Due to the increasing demands on state services at a time of increasing budget constraints, the Commonwealth must seek more efficient and innovative ways of providing services to its citizens. To help achieve this goal, the 1993 General Assembly adopted Senate Joint Resolution No. 241 (Appendix A), establishing the Joint Subcommittee Studying Privatization of Certain State Government Functions.

The resolution called for an eleven member joint subcommittee composed of two members of the Senate, appointed by the Senate Committee on Privileges and Election; five members of the House of Delegates, appointed by the Speaker of the House; and four members from the business community to be appointed by the Governor. Senator Walter A. Stosch served as Chairman of the joint subcommittee with Delegate Alson H. Smith, Jr., acting as Vice Chairman.

The joint subcommittee was directed by SJR 241 to examine the functions of state government to determine which could be successfully privatized. Specific areas to be considered included (i) infrastructure projects, (ii) the state motor vehicle fleet, (iii) highway maintenance, (iv) welfare job placement, (v) solid waste facilities, (vi) parking facilities, (vii) social services case management and (viii) the travel services signing program for interstate highways.

The joint subcommittee was directed to submit its findings and recommendations, if any, to the Governor and the 1994 Session of the General Assembly. However, as its first year of work neared completion, the joint subcommittee decided that, due to the complexity of the topic, the study should be continued for an additional year.