Contracting Entire Local Authorities
In the United States, several local communities - Weston in Florida and Sandy Springs in Georgia - have voted to purchase virtually all of their public services from external (public or private) contractors. It is a model that is beginning to attract some interest among academic commentators.
The model is an old one, dating back to the so-called Lakewood Plan in Los Angeles County in the 1950s. Some 34 new cities were permitted to incorporate subject to a commitment that they would not deliver key public services themselves. It has provided a benchmark the competition of municipal services.
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List of Resources:
Secession: A manifesto for an independent Balmain local council
Allan, Percy, 2001
The Balmain Secession Movement
In 2001, a secession movement in the inner-city Sydney suburb of Balmain published a justification based on contracting for all local government services.
Australia
Lakewood
Lakewood@50 (Web Page)
Lakewood City website, 2005
The Lakewood Plan (PDF) Todd, John S., 1958 A presentation on the Lakewood Plan given by John S. Todd to the League of California Cities. US
Reviews
List of Resources:
The California Contract Cites Association: An Historical Review (Web Page) The California Contract Cites Association (CCCA), 2002 A historical introduction to the development of contract cities and the Lakewood Plan. USA
Citites by Contract: The Politics of Municiple Incorporation Miller, Gary J., 1981 Cambridge, Mass: The MIT Press An analysis of the social, political and economic impacts associated with the Lakewood Plan cities in California. USA
The Expenditure Effects of Alternative Public Supply Institutions Deacon, Robert T., 1979 Public Choice 34, pp.381-397 A study comparing 23 Lakewood cities which purchase most of their services from external suppliers with 41 cities which provide most of their own services. It was found that purchasing authorities spent 14% less than their non-purchasing counterparts although no adjustments were made to control for quality of service. USA
How Cities Provide Services: An Evaluation of Alternative Delivery Structures Sonenblum, D; Kirlin, J. and Ries J., 1977 Ballinger, Cambridge, Massachusetts A study of the effects associated with contracting using data from 72 cities in Los Angeles County. US