Privatization in Chicago
|
Cities throughout the United States are implementing cost-effective, less intrusive government by privatizing and contracting-out services. Indianapolis and Chicago, for example, show what can be accomplished with the support of mayors interested in revitalizing city life.
By 1994, reports Chicago Mayor Richard Daley, the city had privatized over 40 separate functions of government.
- Services now performed by private contractors have saved Chicago taxpayers $20 million -- including custodians, office-product purchases, tire collection and traffic signal design.
- Competitive bidding for towing of abandoned cars saved the city $3 million and removed 180,000 cars from the streets in a dramatically shortened timeframe.
- Privatizing drug and alcohol addiction treatment has improved service and reduced cost, with 200 more clients being helped at three sites instead of one for $700,000 less per year.
Indianapolis Mayor Steve Goldsmith has aggressively pursued privatization.
- Indianapolis has reduced its city staff other than public safety personnel by 30 percent over two years.
- It privatized the management of the city-owned wastewater treatment plant through competitive bidding, reducing the cost to taxpayers by 44 percent or $68 million.
- Other contracts competitively bid out reduced costs for trash collection by 25 percent, printing by 27 percent, microfilming by 61 percent and street repair by 25 percent.
Goldsmith points out that in contrast to government monopolies, private-sector competition creates built-in incentives for innovation.
Source: William D. Eggers, ed., "Revitalizing Our Cities: Perspectives From America's New Breed of Mayors," February 7, 1996, Washington Institute for Policy Studies, P.O. Box 24645, Seattle, WA 98124, (206) 938-6300.
|
