Commentary

Gov. Schwarzenegger Cuts Unfilled Vendor Contracts to Cut Spending

We’ve all heard how government tend to spend like crazy at the end of a fiscal year in order to meet their budget and avoid cuts in the following year. One of the chief ways they do that is by buying lots of equipment and supplies through their vendor contracts.

Gov. Schwarzenegger has wisely ordered state agencies to terminate most such contracts to avoid a year end spending spree.

Note the insanely absurd comments by the state worker unions at the end of the article. Yeah, these contracts are bad because contracting costs more that state workers. So the examples in the article, providing peanut butter and computer consultants could be better done by state workers? On what planet? These are contracts for buying goods and services from the market, done right, with competition, they are a key way to keep costs down. But reigning in the year end spending spree is still a good idea.

Adrian Moore

Adrian Moore, Ph.D., is vice president of policy at Reason Foundation, a non-profit think tank advancing free minds and free markets.