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(EMAILWIRE.COM, June 07, 2011 ) WASHINGTON, D.C. -- The federal stimulus has not done the job it had promised to do. The deficit remains at an all-time high, unemployment is still over 9 percent, and the economy remains weak. This is further evidence that solutions for economic recovery and sustainability should begin with the states and not the federal government.
State solutions to growing the economy through competition, innovation and production are a key factor in recovery. However, with so many states still in financial crises, the states need viable solutions that will provide for a more a more efficient government and save taxpayer dollars. According to the American Legislative Exchange Council (ALEC), the right solutions lie in the benefits of public-private partnerships.
“Economic growth and stability, reducing government costs while achieving higher performance, and saving taxpayer dollars are at the top of nearly every state’s legislative agenda,” said ALEC’s Commerce, Insurance and Economic Development Task Force Chair Rep. Glenn Vaad (CO). “Privatization is a useful tool in achieving these goals and developing a more cost-effective public sector.”
ALEC is proud to announce the launch of its newest initiative – Publicopoly – which provides states with a host of viable and sustainable solutions for a more efficient government and true economic stimulus. Such solutions include: the shifting of costly government programs or projects to private-sector providers through competitive bidding and the creation of councils to evaluate and encourage competition opportunity across agencies.
The competition to win and retain contracts undoubtedly spurs innovation and the pursuit of ways to best meet the needs of AmericaÂ’s communities. Public-private partnerships can achieve higher performance in the delivery of many goods and services. The resources available in ALECÂ’s Publicopoly initiative are pertinent to a wide-range of policies areas.
“State government should take an active role in determining which services and products should be privatized to increase efficiency and encourage cost savings in the state. This initiative will provide our membership the tools they need to achieve higher performance in a number of different issue areas,” said ALEC’s Commerce, Insurance and Economic Development Task Force Director Courtney O’Brien.
With many states facing substantial fiscal dilemmas, privatization opportunities should be evaluated so as to ensure that competition is used sensibly and delivers maximum value to taxpayers. Through the establishment of an independent decision-making body, state governments can take an active role in determining which products and services should be privatized. For example, Florida’s Council on Efficient Government advanced over 130 privatization and competition initiatives, with cost savings estimated in the hundreds of millions. ALEC’s “center of excellence concept” can help to create similar advisory bodies across the country.
The arena of transportation and infrastructure provides some of the most successful examples of privatization. Private investment in related projects can generate new ideas to solve current transportation problems. Furthermore, public-private partnerships can shift many of the financial risks associated with a public project to the private sector. The expansion of privatization outlined in Publicopoly will address critical transportation needs that have been unmet for decades.
The public-private partnership approach for state governments as described in Publicopoly has already proven successful in encouraging competition, and in effect, a healthy, strong economy. This initiative will provide legislators an even greater opportunity to develop a more competitive environment for job and economic growth, and a more cost-effective government.
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The American Legislative Exchange Council (ALEC) is the nationÂ’s largest nonpartisan individual membership association of state legislators, with nearly 2,000 state legislators across the nation and more than 100 alumni members in Congress. ALECÂ’s mission is to promote free markets, individual liberty, and federalism through its model legislation in the states.
American Legislative Exchange Council
Raegan Weber
2027428536 rweber@alec.org
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