Once again Governor Romney proposes eviscerating the Taxpayer Protection Act (also known as the Pacheco/Menard law). This year’s attack is contained in outside sections 16-20 of House I. Rather than simply trying to repeal the Act as he did last year, this year the Governor proposes a series of changes that will render the Act toothless and unenforceable.

• The Governor eliminates the requirement that the Auditor review privatization proposals and the Auditor’s power to object to such proposals. Such changes eliminate the law’s main enforcement tool – an independent review of the alleged savings.

• It is obviously cheaper to provide services if you pay low wages and provide no benefits. The Governor eliminates the requirement that a contractor pay wages that are comparable to those of a similar state employee or the average private sector wage. Contractors would also no longer be required to provide comparable health insurance for workers.

• Lost tax revenue is a cost of privatization. The Governor eliminates the provision that requires any bidder who plans to perform part of the work out-of-state to account for the amount of income tax revenue that will be lost to Massachusetts.

Throughout the country privatization – without the safeguards of a law like this – has hurt services, cost taxpayers more money, and harmed workers. The Taxpayer Protection Act does not prohibit privatization, but simply requires vendors to demonstrate that they can provide the same quality services at a lower price. The Act requires that contractors demonstrate this before the Commonwealth signs a contract that it will be difficult to get out of later. The Act also protects taxpayers from sweetheart deals and revolving door arrangements between government officials and the private sectors.