We see the same thing (transfer to private management, the upward transfer of wealth) in education, public housing, and the list goes on... There are currently more US-paid private mercenaries than US troops occupying Iraq and Afghanistan.
I disagree with the author that there is a legal-constitutional way out... The entire debate between the market and state, private and public, is still an inter-capitalistic one and the whole system needs to be overthrown. There will never be truly public services until the people control their own government.