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States Lean More on Private Firms

Source: By Richard Sammon, Kiplinger, Oct. 30, 2006


Privatization is flowering at the state and local levels. In a bid to both save money and increase efficiency, state and local officials are increasingly tapping private firms to take on bigger responsibilities. Governments have always turned to companies for construction and other services, but now they are also asking businesses to manage more projects and programs. In most cases, the change has bipartisan backing, in part because privatization frees up funds for other government programs, including security, education and health care.