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Summary PUA 5305 Unit 8.docx 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 ha $7.49
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Summary PUA 5305 Unit 8.docx 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 ha

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PUA 5305 Unit 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. Priva...

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  • July 30, 2021
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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

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