Private management of parking meters is causing a lot of financial waste to the Washington state. Outsourcing has not been able to achieve its objective and has brought up the costs to $9 million from 1999 to 2005. The problem was caused due to the poor service offered by the contractor hired for the purpose.
In 1993 when the parking meter service had not been privatized the city raked in $13.2 million in revenue as against $1.1 million in expenses with returns of $11 for every dollar spent. The only profitable year under privatization was 2003 when around $2.63 were earned for each dollar spent.
The figures demonstrate that the government was far better off when it had not outsourced the service and this demonstrates that outsourcing cannot be a good option every time and cannot be implemented everywhere.
Via washingtonpost
