A Guest Post By Brad Alexander, Senior Vice President, McGuire Woods Consulting
ATLANTA (Nov. 1, 2012) - The argument has been made numerous times that if government were run more like a business, taxpayers would benefit, as tax dollars would be spent more efficiently. This election, we have the opportunity to make that happen and hopefully, we will.
Amidst Hurricane Sandy and the presidential race at the top of Tuesday's General Election ballot, it is disappointing that more Georgians have not heard about Amendment 2, which will allow the state to enter into multiyear leases.
Those of us who work in the real estate industry tend to shake our heads in wonder that the state of Georgia would not enter into multiyear leases for the office space leased to house hundreds of government workers. The reason is because of an antiquated law that forbids the state from signing anything beyond a single-year lease.
So what does this mean? It means taxpayers pay much higher rates than other “market” renters. It means landlords are less likely to make needed improvements for 365 day leases. It means that Georgia taxpayers are spending more than necessary foroffice space each and every year.
If Amendment 2 passes, the State Properties Commissionestimates taxpayers will save $66 million over 10 years, with potential ofmore future savings.
The average amount of time the state stays in leased office space is 10.7 years. If voters approve this amendment, it will not extend occupancy. Instead, it will lower the amount paid for currently leased space. Essentially, we’ll be paying less to have the exact same need met.
In order to make sure there is real accountability, multiple oversight mechanisms are in place that are far greater than anything a private sector business would go through before signing a lease.This will allow the taxpayer to reap the benefit of savings without any meaningful risk of abuse.
Multiyear leases have already worked in other states. Sadly, Georgia is one of only two states with an AAA bond rating that require single-year leases.
I plan to vote yes for Amendment 2 because it is one of the most common sense changes to make government run a bit more like a businessthat I’ve come across in a long time. Republican and Democrat state leaders agree, which is why this bill passed with near unanimous support in the General Assembly. Please join me in voting yes for Amendment 2 and together, let’s save taxpayers dollars in a way that makes sense.
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