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April, 1998
 Privatization Questions State and Local Decision
Makers Used When Considering Privatization Options
Over the past several years, state and
local governments have increased their
use of various types of privatization.
Privatization is commonly defined as
any process that is aimed at shifting
functions and responsibilities, in whole
or in part, from the government to the
private sector through such activities
as contracting out or asset sales.1 A
1997 Council of State Governments
survey found that state agencies
responsible for transportation,
corrections, higher education, and
social services had all increased
privatization activities since 1988.2
According to the International City/
County Management Association, city
governments have also increased the
number and types of services
contracted, such as child welfare
programs, health services, street
maintenance, and data processing.
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