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As states outsource, debate about it grows / Private sector will pay to handle government work, but pay enough?

Source: The Associated Press, 6:37 p.m. ET Feb 21, 2007

Like the auto industry, the computer programming field and the customer-service business, the state of Indiana is outsourcing.

....... [Gov. Mitch] Daniels is leading the way among cash-strapped governors who are contracting out services states historically have handled themselves. The primary goal of these deals: saving tax dollars, or generating quick cash that can be used to fix roads, reduce debt or provide college scholarships.

....... But some legislators and government-watchers warn that some of these privatization deals have yielded shoddy service. And some fear that in leasing toll roads and lotteries, politicians are signing away a reliable, long-term stream of revenue for a big lump sum of money they might squander on some short-term ideas.