Privatization

Topics: State, Privatization, Tax Pages: 3 (805 words) Published: September 22, 2013
Privatizing services is a more attractive option for most local governments and is widely practiced around the state. There are certain government services in which it is impractical to create a free competitive market. For others, it is almost impossible to predict the potential success or failure of privatization. These unclear predictions make privatization a very complicated issue for local governments.

The combination of rapidly rising service costs and slowly increasing revenues has led officials in some cities and counties to use non-traditional income services to fund government options. Throughout the mid 1980's state and local governments continue to be in trouble because of the rapid increase in the demand for services they provide along with an increasing resistance on the part of their citizens to raising taxes in order to provide those services. Privitization is an outsourcing of functions to private companies that the financial burdern of providing these services shifts from the taxpayers at large to the individual consumers. Privatizing services is a more attractive option for most local governments and is widely practiced around the state. There are certain government services in which it is impractical to create a free competitive market. For others, it is almost impossible to predict the potential success or failure of privatization. These unclear predictions make privatization a very complicated issue for local governments.

The combination of rapidly rising service costs and slowly increasing revenues has led officials in some cities and counties to use non-traditional income services to fund government options. Throughout the mid 1980's state and local governments continue to be in trouble because of the rapid increase in the demand for services they provide along with an increasing resistance on the part of their citizens to raising taxes in order to provide those services. Privitization is an outsourcing of functions to private...
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