House committee urges oversight on privatization issues

INDIANAPOLIS -- Gov. Mitch Daniels would have been barred from signing a $1.16 billion contract to outsource some human services work without legislative approval if a bill now before the full Indiana House of Representatives had been law at the time.\nThe House Interstate and International Cooperation Committee unanimously endorsed the privatization review legislation Wednesday. The bill largely stems from the Republican governor's moves to contract services that have historically been run by the state.\nThe bill's author, Democratic Rep. Joe Micon of West Lafayette, said the state constitution gave great deference to the power of the legislative branch. He noted that Indiana is among few states in which lawmakers can override a governor's veto by a simple majority.\n"There are checks and balances no matter who sits in the governor's office," Micon said. "I do believe this bill is about reasonable checks and balances."\nState Budget Director Chuck Schalliol said oversight is appropriate and already exists in various forms, but Micon's bill went too far.\nUnder the bill, any government privatization contract worth more than $10 million would have to be reviewed by a panel of 12 lawmakers and three other members appointed by legislative leaders. One of the three would represent labor, one for business and the other for universities.\nThey would have 60 days before the anticipated signing date of such contracts to examine them, and agencies involved would have to detail how current services are run and how the potential deals would affect operations, costs and state employees.\nAt least one public meeting would have to be held, and ultimately the committee would submit a recommendation to the governor on whether the plan should move forward, rejected or changed. The recommendation would not be binding on the governor.