati, yet she was able to round up the usual suspects to constitute a search committee for the new athletic director. Could it be that the most important decision facing the new chancellor was outsourced to somebody else? She should fit right in.


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