Privatization on the Rise Despite Surpluses.

• Position: Reason Public Policy Institute report - Brief Article

While state and local governments across the nation experience budget surpluses averaging between eight and nine percent of their expenditures, privatization continues to advance at all levels of government, according to a report by Reason Public Policy Institute (RPPI), Los Angeles, Calif. Despite the assumption that it is little more than a remedy for cash-strapped governments, solvent governments continue to tap into privatization for other benefits such as superior management and specialized expertise.

"Historically, privatization has happened in the shadows of budget axes and shortfalls, when governments must make every penny count. In many ways, this is changing. Privatization is growing at a vigorous pace despite surplus-heavy budgets because it is providing far more than simple savings," explains Adrian Moore, director of RPPI's Privatization Center and co-author of the report.

"Many governments recognize that the private sector is their best option for achieving strategic goals, such as ensuring that the millennium bug doesn't bite their computers. In other cases, like the privatization of recreational facilities, governments...