Newark’s Outsourcing Scam: Why Taxpayers Pay Twice for the Same Government Services

Newark residents are getting fleeced by a government shell game that would make carnival barkers blush. You pay city employees to perform essential planning functions, then your city council pays outside consultants to do the same work — and calls it “efficiency.”

Good City Company now handles “policy and program development, design review, use permits, and building permit review” for Newark. These aren’t specialized consulting services — these are core government functions that taxpayers already fund through city salaries, benefits, and overhead costs.

Welcome to the new economics of local government: double-billing residents while politicians pretend they’re improving services.

The Double-Dipping Disaster

Here’s how Newark’s outsourcing scam works:

Step 1: Taxpayers fund city planning department salaries, benefits, office space, and equipment through property taxes and fees.

Step 2: The city hires outside consultants to perform the same functions that planning department employees are supposed to handle.

Step 3: Residents pay both the city employees AND the consultants for identical services.

Step 4: Politicians claim this “partnership” improves government efficiency while taxpayers get double-billed for single services.

Good City Company’s contract expansion represents the worst kind of government waste: paying premium consultant rates for work that city employees should perform as part of their regular duties.

The Functions You’re Paying For Twice

Good City Company now handles core government responsibilities that every city planning department should perform:

Design Review: Evaluating whether proposed developments meet city standards — a basic function that planning staff perform in competently-run municipalities.

Use Permits: Processing applications for business licenses and land use approvals — routine administrative work that doesn’t require outside expertise.

Building Permit Review: Checking construction plans for code compliance — technical work that city building departments handle everywhere else.

Policy Development: Creating local regulations and procedures — the fundamental responsibility of elected officials and city staff.

Newark residents pay city planning staff to perform these functions, then pay consultants to do the same work. It’s government inefficiency disguised as modernization.

The Consultant Profit Motive

Outside consultants have powerful incentives to expand their role in city operations:

Revenue Growth: Every additional function consultants handle increases their contract value and long-term revenue potential.

Scope Creep: Consultants can gradually assume more city responsibilities, making themselves indispensable while increasing taxpayer costs.

Relationship Building: Successful consultant relationships often lead to contract renewals, expansions, and referrals to other government entities.

Premium Pricing: Consultants charge hourly rates that far exceed city employee compensation for equivalent work.

When Newark’s council approves consultant expansions like Good City Company’s contract, they’re prioritizing vendor profits over taxpayer efficiency.

The City Employee Question

If Good City Company handles design review, permit processing, and policy development, what exactly do Newark’s city planning employees do all day?

This raises several troubling possibilities:

Overstaffing: Newark employs more planning staff than necessary for actual city functions, creating taxpayer-funded positions that don’t serve essential purposes.

Underperformance: City employees can’t or won’t perform basic planning functions, forcing the city to hire consultants for work that staff should handle.

Mismanagement: City leadership lacks the competence to organize planning department work effectively, requiring outside help for routine government functions.

Political Preference: Council members prefer working with consultants who may be more responsive to political pressure than civil service employees.

None of these explanations justify paying both city employees and outside consultants for the same government functions.

The Real Cost of Outsourcing Core Functions

Every dollar spent on consultant contracts for basic government work represents:

Wasted Taxpayer Money: Premium consultant rates for work that city employees should perform at lower cost.

Reduced Accountability: Private consultants operate with less public oversight than city employees subject to civil service rules and public records requirements.

Lost Institutional Knowledge: Outsourcing core functions prevents city staff from developing expertise and institutional memory that serves long-term community interests.

Vendor Dependency: Excessive reliance on consultants makes Newark vulnerable to contract disputes, service interruptions, and vendor demands for higher compensation.

What Efficient Government Looks Like

Competently-run cities handle planning functions through qualified city staff who:

Perform Design Review: City planners evaluate development proposals using established criteria and community standards.

Process Permits: Administrative staff handle routine permit applications efficiently and transparently.

Develop Policy: City staff research best practices and draft regulations for council consideration and public input.

Maintain Expertise: Experienced employees build institutional knowledge that improves service quality over time.

Newark’s outsourcing approach suggests either incompetent city management or political preference for consultant relationships over efficient government operations.

The Accountability Gap

When Newark outsources core government functions, residents lose important oversight mechanisms:

Public Records Access: City employee communications are subject to public records laws; consultant internal discussions may not be.

Civil Service Protection: City employees have job security that encourages honest advice; consultants depend on client satisfaction for contract renewals.

Direct Supervision: City managers can directly oversee employee performance; consultant work may be less transparent to public oversight.

Cost Control: City employee compensation is set through public budget processes; consultant fees may be negotiated privately.

What Taxpayers Should Demand

Before approving any more consultant expansions, Newark residents should demand:

Staffing Justification: Clear explanation of what city planning employees do if consultants handle design review, permits, and policy development.

Cost Comparison: Analysis showing whether consultant fees exceed the cost of hiring additional qualified city staff.

Performance Metrics: Evidence that consultant services actually improve outcomes compared to city employee performance.

Accountability Measures: Public oversight mechanisms ensuring consultant work serves community interests rather than vendor profits.

The Political Protection Racket

Newark’s consultant expansion fits a troubling pattern in local government: politicians who prefer working with private vendors over managing city employees effectively.

Consultants offer political advantages:

• Contract relationships that can be modified or terminated without civil service procedures
• Professional services that may be more responsive to political direction
• Vendor relationships that can benefit supportive council members
• Outsourcing arrangements that shift responsibility away from city management

But taxpayers pay the price through higher costs and reduced accountability.

The Bottom Line

Good City Company’s expanded role in Newark’s planning functions represents government inefficiency at its worst: paying premium consultant rates for basic city services that taxpayers already fund through municipal employment.

When city councils outsource core government functions like design review and permit processing, they’re not improving efficiency — they’re creating expensive redundancy that serves consultant profits rather than community interests.

Newark residents deserve elected officials who can manage city employees effectively rather than outsourcing basic government work to expensive consultants who charge premium rates for routine services.

Stop the outsourcing scam. Demand that city employees perform the functions taxpayers pay them to handle, or eliminate positions that don’t serve essential community needs.

Sources: Newark City FINAL October 9 2025 minutes.pdf