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City Could Save If Private Sector Ran Services

The County Has Had Managed Competition For More Than 10 Years

POSTED: 4:42 pm PDT October 2, 2009

With the city of San Diego facing a $179 million deficit, some are calling for a process approved by voters in November 2006 called managed competition, which can be described as private companies who compete with city workers for government jobs.

San Diego County has had managed competition for more than 10 years, and San Diego County Supervisor Dianne Jacob said it's working. She said the county has saved $380 million over that period, and sometimes the county employees win the bids. It's not always the private companies that come in with the lowest price.

"There has to be political will," Jacob said. "Enough political will in order to overcome the opposition of the unions."

Union opposition has been a sticking point in the city. Negotiations with the two major employee unions over managed competition are now at an impasse with a meeting set for next week. However, six of the eight city council members are opposed to or have reservations about it.

"Two things happen," said Richard Rider of San Diego Tax Fighters. "One, if the private sector gets it, we get it at lower cost. Two, you'd be amazed at how less expensive it will be for the city departments to provide that service if faced with a competitive situation."

Advocates said managed competition is the best and fastest way to save money.
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