Requiring Municipalities to Use Preferred Source Vendors

The Mandate: The state-mandated procedure for entering into purchase and public works contracts is burdensome. Adding to this archaic and costly process is the requirement that local governments purchase certain commodities and services from Preferred Source Vendors, even if the Preferred Source's price exceeds the prevailing market price by as much as 15%. This price preference is in effect a requirement for local taxpayers to pay for a state created subsidy.


The Cost: New York's Preferred Source law costs local governments as much as 15% on their purchase of goods and services.

The Solution: The price-preference should be eliminated, thereby lowering the property tax burden created by this program by as much as 15%.