In Michigan the Mackinac Center for Public Policy does yeoman's work at identifying opportunities for privatization and helping implement it properly--with great success. A note they sent on their most recent success reads:
Last year we exposed a state-owned ski resort in the Upper Peninsula, the Porcupine Mountains Downhill Ski Area, that was losing over $200,000 annually. Because this is not an appropriate governmental function -- not to mention the fact that it was failing -- we recommended last fall that the state sell or privatize the operation. The Michigan Department of Natural Resources agreed with us and decided to privatize the resort's operation.
The Michigan Department of Natural Resource retains ownership of the property, but has selected Porcupine Mountain LLC to privately manage and operate the ski area. As a result, taxpayers will no longer pick up the tab for poor management.