What If... Texas used private contractors to administer state government?
1) The present private-contractor system seems to work well for the state. Even at a federal level, private contractors are hired to perform functions for the government. Therefore Texas using contractors to administer government functions is not an uncommon practice. Contractors can be found providing services in the prison systems, records and database keeping and in security and protection duties. There is an oversight committee that monitors the contractor service to ensure they are complying with the contract, the laws, as well as with the constitution of the state and the nation. For example, the Texas department of Criminal Justice (tdcj.us) has
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As a government employee there is that long-term security of incremental salary increase and benefits regulated and demanded by the constitution. Private firms at times cannot provide long term employment or tenure to employees because their budget for labor depends on the size of the contract. The attraction here is that such contracts are long term and private firms are not bound by pay grades and constitutional restriction; therefore they usually offer the minimum wage possible for the position with benefits receiving the same courtesy. What the firm can legally provide at the lowest possible rates is what they offer to their employees. Additionally there is the possibility of outsourcing functions to developing nations. For example, the firm can outsource call center functions and data management functions to India Call centers and back office centers. Since the firms hired work under an agreed sum, they are not required to provide full benefits to that firm's employees, which increase the contractor's profits. The issue here is security, as third party outsourcing has produced information and intelligence leaks. Look at the recent leaks in the NSA data collecting program. Therefore I believe that it is a case to case basis dependent on the reputation of the contractor and the overall effectiveness of the oversight committee.
3) Expansion of the Contractor System is still up for debate. As a