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Community College Construction: Simple Bills, Big Consequences
David Iverson, January 14, 2023
Many of the bills in our legislature are
pretty innocuous. Should we pay for
lights at the prison or should we fund the prison at all? Is it a good idea to pay for snow plows to
clean the highways? For many of us,
these would all be no-brainers. There are
other bills, however, that appear pretty routine but in reality, have
significant consequences. One such bill
is HB0028 - Community College Capital Construction. It passed second reading in the Wyoming House
on Friday January 13.
The bill is fairly straightforward. It increases the threshold that community
colleges can spend without gaining prior authorization to $250,000.00. Currently, that spending level is
$100,000.00. Both of those dollar
amounts are huge sums to most of us. The
only difference is one of them is a lot bigger.
Proponents of the bill and those representatives that voted for it claim
that facility managers should have the authority to maintain college resources
and 250 grand is a relatively small amount.
They also point to a reduction in bureaucratic hoops for maintenance
requests that will eventually be approved anyway.
Representative Chip Neiman, Majority Floor
Leader in the Wyoming House of Representatives, voted for the bill. He had this to say: “There was a move to move
it [the spending threshold] to a half a million dollars and I couldn’t support
that. I didn’t believe a 500% increase
from where we were previously was a wise idea.
And, even based on inflation, a 500% increase wouldn’t necessarily be
the best move. I just like to have more
eyes on purchasing and I think keeping that threshold as low as possible while
recognizing that things are getting more expensive—all of us are dealing with
that on what it costs to do business and we don’t want to tie the hands of our
people who are in construction.”
Representative Ken Pendergraft, who also voted
for the bill, pointed out that facilities managers often deal with budgets that
far exceed the $250,000 spending threshold—sometimes by millions of dollars. He also noted that the expenditures of
community colleges are routinely reviewed and that sometimes administrative
costs can be exacerbated by bid processes for routine purchases.
There is another side, however. Spending tax dollars without prior oversight
is a problematic for many reasons.
Public officials from the janitorial staff to upper-level managers are
charged with being careful stewards of public funds. To trust that this will happen all on its own
is an absurd leap of faith. Countless
stories have been written chronicling the exploits of irresponsible and
spendthrift public employees. Each and
every state has a statute mandating that public funds be carefully
managed. We do this through oversight
and procedure.
Spending without oversight would also mean
that those entrusted with discretion may choose with which company goods are
procured or services are rendered–without a bid process. Most communities have a threshold under which
goods can be purchased without a bid.
Normally, these limits are kept relatively low. For example, in some Wyoming communities,
there may only be one office supply store.
It wouldn’t make much sense to subject every purchase to
solicitation. On the other hand, most
towns–even in Wyoming–have more than one print and embroidery vendor. These small businesses almost always benefit
from government contracts; and most of the time, clothing and uniform purchases
typically fall far below the spending limit.
That’s not to say that facilities managers will spend hundreds of thousands
of dollars on t-shirts; rather, it's an example of how seemingly innocent
purchases disenfranchise smaller businesses.
On a larger scale, take for example, concrete
companies. Most Wyoming communities have
a least a couple of firms that specialize in pouring large scale concrete
projects for foundations which would easily fit below the $250,000 spending
limit. Without a ‘before expenditure
process,’ a facility manager could easily award a contract to a friend or
family member in the concrete business.
Obviously, there are two sides to HB0028. Both have valid points. If we are going to trust a project manager
with a $5 million budget, we ought to be able to trust him or her with a
$250,000 budget. While sometimes
cumbersome, spending procedures for government as well as private business are
in place to prevent favoritism, graft and irresponsibility. While we would like to claim that none of
this happens, there is a long history in the construction industry proving that
this is not the case. The Wyoming
legislature would do well to remember this when passing legislation.