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Assemblywoman Russell's bill to allow cost-saving and greater contract flexibility to local governments passed into law

Posted 8/9/12

Legislation co-sponsored by Assemblywoman Addie J. Russell, D-Theresa, to allow municipalities and districts, such as school districts contract for goods and services together with any other federal, …

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Assemblywoman Russell's bill to allow cost-saving and greater contract flexibility to local governments passed into law

Posted

Legislation co-sponsored by Assemblywoman Addie J. Russell, D-Theresa, to allow municipalities and districts, such as school districts contract for goods and services together with any other federal, state or local government agency has been signed into law.

The bill, Ch.308 of 2012, was also sponsored by State Senator Elizabeth Little and is designed to provide financial relief to local governments.

“With so many local governments stretched thin, it is crucial that we provide them with cost-saving options,” said Russell, whose Assembly district includes the northern portion of St. Lawrence County. “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 state procurement laws.

“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,” Russell added.

The 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.”