I want state governments to have a reliable online identity option. I want it to be optional by law - I should be able to make an in person visit instead. I do not want private parties to have any access to the service whatsoever. I want private sector outsourcing of such services to be completely outlawed. No private third party has any business knowing about my interactions with any government provided service.
I should never have to share my data with private third parties in order to receive government services. Such usage data is very sensitive and thus a huge privacy concern.
Consider: If you ever had to go on food stamps, would you want retailers, potential employers, etc to be able to purchase that data? What about the risk of a data breach?