Online Shopping Offers Benefits for State Government By Texas Comptroller Carole Keeton Rylander
The Internet is the most powerful and efficient tool to bring buyers and sellers together. That's why I initiated the first-ever online auction of unclaimed property last December. By partnering with Amazon.com, eBay and Yahoo, the sale of jewelry and collectibles from abandoned safe deposit boxes attracted bidders worldwide generating more than $12,000 at a cost of only $282 to sell the items online.
The online auction cost the state less per item than the live auction held annually in Austin, and generated more and higher bids for items because the field was expanded to include anyone with Internet access. For example, a Carson City Morgan dollar sold for $227 during the online auction. A similar dollar fetched 60 percent less at the most recent live auction of unclaimed property.
Selling this unclaimed property is an annual event. When we receive items from abandoned Texas safe deposit boxes we try to locate the rightful owners, and if unsuccessful, then sell those items in live auctions in Austin. In this type of auction, however, bidding is a one-day event. In contrast, the online auction was held for seven days, with winning bids from Canada, Germany, Hong Kong, Pennsylvania, Oregon, Florida and Missouri, in addition to Texas.
By putting more items online for bidding, we're offering 24-hour-a-day, 7-day-a-week access to millions more prospective buyers.
That's good for Texas. The more money generated from these sales means more money for the state's coffers that could be used to educate our children.
The success of the online auction shows the state must move more services online.
For example, the state should sell over the Internet all surplus property held by the General Services Commission. If surplus property isn't bought by another state agency within 30 days, it's available for purchase by businesses and taxpayers. At that point, GSC holds 40 to 70 sealed bid sales of this surplus state property each month. But buyers can't see what's available or bid on it online. Interested bidders must call or write GSC for a list of what's available.
The old way needs to change.
The state of Oregon now sells some of its surplus property on the eBay Web site with estimated profits double those of live auctions, and with buyers from Scotland, England and Korea. Currently, Oregon is selling lighter, more-expensive items, but plans to launch its own Web site to allow goods to be bought through the site and picked up locally - saving shipping costs.
What's more, GSC doesn't handle all surplus property sales; each university and some agencies hold their own sales to other agencies and the public because state law gives them more latitude in selling surplus property.
I envision one state portal where anyone who wants to view the state surplus property lists can do so, and bid on those items at the same time...and watch what the bids are. We'll expand the number of potential customers and increase the amount of money the state earns from the sale of excess property. And the quicker we get the property sold, agencies will free up more warehouse space, another cost-saving measure.
The private sector is taking advantage of new technology to deliver more goods and better service to their customers at a lower cost. As taxpayers become accustomed to that level of service, they will demand the same performance from their government. That's why I formed e-Texas, a citizen commission that will recommend ways for Texas government to cost less, provide better service, and increase educational excellence.
I will champion the reforms developed by the citizens who work on e-Texas. And we can succeed by acknowledging the need to change and move forward. In the not too distant future with e-Texas leading the way, e-government will be government. And online auctions of state surplus property must be a part of that transformation.