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Washington, D.C.—The leader of the nation’s largest independent union of federal employees today applauded House approval of a fiscal 2009 omnibus appropriations measure that would take definitive steps to rein in runaway federal contracting. The bill also would deny funding for the continued use by the Internal Revenue Service (IRS) of private tax collectors.

The House-passed bill contains a one-year government-wide ban on new public-private job competitions for federal work under Office of Management and Budget contracting rules, and would require federal agencies to establish guidelines for bringing back into the hands of federal employees government work currently being performed by private contractors.

“These provisions are the clearest sign yet that Congress recognizes the previous administration’s competitive sourcing initiative has been a disaster,” said President Colleen M. Kelley of the National Treasury Employees Union (NTEU).

Kelley, who has long been leading the fight against unwise and unnecessary contracting of federal work and has been pressing for the in-sourcing of contracted-out work, said the unfettered growth of contracting often has resulted in “higher costs, poorer service, increased opportunities for waste, fraud and abuse, and diminished government flexibility, control and accountability.”

The NTEU leader also welcomed the provision in the House measure that would prohibit funding for the privatization of federal tax collection. She pointed out that Treasury Department data show that, through the end of fiscal 2008, the IRS has spent some $80 million to set up and run the private collection program—but has received only $60 million in net revenue after paying the private companies $13 million in commissions.

“So,” she said, “after two years of operation, the program has resulted in a net loss to the federal government. It didn’t make any sense when it was started, and it makes even less sense now.” Treasury is conducting a review of the program; the IRS’s contracts with the private collectors expire in March. NTEU has called for an end to the program, as have a large and growing group of bipartisan members of Congress, the IRS’s own National Taxpayer Advocate and a variety of consumer and public interest groups.

Among its other provisions, the $410 billion House bill, which provides funding for programs and agencies covered by the nine appropriations bills not yet enacted for this fiscal year, would provide $11.5 billion in funding for the IRS for fiscal 2009—an increase of $428 million above fiscal 2008 levels. “I'm pleased to see attention being paid to the resource needs of the IRS and its employees,” Kelley said.

“This agency has been short-changed and understaffed for a very long time, and given the critical nature of its mission—providing the bulk of the funds that run our government—that can only result in serious problems for our country,” she said.

Also in the omnibus bill is additional NTEU-supported funding for several other agencies including an additional $352 million for the Food and Drug Administration; $37 million for the Securities and Exchange Commission; and $100 million for the Social Security Administration aimed at aiding the agency in reducing a growing backlog of disability claims.

The Senate is poised to take up omnibus legislation next week. A fiscal 2009 continuing resolution expires on March 6.

As the largest independent federal union, NTEU represents 150,000 employees in 31 agencies and departments.