February 3, 2004

Solving Oregon's spending problem

by Steve Buckstein

Oregon Health & Science University recently put its billing and collection functions up for competitive bid. The public employees who were doing the work submitted a bid—and won the contract. The result: By working smarter, OHSU expects to reduce its costs 15 to 20 percent.

Years ago, Grants Pass put its street sweeping up for competitive bid. The results, according to its former mayor, now a state representative: A 24 percent increase in miles swept for $10,000 less than when the city did it.

Competitive bidding can lead to improved public services at a lower cost. Moreover, public officials can obtain greater oversight. They can terminate contracts for nonperformance and hire someone who'll do the job right. We do this everyday in our personal and business lives.

Though competitive bidding can help produce better results, we must ask ourselves the fundamental question: What shouldn't government do? Alternatively: What is the proper role of government in a free society?

Yes, Oregon officials should pursue competitive bidding, but they should also let go of programs and activities that are the private sector's responsibility. For example, legislators should sell the State Accident Insurance Fund and the budget-draining State Fairgrounds.

Cascade and its sister organizations have an abundance of better government ideas. Give encouragement to Oregon's elected officials who are working to enact them. And, continue to publicly raise the question: What is the proper role of government in a free society?