Maywood, California: Population 45,000; Outsourcing Capital Of The Nation?

Okay. This has nothing to do with media, but it has everything to do with jobs.
Prepare to have your mind blown, kids.
The city of Maywood, Calif., population 45,000, located southeast of Los Angeles, fired all of its city employees on Wednesday.
The city is now contracting with nearby cities and other service providers to keep the machinery running.
The Los Angeles County Sheriff’s department is taking over police work, CNNMoney reports, and the city of Bell will keep receptionists and janitors at Maywood City Hall.
The city decided to go this route after its insurance company canceled Maywood’s worker’s comp and liability insurance. When Maywood couldn’t (afford to) provide benefits to its 96 full-time employees, it dropped them, though many of the city’s former employees will continue as contractors.
Maywood is billing itself, CNNMoney says, as the first city to outsource all its municipal services, arguing that the change is helping the city close a $450,000 budget gap.
What do you think of all this?