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FOR IMMEDIATE RELEASE
June 18, 2008
Contact:
Lee Derr
(717) 787-6538
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Orie Continues Efforts to Eliminate Waste of Tax Revenues on "Consultants"

In March, the AP and the Pittsburgh Tribune-Review reported that the administration paid $1.8 million to one particular law firm, in addition to payments to numerous other financial advisers and engineering consultants, to work on the proposal to lease the Turnpike.   

"I have sponsored several bills on the subject of no-bid contracts for consultants, and today, in continuation of this effort, I am announcing introduction of a bill to limit payment of taxpayer funds to consultants for speculation by state officials on proposals or concepts to sell state-owned real property or assets," announced Senator Jane Orie (R-Allegheny).  This new measure would require approval of the General Assembly before expending revenues to research or pursue sales or long-term leases of state property or assets.  The bill would require legislative approval, if the asset has a value over $200 million or the proposed lease is for a term of more than 10 years. To insure truly independent research, the bill would also provide that no consultant who performs an evaluation of a proposed sale or lease could be granted a financial stake in that sale or lease.   

Orie's other legislation on the topic includes Senate Bill 903, which is currently in the Senate Appropriations Committee.  That bill would prohibit contracting for "consulting services" without any competitive bidding or procedures to ensure independence or preclude favoritism—what some have called "pinstripe patronage."  Orie is working with Senator Dominic Pileggi (R-Chester), the Majority Leader, on potential new language to the bill which would require the Attorney General to perform a legality review of all such contracts, including a review with regard to ethics provisions such as the state Adverse Interests Act.  

Also, Senators Fumo and Orie yesterday announced sponsorship of an ethics bill which would restrict Turnpike commissioners and executives from engaging in questionable employment, contractual and lobbying activity.  Another measure Orie has introduced is Senate Bill 858, which would prohibit any state agency from using taxpayer dollars to hire private lobbyists to lobby a fellow state agency such as the General Assembly.   

Noting the current state of the economy and decreasing state tax revenues, Orie urged that "now more than ever we need to focus on passing legislation that addresses wasteful and questionable expenditures of money entrusted to us by our constituents. I appeal to my colleagues in the General Assembly to take up these bills before the break for summer recess to improve the fiscal accountability of state agencies with regard to the use of private consultants."