South Jersey Chamber To Christie: Run N.J. Like A Business

nj chamberWith a new administration aiming to reduce state costs starting in January, the business community is a source of ideas for how to reduce the cost of government. In particular, Gov.-elect Chris Christie’s administration may examine a series of recommendations generated by the Chamber of Commerce Southern New Jersey. These proposals range from auditing all the office lease agreements the state has to bringing public employee benefits in line with those in the private sector.

Chamber President Debra P. DiLorenzo said she planned to bring these ideas to Christie’s transition team, on which she serves.

Kathleen A. Davis, the chamber’s executive vice president, said the proposals deal with employee benefits, vehicle fleet management, information technology, property management and procurement — “things the private sector does all the time.”

Benefits are among the largest potential areas for savings. Davis said the chamber found the adage of public employees drawing better benefits to offset lower pay is no longer true: While public jobs pay at least as well as similar positions in the private sector, the benefits are far more expensive, she said.

Much of the focus in the private sector is on making the work force as efficient as possible, so companies can operate with as few employees as possible. However, the civil service system and state contract language have worked against a similar approach in the public sector, Davis said. This lack of flexibility also makes incentives more difficult.

If the state took an approach similar to the private sector, it would have “not only a more efficient work force, but a work force where you are actually able to reward employees who do good work,” she said.

Davis said the last four governors, as well as the Legislature, have worked with the chamber to put some of its recommendations into practice.

Kelly Johnston, a former chamber chairman who worked on the recommendations, said Christie and the Legislature likely will turn to some of these ideas out of necessity.

“They’ve got to find efficiencies and savings wherever they can,” said Johnston, vice president for government affairs for Camden-based Campbell Soup Co.

Johnston said an example would be to redefine the state’s civil service job classifications. The large number of classifications limits worker flexibility and prevents the state from engaging employees like private companies do.

Marc Policarpo, co-chairman of the chamber’s committee on property management, said the state could save money by auditing its leases, including examining how it uses space.

“There’s a lot of low-hanging fruit,” Policarpo said, noting that the chamber concentrated on operations, rather than state programs. “It shouldn’t be politically painful.”

For instance, an audit of leases may turn up bookkeeping mistakes by landlords.

“You end up getting refunds from landlords” in some cases, said Policarpo, a senior vice president with Philadelphia-based real estate firm Binswanger. Njbiz.

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mark levin
16 years ago

get saleries in line with public sector

Yeah Sure
16 years ago

This is totally against the current business model of the Government of NJ. Favors and corruption is the way it’s been, and wonlt change in the near future.