State Supreme Courts have ruled in different ways regarding the privatization of public functions. In several cases, the Courts concluded that the civil service was created for a compelling public purpose that includes fairness and the protection of public employees from the old “spoils system”. These purposes, the Courts concluded, may take into account but goes beyond questions of efficiency and monetary savings.
Hawaii Supreme Court Rules Civil Service Jobs Cannot be Privatized
Washington Supreme Court Nixes Privatization of Custodial Functions