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Wisconsin To Stop Doing Cost-Benefit Studies Because They Find Public Is Better

| Written by David Morris | No Comments | Updated on Apr 11, 2012 The content that follows was originally published on the Institute for Local Self-Reliance website at

Back in 2005,  Wisconsin state agencies were found to be spending more contracting out for services than if they were done by existing public employees.  In response the legislature, with bipartisan support, passed a bill requiring agencies to conduct a cost-benefit analysis before privatizing large public contracts.

By far the biggest state government outsourcer was and Wisconsin’s Department of Transportation (DOT).  Privatization has been proceeding rapidly at DOT for more than a decade.  Consulting payments soared from 8 percent of its budget in 1988 to a remarkable 63 percent in 2008.   In 2010 the state spent $308 million on highway engineering projects.  Nearly two-thirds went to consultants.

Numerous studies after 2005 confirmed that the DOT was wasting millions of taxpayer dollars by using private consultants.  A 2011 analysis by WISC-TV News for example, based on just a sample of DOT contracts found it had spent nearly $14 million more on highway engineering design projects because it outsourced them to private consultants.

So what has been the Republican dominated, let’s-make-sure-the-taxpayer-gets-the-most-bang-for-his-buck state government’s response?  To change Wisconsin’s law so that DOT will no longer have to do apriori cost-benefit analyses! The bill to accomplish this is steadily wending its way through the legislature.

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About David Morris

David Morris is co-founder of the Institute for Local Self-Reliance and directs its initiative on The Public Good. He is the author of the New City States, Seeing the Light, and three other non-fiction books. His essays on public policy are regularly published by On the Commons, Alternet, Common Dreams and the Huffington Post.

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