Privatization Task Force

Posted on Friday July 09, 2010
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In March, Governor Christie signed Executive Order #17, which created a statewide Privatization Task Force. The commission, chaired by former U.S. Representative Dick Zimmer, sought to apply the "Yellow Pages Test" to all services rendered by the state. That is, if there's a service listed in the phone directory, the government probably shouldn't be directly providing that service. Instead, the government should contract out the delivery of that service in a transparent, competitive manner. This principle, made famous by former Indianapolis Mayor Stephen Goldsmith (now Deputy Mayor of New York City), has saved taxpayers millions of dollars when implemented in a competent fashion.

Today, the findings of our state's Privatization Task Force are in. As it turns out, various privatization initiatives could save taxpayers at least $210 million annually. In reality, taxpayers would save even more if the commission's recommendations are fully implemented. As the Reason Foundation's Leonard Gilroy (who served as a task force advisor) has explained, their report does not attempt to quantify the value of all recommendations, nor does it estimate revenue yielded from unused state land if sold.

The release of this report constitutes a real victory for the state's taxpayers. It reveals, in concrete terms, how much we're currently overpaying for a plethora of services. As Gilroy notes, the commission's proposals are not self-implementing. They do, however, provide a clear roadmap for a reform-minded administration.

It remains our hope that we can replicate our state's Privatization Task Force on a municipal level. Early this year, Mayor Zimmer indicated that privatization studies were underway. She was loathe to discuss any potential areas for privatization, however. We haven't heard of any developments since. Hopefully, the release of the state's report will provide new impetus to local privatization initiatives.
Posted in Commentary    Tagged with Privatization, Chris Christie, Dick Zimmer, Dawn Zimmer, New Jersey, Hoboken


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