PUA 5305
Privatization, PPPs and Tax Policy in San Diego
Columbia Southern University
PUA 5305- Public Finance and Budgeting
Privatization, PPPs and Tax Policy in San Diego
The local and federal governments across America have moved to privatize provision of
services. Privatization is preferred because it enables better service provision for people as well
as enabling governments to save on expenses. According to Minger (n.d), privatization has
evolved over the time from a radical concept into an approach that has been proven and is well
established in management. Privatization across the U.S has led to better delivery of service
through providing a greater variety, as well as effectiveness, and efficiency.
Apart from privatization, governments also form partnerships with the private sector to
facilitate service provision by forming public-private partnerships (PPPs). PPPs entail
cooperation between the public and private sectors in different areas such as designing,
developing, constructing, operating, owning or sponsoring of infrastructure assets, or in the
delivering of services. However, the private sector is expected to play a major role in the
partnership while the public sector provides the needed support (Minger, n.d). The city of San
Diego is dubbed as the best model for PPPs. It is the second most populated city in America
followed by Los Angeles, therefore, the city has a huge population to serve.
San Diego was among the places chosen to conduct a pilot PPP project in the 1980s
through the passage of the Assembly Bill 680 (Minger (n.d). The first PPP involved the
construction of the Route 125 toll road in the County Minger (n.d). However, the first PPP was
not successful as expected. Minger (n.d) states that the project ended up costing close to $500
million more than the forecasted cost of $360 million. In addition, the project did not attract
many users either as expected. Therefore, the private consortium that had signed for the project
Privatization, PPPs and Tax Policy in San Diego
Columbia Southern University
PUA 5305- Public Finance and Budgeting
Privatization, PPPs and Tax Policy in San Diego
The local and federal governments across America have moved to privatize provision of
services. Privatization is preferred because it enables better service provision for people as well
as enabling governments to save on expenses. According to Minger (n.d), privatization has
evolved over the time from a radical concept into an approach that has been proven and is well
established in management. Privatization across the U.S has led to better delivery of service
through providing a greater variety, as well as effectiveness, and efficiency.
Apart from privatization, governments also form partnerships with the private sector to
facilitate service provision by forming public-private partnerships (PPPs). PPPs entail
cooperation between the public and private sectors in different areas such as designing,
developing, constructing, operating, owning or sponsoring of infrastructure assets, or in the
delivering of services. However, the private sector is expected to play a major role in the
partnership while the public sector provides the needed support (Minger, n.d). The city of San
Diego is dubbed as the best model for PPPs. It is the second most populated city in America
followed by Los Angeles, therefore, the city has a huge population to serve.
San Diego was among the places chosen to conduct a pilot PPP project in the 1980s
through the passage of the Assembly Bill 680 (Minger (n.d). The first PPP involved the
construction of the Route 125 toll road in the County Minger (n.d). However, the first PPP was
not successful as expected. Minger (n.d) states that the project ended up costing close to $500
million more than the forecasted cost of $360 million. In addition, the project did not attract
many users either as expected. Therefore, the private consortium that had signed for the project
