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Gov. Bush admits to miscue in outsourcing

The company handling the state's payroll has drawn complaints and lawmakers' questions.

By JONI JAMES
Published January 19, 2005

TALLAHASSEE - Gov. Jeb Bush acknowledged Tuesday that his administration has made some missteps in his push to outsource more and more state government work to private companies.

Facing continued complaints from state employees discovering mistakes in paychecks and benefits under the state's outsourced payroll system, Bush said there have been problems with some contracts.

"We're not very good at procuring, and as a result we've had some challenges . . . that have clouded a really good record as it relates to saving money for the state," Bush said. "We have to get better at procuring and monitoring the procurements."

Bush's remarks came as he unveiled his spending proposal for 2005-06 and said he wants to spend $1-million to "increase the professionalism of the procurement process." The office would be housed in the Center for Efficient Government, created by Bush a year ago in an effort to standardize the state's contracting procedures.

It was an unusual moment for Bush, who rarely acknowledges missteps publicly, particularly on issues that are central to his administration. Since taking in office in 1999, Bush has pushed relentlessly to outsource state services to private companies to shrink the rolls of state employees.

His biggest initiative: Turning over the state's personnel support services, including payroll, to a Cincinnati-based Convergys. But complaints about the "People First" system have multiplied in the past three months, as thousands of employees across the state have seen mistakes in their paychecks, vacation time and health insurance status, prompting multiple inquiries from lawmakers.

Until last week, Bush and his staff have largely defended the system, noting any conversion serving 120,000 employees across 38 state agencies is bound to encounter technical problems. And they've trumpeted the fact the system, despite initial flaws, will save the state roughly $13-million annually.

But last week Department of Management Services Secretary Bill Simon told a House Committee the state might want to consider firing Convergys if its record isn't dramatically improved in six months. On Tuesday, Bush seemed to be following suit.

"I'll give you (a mistake I've made) just to make you all feel better," Bush said as he discussed the contracting issue with reporters after being asked what was ahead for his privatization efforts. "Unlike the president, where he was reticent (on the campaign trail) about saying what his mistakes were because he'd have his head taken off by his opponents, you've already taken my head off, I've already paid the price."

Joni James can be reached at jjames@sptimes.com or 850 224-7263.

[Last modified January 19, 2005, 00:32:23]