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Jun 3, 2009 9:16 pm US/Central
Fort Worth's Plan To Privatize Could Cost More
FORT WORTH (CBS 11 / TXA 21) ―
The City of Fort Worth may be looking to hire private companies to run the city's business.
It would allow the city to slash jobs and close a huge budget shortfall, but it may cost taxpayers more money in the short term if the city does privatize.
A memo from the city's Information Technology Services Department, or ITS, outlines the problem.
"The technology that we produce and provide services for are essential for us to operate," said Pete Anderson, Fort Worth's Chief Information Officer.
His department, like others, is forced to look for deep budget cuts.
From the phones connecting people to the city to the computers that manage the city's business, ITS is involved in just about every city department -- and in some crucial roles. It manages public service radios and the emergency dispatch system. A memo released to council this week is the first hinting at possible cuts to come.
An early study showed more than half the department jobs could be privatized. Operations in every department could be outsourced.
But here's where it becomes tricky. It could take as much as a quarter of a million dollars up front to hire the people to help do it.
"Any outsourcing potentially, depending on how large it is, could easily take over a year." Anderson said. "So we're not looking at any savings this year or even until FY 11, realistically if we do that. And its certainly going to cost us some money to bring in a consultant to help is to do that."
And for a city that has to cut at least $61 million this next budget year, the question becomes is it worth it to outsource now with no immediate impact? It's a lingering question that has city hall workers on edge.
"Just the fact its being considered is gut wrenching for people and difficult," Anderson said. "But its part of our effort to support city management in looking at what can we do and how can we help and how can we still deliver the services we've been delivering."
There's still the question of how much the city might save if it did privatize. All city departments will have to have cost cutting measures on the table for council members next week.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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