University Sustainability Tip #1: Privatization/ Competitive Sourcing

This is the first in a series of commentary in suggestions for LSU and other university systems to become sustainable through even the most uncertain of economic times. Because we are unsure about the road that our governor and legislature will take to protect higher education, we should examine long-term solutions to the ongoing budget problems that fiscal mismanagement create.

Take control of the crisis by urging university administration and our legislature to promote sound budgetary policies that save the students and taxpayers money!

A great way for universities to cut back spending and to save more than a few pennies is through privatization/ competitive sourcing. Simply put, privatization is the act of turning previously government-provided services over to private sector enterprises.

What does this mean in our higher education crisis? Instead of paying state workers to mow the grass (as an example), LSU can offer a competitive bidding process for different private companies to earn the contract. Oftentimes, this means doing the same job more cheaply, more efficiently and more quickly. Due to the nature of these contracts, the university could penalize a company for not completing a project in time. Additionally, this would stimulate our local economy by allowing small businesses the opportunity to grow.

Privatization would offer benefits to both the contractors and the customers, in this case, the university systems.

For more information about the privatization process, examples of its successes throughout the country and the enormous savings it provides, check out the Reason Foundation’s Privatization Center.