"Gov. Perry's action today highlights a major advantage of privatizing government services. When a function performed by government goes wrong, bureaucratic rules often protect the personnel or programs at fault. But when a private vendor is involved, the state can hold it accountable to its contract and ultimately seek competition from other vendors.

"Unions and political opportunists will try to seize on today's announcement to create even more layers of bureaucracy throughout government, but these would only serve to further restrict the state's ability to demand accountability, restitution, and service improvements."

The Texas Public Policy Foundation is a non-profit, free-market research institute based in Austin, Texas. More information can be found on the Foundation’s website, www.TexasPolicy.com.

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