Consequences of Social Service Privatization to be Discussed by State Issues Forum at NCSL

A closer look at the effects of privatization of social services&emdash;including job loss and compromised availability of care — will be the subject of a State Issues Forum (SIF) panel discussion at NCSL on August 8. State Issues Forum members, who include leaders from organizations across the nation, identified the need for deeper examination of the privatization of social services at their most recent planning committee meeting. SIF members gather periodically to identify and discuss issues and solutions currently impacting state governments.

The privatization of public hospitals, Aid for Dependent Children, Food Stamp programs and others is currently popular as a cure-all for public services often characterized as overpriced, unwieldy and inefficient. However, in recent efforts to address these very real concerns, too little attention has been paid to possible negative effects of privatization schemes. Health care workers can potentially lose jobs and citizens can lose health care when public hospitals are privatized and consolidated. Availability and quality of service can decrease when initiatives such as school lunch programs are streamlined. Additionally, fewer public social services can have the trickle-down effect of more restricted access to public housing.

Particularly with the issue of welfare reform looming large on the horizon for states, a second look at the less visible consequences of privatization needs to be taken before radical changes are made.

For more information about the State Issues Forum, contact Darold Johnson Darold Johnson at CPA.