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

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

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).

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).

Privatization, is it beneficial? Pros Eliminate the fraud, waste and abuse of federal gov’t. Reduce gov’t corruption. Save money and reduce budget deficits. 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. (Kosar, 2006)

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)

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)

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. How privatization works (cont.) (Kosar, 2006)

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. How privatization works (cont.) (Kosar, 2006)

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

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).

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 Kosar, Kevin R. (2006, December). Privatization and the Federal Government: An Introduction. CRS Report for Congress.