Cost-saving measure provides greater contract flexibility to local governments
In order to provide much-needed financial relief to local governments, Assemblywoman Addie J. Russell (D-Theresa) announced the legislation shesponsored, along with State Senator Elizabeth Little, that allows municipalities and districts, such as school districts) to contract for goods and services together with any other federal, state or local government agency has been signed into law (Ch.308 of 2012).
“With so many local governments stretched thin, it is crucial that we provide them with cost-saving options,” Assemblywoman Russell said. “This commonsense law is a solution that will help reduce costs for local governments and save our hard-earned dollars by keeping property taxes for North Country families in check.”
The law will allow local governments and school districts to use cooperative purchasing, also known as piggybacking, to secure cheaper costs for a particular product or service by using the same contract for a vendor that was used by any other government agency, as long as the contract was made consistent with NewYork State procurement laws.
“I believe the time has come for New York taxpayers and schools to benefit from the same practices that the rest of the states in our union enjoy,” Susan Whitney, Superintendent of LaFargeville Central School said.
“The monies realized in these savings would be devoted to enhancing much needed educational programs for students throughout the region,” Jay Boak, District Superintendent of Jefferson-Lewis-Hamilton-Herkimer-Oneida Board of Cooperative Educational Services said.
“Across the country, 49 states have already approved piggybacking measures that allow local governments to purchase from other cooperative contracts. The process of piggybacking contracts has proven to reduce administrative costs and increase government efficiencies , which is especially important during these difficult times, ” Assemblywoman Russell added.
The New York State Educational Conference Board, which consists of members of the New York State School Boards Association, the Congress of Parents and Teachers, Inc., New York State United Teachers, and the New York State Association of School Business Officials, unanimously supports the law.
“Cooperative contracts provide a 10-15% cost savings per contract, meaning that reform of school purchasing rules has the ability to potentially save taxpayers $2 billion per year in New York State,” noted the board in a joint letter. “These are savings we can no longer afford to ignore. Authorizing schools and local municipalities to utilize the option of ‘piggy-backing’ on other states and local government-let contracts (or the option of purchasing through national purchasing cooperatives) will provide immediate savings and relief, allowing precious resources to be directed toward vital programs and services.”
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