Debates about the privatization of public services often devolve into ideological squabbles about the proper role of government versus the private sector. Advocates of privatization point to examples of government waste and bureaucratic inertia to make the argument that the private sector can deliver services more efficiently. On the other side, opponents of privatization offer stories of corrupt contracting and the insensitivity of private entities to the broader public interest to argue for broader government involvement.
Yet, all but the most extreme advocates of privatization will acknowledge that there are some circumstances in which government must provide certain services directly. Few, for example, would feel comfortable taking bottom-line responsibility for the delivery of "justice" away from our court system and giving it to a private, for-profit corporation. Similarly, few opponents of privatization would insist that government should never contract out to the private sector - whether for maintenance of the copiers in government offices or the production of concrete for government buildings.
In other words, when it comes to the question of public versus private provision of government services, it is a matter of where best to draw the line. There will always be a role for both public and private entities in meeting America's transportation needs. It is up to elected officials to find the right balance to ensure that the public gets the value, efficiency and safety it deserves from its transportation network - particularly at a time when our transportation system is in dire need of repair and when resources are scarce.
The task of government officials and the public is to evaluate privatization proposals rigorously - without ideological blinders - to ensure that any such deals benefit the public interest.
Public officials must ask tough questions if they are to safeguard the public interest. In this paper, we evaluate one particular form of public-private partnership in transportation - toll-road privatization - and suggest a series of guidelines public officials should adopt to ensure that any potential private toll road deals benefit the public.
We hope this paper will help public officials navigate the difficult decisions surrounding toll-road privatization and make the right decisions to benefit the public.