Sunday, April 24, 2011

Muriel Newman: Local government inspiration

Here is a story from reason.tv that should provide inspiration to our local government sector. Sandy Springs is town of around 100,000 inhabitants in Georgia, USA - similar in size to Tauranga. Since its incorporation in 2005, it has outsourced all of its services except the Police and Fire Service. As a result, it has improved infrastructure, has no long-term liabilities and has kept rates flat.

Why can't local councils here in New Zealand follow suit?

Here is what Dr. Mark J. Perry, a professor of economics and finance at the University of Michigan has to say: 

While cities across the country are cutting services, raising taxes and contemplating bankruptcy, something extraordinary is happening in a suburban community just north of Atlanta, Georgia.

Since incorporating in 2005, Sandy Springs has improved its services, invested tens of millions of dollars in infrastructure and kept taxes flat. And get this: Sandy Springs has no long-term liabilities. This is the story of Sandy Springs, Georgia—the city that outsourced everything.

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