I’m late to note this, but for those who haven’t seen it, Gary Welsh at Advance Indiana posted a blog entry on July 11 that is really required reading for anyone interested in the realities versus the myths of privatizing government services. It recounts the efforts of Carl Moldthan to analyze and offer suggestions for the efficient reform of the Family and Social Services Agency to save money. Moldthan was a Republican supporter and local government consultant tasked with reducing waste at FSSA.
The short version (and, really, go read the long version) is that Mitch Roob was determined to privatize FSSA functions before any review was conducted of the best way to improve services and reduce waste. Moldthan’s suggestions fell on deaf ears, presumably because privatization was the desired end in itself, not one of many potential tools for creating better, more efficient government.
The myth is that privatization will create cheaper government. The reality, all too often, is that it simply creates a profit center for well-connected friends and well-wishers of the people making the privatization decisions.