1. "Financial Squeeze May Pressure States Into Sweeping Budget Overhauls," Los Angeles Times, July 26,1992, A5.

2. Ibid.

3. Ibid.

4. "State Government Privatization 1992: An Updated Survey of State Governments and Their Use of Privatization," Apogee Research, Inc., Bethesda, Maryland, 1992.

5. The Long Term Employment Implications of Privatization: Evidence from Selected U.S. Cities and Counties, prepared by Dudek & Company for the National Commission for Employment Policy, Washington, D.C., March 1989.

6. United States General Accounting Office, "DOD Functions Contracted Out Under OMB Circular A-76: Costs and Status of Certain Displaced Employees," July 12, 1985.

7. National Commission for Employment Policy, Privatization and Public Employees: The Impact of City and County Contracting Out on Government Workers, May 1988.

8. A fuller explanation of these techniques can be found in: SAVINGS A.S.A.P.: An Alternative Delivery Assessment Project, Reason Foundation and The University of Miami Law and Economics Center, November 1988, Chapter 7.

9. Kenneth W. Clarkson, and Philip E. Fixler, Jr., et al. The Role of Privatization in Florida, Law and Economics Center, University of Miami and the Reason Foundation, (Tallahassee, FL: Florida Chamber of Commerce, 1987).

10. For a detailed look at state privatization opportunities please see: William D. Eggers, "Privatization Opportunities For States," Reason Foundation Policy Study, January 1993.

11. California Government Code Section 19130, code 2.

12. lbid, code I(C).

13. In State Employees v. Community College, 90 Wn.2d 698, 702-703, 585 P.2d 474 (1978) the State Supreme Court upheld the provision funding that: "...where a new need for services which have been customarily and historically provided by civil servants arises, and where there is no showing that civil servants could not provide those services, a contract for such services is unauthorized and in violation of the State Higher Education Personnel Law. This is so regardless of the cost savings which might be made through such a contract..."

14. American Legislative Exchange Council (ALEC), "Competitive Contracting of Public Services: Draft Model Legislation," unpublished, Washington, D.C., 1990.

15. Ibid.

16. Wendell Cox and Jean Love, "Controlling the Demand for Taxes through Competitive Incentives," American Legislative Exchange Council State Factor, Washington, DC, December 1991.

17. Adam Smith Institute, The Tender Traps, London, 1990, 30.

18. Philip E. Fixler and William D. Eggers, "Addressing the 1990-91 California Budget Shortfall: Alternatives to Service Cuts and Tax Increases," Reason Foundation Policy Insight, No. 209, June 1990, 17.

19. E.S. Savas, "How Much Do Government Services Really Cost?" Urban Affairs Quarterly, Vol. 15, No. 1, 23-42.

20. See for instance: John A. Rehfuss, Contracting Out in Government (San Francisco: Jossey-Bass, 1989); Lawrence L. Martin, "Contracting for Services," Florida Atlantic University, Institute of Government, 1990; and John Tapper Marlin, ed., Contracting Municipal Services: A Guide to Purchase from the Private Sector (New York: John Wiley & Sons, 1984).

21. See, for instance: Oregon Department of General Services and Executive Department, "Guidelines for Contracting State Work," 1987: and Colorado Office of State Auditor, "Privatization Assessment Workbook," Denver, Colorado, 1989.

22. For a detailed guide to conducting the bidding and monitoring process, see a forthcoming Foundation Privatization Center How-to Guide by John Rehfuss, titled, "Designing a Bidding and Monitoring Process that Minimizes the Opportunities for Collusion and Corruption.

23. Some of these steps are outlined in a forthcoming Reason Foundation Privatization Center "How-to" Guide titled "Financial Mechanisms for Mining the Public Balance Sheet" by Roger D. Feldman and Thomas M. Ingoldsby. Also see: William H. Payson and Steven A. Steckler, "Expanding Airport Capacity: Getting Privatization off the Ground," Reason Foundation Policy Insight, No. 141, July 1992, 19.

24. The Long Term Employment Implications of Privatization: Evidence from Selected U.S. Cities and Counties, prepared by Dudek & Company for the National Commission for Employment Policy, Washington, D.C., March 1989.

25. Clarkson and Fixler, op.cit., 176.