Friday, January 27, 2012

New Study Documents Hidden Costs to Privatization

This article reports on a  recent presentation by Jack Norman of the Institute For Wisconsin's Future - documenting hidden costs involved with privatization of state services.  The purported cost savings are questionable, the author of the study concludes.  Here is a quote:


"The gains touted don’t always materialize and might do more harm than good for local communities, said Jack Norman, director of policy research and development for the Institute for Wisconsin’s Future . . . The promised savings might be offset by a reduced level of service, he said, or a loss of income in the community as government workers are replaced by lower-paid employees who spend less locally — or live elsewhere. . . Private entities also are not bound by open records requirements to disclose budgets, salaries or results of outside oversight, such as quality testing or financial audits, he warned."

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