1. Michigan Comprehensive Annual Financial Report." Lansing: Senate Fiscal Agency, 1994.

  2. State of Michigan Fiscal Year 1995-1996 Appropriations: Summary and Analysis." Lansing: House Fiscal Agency, 1995.

  3. See Becker, Gary S. "Why Public Enterprises Belong in Private Hands." Business Week, February 24, 1986; Fitzgerald, Randall. When Government Goes Private: Successful Alternatives to Public Services. New York: Universe Books, 1988; Hanke, Steve H. (editor). Prospects for Privatization. New York: Academy of Political Science, 1987; and Poole, Robert W. Cutting Back City Hall. New York: Universe Books, 1980.

  4. See "Correctional Facilities Administration and Operations" in the Department of Corrections budget herein.

  5. For a description of what percentage of total GF/GP funds each of these taxes comprise, see "State of Michigan Fiscal Year 1995-1996 Appropriations: Summary and Analysis," page 184. Lansing: House Fiscal Agency, 1995.

  6. FY 1995-96 Appropriations Report, p.28. Lansing: Senate Fiscal Agency, July 1995.

  7. Ibid, page 2.

  8. Ibid, page 2.

  9. See Block, Walter and Michael Walker (editors). Discrimination, Affirmative Action, and Equal Opportunity. Vancouver. Fraser Institute, 1981; Sowell, Thomas. The Economics and Politics of Race. New York: Quill, 1983; Williams, Walter E. The State Against Blacks. New York: McGraw Hill, 1982; and Yates, Stephen. Civil Wrongs: What Went Wrong With Affirmative Action. San Francisco: ICS Press, 1994.

  10. 1995 Enrolled Senate Bill Number 296, page 2.

  11. Ibid, page 2.

  12. See Bovard, James. The Farm Fiasco. San Francisco: ICS Press, 1989; Frydenlund, John. "Freeing America's Farmers: The Heritage Plan for Rural Prosperity." Washington: Heritage Foundation, 1995; and Gardner, Delworth B. Plowing Ground in Washington: The Political Economy of U.S. Agriculture. San Francisco: Pacific Research Institute, 1995.

  13. 1995 Enrolled Senate Bill Number 296, page 2.

  14. For illuminating discussions of the need to end corporate welfare, see Childs, Roy A. "Big Business and the Rise of American Statism," in Liberty Against Power: Essays by Roy A. Childs. San Francisco: Fox & Wilkes, 1994; Forstmann, Theodore J. "The Paradox of the Statist Businessman." Cato Policy Report, March-April 1995; Moore, Stephen and Dean Stansel. "Ending Corporate Welfare as We Know It." Cato Institute Policy Analysis Number 225. Washington: Cato Institute, 1995; and Shapiro, Robert J. "Cutting Public Subsidies for Private Interests," in "Cut and Invest: A Budget Strategy for the New Economy." Washington: Progressive Policy Institute, 1995.

  15. 1995 Enrolled Senate Bill Number 296, pages 2-3.

  16. See "Privatization in Michigan: Recommendations to the Governor," page 33. Lansing: Department of Management and Budget, 1992.

  17. 1995 Enrolled Senate Bill Number 296, pages 4-5.

  18. Ibid, page 3.

  19. Telephone interview with Martin Saffell, March 21, 1995.

  20. 1995 Enrolled Senate Bill Number 296, page 3.

  21. Ibid, page 4.

  22. See "Privatization in Michigan: Recommendations to the Governor," page 33. Lansing: Department of Management and Budget, 1992.

  23. Ibid, pages 2-3.

  24. Ibid, pages 2-3.

  25. Ibid, page 2.

  26. FY 1995-96 Appropriations Report, page 31. Lansing: Senate Fiscal Agency, July 1995.

  27. FY 1995-96 Appropriations Report, page 41. Lansing: Senate Fiscal Agency, July 1995.

  28. Constitution of the State of Michigan of 1963, Article XI, Section 5.

  29. "Department of Civil Service Budget Analysis, Fiscal Year 1996," page 5. Lansing: Senate Fiscal Agency, 1995.

  30. "Michigan Department of Civil Service Annual Report of Expenditures and Statistical Summary, FY 94," page 26. Lansing: Michigan Civil Service Commission, 1995.

  31. Ibid, page 26.

  32. "Program Budget and Revenue SUmmary," Fiscal Years 1995 and 1996. Michigan Department of Civil Service.

  33. FY 1995-96 Appropriations Report, page 43. Lansing: Senate Fiscal Agency, July 1995.

  34. 1995 Enrolled Senate Bill Number 297, pages 2-3.

  35. For a general discussion of government funding of the arts, see Banfield, Edward C. The Democratic Muse. New York: Basic Books, 1984; Grampp, William. Pricing the Priceless. New York: Basic Books, 1984; "Subsidies to the Arts: Cultivating Mediocrity." Kauffman, Bill. Cato Institute Policy Analysis Number 137. Washington: Cato Institute, 1990; and Lynes, Russell. "The Case Against Government Aid to the Arts." New York Times Magazine, March 25, 1962.

  36. Quoted in "Cultural Agencies," The Cato Handbook for Congress. Washington: Cato Institute, 1995.

  37. 1995 Enrolled Senate Bill Number 297, pages 4-5.

  38. See Bradley, Robert L., Jr. Energy Choices and Market Decision Making. Houston: Institute for Energy Research, 1993; Gasman, Lawrence. Telecommunication: The Free Market Road to the Information Highway. Washington: Cato Institute, 1994; Moorehouse, John C. Electric Power: Deregulation and the Public Interest. San Francisco: Pacific Research Institute, 1986; Poole, Robert W. (editor). Unnatural Monopolies: The Case for Deregulating Public Utilities. Lexington, MA: Lexington Books, 1985; and Shapiro, David L. Generating Failure: Public Power Policy in the Northwest. Lanham, MD: University Press of America, 1989.

  39. 1995 Enrolled Senate Bill Number 297, page 4-5.

  40. Ibid, page 3.

  41. See "Privatization in Michigan: Recommendations to the Governor," page 33. Lansing: Department of Management and Budget, 1992.

  42. 1995 Enrolled Senate Bill Number 297, page 5.

  43. "Privatization in Michigan: Recommendations to the Governor," page 35. Lansing: Department of Management and Budget, 1992.

  44. 1995 Enrolled Senate Bill Number 297, page 5.

  45. Ibid, page 4.

  46. Ibid, page 5.

  47. Ibid, page 3.

  48. Ibid, page 2.

  49. FY 1995-96 Appropriations Report, page 47. Lansing: Senate Fiscal Agency, July 1995.

  50. 1995 Enrolled House Bill Number 4422, page 18.

  51. Ibid, pages 17-18.

  52. See Chodorov, Frank. "Why Free Schools are Not Free" and "Private Schools: The Solution to America's Educational Problem" in Fugitive Essays: Selected Writings of Frank Chodorov. Indianapolis: Liberty Press, 1980; Lieberman, Myron. Beyond Public Education. New York: Praeger, 1986; Lieberman, Myron. Public Education: An Autopsy. Cambridge, MA: Harvard University Press, 1993; Richman, Sheldon. Separating School and State. Fairfax, VA: Future of Freedom Foundation, 1994; and Sommer, John W. (editor). The Academy in Crisis: The Political Economy of Higher Education. New Brunswick, NJ: Transaction Publishers, 1995.

  53. Public Acts of the State Legislature, 1984 and 1994.

  54. FY 1995-96 Appropriations Report, page 51. Lansing: Senate Fiscal Agency, July 1995.

  55. "1994 Information Kit," page 5. Lansing: Michigan Department of Corrections, 1995.

  56. 1995 Enrolled House Bill Number 4418, pages 2-3.

  57. Written Comments from Kenneth L. McGinnis, Director, Michigan Department of Corrections, March 1996.

  58. 1995 Enrolled House Bill Number 4418, pages 4-12.

  59. Ibid, pages 4-12.

  60. Calabrese, Wayne H. "Low Cost, High Quality, Good Fit: Why Not Privatization?" in Privatizing Correctional Facilities. New Brunswick, NJ: Transaction Publishers, 1993.

  61. Written Comments from Kenneth L. McGinnis, Director, Michigan Department of Corrections, March 1996.

  62. Cited in Calabrese, 1993.

  63. In addition to the Calabrese article, see Fitzgerald, Randy. "Free-Enterprise Jails: Key to Our Prison Dilemma?." Reader's Digest, March 1986; Gordon, Paul. "Justice Goes Private." Reason, September 1985; Logan, Charles H. Private Prisons: Cons and Pros. New York: Oxford University Press, 1990; McDonald, Douglas C. Private Prisons and the Public Interest. New Brunswick, NJ: Rutgers University Press, 1990; Poole, Robert W. "Can Justice Be Privatized." Fiscal Watchdog, November 1980; Ring, Charles R. "Private Prisons Need a Fair Trial." The Wall Street Journal. May 8, 1987; Sellers, Martin P. The History and Politics of Private Prisons: A Comparative Analysis. Cranbury, NJ: Associated University Presses, 1993; and Van Eaton, Charles. "Jail Overcrowding in Michigan: A Public Problem with a Private Solution?." Midland: Mackinac Center for Public Policy, 1989.

  64. FY 1995-96 Appropriations Report, page 57. Lansing: Senate Fiscal Agency, July 1995.

  65. 1995 Enrolled Senate Bill Number 4419, page 4.

  66. Ibid, pages 4-5.

  67. Ibid, page 6.

  68. The Michigan Manual: 1993-94 Senate. Lansing: The Legislative Service Bureau, 1993.

  69. See Bovard, James. "The Failure of Federal Job Training." Cato Institute Policy Analysis Number 77. Washington: Cato Institute, 1986.

  70. 1995 Enrolled House Bill Number 4419, page 6.

  71. Ibid, pages 7-8.

  72. 1995 Enrolled Senate Bill Number 298, pages 4-7.

  73. Ibid, page 7.

  74. Ibid, page 7.

  75. FY 1995-96 Appropriations Report, page 63. Lansing: Senate Fiscal Agency, July 1995.

  76. 1995 Enrolled House Bill Number 4425, pages 1-3.

  77. Ibid, pages 1-3.

  78. Ibid, page 4.

  79. Ibid, page 3.

  80. Ibid, pages 3-4.

  81. Ibid, pages 3-4.

  82. Ibid, pages 4-5.

  83. Ibid, pages 3-4.

  84. Ibid, page 4.

  85. Ibid, pages 1-3.

  86. Public Acts of the State Legislature, 1984 and 1994.

  87. FY 1995-96 Appropriations Report, page 92. Lansing: Senate Fiscal Agency, July 1995.

  88. "Michigan Means Business," page 2. Lansing: Michigan Jobs Commission, 1994.

  89. "1995 Jobs Agenda: Even More Good Jobs for Michigan," page 2. Lansing: Michigan Jobs Commission, 1995.

  90. 1995 Enrolled Senate Bill Number 297, page 6.

  91. Ibid, page 6.

  92. "Privatization in Michigan: Recommendations to the Governor," page 46. Lansing: Department of Management and Budget, 1992.

  93. 1995 Enrolled Senate Bill Number 297, page 7.

  94. Ibid, page 7.

  95. Ibid, pages 7-8.

  96. "1995 Jobs Agenda: Even More Good Jobs for Michigan," page 3. Lansing: Michigan Jobs Commission, 1995.

  97. See Bovard, James. "The Failure of Federal Job Training." Cato Institute Policy Analysis Number 77. Washington: Cato Institute, 1986; Huchison, Harry and Lawrence M. Reed. "Educational Choice for Michigan." Midland: Mackinac Center for Public Policy, 1991; and "Modern Schools for Michigan: An Outline for Educational Reform." Midland: Mackinac Center for Public Policy, 1993.

  98. 1995 Enrolled Senate Bill Number 297, page 8.

  99. FY 1995-96 Appropriations Report, page 74. Lansing: Senate Fiscal Agency, July 1995.

  100. 1995 Enrolled Senate Bill Number 297, page 10.

  101. Ibid, page 10.

  102. Written Comments from Kalmin D. Smith, deputy director of the Department of Labor, February 16, 1996.

  103. "Privatization in Michigan: Recommendations to the Governor," page 39. Lansing: Department of Management and Budget.

  104. FY 1995-96 Appropriations Report, page 84. Lansing: Senate Fiscal Agency, July 1995.

  105. The Michigan Manual: Senate 1993-94, page 481. Lansing: Legislative Service Bureau, 1993.

  106. 1995 Enrolled Senate Bill Number 298, page 8.

  107. Ibid, page 28.

  108. Ibid, page 8.

  109. Ibid, page 8.

  110. Ibid, page 9.

  111. Ibid, page 9.

  112. Ibid, page 9.

  113. Ibid, page 9.

  114. Ibid, page 9.

  115. Ibid, page 9.

  116. Ibid, page 8.

  117. FY 1995-96 Appropriations Report, page 88. Lansing: Senate Fiscal Agency, July 1995.

  118. State of Michigan Fiscal Year 1995-96 Appropriations: Summary and Analysis," page 36. Lansing: House Fiscal Agency, 1995.

  119. 1995 Enrolled House Bill Number 4415, page 3.

  120. Ibid, page 3.

  121. Ibid, page 3.

  122. Ibid, pages 4-6.

  123. "DMH Adult Psychiatric Hospitals Weekly Resident Census Report (As of October 6, 1993)." Lansing: Bureau of Hospitals and Centers, October 11, 1993.

  124. "DMH Adult Psychiatric Hospitals Weekly Resident Census Report (As of September 13, 1995)." Lansing: Bureau of Hospitals and Centers, September 14, 1995.

  125. Public Acts of the State Legislature 1989, Number 172, pages 812-816, and 1995 Enrolled House Bill Number 4415, pages 4-6.

  126. 1995 Enrolled House Bill Number 4415, page 5.

  127. "DMH Child/Adolescent Programs Weekly Resident Census Report (As of October 6, 1993)." Lansing: Bureau of Hospitals and Centers, October 11, 1993.

  128. "DMH Child/Adolescent Programs Weekly Resident Census Report (As of September 13, 1995). " Lansing: Bureau of Hospitals and Centers, September 14, 1995.

  129. Public Acts of the State Legislature 1989, Number 172, pages 815, and 1995 Enrolled House Bill Number 4415, page 5.

  130. 1995 Enrolled House Bill Number 4415, pages 5-6.

  131. "DMH Child/Adolescent Programs Weekly Resident Census Report (As of October 6, 1993)." Lansing: Bureau of Hospitals and Centers, October 11, 1993.

  132. "DMH Child/Adolescent Programs Weekly Resident Census Report (As of September 13, 1995). " Lansing: Bureau of Hospitals and Centers, September 14, 1995.

  133. p
  134. "Centers For Persons With Developmental Disabilities Weekly Resident Census Report (As of October 2, 1993)." Lansing: Bureau of Hospitals and Centers, October 7, 1993.

  135. "Centers For Persons With Developmental Disabilities Weekly Resident Census Report (As of September 13, 1995)." Lansing: Bureau of Hospitals and Centers, September 14, 1995.

  136. Public Acts of the State Legislature 1989, Number 172, pages 817-818, and 1995 Enrolled House Bill Number 4415, pages 5-6.

  137. FY 1995-96 Appropriations Report, page 95. Lansing: Senate Fiscal Agency, July 1995.

  138. 1995 Enrolled Senate Bill Number 303, page 2.

  139. Ibid, page 2.

  140. FY 1995-96 Appropriations Report, pages 98, 100. Lansing: Senate Fiscal Agency, July 1995.

  141. See McArthur, Warren. "DNR Move Means More Accountability." The Detroit News, September 15, 1995.

  142. See Coase, Ronald H. "The Problem of Social Cost." The Journal of Law and Economics 3, October 1960. The article is also reprinted in Coase, R.H. The Firm, the Market, and the Law. Chicago: University of Chicago Press, 1988.

  143. 1995 Enrolled Senate Bill Number 299, page 3.

  144. "Privatization in Michigan: Recommendations to the Governor," page 45. Lansing: Michigan Department of Management and Budget, 1992.

  145. Ibid, page 5.

  146. "Privatization in Michigan: Recommendations to the Governor," page 46. Lansing: Michigan Department of Management and Budget, 1992.

  147. 1995 Enrolled Senate Bill Number 299, page 6.

  148. "Privatization in Michigan: Recommendations to the Governor," page 46. Lansing: Michigan Department of Management and Budget, 1992.

  149. 1995 Enrolled Senate Bill Number 299, pages 6-7.

  150. Ibid, page 5.

  151. Ibid, page 6.

  152. Ibid, pages 10-11.

  153. Ibid, pages 10-11.

  154. FY 1995-96 Appropriations Report, page 106. Lansing: Senate Fiscal Agency, July 1995.

  155. The Michigan Manual: 1993-94 Senate, page 521. Lansing: Legislative Service Bureau, 1993.

  156. 1995 Enrolled Senate Bill Number 4420, page 2.

  157. See Briggs, Vernon and Stephen Moore. Still and Open Door?: U.S. Immigration Policy and the American Economy. Washington: American University Press, 1994; Ebeling, Richard and Jacob G. Hornberger (editors). The Case for Free Trade and Open Immigration. Fairfax, VA: Future of Freedom Foundation, 1995; and Simon, Julian. The Economic Consequences of Immigration. Cambridge, MA: Basil Blackwell, 1989.

  158. 1995 Enrolled Senate Bill Number 4420, page 4.

  159. Ibid, page 4.

  160. See Adler, Jonathan H. "Taken to the Cleaners: A Case Study of Overregulation of American Small Business." Cato Institute Policy Analysis Number 200. Washington: Cato Institute, 1993.

  161. 1995 Enrolled Senate Bill Number 4420, page 5.

  162. Ibid, page 2.

  163. Ibid, pages 2-3.

  164. Ibid, pages 2-3.

  165. Ibid, page 5.

  166. Ibid, pages 5-6.

  167. Ibid, pages 5-6.

  168. Ibid, pages 5-6.

  169. Ibid, pages 5-6.

  170. Ibid, page 6.

  171. Ibid, pages 6-7.

  172. Ibid, page 7.

  173. Ibid, page 7.

  174. Ibid, pages 1-2.

  175. Ibid, pages 1-2.

  176. FY 1995-96 Appropriations Report, page 117. Lansing: Senate Fiscal Agency, July 1995.

  177. See Murray, Charles. Losing Ground: American Social Policy 1950-1980. New York: Basic Books; and Olasky, Marvin. The Tragedy of American Compassion. Washington: Regnery Gateway, 1992.

  178. 1995 Enrolled Senate Bill Number 300, page 2.

  179. Ibid, page 3.

  180. Ibid, page 3.

  181. See Beito, David T. "Mutual Aid for Social Welfare: The Case of American Fraternal Societies." Critical Review, Fall 1990; Cornuelle, Richard C. Reclaiming the American Dream: The Role of Private Individuals and Voluntary Associations. New Brunswick, NJ: Transaction Publishers, 1993; Green, David. Reinventing Civil Society: The Rediscovery of Welfare Without Politics. London: Institute of Economic Affairs, 1993; Sugden, Robert. "Voluntary Organizations and the Welfare State," in Privatisation and the Welfare State. London: Allen & Unwin, 1984; and Weaver, Carolyn L. "Support for the Elderly Before the Depression: Individual and Collective Arrangements." Cato Journal, Fall 1987.

  182. 1995 Enrolled Senate Bill Number 300, page 3.

  183. Ibid, page 3.

  184. Ibid, page 3.

  185. Ibid, page 3.

  186. Ibid, page 4.

  187. Ibid, page 4.

  188. Ibid, page 4.

  189. Ibid, page 4.

  190. FY 1995-96 Appropriations Report, page 123. Lansing: Senate Fiscal Agency, July 1995.

  191. 1995 Enrolled Senate Bill Number 298, page 12.

  192. Ibid, page 11.

  193. FY 1995-96 Appropriations Report, page 126. Lansing: Senate Fiscal Agency, July 1995.

  194. The Michigan Manual: Senate 1993-94, page 538. Lansing: Legislative Service Bureau, 1993.

  195. 1995 Enrolled Senate Bill Number 302, pages 2-3.

  196. Ibid, page 4.

  197. See, for example, "A Citizen's Guide to the State Budget Mess: A Menu of 220 Proposals to Reduce State Government Spending," page 17. Sacramento: The Claremont Institute, 1995.

  198. FY 1995-96 Appropriations Report, page 130. Lansing: Senate Fiscal Agency, July 1995.

  199. 1995 Enrolled Senate Bill Number 304, page 4.

  200. Ibid, page 4.

  201. Ibid, pages 4-5.

  202. Ibid, pages 4-5.

  203. Taylor, John C. Fixing the Roads: A Blueprint for Michigan Transportation Infrastructure Policy, page 24. Mackinac Center for Public Policy, 1995.

  204. 1995 Enrolled Senate Bill Number 304, pages 4-5.

  205. See, for example, Hodge, Scott A. (editor). Rolling Back Government: A Budget Plan to Rebuild America. Washington: Heritage Foundation, 1995; and Moore, Stephen and William A. Niskanen. "Budget Reduction," in The Cato Handbook for Congress. Washington: Cato Institute, 1995.

  206. 1995 Enrolled Senate Bill 304, pages 4-5.

  207. Written Comments from Robert Welke, Director, Michigan Department of Transportation, March 1996.

  208. Ibid, pages 4-5.

  209. See Hayek, F.A. Individualism and Economic Order. Chicago: University of Chicago Press, 1948; Kirzner, Israel M. Perception, Opportunity, and Profit: Studies in the Theory of Entrepreneurship. Chicago: University of Chicago Press, 1979; and O'Driscoll, Gerald P. Economics as a Coordination Problem: The Contribution of Friedrich A. Hayek. Kansas City: Sheed, Andrews, and McMeel, 1977.

  210. 1995 Enrolled Senate Bill Number 304, page 4.

  211. Ibid, pages 3-4.

  212. This figure includes all roads in Michigan controlled by either the state, by counties, or by cities and villages.

  213. Taylor, John C. Fixing the Roads: A Blueprint for Michigan Transportation Infrastructure Policy, page 21-22. Mackinac Center for Public Policy, 1995.

  214. FY 1995-96 Appropriations Report, pages 133, 135, 138. Lansing: Senate Fiscal Agency, July 1995.

  215. "State of Michigan Fiscal Year 1995-96 Appropriations: Summary and Analysis." Lansing: House Fiscal Agency, 1995.

  216. 1995 Enrolled Senate Bill Number 298, page 16.

  217. Ibid, page 16.

  218. Moore, Stephen. Government: America's Number One Growth Industry, page 70. Lewisville, Texas: Institute for Policy Innovation, 1995.

  219. Ibid, page 77.

  220. Ibid, page 44.

  221. Quoted in Innerst, Carol. "Alabama Quits Goals 2000, Gives Back Federal Funds." The Washington Times, October 5, 1995.

  222. Quoted in Stein, Robert S. "Decentralizing American Government." Investor's Business Daily, November 21, 1994.