Interesting article in the Milwaukee Journal Sentinel today. Apparently contracting costs for the state government have decreased dramatically since Governor Doyle took office, from around $747 million to $419 million in the latest fiscal year.
Apparently the state government has been paying contractors to provide a lot of government services that could actually be provided more cheaply if state employees did the jobs directly. This makes sense, anytime you go through a middle man the cost will tend to increase because they need to take a cut for profit. Doyle wisely signed a bill last year requiring "cost benefit analyses for any service that would cost more than $25,000." Hopefully this will continue to bring down costs. Lord knows Wisconsin state government needs to find savings anywhere it can.
I guess my broader point is just because the private sector can do a job, it doesn't mean that it will get done better or more cheaply than the government can do it. This is the problem in Iraq where we're so dependent on private contractors because there were never enough troops on the ground to achieve our objectives. Needless to say this hasn't led to very good results especially in terms of reconstruction. This is all a symptom of the "private sector knows best" mentality that has dominated American public policy for decades.
Apparently the state government has been paying contractors to provide a lot of government services that could actually be provided more cheaply if state employees did the jobs directly. This makes sense, anytime you go through a middle man the cost will tend to increase because they need to take a cut for profit. Doyle wisely signed a bill last year requiring "cost benefit analyses for any service that would cost more than $25,000." Hopefully this will continue to bring down costs. Lord knows Wisconsin state government needs to find savings anywhere it can.
I guess my broader point is just because the private sector can do a job, it doesn't mean that it will get done better or more cheaply than the government can do it. This is the problem in Iraq where we're so dependent on private contractors because there were never enough troops on the ground to achieve our objectives. Needless to say this hasn't led to very good results especially in terms of reconstruction. This is all a symptom of the "private sector knows best" mentality that has dominated American public policy for decades.


