Officials in Gov. Bill Haslam’s administration tried at a hearing Tuesday to sell Tennessee lawmakers on the benefits of outsourcing, though they said they haven’t made up their minds yet whether to do more privatizing.
Officials from the Department of General Services and Haslam’s office told the legislature’s Fiscal Review Committee that a first wave of outsourcing has saved the state $13 million. The controversial deal gave control of 136 state buildings over to the Chicago-based real estate management firm Jones Lang LaSalle.
Lawmakers seemed ambivalent. On the one hand, they were pleased with the savings. But on the other, some expressed skepticism about how those savings are coming about.
“Some (maintenance workers) are saying they were simply forced out, because it was a private firm that came in,” said state Rep. Johnny Shaw, D-Bolivar.
But General Services Commissioner Bob Oglesby defended the contract. He said private managers are running the buildings more efficiently — and with fewer employees.
“We are trying to hire the best people to provide the services,” he said, “and we are not an employment agency to hire the general public anymore.”
The Haslam administration will need to win over lawmakers if it decides to expand outsourcing.
Officials have discussed turning state parks, university buildings — maybe even parts of some prisons — over to private managers. Already, says state Rep. Tim Wirgau, R-Buchanan, constituents are worried.
“There’s a lot of rumors out there, and I actually had this conversation with the commissioner in my office yesterday afternoon, about are we going to privatize parks or are we going to do this?” he said. “But that’s exactly what they are, right now: They’re rumors.”
The governor’s office says it won’t commit to anything until next year. But state Sen. Sara Kyle, D-Memphis, voiced doubt. After having already put so much into outsourcing, she said it’s unlikely the Haslam administration will walk away from the idea.
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