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Is Election Day a Referendum on Privatization?

As we approach Election Day, a number of governors in tight races are finding that privatizing public services isn’t good politics. But it may be good for campaign fundraisers seeking donations from corporations that want government contracts. 

A new report released by the Center for Media and Democracy highlights the intensive efforts of governors seeking re-election to privatize important public services to private firms. Time after time, outsourcing has gone awry, generating worse outcomes for the public, scandals, lawsuits, and scorching headlines that are impacting the campaigns. The report includes examples from Florida, Kansas, Michigan, Ohio, Pennsylvania, Maine, and Wisconsin.

Here are examples from the report:

  • In Michigan, Governor Rick Snyder outsourced prison food service to Aramark after the company spent half a million dollars on lobbying. The contract has been plagued by scandals, including maggots, employees smuggling drugs and having sex with inmates, and even murder-for-hire allegations.

  • In Pennsylvania, Governor Tom Corbett has outsourced millions in legal contracts to major campaign contributors to defend ALEC-style voter ID legislation and other policies. The governor also attempted to privatize liquor sales, which would have benefited another set of deep-pocketed contributors like retail giant Walmart.
 Walmart donated $33,500 to Corbett’s campaign.
  • In Florida, Governor Rick Scott has overseen a massive expansion of for-profit online schooling to companies that spent millions on lobbying. Scott signed a bill requiring every student to take online courses and tests benefiting firms like K12 Inc.

The outcomes of these races could very well be an important referendum on outsourcing and privatization. We’ll be watching.