Well, harpy, let's see...

In Michigan, the state health department, until 1998, ran the lab which produced anthrax vaccine. It had a long history of producing the vaccine and never had any serious problems. In 1998, the lab was sold to a private enterprise, and hasn't managed to get FDA approval to sell a single dose since.

As a former state employee, I was familiar with a number of privatization schemes, most of which resulted in a service being provided by lower-paid and less well-trained employees without much oversight on the part of the state. I won't say privatization never works, but I've seen enough horror stories to be generally against it.

And, since you mention human services, it's my belief that Michigan, in practically eliminating its mental health institutions, essentially put a large number of unmedicated mentally ill persons out on the street and into General Assistance. Then, in the early 90's, under the guise of 'welfare reform,' we pulled THAT carpet out from under them as well. But we have a balanced budget and a billion dollar 'Rainy Day Fund!' BFD.