Abstract:
This hypothetical case is a paradigm of the privatization decision facing many jurisdictions as they struggle with budget pressures. It tells the story of the town manager of a small Texas municipality who has reason to believe that, if she were to accept the bid of a private firm to pick up and dispose of trash, she could balance the town's budget and save enough money to avoid cutting back the hours of the town's lone social worker. Privatization, however, will mean firing two popular long-time town sanitation employees who also do assorted maintenance tasks once they've finished hauling the trash.
Learning Objective:
The case calls on students to take the role of the town manager and decide, after analyzing the town's current budget and costs, as well as the private trash collection bid, whether or not to "go private."
