Baker's Dozen is most detailed plan so far

The "Baker's Dozen" plan released by the Charlie Baker camp is the most detailed set of proposals on anything released by a campaign in the race for governor up to this point. Baker, who at times has been criticized for being "too wonky", puts forth some serious proposals at how to trim the budget in a time of never ending fiscal crisis. Most striking are his proposals that go after government employee unions and unions in general. This blog has never been a cheerleader for unions, particularly big government employee unions, so it is refreshing to see a mainstream politician go after them in this manner.

Proposals #1, #4 and #13 really strike a chord.

1. Reduce construction costs by increasing competition – Between $75M to $100M in savings Public construction projects should be open to all bidders. Competition is important to ensure the best deal for the taxpayers. Only 20 percent of the construction industry is comprised of union workers, therefore project labor agreements exclude 80 percent of the market from bidding on projects. Several studies estimate that PLAs add at least 12 percent to overall project costs. This is significant considering that the state spends nearly $1 billion per year on capital construction projects plus another $600 million in municipal aid for the School Building Assistance program.

PLAs choke communities, particularly when it comes to school construction projects. There is no reason taxpayers should forced themselves to pay artificially high prices for the same quality of craftsmanship. None.

4. End union control of public contracts – Between $75M to $100M in savings The Pacheco Law, passed in 1993, is the strictest-in-the-nation anti-privatization policy. The law severely limits the state’s ability to provide cost-effective services by allowing unions full control on the delivery. This law has required the government to perform services well beyond its core mission because all contracts over $500,000 for outside entities to provide services must be reviewed and approved by the State Auditor. The Auditor uses restrictive legislative conditions when reviewing the outside contracts. Absent repealing this law, these restrictions must be modified to allow for greater flexibility in making determinations.

Many states have used competitive bidding to save money and improve services. For example, Florida has used competitive sourcing more than 130 times, saving more than $740 million. These are opportunities for Massachusetts too. Examples include:

* Highway maintenance
* IT infrastructure
* Vehicle fleet management
* Medicaid billing
* Toll collections
* Professional licensing
* Maintenance in state parks
* Building management and maintenance
* Parking garage operations

The Pacheco Law is one of the dumbest things ever passed in Massachusetts. It should be repealed.

13. Restructure overly generous public employee retiree benefits– Between $50M to $100M in savings Similar to pension reform, the state must also reform the “other post-employment benefits” provided to state employees. The state is facing a $15 billion unfunded liability due to the overly generous benefits – namely health benefits – provided to state employees upon retirement. Reforms include:

* Increase Minimum Eligibility – State employees become eligible to receive health benefits with just 10 years of state service. The state should increase the minimum number of years to be eligible for health benefits from 10 years of service to 15 years of service.
* Increase Age Eligibility – State employees can begin health coverage as early as age 55. The eligibility age for retiree health benefits should be raised from age 55 to age 60.
* Change Contribution Rates – State employees contribute only 15 percent towards their health insurance premiums upon retirement, regardless of how many years they worked for the state. The employee contributions should be based on a tiered system depending on how many years they worked.

These are serious proposals that deserve a look a over but consider this: Patrick had an extremely difficult time passing his more modest pension reforms in the legislature. A Republican governor trying to pass something more stringent might as well change his name to Sisyphus before embarking on this adventure.