The cost of delivering seven local services is significantly higher when directly provided by Los
Angeles City and County as opposed to using private contractors. (See Figures 1 and 2.)
Annual savings from contracting out four of the Los Angeles City services which were analyzed in
detail could amount to $69 million. (See Table 1.)
More than $740 million could be saved each year by the City and County of Los Angeles
combined, if alternative service-delivery (ASD)/privatization was implemented across the board —
$300 million for the County and$440 million for the City.
ASD/privatization will have minimal adverse effects on public employees and no discriminatory
effects on minorities and women per se.
ASD/privatization can be broadly applied to Los Angeles County main mission and major
functions including data processing, hospitals, juvenile corrections, and (additional) inmate
medical care.
