Reducing High-Priced Consultants Slated to Save Over $50 Million This Year, Making Government More Efficient

Assemblywoman Donna Lupardo (D-Endwell) announced the Assembly passed legislation (A.40011) she cosponsored to reform the way the state handles information technology procurement. The measure is slated to save the state over $50 million this year and make government more transparent.

“New York State is falling behind other states in getting value for its procurement dollar, particularly in technology,” Lupardo said. “With the state facing a record budget deficit, every dollar counts. We currently have contractors and consultants on the state payroll performing duties that should be done for much less by state employees. This system needs to be overhauled immediately.”

Specifically, the legislation reduces the number of contracted full-time information technology (IT) employees by broadening the governor’s flexibility in hiring pursuant to civil service law. The bill:

  • Creates limited-term appointments for IT positions when current state employees cannot be identified;
  • Allows one promotional civil service test for limited-term employees with at least two years of service, but caps that number at 500 employees; and
  • Ensures that if layoffs are to occur, limited-term employees would be let go before permanent employees.

The legislation also authorizes the Department of Civil Service to survey the candidates on the most recent IT eligibility lists to determine which skill sets and certifications each candidate has in order to determine the top three candidates and make better hiring choices. The bill also requires a bi-annual report to the Legislature and collective bargaining units for IT employees estimating cost savings and progress toward reducing the state’s reliance on contracted IT workers.

Lupardo added that the governor reached an agreement with the Public Employees Federation to provide $200,000 for every 100 contracted IT employees who are replaced by state workers, up to a total of $1 million. The money will be used to train and certify the existing state IT workforce in technology skills. If a newly trained employee leaves state service without cause, that employee will need to reimburse the state for the cost of the training.

“Keeping technology jobs in-house will ensure state dollars are being spent to grow our workforce and improve transparency in our government,” Lupardo said. “This cost-saving legislation will develop the information technology skills needed to keep the state workforce up to date.”

Lupardo was also the author of the Contract Disclosure Act (Ch. 10 of 2006), which requires state agencies to disclose the cost and number of contract workers, helping to identify the true size and costs of public services. Annually, state agencies contract for consulting services that involve hundreds of millions of dollars in public funds; however, these contracts were subject to relatively little public disclosure or oversight prior to her legislation.