Chieppa1
07-09-2010, 12:47 PM
NJ report: Privatize some state duties, save $210M
BETH DeFALCO
Associated Press Writer
TRENTON, N.J. (AP) — A New Jersey task force created by Gov. Chris Christie said Friday the state could save at least $210 million a year by privatizing motor vehicle inspections, turnpike toll booths, preschools and some services at state prisons and parks.
The five-member task force, commissioned in March to examine the potential savings of privatization, submitted a 57-page report to the governor. The group is made up of lobbyists and business interests.
"What they have provided is a path for change that will benefit New Jersey's taxpayers through improvements in the quality of public service programs and services delivered to our citizens without placing further burdens upon the state budget," Christie said in a news release. "I look forward to further reviewing these recommendations."
Among the recommendations were:
— Close state inspection stations and have motorists pay for emissions tests at garages, at a savings of at least $28 million.
— Expand vehicle title and registration services performed by private firms from used vehicles only to all vehicles.
— Privatize bus routes at a savings of $7.5 million in the first year and up to $300 million over seven years.
— Turn cash toll collections over to a private company until NJ Transit can convert to an all electronic collection system. The commission said the state is paying toll collectors up to 50 percent more than a private firm would.
— Have private companies handle workers' compensation claims and run career centers.
— Privatize the state's four psychiatric hospitals at a savings of $10 million to $22 million.
— Privatize prison services for inmates, including medical, food, and educational programs.
— Have private providers run preschool programs.
Assembly Speaker Sheila Oliver, a Democrat, was not sold on the idea. In particular, she was critical of fees for car inspections that are currently free if done at a Motor Vehicle Commission facility.
"Where does it stop?" she asked.
She said the budget committee would hold a hearing on the report.
The report noted past failures with privatization but said a "centralized entity" could prevent a recurrence of problems.
Former Gov. Christine Whitman, a Republican, experimented with privatization. Under her, the state adopted a $300 million plan to privatize auto emissions testing. But the computerized tests, offered by a single-bid contractor with political ties, caused massive lines and delays at testing sites.
Democratic Gov. Jim McGreevey did away with privatization when he took office.
At his confirmation hearing, Raymond Martinez, Christie's nominee to lead the Motor Vehicle Commission, told lawmakers he didn't think the MVC would be looking to privatize again.
"That was not a successful experiment," Martinez said. "I do not believe we would be going back in that direction."
http://www.dailyrecord.com/article/20100709/UPDATES01/100709056/1005/NEWS01/NJ+report++Privatize+some+state+duties++save++210M
BETH DeFALCO
Associated Press Writer
TRENTON, N.J. (AP) — A New Jersey task force created by Gov. Chris Christie said Friday the state could save at least $210 million a year by privatizing motor vehicle inspections, turnpike toll booths, preschools and some services at state prisons and parks.
The five-member task force, commissioned in March to examine the potential savings of privatization, submitted a 57-page report to the governor. The group is made up of lobbyists and business interests.
"What they have provided is a path for change that will benefit New Jersey's taxpayers through improvements in the quality of public service programs and services delivered to our citizens without placing further burdens upon the state budget," Christie said in a news release. "I look forward to further reviewing these recommendations."
Among the recommendations were:
— Close state inspection stations and have motorists pay for emissions tests at garages, at a savings of at least $28 million.
— Expand vehicle title and registration services performed by private firms from used vehicles only to all vehicles.
— Privatize bus routes at a savings of $7.5 million in the first year and up to $300 million over seven years.
— Turn cash toll collections over to a private company until NJ Transit can convert to an all electronic collection system. The commission said the state is paying toll collectors up to 50 percent more than a private firm would.
— Have private companies handle workers' compensation claims and run career centers.
— Privatize the state's four psychiatric hospitals at a savings of $10 million to $22 million.
— Privatize prison services for inmates, including medical, food, and educational programs.
— Have private providers run preschool programs.
Assembly Speaker Sheila Oliver, a Democrat, was not sold on the idea. In particular, she was critical of fees for car inspections that are currently free if done at a Motor Vehicle Commission facility.
"Where does it stop?" she asked.
She said the budget committee would hold a hearing on the report.
The report noted past failures with privatization but said a "centralized entity" could prevent a recurrence of problems.
Former Gov. Christine Whitman, a Republican, experimented with privatization. Under her, the state adopted a $300 million plan to privatize auto emissions testing. But the computerized tests, offered by a single-bid contractor with political ties, caused massive lines and delays at testing sites.
Democratic Gov. Jim McGreevey did away with privatization when he took office.
At his confirmation hearing, Raymond Martinez, Christie's nominee to lead the Motor Vehicle Commission, told lawmakers he didn't think the MVC would be looking to privatize again.
"That was not a successful experiment," Martinez said. "I do not believe we would be going back in that direction."
http://www.dailyrecord.com/article/20100709/UPDATES01/100709056/1005/NEWS01/NJ+report++Privatize+some+state+duties++save++210M