ALBANY, N.Y. -- A union representing state employees said New York is wasting taxpayer dollars.

The Public Employees Federation said the state is hiring private consultants when it should be using state workers.

Using data from the state Comptroller's Office, PEF did a study which said New York State could save $700 million if it stopped hiring consultants and used state workers to do the same jobs.

A law passed a few years ago required state agencies to report how many consulting services they use.

During the 2006-2007 fiscal year, the state reported $700 million was spent on 23,000 private consultants.

PEF leaders said even when you factor in paying a state employee with benefits, it comes out to less than what you'd pay a consultant.

PEF President Ken Brynien said, "You hire an engineer. You pay their agency $200 an hour. The state has engineers already on staff doing that work. With pay, benefits, that state employee costs about $50 an hour."

PEF is working with Governor Paterson and is asking state agencies to consider cutting consultants to save money, rather than to cut the jobs of state workers.