MSN on Ideas to Save Detroit Billions

Mackinac's Michael LaFaive made recommendations 13 years ago reported recently on a list of recommendations Mackinac Center for Public Policy Fiscal Policy Director Michael LaFaive made 13 years ago that could have saved the city of Detroit billions of dollars.


  • The Mackinac Center estimated that Detroit could save $6.4 million annually if it contracted out some of its garbage collection services.
  • LaFaive estimated that Detroit could save nearly $50 million annually if it contracted out some of its water services. If it were to sell the system entirely, Detroit could make between $1.8 billion and $2.3 billion, LaFaive estimated.
  • If Detroit used competitively franchised or contracted buses, it could save more than $60 million annually, Mackinac wrote.
  • A potential sale of the Detroit Public Lighting Department could bring between $300 million and $500 million, according to Mackinac.
  • Just by contracting out the oil changes on 500 Detroit Police Department vehicles, the city could save almost $850,000 annually, Mackinac reported.

In a special issue of Michigan Privatization Report from December 2000, LaFaive wrote about the services the city should privatize and assets it should sell.


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