September 20, 2011
The U.S. government's increasing reliance on contractors to do work traditionally done by federal employees is fueled by privatization advocates that claim private industry can deliver services at a lower cost than in-house staff.
But they are wrong. A first-of-its-kind study by the Project On Government Oversight (POGO) busts that myth by showing that using contractors to perform services actually increases costs to taxpayers.
POGO's new report is the first to compare the rate that contractors bill the federal government to the salaries and benefits of comparable federal employees. The study found that contractor billing rates average 83 percent more than what it would cost to do the work in-house. Read more:http://www.inthepublicinterest.org/blog/pogo-study-contractors-costing-government-twice-much-house-workforce
Jails: A year ago, the sheriff of Hernando County, Florida took back control of the County jail from the private prison company, Corrections Corporation of America. Today, the county is saving $1 million per year, upgraded systems and improved health services. Read it here: Hernando County's takeover of jail brings year of sweeping changes
Child Welfare: Nebraska’s effort to privatize child welfare services “increased costs by 27 percent in a two-year period and led to millions of dollars in overpayments to a provider that has since gone out of business.” Critics call for end to privatization.
The In the Public Interest Resource Center has a new face, new features and dozens of additional resources on privatization and responsible contracting.We have case studies, backgrounders, research publications and more on dozens of sectors, states and issues. The website now features a new In The Public Interest Blog covering breaking privatization issues, commentary and analysis by analysts, scholars, and opinion leaders.Check it out, and share it with others.
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