During this election season we all hear the talk about how government needs to act and think more like a business does. We hear about wasteful spending and the need for smaller government. We hear all about the tax burden on our families.
And I listen.
After all, I hate paying taxes, too — and I guess that makes me like every other Georgian. Well, this November we have an opportunity to do three great things at once — save the taxpayer money, create some government efficiency and save energy.
Believe it or not, it is currently against the Georgia constitution for the state to enter into any contract longer than a year — even if it would save all of us tax money that’s being spent on the state’s utility bills. And that’s a problem. If I own a business and want to reduce my energy bills, I can contract with a company to make my buildings and/or factories energy efficient at no upfront cost to me. If I am the state of Georgia, I can’t.
Amendment 4 on this November’s ballot would change that. Here’s how it would work. Energy efficiency contractors will see whether a state building is a good candidate to be made energy efficient. (And believe me, our state buildings could use some upgrades.) The contractor then does all the work needed without upfront cost.
In return, the state pays the company back, over a series of years only from the actual savings on the utility bills. So if the bill was $100, and after the work it was $75, the state would only pay back $25 to the company. The best part is, if the state doesn’t save the money guaranteed, then it’s the company’s responsibility.
I am not only into cutting costs in my own life, but I’m into energy efficiency, too. I have put in more insulation in our home, sealed leaks around doors and windows, and I now have solar hot water. I made a decision that cost me money up front to get a payback over time. And it was a smart choice.
The neat thing with Amendment 4 is that the state could be smarter with our tax dollars without having to face the risk I did. Because remember, the state gets to enter into these multiyear contracts with the private company bearing all the risk.
I know it sounds like I am touting the impossible “free lunch.” And skepticism is natural. But this really is a win-win situation. The taxpayer gets a free ride while the contractor fronts all the cost of the efficiency improvements and then earns back their costs plus a profit for doing the work paid out of the energy savings over a series of years. After the contractor is paid off, you and I — the taxpayers — save all the money going forward for years to come.
As always with anything involving government, there is a fear that corruption and “good old boy” backroom deals could ruin it. I get that, and again, skepticism is natural.
But having read this amendment, and having studied how it works in other states, I know that the actual legal wording of Amendment 4 would make it pretty hard for even the most savvy politician to take advantage of.
That’s why I’ve decided to support Amendment 4. It’s good for me, and it’s good for the state, too.
Clark Howard is a consumer affairs commentator on AM750 and now 95.5FM News/Talk WSB.
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