Profiting from Public Dollars: How ALEC and Its Members Promote Privatization of Government Services and Assets

In its report, Profiting from Public Dollars: How ALEC and Its Members Promote Privatization of Government Services and Assets, In the Public Interest exposes how The American Legislative Exchange Council (ALEC) profits by dismantling public services and encouraging privatization. ALEC accomplishes its agenda by providing corporations with unfettered access to state legislators. Specifically, ALEC works with its members to draft model bills—bills that create incentives to privatize serves and call for the increased use of private financing and control—that state legislators can promote. ALEC’s success is undeniable, as 20% of ALEC”s proposed legislation becomes law.

According to the article, corporations pay thousands of dollars for membership, while legislators only $50 per year to become members of ALEC. The membership fees assist in funding ALEC meetings and subsidizing legislators’ expenses.

ALEC provides a system that advances the privatization of a wide range of government functions, while increasing corporate influence over public policy decisions and ultimately increasing corporations’ bottom lines. As the article points out, “ALEC is more than just an organization that convenes meetings and develops model legislation. It is a major player in a long and steady movement toward private control of public structures.”

The article explores notable ALEC model bills and offers a look into how private prison corporations, online education companies, health care corporations and major industry players utilize ALEC’s services for their benefit. 

The report seeks to expose ALEC’s privatization agenda and its significant corporate backing, and to warn citizens of supporting ALEC model legislation due to ALEC’s seemingly corrupt practice.