State and Local Governments in the U.S Find the Private Sector Helps Them Do
                         More With Less, Report Says.

    LOS ANGELES, June 30 /PRNewswire/ -- Privatization soared to unprecedented
levels in 1996, as public officials watched competition and privatization
improve the quality and reduce the costs of a wide range of government
services, according to "Privatization 1997," a report released today by the
Reason Public Policy Institute.
    The report cites studies showing that the value of worldwide
privatizations in 1996 reached $86 billion, an 18% increase since 1995.  In
the U.S., two-thirds of elected municipal officials expect privatization in
their jurisdictions to continue or increase in 1997 and beyond.
    Privatization also enjoys strong public support, according to the report.
A 1996 survey shows that 71 percent of the public favor privatization of motor
vehicle services, and 59 percent favor welfare service privatization -- both
up from 1995.
    "While these numbers are impressive, the positive experiences with
privatization in communities throughout America tell the story best," says
Adrian T. Moore, an RPPI researcher and editor of the report.

    For instance, according to the report:
    * Privatization of trash collection in the city of Ormond Beach, Florida
saved $1.7 million over five years and generated $2 million in asset sales and
the release of capital reserve funds -- without laying off or reducing the pay
of sanitation workers.  The result?  A dramatic improvement in service
delivery marked by a 90% decrease in customer complaints.
    In Fairfax County Virginia, an astonishing 97 percent of the 630 clients
referred to a private company for welfare case management and welfare-to-work
services since July 1996 were placed in jobs, and over 94 percent of these new
workers remain employed.
    * Las Vegas converted its entire transit system to competitive contracts,
reducing costs per vehicle hour by 33 percent while ridership more than
tripled.  The city has the lowest unit cost of the 50 largest U.S. transit
systems.

    Hundreds of other success stories on the privatization of assets and
services ranging from corrections to emergency medical services to airports to
wastewater treatment are documented in the report.  Additionally,
privatization tools such as state-of-the-art contract monitoring and inter-
governmental contracting are described in detail.
    "As privatization and competitive contracting continue to sweep the world,
officials are clamoring for good information about what works and what
doesn't," said Moore.  "This report fills that need."
    "Privatization 1997" is the eleventh in a series of annual reports that
have become a definitive source of data and advice for public officials on
privatization.  It is distributed to about 20,000 elected officials and others
nationwide.
    Here's what a few officials said about RPPI's 1996 report on
privatization:
    * "Thank God I found you. (`Privatization 1996') was very helpful!  Keep
'em comin'!
       -- B.J. Wendling, Aide, Bernalillo County Commission

    * "(`Privatization 1996') was very good.  A real eye opener."
       -- Bill Markham, Speaker Pro-Tempe, Oregon Legislature

    * "Excellent information"
       -- Frank Sweet, City Supervisor, Selah, WA

    * "It is very helpful to learn how other communities are doing business."
       -- Ed Elam, City Manager, Charito, IN

    The Reason Public Policy Institute, a division of the Reason Foundation,
is a national public policy think tank based in Los Angeles.
    For copies of "Privatization 1997," contact RPPI at 310-391-2245 or visit
the RPPI web site at http://www.reason.org.

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