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Privatization is flowering at the state and local levels. In a bid to both save money and increase efficiency, state and local officials are increasingly tapping private firms to take on bigger responsibilities. Governments have always turned to companies for construction and other services, but now they are also asking businesses to manage more projects and programs. In most cases, the change has bipartisan backing, in part because privatization frees up funds for other government programs, including security, education and health care.
In the next few years, for example, private companies will manage several transportation projects:
- San Diego, Denver, Portland, Ore., Dallas and Atlanta plan to contract with private firms to build and manage nearly all aspects of new toll roads as well as the expansion of existing roadways. Such growth will include the addition of high-occupancy-vehicle lanes and special truck-only toll lanes in congested city areas.
- New York state plans to use a private company to build, operate and maintain the planned replacement in the next 10 years of a large section of the aging Tappan Zee Bridge spanning the Hudson River.
- A replacement toll bridge crossing the Mississippi in St. Louis will be privately built and operated.
- New Jersey lawmakers are expected to approve a plan turning over much of the management of the New Jersey Turnpike to a private firm, opening up resources that the state will use to shore up its troubled state pension plan.
But the privatization trend goes far beyond transportation. North Carolina will soon let private businesses manage the operations of state-licensed liquor stores. Similar moves are under consideration in Virginia and Alabama.
Philadelphia, Boston and Kansas City, Mo., are looking to privatize management, landscaping and upkeep of some city parks. New York City recently allowed a private company to take over the management of Central Park, saving the city what's expected to be tens of millions a year.
Virginia, South Carolina, Kentucky, Arizona and several other states expect to contract out food service operations at state penitentiaries. Texas will privatize most all aspects of its child welfare and adoption services, as Florida recently did.
Other publicly run projects ripe for more privatization in coming years include management of drinking water and wastewater treatment facilities, electric power plants, public building security, river and lake ferries, neighborhood transit buses, emergency medical vehicles and some police and fire functions. Also included are fire hydrant, parking meter and road sign repairs, adjudication of state benefit claims, debt collection, landscaping and park and monument management, state agency accounting and payroll services, parking ticket processing and traffic camera operations.
And Chicago's city council wants to let private firms own and operate what are now city-owned and -operated parking garages. The city's pothole repair program may also be turned over to private hands.
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