The Pacheco Law (officially the Taxpayer Protection Act) was passed in 1993 in response to then-Governor Weld's efforts to contain government spending by outsourcing certain government services to private entities. The law does not outright forbid outsourcing, but, rather, requires a strict and, some would say, onerous review process on any contracts that exceed $200,000.
Annual savings to be had from repealing the law have been estimated to be over $55 million annually.
Repealing the Law could also help the state clear its transportation maintenance backlog, which is estimated to be between $17 and $20 billion. There is not enough room in the state's capital budget to meet these needs and build new critical public transportation projects or fix the state's ailing roads, subways, bridges, dams and other structures if public-private partnerships are not used to augment the state's transportation project portfolio.
To those who believe words like "privatization" are bad, we would point out that governments the world over, even Social Democratic governments like Canada, partner frequently with private entities to efficiently provide public services.
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For more background and opinion on the Pacheco Law, see:
Pacheco Law drives up costs; Baker alone declares war on it
No more public sector union monopoly
The Pacheco Law: A Roadblock to Competitive Contracting
Local Government Privatization 101
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