The purpose of this project was to conduct a preliminary analysis of employment and privatization trends in state transportation departments. This project involved a review of recent literature on public sector privatization efforts, an analysis of all state transportation departments in order to locate a sample of states with transportation system characteristics similar to those of Kentucky, and a survey of the sample states· to determine privatization trends in the functional areas of administration, maintenance, design, engineering, enforcement and safety, and construction.

The study finds that among transportation departments in the 14 sample states, average annual increases in private sector service contracts and expenditures out-paces increase in state expenditures for transportation functional·areas and FTE's tenfold. In addition, while significant privatization activities were found in each functional area, privatization activities were most evident in the functional areas of maintenance and design.

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The contents of this report reflect the views of the author, who is responsible for the facts and accuracy of the data presented herein. The contents do not necessarily reflect the official views of the University of Kentucky, the Kentucky Transportation Cabinet, or the Federal Highway Administration. This report does not constitute a standard, specification, or regulation.