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Politics : Formerly About Advanced Micro Devices
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From: TimF7/21/2010 6:19:20 PM
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Pricing yourself out of a job

From the Wall Street Journal: “Faced with a $118 million budget deficit, the city of San Jose, Calif., recently decided it could no longer afford its own janitors. So the city’s budget called for dropping its custodial staff and hiring outside contractors to clean its city hall and airport, saving about $4 million. To keep all its swimming pools open and staffed, the city is replacing some city workers with contractors.”

San Jose has 894,943 people. How many janitors does its city hall need? It must have an army of floor buffers. I am not denigrating the work that janitors do but how many do you have if you save $4 million just by replacing them with regular janitors.

Assuming the move cut costs in half, that means Jan Jose paid its janitors double the going rate.

That would be in line with the federal government paying twice in salary and benefits what workers in the private sector earn for the same job.

The real controversy in this is not that San Jose is replacing its custodial staff, but simply why was this not done years ago to spare deeper cuts today?

While we are at it, how about replacing police with clerical satff. Here is how that works. You take away the desk duties of a police officer and put him back on patrol.

There are ways to save money on local government. Unfortunately, the incentive for politicians is to appease the government employees.

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