10:15 AM Eastern - Wednesday, June 10, 2009

SEIU Study Reveals $34.7 billion in "The Hidden Branch of Government": Unfulfilled California Vendor Contracts Canceled

For more than 18 months, SEIU Local 1000 has been suggesting alternatives to Schwarzenegger's draconian cuts--promoting budget-balancing proposals worth billions of dollars, including the elimination of costly private vendor contracts. Instead, Gov. Schwarzenegger has fought to reduce the budget deficit by laying off 5,000 state workers from agencies supported by the General Fund, along with a 5 percent across-the-board pay cut for state workers. "Why in a time of crisis, [...] wouldn't the governor and the Legislature cut wasteful spending first, especially when state workers can do the work for one-third or even one half less?" questioned Local 1000 President Yvonne Walker.

Finally...Schwarzenegger Agrees with SEIU: Use of Government Vendors needs Revamping
Yesterday, Governor Arnold Schwarzenegger issued an executive order calling for all unfulfilled state department vendor contracts to be canceled through the end of the fiscal year, retroactive to March 1, and to cut outside contracts by 15 percent. Schwarzenegger's recognition of the vendor waste is just the tip of the iceberg. SEIU Local 1000 believes the California government is hiding $34.7 billion in some 13,600 vendor contracts.

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Read the study prepared by SEIU Local 1000, which represents 95,000 state government workers, showing California's "hidden branch of government."

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