Re:Why America can’t build
by _uy6i on Monday June 27, 2022 @02:59PM
(#31899108)
Citation please? Everything I’ve seen implies public sector employees in California make massively more than their private sector counterparts.
[ Parent
| on HN ]
The article doesn't:
"Instead of hiring staff, the Authority relied heavily on outside consultants. These consultants were well paid, with the primary consultant compensation for HSR at $427,000 per engineer, compared with the Authority’s in-house cost of $131,000 per engineer. This structure creates a principal-agent problem where they are incentivized to maximize their billable hours."
I mean that public sector employees are underpaid. Comparing consultants and in-house cost is always going to to result in 2-3x disparity (you’re paying a premium for swing capacity). I’m willing to bet the state employee is overpaid Vs his private sector non-consultant counterpart. You then have ask why hire a consultant and I think the answer is that it’s some combination of not being able to fire state employees after the project, or that those employees are actually ineffectual/incompetent.
(As an aside I’m willing to bet the #’s aren’t apples to apples with the consultant being a fully loaded coast, and the in-house not including pension benefits etc)