This website uses cookies to ensure you have the best experience. Learn more

Privatization: Metropolitan Boston Transit Authority (Mbta) And The California State Compensation Insurance Fund

3215 words - 13 pages

Privatization: Metropolitan Boston Transit Authority (MBTA) and the California State Compensation Insurance Fund

According to Robert B. Denhardt, Public Administration an Action Orientation, privatization "is the use of non governmental agencies to provide goods or services previously provided by government." (P.95). Privatization comes in various degrees, from the outright selling or transfer of government ownership of assets (for example public utilities), to, as is more common in the United States - the contracting of goods or services to private firms.

Contracting is not something new in government. For example the Defense Department procures new weapons systems from the private sector all the time and the Pentagon oversees contracts totaling more than $150 billion a year. From the outset, it must be made clear that privatization is an enormously complex issue for which there is no simple solution. However, it is an idea that has grown tremendously popular among politicians (and by natural extension Administrators who must carry out policy issues once policy decisions are made by the politicians) in recent years.

The idea of privatization will likely not diminish as cash starved governments from the federal to the local levels seek to reduce costs while promoting efficiency. It is this idea of reducing costs that will be the focus of this paper. We will see as the debate unfolds that when it comes to government, costs alone is not always the determining factor in the delivery of goods and services. There are many arguments that cost reduction does not necessarily improve efficiency nor does it guarantee equal delivery in the delivery of goods and services (equality being a fundamental constitutional value). Finally, we will examine an anomaly in the debate, the California State Compensation Fund - an agency that fulfils its mandate, has consistently met the criteria of "efficiency" in government, yet has come under the pressure to privatize its operations.

There are two common areas of privatization, transportation and garbage collection. In Boston for example, the Metropolitan Boston Transit Authority undertook a huge effort to privatize public transportation. The result was a "private company and a coalition of unions each tentatively chosen to run their own network of MBTA buses, at costs considerably below what the authority now pays according to a Boston Globe article (Metro, Monday Feb. 3, 1997). How they arrived at this strange equation is unknown but the stated goal was to cut costs though competition. "Such arrangements reflect the belief that competition brings out the best among contenders-and that by inserting government units into a competitive environment, service recipients stand to gain much while risking little." (Ammons, D. and Hill D. pg. 12).

Opponents of privatization argue that "any cost savings are attributable to reductions in service quality or to worker exploitation, especially through...

Find Another Essay On Privatization: Metropolitan Boston Transit Authority (MBTA) and the California State Compensation Insurance Fund

The Community vs The Metropolitan Washington Airports Authority (MWAA)

2234 words - 9 pages organizations do not consider their stakeholders in their decision-making process. However, for those who want to be seen as a good neighbor, it is a constant challenge to incorporate the community’s wishes while still following their own agendas in an effort to maintain a collegial, collaborative environment. The Metropolitan Washington Airports Authority (MWAA), is a self-supporting agency that is responsible for the operation of Reagan

Social Ties, CEO Compensation, and Mutual Fund Voting Patterns

2421 words - 10 pages -2006 and hand-collected data on educational ties between firm executives and mutual fund managers, we show that for each percentage point of a firm’s ownership that is connected ownership, total executive compensation is 2.5% higher, controlling for other determinants of compensation. When computed at the mean compensation in our sample, a one standard deviation increase in connected ownership correlates with an increase in total compensation of

Water Privatization is Re-endorsing the Apartheid State

3055 words - 12 pages retrieve their basic human rights. Neoliberalism and privatization have become the widespread accepted solutions for all problems concerning state services. This market-based ideology argues that state-run services will never be more efficient than private services (Goldman, 2007). Oddly, however, we see many of the effects and mechanisms of this ideology echoing those of colonialism and nationalism (Miraftab, 2004). Neoliberalism uses the

The California State Public Education System

2482 words - 10 pages fruition. This Paper will look at the current state of the Public Education System of the Sate of California. It will focus on the breakdown of the current system looking specifically at the following issues: Lack of Funding for the System, Lack of Qualified Teaching Personnel, and issues caused by Diversity in the Educational System. Through the use of primary and secondary research tools we will analyze the current state of the system and look at

Discussion of the Feasibility of a Centralized “National Health Insurance Fund

1130 words - 5 pages primarily aimed at generating profits. Funding for the Health insurance fund will be made through SARS (The South African Revenue Services) by collecting general tax revenue from employers and employees, although the precise amount is still to be announced by the National Treasury. The policy does state that “revenue base should be as broad as possible in order to achieve the lowest contribution rates”, therefore the more South African are

Vaccinations Should be Mandatory in the State of California

2212 words - 9 pages Vaccinations should be mandatory for all children within the State of California as this will reduce the death rate associated with preventable communicably infectious diseases. Routine vaccinations during early developments have been historical proven to reduce the onset and spread of potentially infectious microbial agents. According to the Center of Disease Control and Prevention, “Vaccines have reduced some preventable

Financial Crises and the International Monetary Fund

3043 words - 13 pages house . This opened up another way investors could exploit homeowners and profit simultaneously. Then in 1982, the Alternative Mortgage Transaction Parity Act made it legal for lenders to offer more creative mortgages such as adjustable-rate mortgages (ARMs); this preempted state laws designed to prevent these new mortgages . This put homeowners as well as investors at risk because as soon as monthly payments increased, there would be mass

California and The American Dream

1497 words - 6 pages more jobs, more opportunities, and the perfect weather. California's population continued to grow, reaching an increase of 137 percent from 1960 to 1990. “However, this golden age of migration into the state is over. For the past two decades, California has been sending more people to other American states than it receives from them. Since 1990, the state has lost nearly 3.4 million residents through this migration” (

Abortion and the California Constitution

1974 words - 8 pages Through out the history of the constitution of california there has been a number of attempts to change how abortion in teens is handled. Proposition 4 intends to give the parents the right to know when their unmancipated teens want to get an abortion. some supporters of this proposition argue that it will save lives and money for the state. People against it say is more dangerous to teens because they could be driven to use not regulated

"The Need for Privatization" A paper on the reasons and benefits of the Privatization of Social Security

1452 words - 6 pages The Need for Privatization Every paycheck 7.65 percent is taken out for a retirement program, after the employer kicks in, a total of 12.4 percent of what you earn goes to the government to fund your retirement. The government system offers minuscule returns by anyone's measure and the system is expected to go bankrupt as soon as 2014. If a private company had these problems, no one would invest. But, this is a mandatory program, Americans have

Mutual Fund Performance in Bull and Bear Market: The Case of Pakistani Mutual Fund

1090 words - 4 pages Appendix 1. Sharpe Model Another method of estimation of mutual fund performance with regard to the risk and return are Sharpe ratio and Treynor. The Sharpe ratio is estimated as return in excess of risk free rate (Treasury Bill Rate) to the standard deviation of portfolio. It is also used to compare the performance of different mutual funds in the mutual funds industry of a economy of country. The requisite model have been borrowed from

Similar Essays

The Metropolitan Atlanta Rapid Transit Authority Case Study

1694 words - 7 pages Introduction The Metropolitan Atlanta Rapid Transit Authority (MARTA) is one of the largest transit systems in the United States. It is the ninth largest system, transporting over 550,000 passengers daily. MARTA provides bus and rapid rail service to the most of the metropolitan area of Atlanta. The transit agency was established in 1971 with the passage of an authorizing referendum by voters in Fulton and DeKalb counties and the city of

Power, Authority And The State Essay

1333 words - 5 pages with the demands of authority, yet it is just as dangerous to consistently defy their orders. It may be thrilling once in a while to be a rebel, but taking on the status of a rebel is both deleterious for you and society. Neither society nor the individual can function without authority, as without it, society will become chaotic. It is at best, to be a temporary rebel. Works Cited Parrish, Tina. “Jonestown.” Jonestown. San Diego State University, 14 May 2012. Web. 02 Nov. 2013 Weber, Max. “Power, Authority, and the State.” Web. 02 Nov. 2013

The State Of California And Politics

1770 words - 8 pages California is a different kind of state. It is one of the largest states and is known for being one of the most diverse states along with being one of the most populous states in America as well. With all these factors coming into play with California, it is not unlikely that California’s politics is in for a wild journey. In 2003, I was 12 years old, just old enough for my parents to let me watch Terminator. I knew who Arnold was at the time

The Sunshine State: California Essay

1571 words - 7 pages The Sunshine State Choosing a vacation destination can be difficult. When deciding a destination there are many things to consider. Two of the most important considerations are the climate, and activities that are available. California is one of the top destinations for many people. California is also known as the “Sunshine State”. The beautiful state has many things to offer for families, couples, and singles. The top places that are