Today, I read an article posted by the Citizens' Campaign about Perth Amboy adopting a model insurance reform ordinance that may save the city more than $3 million. By adopting a transparent and more competitive process in looking for the best insurance coverage possible, Perth Amboy will save over a quarter of a million dollars in broker's fees and millions more in insurance savings.
Heather Taylor, of the Citizens' Campaign, is sending me the toolkit for local insurance reform. In addition, the Citizens' Campaign has a number of other toolkits (including Municipal Pay-to-Play, Shared Services, and other model ordinances) designed to increase citizen participation in local governance--check out their site here: Citizens' Campaign
The resolution, according to the Citizens' Campaign, "...requires towns to seek a minimum of 3 bids for insurance, including bids from the State Health Benefits Plan, County Joint Insurance Fund, and others." I have posted the link to the article here, so that you may read it in its entirety:
The process of putting out an RFP (request for proposal) for brokers (including having the state bid alongside others) to compete for the best services to the municipality is certainly one that Plainfield should look into.
Given that our Chief Financial Officer, Ron Zilinski, has projected a budget shortfall of $3.4 million this year for Plainfield, it makes sense to take a close look at how we can save the taxpayers money--a competitive process can only benefit our community. I will be bringing this proposal the administration and to my colleagues on the governing body.
Having a transparent process in terms of how we allocate public funds is the hallmark of effective and citizen-based governance--it's time for Plainfield to adopt such a process.