MINDSETTER™ Russell Moore: Government Waste + Abuse in Plain Sight

Monday, April 29, 2013

 

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Anyone who doubts the existence of government waste need only read about overtime costs paid out for state disability services.

During the 2010 gubernatorial debates, then candidate Lincoln Chafee repeatedly used the same line when his rivals claimed they'd eliminate wasteful spending: "Show me where the waste, fraud, and abuse is. I've been hearing candidates say they'll reduce waste, fraud, and abuse in every election i've ever been in, but they're never specific."

I thought about Chafee's campaign statement when I read Kate Nagle's article, State Run Disabilities Services Cost Three Times Private Firms, on GoLocalProv earlier this week. At first blush, it appears that anyone with computer access and an email account could show the Governor where the waste is just after reading the headline.

The article explains that a Rhode Island watchdog group called The Rhode Island Center for Freedom and Prosperity issued a report showing that the state run Behavioral Healthcare, Developmental Disabilities, and Hospitals (BHDDH) runs two programs: the Rhode Island Community Living and Supports (RICLAS), which serves 211 people, and the privately based community operated system, which supports roughly 3,500 people. The report goes on to show that the state paid about $153,000 per person, whereas the privately run program paid just $55,000 per person.

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The differences in cost are eye-popping. The question remains however, if the report is comparing apples to pears. Some say yes. Michael Cronan, from the BHDDH, stated that the care offered by the state run-system was more comprehensive, due to the needs of the population they serve. It always goes without saying that more comprehensive care costs more money.

That being said, the department acknowledged that overtime is a major culprit of the funding differential between the government and privately run systems. There were 14 employees in the state-run system who, thanks to working overtime, made more than $100,000 in 2011 (fiscal year). In sum, the department paid roughly $6.5 million in overtime in 2012 (fiscal year).

Further, one employee in particular earned $90,413 in overtime and premiums on top of his salary of $39,462, to give him a total gross pay of $129,875. That means he earned more than double his regular, 35-hour work week pay in overtime and other premiums alone. Don't tell the Average Joe working in the private sector that an individual making more than double his base salary in overtime alone doesn't constitute waste or abuse. Calculated at time and a half pay, that person would have to work close to a 70-hour week to earn that type of cash.

What's frustrating is the fact that that particular case wasn't some isolated incident. Another employee earned over $129,000 with more than $88,000 of that coming from overtime benefits.

To my mind, what's most concerning is the quality of care that can be provided to the individuals they're serving. Perhaps these people are just highly energetic and focused individuals who can provide the same quality of care on the 68th hour or their workweek as they can on the 20th, but if I were a betting man I'd wager to say that's not the case. It stands to reason that a person would eventually wear down after weeks and months of 70 hour workweeks.

There's a reason unions fought for and got us, 40-hour workweeks.

The reason given for the mountains of cash paid in overtime is the fact that the department is understaffed. The director said he hopes to hire additional seasonal workers who will cut down on overtime, but can only do so with the help of the union—-as the contract states only so many workers can be hired seasonally. One would hope that the union would allow the addition of seasonal workers, if only to improve the quality of care for the people they're serving.

I'll be the first to admit the Governor has a point in saying that candidates love to vaguely talk about government waste and then never do anything about it once they're elected. After all, being specific can cost you an election, and working to reduce government expenses can cost you re-election. And it's not just the Governor. I've had more than a few people make the statement to me that they'd like me to show them where the waste is to cut. (As someone who spent 7 years detailing waste and fraud in local governments as a news reporter, I really take exception to that.)

But when reading reports like this, it's hard not to think that anyone who doesn't believe there is waste in state and local government either has their eyes closed, or, what's worse, simply doesn't care. 

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A native Rhode Islander, Russell J. Moore is a graduate of Providence College and St. Raphael Academy. He worked as a news reporter for 7 years (2004-2010), 5 of which with The Warwick Beacon, focusing on government. He continues to keep a close eye on the inner workings of Rhode Islands state and local governments.

 
 

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