1. U.S. Bureau of Census.

  2. Michigan Employment Security Commission.

  3. Greg Kaza and Gary Wolfram, Downriver interviews.

  4. Wyandotte News-Herald, Oct. 16, 1985,

  5. For an introduction to location theory, see James Heilbrun, Urban Economics and Public Policy, 2nd edition (St. Martins Press: 1981)

  6. See The Eighth Annual Study of General Manufacturing Climates of the Forty-Eight Contiguous States of America, June 1987, Grant Thornton Accountants, Chicago, Illinois. The Grant Thornton study includes changes in taxes as well as tax level in the list of items which affect manufacturing location. Other studies which have found changes in tax rates to be a significant factor in economic growth are: L. Jay Helms, "The Effect of State and Local Taxes on Economic Growth: A Time Series-Cross Section Approach," Review of Economics and Statistics, Vol. 68 (November 1985, 574-582; and Michael Wasylenko and Therese McGuire, "Jobs and Taxes: The Effect of Business Climate on States' Employment," National Tax Journal, Vol. 37 (December 1985), 497-512.

  7. For a detailed discussion of the economics of agglomeration see Robert Bish and Hugh Nourse, Urban Economics and Policy Analysis, (McGraw-Hill: 1975); and Benjamin Chinitz, "Contrasts in Agglomeration: New York and Pittsburgh," American Economic Review, Vol. 51 (May 1961), 274-289.

  8. Greg Kaza and Gary Wolfram, general observations on economic development Downriver and in Oakland County.

  9. See, for example, Michael Wolkoff, "Tax Abatement as an Incentive to Industrial Location," in Harvey Brazer and Deborah Laren (ed.), Michigan's Fiscal and Economic Structure (University of Michigan Press: 1981); Richard B. McKenzie, "A Threat of Industrial Blackmail," Heritage Foundation Backgrounder, No, 237, Dec. 30, 1982, Washington D.C.; Public Sector Consultants, Michigan's Property Tax Exemptions and Their Effect, prepared for the Michigan Senate, July 1986; and John H, Beck, "Selective Tax Abatements: Do They Work?", Heartland Policy Study, No. 14, March 16, 1987, Heartland Institute, Chicago, Illinois.

  10. Municipal Government Economic Development Incentive Programs in Michigan, Report No. 280, February 1986, Citizens Research Council, Detroit, Mi.

  11. Among them former Downriver Community Conference Executive Director Dewitt Henry.

  12. Michigan State Tax Commission, 1987 Ad Valorem Property Tax Levy Report.

  13. Ibid.

  14. See Detroit Economic Development Plan, Dec. 6, 1988, Economic Enterprise Foundation of Detroit, Economic Policy Committee, Patrick L. Anderson, Chairman.

  15. Michigan State Tax Commission, ibid.

  16. Ibid.

  17. Ibid.

  18. Ibid.

  19. Privatization: A Strategy For Delivering Public Services With Less Government; The Commonwealth Foundation, Harrisburg, Pa.; Bill English, former Chairman of the Municipal Affairs Committee, Philadelphia.

  20. See Charles Tiebout, "A Pure Theory of Local Government Expenditures," Journal of Political Economy, Vol. 64, (1956), 416-424; and Wallace Oates, "The Effects of Property Taxes and Local Public Spending on Property Values: An Empirical Study of Tax Capitalization and the Tiebout Hypothesis," Journal of Political Economy, Vol. 77 (November/December 1969), 957-971.

  21. Greg Kaza, "A Town That Was Almost Totally Privatized," Cleveland Plain Dealer, May l, 1989.

  22. Authors interviews with Louis Schimmel, Receiver for the City of Ecorse.

  23. Ibid.

  24. Ibid.

  25. Ibid.

  26. Wayne County Circuit Court public records, Detroit, Mi.

  27. Ibid.

  28. Ibid.

  29. Ibid.

  30. Ibid.

  31. Ibid.

  32. Ibid.

  33. Schimmel interviews.

  34. Kaza, Plain Dealer, op cit.

  35. Schimmel interviews.

  36. Ibid.

  37. Michigan State Tax Commission.

  38. Business and Citizens' Public Opinion Polls of The Downriver Area, DeVries Associates, Inc., March 14, 1985, prepared by the Downriver Community Conference.

  39. Ibid.

  40. Randall Fitzgerald, When Government Goes Private, New York: University Books, 1987, 75-76.

  41. Ibid, at 77.

  42. Ibid.

  43. Authors survey, Garbage Collection in the Downriver Area.

  44. Greg Kaza, Oakland Press, "Garbage Collection Deals are Picking Up," Jan. 9, 1989. Other north Oakland County communities with more than one private firm collecting garbage are Bloomfield Hills and Clarkston; and Addison, Brandon, Commerce, Groveland, Holly, Highland, Independence, Oakland, Orion, Oxford, Rose, Springfield, West Bloomfield and White Lake townships. One private firm collects garbage in Birmingham, Orchard Lake, Rochester, Sylvan Lake, Troy, Walled Lake and Holly, Lake Orion and Oxford villages.

  45. Wasylenko and McGuire, op. cit.

  46. Data for this section are from the Michigan State Tax Commission, Ad Valorem Property Tax Levy Report, May 1988, Michigan Department of Treasury, Lansing, Mi. School taxes include taxes levied for intermediate school districts and community colleges, as well as K-12 school districts.

  47. Michigan State Tax Commission

  48. Michigan Department of Education Bulletin 1014 Michigan K-12 School Districts Ranked by Selected Financial Data, 1986-87.

  49. Schools by Choice, Manhattan Institute for Policy Research, New York, New York, Feb. 21, 1989.

  50. The seminal article on the use of vouchers in providing choice is Milton Friedman, "The Role of Government in Education," in Robert A. Solo (ed.), Economics and the Public Interest (Rutgers University Press: 1955). See also Milton Friedman, Free to Choose (Harcourt, Brace and Jovanovich: 1980), and Choices in School: What's Ahead and What to do, National School Public Relations Association, Arlington, Va.

  51. For a detailed discussion of the benefits of privatizing Detroit Metropolitan Airport, see John Kost, Detroit Metropolitan Airport: A Case For Privatization, Mackinac Center for Public Policy Research, Midland, Mi., Oct. 27, 1988.

  52. Privatization 1989: Third Annual Report On Privatization, Reason Foundation, Santa Monica, Calif.

  53. Ibid.

  54. For a discussion of the effect of the Free Trade Agreement on Michigan see Dan Wyant and Bret Brown, "The Canada-U.S. Free Trade Agreement: Provisions, Potential and Proper State Role," Senate Republican Backgrounder, Lansing, Mi., Vol. 2, No. 6, August 1988.

  55. Privatization 1989, Reason, op cit.

  56. For a fuller discussion see William Hunter, "Economic Impact Studies: Inaccurate, Misleading and Unnecessary," Heartland Policy Study, No. 21, July 1988, The Heartland Institute, Chicago, Illinois.

  57. Downriver Community Conference

  58. The News-Herald, Dec. 12, 1984.

  59. The Downriver Community Conference Economic Readjustment Program, Abt Associates Inc., Cambridge, Mass., May 18, 1984.

  60. The News-Herald, Nov. 9, 1988.

  61. The Mellus Newspapers, Oct. 31, 1984.

  62. Privatization 1989, Reason, op cit.