Will proposed legislation help rein in costs or create arbitrary caps that hinder agencies in delivering services? A big push by Governor Jindal has been the privatization of state government operations which he says will save taxpayer money. To accomplish this, the state has contracted with outside providers for professional, personal and consulting services. Currently, Louisiana has nearly 13,000 active contracts - the majority for $50,000 or more.
A proposed bill this legislative session would reduce state spending on contracts by 10 percent. But the Jindal administration says that contracting in state government is already being reduced. And some of the biggest contracts are essential to provide assistance to the public such as the administration of health insurance programs or to fill drug prescriptions for retirees.
So, is the privatization of state services through contracts cost-effective? And how necessary and appropriate are the majority of state contracts? Will proposed legislation help rein in their costs or create arbitrary caps that hinder agencies in delivering much-needed services? Louisiana Public Square educates viewers about the issue on “State Contracts 101” Wednesday, April 23 at 7 p.m. on LPB HD.