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Reason Foundation

Annual Privatization Report 2013

Social Infrastructure Public-Private Partnerships Update

Subsection of Annual Privatization Report 2013: State Government Privatization

Leonard Gilroy
April 22, 2013

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Over the last three decades, a total of 33 states have enacted laws enabling the use of private sector financing and project delivery to deploy new transportation infrastructure through public-private partnerships (PPPs). Over the last decade, states like Virginia, Texas, Connecticut and the Commonwealth of Puerto Rico have each adopted laws to extend the use of PPPs to develop “social infrastructure”—e.g., non-transportation-related public facilities like government buildings, schools, higher education facilities, water and wastewater plants and more. In both transportation and social infrastructure, state and local policymakers are increasingly embracing PPPs as an alternative means to finance, design, construct, operate and/or maintain new or modernized public infrastructure assets in an era of growing fiscal constraints and aversion to taking on new public debt.

Noteworthy developments on social infrastructure PPPs in 2012 include:

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Endnotes

1 Laylan Copelin, “Lawmakers: Halt public-private plans for Capitol complex,” Austin American-Statesman, January 9, 2013.

2 Associated Press, “Maryland Lt. Gov. says framework for public-private partners will return to Legislature,” Washington Post, August 18, 2012.


Leonard Gilroy is Director of Government Reform


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