If in fact the state of Texas replaced government employees with private contractors there could be several financial benefits. In regards to the financial aspect in hiring of a private contractor, there are several ways the state of Texas may save money. The private contractors could be hired for the going rate and not be bound by a more restrictive pay grade system. Also when considering this option vs. government employees outsourcing could easily be maintained to hire subcontractors in developing countries, this will increase savings. By establishing the usage of private contractors you may also eliminate pricey health and retirement benefits as well.
As we all know there are only two things in life that are true, we all die and we all pay taxes. At some point in life, with the replacement of government employees, funding would be primarily from fees rather then taxes; this elimination would be charged by the contractor to lower expenses and make a profit. With the private contracting companies Texas could sell existing physical assets that may be put aside to either reduce taxes or set up as an emergency fund. By shifting the upkeep and operation of offices schools, highways, dams, bridges, etc. could save millions of tax dollars for all Texans. Hiring of private contracting versus government employees would benefit the state of Texas in regards of the financial aspect and help lower the cost for fellow Texan tax payer, which is what matters especially in these difficult economic times such as ours.