1. Charles Van Eaton, Privatization: Theory and Application for Michigan, (Michigan State Chamber of Commerce Foundation), June, 1988.

  2. See, for example, E.S. Savas, Privatizing the Public Sector (Chatham, NJ: Chatham Housc Publishers, Inc.), 1982; James Bennett and Manuel Johnson, Better Government at Half the Price (New York: Kapman and Company), 1981; and The Role of Privatization in Florida's Growth, (Florida Chamber of Commerce), 1987.

  3. Evaluation of Michigan's Families First Program Summary Report, University Associates, March, 1993.

  4. Public choice scholarship takes its alternative name, the Virginia School, from Buchanan's long service on the faculty of three Virginia Universities: the University of Virginia (1956-62), Virginia Polytechnic Institute (1969-83), and George Mason University (1983-present). Interestingly, the University of Michigan Press has played a leading role in catapulting public choice theory into academic prominence, publishing three of the most important collections of papers on the subject. See J.M. Buchanan and Gordon Tullock, ed., Calculus of Consent, University of Michigan Press, 1962; J.M. Buchanan and Robert D. Tollison, ed., The Theory of Public Choice, University of Michigan Press, 1972; and J.M. Buchanan and Robert D. Tollison, ed., The Theory of Public Choice-II, University of Michigan Press, 1984.

  5. Michigan Compiled Laws Annotated (MCLA), Sec. 400.1 et seq. See also MCLA 722.111 et seq.

  6. Ibid. For administrative rules, see Michigan Administrative Code R400.23 et seq.

  7. Cost Schedule Instruction Manual Bulletin, Michigan Department of Social Services, No. 91-1, pp. 3-4. Selected pages of the bulletin were updated by Cost Schedule Instruction Manual Bulletin, Michigan Department of Social Services, No. 93-1, but these amendments do not effect any citations in this paper.

  8. Office of Management and Budget Circular A-122, "Cost Principles for Nonprofit Organizations," June 27, 1980.

  9. Cost Schedule Instruction Manual Bulletin, No. 91-1, op cit, p. 8.

  10. MCLA 411.18c.

  11. Information Packet, Michigan Department of Social Services, March, 1992, p.43.

  12. "Families First Evaluation Released," press release, Department of Social Services, May 10, 1993, pp. 3, 7.

  13. Department of Social Services, Report to the Michigan House Appropriations Subcommittee on Social Services, March 1, 1990, pp. 17-18.

  14. Foster and Residential Care in Michigan: A Descriptive Study of Children in Placement, The National Council on Crime and Delinquency, April, 1989, p. 4.

  15. Ibid, p. 20.

  16. "Foster Parents Walk a Fine Line," Detroit Free Press, March 26, 1993, p. B 1.

  17. Ibid.

  18. "Burdened Social Workers Tell Panel Heavy Caseloads Jeopardize System," Flint Journal, March 2, 1990, p. A2.

  19. "A Meeting of Victims Ends in Tragedy," Detroit Free Press, April 3, 1993, p. 1A.

  20. Report to Michigan House Appropriations Subcommittee, op cit.

  21. Michigan Federation of Private Child and Family Agencies memorandum, January, 1989.

  22. Joan Abbey, A Chorus: Themes for Michigan's Child Welfare System, Skillman Foundation, January, 1993, p. 9, note 36.

  23. Michigan Federation of Private Child and Family Agencies memorandum, op cit.

  24. Donald J. Austin, Jr., Summary Report on Federation Financial Data Base, April 12, 1993.

  25. See Abbey, op cit., for an in-depth examination of the commonality of these studies' recommendations.

  26. For further discussion of public-private accounting differences, see Brian Cromill, "Explaining the Infrastructure Crisis," Federal Reserve Bank of Cleveland Quarterly Economic Review, 2nd Quarter, 1989.

  27. Cost Schedule Instruction Manual, No. 91-1, op cit, pp. 6-7.

  28. Abbey, op cit, pp. 2-7.

  29. "Rethinking Foster Care," Detroit Free Press, February 2, 1993, p. 3A.

  30. Evaluation of Michigan's Families First Program Summary Report, op cit, pp. 4-7. s'

  31. Ibid, pp. 12-15.

  32. Ibid, p. 11.