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Tuesday, December 11, 2007

New Report: Privatization In The States

The Progressive States Network just put out an excellent report on privatization. It does three things mainly:

• Documents the failures and dangers of privatizing government on the state level
• Makes the case for increased transparency of privatized state government
• And with the data available, measures the extent of privatization on a number of policy areas in each state.

Much of the privatization that occurs at the state level is in the delivery of federal programs, like the National School Lunch Program, Medicaid, or Temporary Assistance for Needy Families. As for its implications for the federal workplace (emph. mine):

While there have been a few highly publicized privatization efforts in some states in recent years, broad trends in public employment do indicate that this is happening within a context of broader stability below the surface. According to the United States Census Bureau, total state and local employment increased from 14.2 million in 199738 to 15.8 million full-time equivalent employees in 2003,39 then to 16.1 million full-time equivalents in 2006,40 showing stable growth in public employment paralleling growth in state populations.

This is actually in sharp contrast to the federal government, which has seen significant downsizing of federal employees in favor of contractors, with total civilian federal employment actually falling from 2.81 million employees in 199741 down to 2.04 million employees in 2003.42 This reflects what Mildred Warner calls the increasing ideological approach to privatization as you move from the local to the federal level.43 It's worth noting that a few of the states most identified with privatization in recent years have strong ideological ties to the current White House, including Florida, where President Bush's brother, Jeb Bush, began a large drive for privatization; Texas, where President Bush's successor as Texas Governor, Rick Perry, led privatization efforts; and in Indiana, where former Bush White House Budget Director, Mitch Daniels, has been strongly promoting privatization as governor. But in this ideological commitment to privatization, they seem to be in contrast to the broader trends across all the states.