Several very good sources and publications are available to examine government downsizing, privatizing, monetizing and outsourcing.
www.DownsizingGovernment.org by the Cato Institute provides the best information about Federal government programs and expenditures.
The Price of Government by David Osborne and Peter Hutchinson offers astute advice to leaders on determining how much taxpayers are willing to pay for governement, what priorities taxpayers have for service levels they require, and how to properly get the most out of each tax dollar.
The Voluntary City by Beito, Gordon and Tabarrok offers a thorough examination of historic and current ideas.
The Entrepreneurial City: A How-To Handbook for Urban Innovators by Stephen Goldsmith compiles many new ideas that a number of mayors have implemented in the last decade or so.
See summary by Jim Null, "Scaling Back Government", at www.uccs.edu/~csgi/nullsmctigue2004.shtml.