San Diego’s Budget
Columbia Southern University
PUA 5305-15D-5B21-S1
Efforts by San Diego County towards privatization and recommendations
The county government's primary source of income is taxes. As already identified, the
only way the county government can increase revenue streams is by raising the tax rate to
collect more taxes. Taxing the residents more also leads to a low standard of living and
increases their tax burdens. The county government must find ways to cushion the taxpayers
from the extra tax burden. One way to ensure no heavy taxation is through privatization and
partnerships. The county government can partner with some private companies to offer
certain services which will lower its expenditures. The city government has undoubtedly
made some efforts towards privatization. In 2007, the city mayor Jerry Sanders made an
effort to privatize the city services to save the local government from financial distress
through a program called Proposition C. The mayor also had an outsourcing program within
the city hall through managed competition (McLaughlin, 2008). Contracting city services to
private businesses is a means of cushioning the taxpayers. However, privatization of county
government services is sometimes very political and bureaucratic. These are the reasons why
managed competition and Proposition C programs failed to take off properly.
The General Fund expenditures form the most significant chunk of the county
government's expenses. Some of the services that create an essential part of general fund
expenditures include police, fire rescue, and park recreation (Fiscal Year 2021 Adopted
Budget, 2021). The county government can partner with some private businesses to provide
parks and entertainment services and subsidize the police and fire rescue expenditures to
reduce the overall general fund expenses. Through reduced costs, the county government
will not raise the tax rate.