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Sunday, March 20, 2011

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Fuzzy Privatization Math

Fuzzy Privatization Math

by: Ellen Dannin | Employment Policy Research Network | Op-Ed

Fuzzy Privatization Math
(Photo: Jorge Franganillo)

On May 31, 2010, Governor Chris Christie’s New Jersey Privatization Task Force reported that more than $210 million would be saved by privatizing work that had traditionally been performed by government workers. The report even set out specific figures for some of the cost savings it identified, while others said savings were “TBD” – “To Be Decided”.

Who crunched the numbers to show that private contractors would do a better job or at least the same job for less money than public employees? The Privatization Task Force Report says that no one did. On page 14 the report says it did no analysis “due not only to the fact that the actual cost of a privatized alternative will often not be known until the