A plan to spend taxpayers’ money so the state of New Jersey doesn’t take the funds back had some members of the Hudson County Board of Freeholders disturbed at their April 8 caucus. Ben Lopez, director of Human Services, proposed spending down the $140,000 balance of a state grant to provide driving instructions to poor residents so they could to seek work.
The money was originally allocated to provide a shuttle service that would take Hudson County’s poor to job opportunities and jobs in various parts of the county. But the shuttle service was suspended due to low ridership, leaving $140,000 unspent – which the state will take back if the county does not find a way to spend it by June 30.
Lopez proposed a driver instruction program as an alternative. Originally, he wanted to help to restore suspended licenses. But that plan was rejected because the county did not want to use grant money to pay off traffic fines. Instead, a revised plan will be proposed next year to work with municipalities and courts to set up payment plans for suspended license holders, with grant money being used to pay for related services, but not the fines.
To spend down this year’s allocation, Lopez said he reached out to most of the driving schools in Hudson County to get an idea of cost. Three responded favorably, but none could handle the potential volume of people needing instruction. The fees also ranged in cost from $900 to $2,900 per individual.
Lopez said he averaged the proposed cost to about $1,500 with the hope of negotiating the highest of the three into accepting a lower fee.
Fees too high
But Freeholder Bill O’Dea said the fees were too high. O’Dea said he called some of the same places and received a $700 fee per person.
“I called places that the county administration gave me, one in Harrison and another in Bayonne,” O’Dea said. “I used the same list of services that you (Lopez) provided and got a better rate on an individual than you did as a group rate.”
Lopez said some places couldn’t provide the number of slots the county would need to launch the program even if they offered a lower rate. A Bayonne driving school, he said, was already committed to a similar program run through the Urban League.
Lopez said the higher cost for dealing with the county came as a result of the massive bureaucracy associated with government contracts, including paperwork and reports to the county and state that are not usually required in dealing with individuals.
The contract with local driving schools would include 12 to 15 hours of practice, classroom instruction for the written portion of the test, and taking potential candidates to the driving test itself.
Unlike an individual contract with a company that pays for up to three tries at passing the driving test, a contract with the county would require the company to keep taking the person back to the test until he or she passes, Lopez said.
In the past, when Lopez tried to establish a similar program, he paid $1,000 per student to the Hudson County Schools of Technology for instruction. But he said of the 1,000 people he sent to that program, only two actually got their licenses.
O’Dea said offering an average rate was a waste of money especially since the county would be offering $1,500 to a company that already said it could provide the service for $900.
“You’re giving this company a gift,” O’Dea said.
Use it, or lose it
Lopez argued that the county needed to spend down the money or else lose it.
“Maybe they should take it back,” O’Dea said. “We should not pay too much for the services. Just because the state or feds give us money, doesn’t mean we have to spend it. This is still taxpayer money and we should spend it wisely. The state and feds are not giving money away in wheelbarrows the way they used to. Now everything is result based, and the right wing in Congress has had an influence and this changes the way things are done.”
“Spending money just to spend it is not a good policy,” said Freeholder Al Cifelli. He noted that the average was skewed since the highest-priced company located in Union City was offering services that included Commercial Drivers License instruction, far beyond what the county required. “You’re comparing apples to oranges. You shouldn’t even consider that fee when making your average.”
“This is a money-making plan for three or four schools,” O’Dea said. “There is no reason to pay $550 more than we did to the Schools of Technology.”
“We sent out notices to all the schools in Hudson County,” O’Dea said. “We talked to ten schools. Four schools actually showed up for the meeting.”
The program, like the shuttle service, would be provided to people who are in training with a promise for a job, he said.
“This is an incentive for them to complete the training,” Lopez said.
The matter was moved to committee for review and a possible alternative plan will be proposed at a meeting later in April.
Al Sullivan may be reached at asullivan@hudsonreporter.com.