The bloated city government squanders taxpayers' money in scores of activities that no other city in America undertakes--municipal hospitals and housing rehabilitation are two costly examples. Stick to your campaign promise to adopt a program of prudent privatization. Bus services, garbage collection and disposal, and recycling are good places to start: on just these three services taxpayers can save more than half a billion dollars a year after gradual implementation that relies on attrition, rather than layoffs, to cut the city workforce.

Sell OTB and the city's radio and TV stations--the city has no business being in bookmaking or broadcasting. Sell unneeded city-owned land, buildings, and other property to raise cash. Auction off housing that has been acquired for nonpayment of taxes. Airports are being privatized around the world: how about selling JFK and LaGuardia? Let the Port Authority continue to operate Newark Airport and let's see who does a better job. Cultural institutions, zoos, and museums should be left entirely to the private, nonprofit sector.

Reform the city's obsolete personnel system, which gives employees both civil-service and labor union protection. Reform work rules to increase productivity, as Mayor Edward Rendell did recently in Philadelphia. Put able-bodied men and women who are on welfare in vacant, unskilled, entry-level jobs in city agencies. Pay them higher than minimum wage, but less than above-market municipal wages. Challenge the unions on this and challenge the Clinton administration to treat it as an experiment aimed at "ending welfare as we know it."