The growing trend toward offshoring and "contracting out" of local and state government jobs is threatening the quality of many public services, costing taxpayers millions in cost overruns and waste and robbing many communities of good jobs.

This practice, also known as "shadow government," may include moving state and local government jobs to overseas companies that pay low wages or contracting with private, for-profit companies to provide government services.

Outsourcing is often done in the name of saving taxpayer dollars, but it can cost communities dearly—in exorbitant consulting fees, mismanagement, waste and undocumented "overheads." Private companies sometimes "cut corners" in services to ensure a profit. And communities suffer as a whole when public employee jobs that provide decent salaries, healthcare benefits and pensions are lost, hurting local businesses and the taxpayer base that supports our schools, public safety and other services.

AFT Public Employees believes that state and local government officials should consider all these factors—and study the track records of private companies that bid on public services—before making a decision that affects so many members of the public. Read more about this issue in our new brochure, Exposing Shadow Government: Protecting Quality Government Services. (pdf, 209 K)

August 11, 2004