Universal Basic Income and the Future of Public Administration: Why Public-Private Partnerships Matter

The views expressed are those of the author and do not necessarily reflect the views of ASPA as an organization. 

By Nijer Reaves
March 14, 2025

Funding is a critical issue in American federal and state governments, requiring politicians and administrators to prioritize budget cuts and restructure funding systems for greater efficiency. How those government entities go about restructuring requires a level of innovation that can have damaging consequences, especially in the form of reducing spending on vital programs or services (mirroring the nation’s concerns about Medicaid, for example), reducing waste through consolidating agencies and programs; or reducing the benefits of public employees, even prompting layoffs and hire freezes.

These are tried and true methods—regardless if the public agrees with their ethicality or efficiency—but there is also one practice that is becoming more commonplace every day: Privatization, or the transfer of a business, industry or service from public to private ownership. Of course privatization comes with its own advantages and disadvantages, but it certainly cuts costs and reduces the burden on public departments. In the midst of making our government more cost-efficient, the question of how administrators can continue to develop more programs that serve citizens—while sustaining existing programs—will inevitably arise.

I’m not an advocate of excessive privatization, especially involving the ethics issues that arise when private companies are involved in public service, essentially commodifying the public sector. However, I think there is untapped potential in a lesser form of privatization: Public-Private Partnerships (PPPs). I believe it can be an effective way to benefit from the invasive influence of our market economy. What’s the phrase? “If you can’t beat them, join them.”

PPPs can surely be problematic, for instance in healthcare, which often increases the costs of healthcare services. This can be seen through private companies specializing in the development of medical technology, often resulting in astronomical costs that hospitals must recuperate. Yet, in the development of public services and programs, the added revenue from private donations and partnerships allows administrators to widen their areas of focus. Furthermore, certain undertakings could never have been accomplished without the implementation of public-private partnership, like the development of the COVID-19 vaccine.

The idea of Universal Basic Income (UBI) programs caused me to start thinking more about this topic. Politicians like Andrew Yang have rallied for the widespread institution of UBI. Critics suggest it will deter citizens from working, but studies have shown that supplemental income has proven vital to individuals that do not qualify for government assistance yet still struggle to make ends meet. It has the potential for long-term economic growth through the enhancement of human capital, as individuals gain greater access to education, training and opportunities for upward mobility.

Why is this important? Simply put, people are struggling, with very little options to improve their economic situations. Macroeconomic factors such as inflation and the unfolding tariff war continue to increase the cost of living. This leaves one to ask, how will families sustain themselves? Other factors such as AI present a threat to employment, undermining the working class that could be replaced by automation in the future. All of these factors come together—coupled with the other blaring intricacies of our economy—to present an issue that will not easily, or quickly, be fixed. Universal Basic Income is not a long term solution, but it is at least a short term option that can serve the public good now.

Several states have instituted UBI or General Income (GI) programs entirely funded through private donors. These states include California, New York, Illinois and Michigan. Expecting a nationwide UBI program funded solely by private donors is unrealistic, but coupled with federal funds, the program becomes achievable. As public needs shift and government resources remain strained, the ability to adapt is paramount. Every industry evolves over time and the public sector is no different. Not only will PPPs become commonplace, I believe that they should.

PPPs are not just a temporary fix; they represent a shift in how public administration can approach long-standing economic and social issues. When thoughtfully executed, these collaborations can help bridge funding gaps, foster innovation and provide immediate relief in times of crisis. In the case of Universal Basic Income, leveraging private funding alongside government resources ensures that citizens receive much-needed financial support while long-term economic solutions take shape.

Public-private partnerships, while effective, are not without their challenges. The biggest concern is accountability. Private entities are profit-driven, and without proper oversight, they may prioritize financial gain over public welfare. Aside from healthcare, this has been evident in sectors like transportation, where privatized toll roads sometimes lead to exorbitant fees that burden commuters. Additionally, the reliance on private funding can create an imbalance of influence, where corporations that provide significant financial backing may have undue sway over policy decisions.

The true test of efficiency will be whether or not public administrators can implement strong regulatory frameworks. The goal is for PPPs to alleviate inequalities, not exacerbate them. Transparency, ethical considerations and strict oversight are crucial to ensuring these partnerships genuinely serve the public interest rather than becoming a vehicle for corporate gain. By embracing adaptability and using the tools available, including PPPs, public administration can continue to meet the challenges of a rapidly changing world without compromising its core mission of serving the people.

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Author: Nijer Reaves is an MPA student at Rutgers-Newark with a passion for public service and policy analysis. She holds a BA in Journalism and Media Studies and uses her writing to explore critical issues in public administration, aiming to inform, empower, and advocate for stronger, more effective governance. She can be reached at [email protected].

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