By privatizing the prison system, Schwarzenegger believes the state will save billions of dollars. He encouraged the legislature to “find more cost-effective ways to run our prison system and allow private prisons to compete with public prisons. Competition and choice are always good.”
Such talk of competition and choice is exactly what will help pull California’s government out of its budget plight. But privatizing prisons is only half of the equation. If competition leads to lower costs in the prison system, why not privatize a whole slew of other similarly poorly-run government programs?
Like most areas in the public sector where government encroaches, the death of competition leads to poor quality at high costs. The state’s education system could certainly use some privatization and competition to spur long-overdue reform. Many parents pay double for their children’s education: they pay exorbitant taxes on a failing school system and pay for tuition to a private school that will actually provide a quality education. If competition will save prisons money, school choice will save taxpayers money.
The Governor’s restrictive constitutional amendment plan (requiring an emergency declaration or two-thirds vote in the legislature to suspend) will leave the state no choice in prioritizing public safety, which should be the first obligation of government.
From a proper-role-of-government perspective, the problem with Schwarzenegger’s proposal is that he intends to privatize the one area of society for which government is responsible: the execution of justice. Running the prison system can certainly be contracted out and save the state money. But since the chief responsibility of government is public safety—not education—the Governor is incorrect in altering the constitution to mandate greater spending on higher education. Yes, any society should place a high priority on ensuring its children are equipped to be successful. But the state should encourage families to provide the best education for their children by creating the least burdensome tax and regulation system.
But setting aside the misguided belief that government should provide education over public safety, Schwarzenegger’s plan to inject privatization and competition into mismanaged government programs is an idea long past due. Too bad Governor Schwarzenegger waited until his last year in office to embrace the free market principles he once trumpeted.