Contracting out local government services: the B.C. experience

Abstract: This article discusses the findings of a detailed study of the practice of contracting out local government services in municipalities and regional districts in British Columbia. No similar study has been conducted in Canada to date, and comparable research in the United States has only examined the contracting of selected local government services. The findings are important for local government managers and elected officials because they indicate widespread reliance on contractors. Of all 124 local governments participating in the study, contractors were involved in the production of 32 per cent of all services. Of these, engineering services were the most likely to be produced by contractors (40.4 per cent). Specific comparisons of the B.C. findings with those in U.S. studies suggested that contracting for services was actually more widespread in B.C. than in the U.S. Further, reliance on contracting in B.C. had apparently increased over time. In 1980, 25 per cent of municipalities with a population over 10,000 contracted out the collection of residential solid waste. By 1989, that figure had increased to 54.8 per cent. Local government managers themselves saw no future reduction of the reliance on contracting; in fact, 22.8 per cent predicted an increase over the next five years. Sommaire: Cet article examine les constatations d'une étude détaillée sur la pratique des contrats de services parmi les municipalités et les districts régionaux de la Colombie-Britannique. Une telle étude n'a encore jamais été effectuée au Canada, et des recherches comparables aux États-Unis n'ont examiné que les contrats relatifs à certains services des gouvernements locaux. Les constatations sont importantes pour les gestionnaires et les élus des gouvernements locaux parce qu'elles révèlent le rôle très important des entreprises dans la prestation de services. Si l'on considère l'ensemble des 124 gouvernements locaux ayant participéà l'étude, les entrepreneurs sont impliqués dans la production de 32 pour cent de tous les services. Parmi les services fournis, ce sont les services d'ingénierie dont la plus forte proportion était assurée par des entrepreneurs (40,4 pour cent). Les coniparaisons spécifiques des ronstatations faitcs en Colornbie-Britannique à celles des études américaines suggerent que la Colornbie-Britannique fait davantage appel aux services sous-traités clue les États-Unis. Par ailleurs, la sous-traitance en Colombie-Britannique s'est apparernment accrue au fil des années. En 1980, 25 pour cent des municipaliteAs ayant une population de plus de 10 000 personnes avaient sous-traité le rarnassage des déchets solides résidentiels. En 1989, ce chiffre cyt passéà 51.8 pour cent. Les gestion-naires des gouvernements locaux eux-mêmes ne prévoient aucune réduction de la sous-traitance; en fait, 22,8 pour cent prévoient une augmentation au cours des cinq prochailies années.     

Do bonus offers shorten unemployment insurance spells? results from the washington experiment

Unemployment insurance is intended to reduce hardship by providing labor force members with partial wage replacement during periods of involuntary unemployment. However, in performing this income maintenance function, unemployment insurance may prolong spells of unemployment. Evidence from a field experiment conducted in Illinois in 1984 suggested that offering unemployment insurance claimants a modest cash bonus for rapid reemployment would increase the speed of return to work and reduce program costs. In 1988 a similar experiment, examining several different bonus offers, was conducted in the state of Washington. Evidence from the Washington experiment indicates that bonus offers do change job seeking behavior, but that only relatively generous bonus offers—about six times the weekly benefit amount—should be expected to significantly change the behavior of people eligible for unemployment benefits.     

Public choice and the EPA: Empirical evidence on carbon emissions violations

This study provides evidence of public choice determinants of the penalties assessed by the Environmental Protection Agency for carbon emissions violations. Following the work of Stigler (1971), Peltzman (1976), Tollison (1982), and Tullock (1989), this study points out that powerful business interest groups are able to use their political influence to shape EPA environmental policy for urban areas. The statistical estimates presented here suggest that business groups have limited power (through lobbying activity) in affecting the probability of the occurrence of an EPA citation for carbon emissions violations, while they may have considerable power in influencing thedegree of an EPA citation for carbon emissions standards, once a citation occurs.     

Veblen’s Imperial Germany revisited

He is editor of Intereconomics,a journal issued in English, and author of major policy statements on economic and social issues.     

Resources of supplemental security income recipients

In order to receive payments under the Supplemental Security Income (SSI) program, an aged, blind, or disabled person's countable resources must fall below specified limits. The current limits are +2,000 for an individual and +3,000 for a couple. In 1987, when the data were collected for this study, these limits were +1,800 for an individual and +2,700 for a couple. This study found that the resource levels of most SSI recipients were well below the 1987 limits. A majority of SSI recipients had less than +100 in countable resources, and only about 12 percent of SSI recipients had more than +1,000 of resources. These low levels of resources ensure that relatively few recipients become ineligible for SSI payments because of resource accumulation. The most common forms of countable resources held by SSI recipients were cash, checking accounts, and savings accounts.     

A study of Supplemental Security Income awardees

Since its enactment in 1974, the Supplemental Security Income (SSI) program has had a stable caseload of about 4 million recipients. Hidden by this unchanging total is the fact that nearly 9 million persons were served by the program from 1974 to 1986. This study explores some SSI program dynamics by following a group of SSI awardees for a period of 4 years from the initial receipt of award in 1981. Many of these awardees had previous contact with the program either through a previous award or a denial. About 60 percent of the awardees were eligible at the end of the 4-year period. Most persons who became ineligible did so within the first 6 months after the award.