Prospects for federal privatization.

Author:Carson, Ed

The new Republican Congress is gearing its efforts towards the privatization of several government agencies and services. The privatization plan includes the US Postal Service, the air-traffic control system and the Corporation for Public Broadcasting.


Rep. Dana Rohrabacher (R-Calif.) has been trying to privatize the U.S. Postal Service ever since he was elected to Congress in 1988. But despite ever-increasing post-office horror stories of delays, lost or destroyed mail, and a dissatisfied work force, he has had little success.

Until recently, discussion of privatization at the national level was limited to think tanks and a handful of maverick congressmen such as Rohrabacher. But now with a Republican Congress and a president who is rediscovering 1992 campaign themes just in time for 1996, senior leaders at both ends of Pennsylvania Avenue are endorsing privatization of federal assets and services.

This year, the House Budget Committee under Rep. John Kasich (R-Ohio) will produce an ambitious privatization package that has a reasonable chance at passing. The budget is expected to include a proposal to privatize the air-traffic control system and make it wholly user-fee funded, to end subsidies for the Corporation for Public Broadcasting, and to sell off at least one of the five regional power marketing authorities - holding companies of dams and other electrical power plants - which would probably generate several billion dollars. Amtrak's subsidies also are likely to be reduced.

The Republican effort is greatly helped by Clinton's support for a number of...

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