States do more than tighten their fiscal belts during economic downturns; some take a second look at their organizational wardrobes. One approach looks to consolidate agencies doing similar things. Some states try to reduce the wardrobe by mixing and matching organizations doing similar things. Others aim to replace their wardrobes with hybrid organizations, combining the fibers of government agencies and private corporations.
One hybrid that seems to be getting a lot of attention around the nation is public-private partnerships. Here’s what’s being said about these partnerships:
• Ohio’s governor proposes “Jobs Ohio,” a privatized economic development entity overseen by an uncompensated board rather than government agencies, reports the Dayton Daily News.
• A recent report from the Competitive Enterprise Institute sounded a cautionary note about forming such partnerships for developing property and highways. These partnerships can lower costs, but also “create significant risk of improper collusion between political actors and politically preferred firms and industries,” the report states.
• The nonprofit think-tank, Good Jobs First, criticized public-private economic development partnerships, citing states that have discarded them because they misused funds, paid excessive bonuses, and awarded questionable subsidies. States establishing a partnership can avoid some of the problems by holding it accountable to the governor and legislature, Good Jobs First recommends.
• Governments considering public-private partnerships face many of the same issues that arise when they consider hiring a private company to collect garbage, maintain parks, or perform other public functions.
