Some Local Governments Propose Risky Business

Growing numbers of local governments are considering entering the utility business by forming their own municipal electric or telecommunications utilities. Known in some circles as "municipalization" (the opposite of privatization), this seems to be an offshoot of the "entrepreneurial government" movement, in which elected and appointed officials seek new, innovative ways to generate revenues without raising taxes. The problem is that these efforts place taxpayers at risk, misconstrue the role of government in the economy, and divert agencies from their primary purposes and functions.

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