An argument for the privatization of Public Schools

1. An argument for the privatization of Public Schools By Richard Lambert FNDS 5050 University of Colorado Denver

2. Public Schools are failing • Public education needs to be fixed. • Why not privatize public education?

3. Privatization of Government Jobs • 2006 CRS Report for Congress defines privatization as “the use of the private sector in the provision of a good or service, the components of which include financing, operations (supplying, production, delivery), and quality control” (Kosar, 2006, p. 3).

4. Benefits of Privatization • E. S. Savas stated, “[P]rivatization is the key to both limited and better government: limited in size, scope, and power relative to society’s other institutions; and better in that society’s needs are satisfied more efficiently, effectively, and equitably. Privatization is both a means and an end. For pragmatists who want better government and for populists who seek a better society, privatization is a means toward those ends” (Kosar, 2006, p. 6).

5. Privatization, is it beneficial? Pros Cons Considered a union-busting strategy, shifts gov’t work from gov’t employees to private sector. May adversely affect women and minorities. Risk of transferring governing discretion to private sector. Reduction of stable gov’t workforce. • Eliminate the fraud, waste and abuse of federal gov’t. • Reduce gov’t corruption. • Save money and reduce budget deficits. (Kosar, 2006)

6. How privatization works • Divestiture/Load-sharing: the sale, or divestiture of a federally owned agency, corporation, or service to a private entity. • Contracting for goods: the government contracts with a private entity for goods. • Contracting for services (outsourcing): the federal government contracts with a private firm for services. (Kosar, 2006)

7. How privatization works (cont.) • Vouchers: the government gives the recipient a “voucher” that is used to purchase a service from a private or public source. • Quasi Governmental Entities/GOCO: entities that have both government and private sector attributes. For example, the American National Red Cross. (Kosar, 2006)

8. How privatization works (cont.) • Third-party Financing: a third-party removes the federal government from direct financing of a federal project and replaces it with the private sector. • Grants to private parties: federal government grants funds and property to private parties to achieve public purposes. (Kosar, 2006)

9. How privatization works (cont.) • Prize competitions: federal agencies hold prize competitions to draw upon the creativity of private individuals and firm for the purpose of developing technologies for the government. • Volunteers: federal government uses volunteers to perform public services. (Kosar, 2006)

10. City of Los Angeles • Eileen B. Berenyi and Barbara J. Stevens studied the impact of privatizing services in Los Angeles. • The study focused on the purchasing of service contracts • Services included refuse collection, asphalt overlay, street cleaning, traffic signal maintenance, street tree maintenance, turf maintenance, janitorial services and payroll • In all eight examples the city saved money and the people received better service. Berenyi & Stevens, 1988

11. Privatization of Public Education • In my paper on public education we saw that public education is failing our students. In particular, low-income and minority students. • Schools need to change. • Privatization of public education can fix what ails it… • Can provide more efficient solutions to social issues (Bulkley & Burch, 2011).

12. Bibliography Berenyi, Eileen B. & Stevens, Barbara J. (1988, Winter). Does Privatization Work? A Study of the Delivery of Eight Local Services. State & Local Government Review. pp. 11-20. Kosar, Kevin R. (2006, December). Privatization and the Federal Government: An Introduction. CRS Report for Congress.