Hundreds of distinct areas and functions of state government could feasibly be privatized. A recent draft report from the Michigan Department of Management and Budget, for instance, identified over 200 government functions that could be privatized.

Options for state governments range from contracting out the provision of government support services such as data processing, auditing, and printing, to selling off government assets such as airports, buildings and turnpikes; though it would be unrealistic to attempt to privatize all such functions at once. Furthermore, in some instances, circumstances may make privatization inadvisable. Nevertheless, before embarking on a privatization program, state officials should consider all privatization opportunities.

Table 2: State Privatization Issues

While not exhaustive, Table 2 presents functions of state government represent privatization possibilities worthy of detailed study by state government officials.[10]