Sandy Springs, Ga., city of 100,000 on the fringe of metropolitan Atlanta, provides a fascinating experiment in municipal government outsourcing. Incorporated just five years ago, it outsourced all government functions except public safety. The city contracted with CH2M Hill to manage the sub-contracting of specific functions to other enterprises.
In the first year, according to this Reason TV report, the city paid $25 million to provide services that would have cost $50 million in a traditionally run city. By running more efficiently, Sandy Springs has been able to make capital improvements — like road pavement and a traffic-control system — that Fulton County, of which it is a part, had failed to make over the decades. The city managed to avoid tax increases during the recession, and has built up a reserve fund.
The outsourcing strategy is wildly popular with citizens, who have re-elected incumbent members of City Council by overwhelming margins.
