Alternative to Privatization

California public agencies will be hard-pressed to maintain quality management and service levels as Baby Boomers retire. (See Nov. 7 Public Agency Workforce Crisis).

There is a tried-and-true alternative to privatizing public services. Hiring private consultants under extension-of-staff arrangements has been successful for years and here's why it's going to grow:

Control remains in the public sector. Extension-of-staff is not privatization. All governing power and municipal assets remain in the public sector. Private firms serving in extension-of-staff roles work at the pleasure of the governing board and agency staff only as long as needed to accomplish the current goals and objectives, remaining focused on the immediate needs.

Competition remains a driving force. Public agencies can qualify several private agencies to provide extension-of-staff services on an as-needed basis. This protects against complacency from a single supplier.

Technical expertise is efficiently managed. With a greater demand on their services and increasing regulatory constraints, public agencies are more challenged than ever to maintain the appropriate level of technical expertise in-house. Workloads fluctuate with economic development, increased regulations, funding availability, and unexpected emergencies. Further, public projects have become more complex, requiring greater technical and regulatory specialization as well as more sophisticated coordination by project teams. Extension-of-staff programs enable public agencies to supplement their staff with key experts and professionals from the private sector on an as-needed basis.

Staffing costs can be well-managed and quickly adjusted. Adding a full-time and adequately qualified employee at a public agency takes valuable time and a long-term funding commitment. Extension-of-staff allows public agencies to immediately tap the expertise needed to supplement in-house capabilities, yet only for as long as needed. The agency pays only for the time worked and is not responsible for the long-term total costs of a permanent employee.