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Tuesday, February 24, 2004

City won't hire outside


Privatization idea withers and dies

By Gregory Korte
The Cincinnati Enquirer

Cincinnati's two-year experiment in privatizing city services is all but over, after letting only a single outside contract through the process known as "managed competition."

Six members of Cincinnati City Council say they intend to support a resolution by Councilman David Crowley that would end the program, replacing it with something Crowley calls "innovative service solutions."

The Crowley program would look internally for ways to make city government more efficient.

A vote on the resolution will come Wednesday, three weeks after Mayor Charlie Luken said in his State of the City address that he had "rethought" the issue.

He's not the only one.

Charterite Jim Tarbell, who admitted to being a "quiet supporter" of managed competition in the past, said he's changed his mind.

"The morale here is just terrible, and I don't see how continuing down this course is going to make it better," he said. "To lean toward managed competition any longer is dangerous."

Managed competition allows private companies to bid against city workers to provide services. Critics say privatizing those services would ultimately lead to city workers losing their jobs to part-time workers with lower pay and fewer benefits.

Freshman Republican Sam Malone, too, moderated his position from his recent City Council campaign.

"It's very important and critical that we find a way of doing business that's more efficient and faster," he said. "But I do want to work with our employees to see if we can do it better. That's the direction I'm leaning."

That leaves supporters of managed competition with only three reliable votes: Republican Pat DeWine and Democrats John Cranley and David Pepper.

They complained that Crowley's resolution seeks to end managed competition, but doesn't outline what would replace it. They trumpeted their one success: a street sweeping contract that's expected to sweep 48 percent more curb-miles while saving $897,529 over five years - all without layoffs.

In a 90-minute debate Monday in the Finance Committee, Chairman Cranley tried to score debating points with Crowley and other opponents.

He said the city is facing a projected $60 million deficit by the end of the decade, and that forcing city workers to compete with the private sector was the only way to ensure efficiency gains.

"I think it's a sad day when we go back to the status quo that was in place for decades," Cranley said. "This council has no discipline. The day of reckoning is coming."

---

E-mail gkorte@enquirer.com




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