May 9, 2012

Headlines
OH: Opinion: Should Ohio State look at privatizing parking? No
IL: From Chicago’s 63rd Street: Where’s the public interest in public-private partnerships?
NC: Public-private N.C. Zoo partnership proceeds
NY: Steering Murdoch in scandal, Klein put school goals aside
CA: Could California rest areas soon be commercialized?
TX: Trinity River Toll Road debate is back
VT: Privatization plan could bring jail to Hinsdale

OH: Opinion: Should Ohio State look at privatizing parking? No
Under the agreement offered to the investors, OSU would sign away total revenues of up to $5.3 billion for a small fraction of their value. At the same time, the private operator would assume only about $13 million per year in operating expenses, while OSU keeps responsibility for the campus bus system and continuing mortgage-debt payments on existing parking structures. Related annual expenses of about $16 million are presently paid from the parking revenue that, in the proposed deal, would go to the operator. In addition, OSU would lose an annual $1.7 million “ internal tax” on parking income that presently supports its academic core…The agreement asks for OSU to lobby against laws that could hurt the revenue stream of the operator. It lists “adverse action” events reducing the operator’s revenue that would trigger compensation payments by the university, at the expense of OSU and Ohio taxpayers. Avoiding these situations will require constant consultation between OSU and the operator, generating an additional administrative layer to monitor parking operations and diverting valuable dollars from OSU’s academic core activities. The legal minefields created by monetization agreements, and examples of disastrous consequences for sellers elsewhere, are legion. Columbus Dispatch

IL: From Chicago’s 63rd Street: Where’s the public interest in public-private partnerships?
The problem is that the public-private “partnerships,” as Emanuel outlines them, are tilted toward the private side. They let corporate interests drive public investment. Projects that fail to align with the interests of private funders go begging. 63rd Street shows how big that hole is. What company is going to invest in building affordable housing and livable communities here? These honorable causes stand to be big losers in the era of the public-private partnership…Realistically, City Halls in Chicago and nationwide must invest in depopulated districts like 63rd Street because no one else will. The community that 63rd Street runs through was home to 81,000 residents in the 1960s. Today, it has less than a third of that, just 26,000. This is prime real estate, an easy commute from the Loop. If it and similar neighborhoods aren’t repopulated, and soon, there won’t be much of a city left. Rustwire.com

NC: Public-private N.C. Zoo partnership proceeds
The House Select Committee on Public-Private Partnerships has prepared a legislative proposal concerning this new venture which would turn over the zoo’s management to the N.C. Zoological Society, possibly as early as Jan. 1, 2013. The state would continue to retain ownership of zoo property…He noted that all the zoo’s state employees, including himself, will be affected by the management change…Jones said “all but a few” would be rehired. He also said a “main concern” in the transition is the impact the change will have on employees who have worked several years at the zoo. About a third, he noted, have more than 18 years state service; additionally about 20 employees won’t be fully compensated with severance wages to cover the additional years they’ll have to wait to retire…A concern expressed by some legislators was assurance that students would still be allowed free admittance. Courier Tribune

NY: Steering Murdoch in scandal, Klein put school goals aside
..Joel I. Klein was hired by Mr. Murdoch to lead his company’s aggressive push into the education market. But just over six months into his tenure, the news broke that the company’s News of the World tabloid in Britain had hacked into the phone of a murdered 13-year-old, Milly Dowler, and suddenly, Mr. Klein became Mr. Murdoch’s legal compass in the ensuing British firestorm. Mr. Klein, who declined to comment for this article, has slowly returned his attention to parts of his education portfolio, but prospects for success may have been damaged by the investigation. In 2010, News Corporation paid $360 million for a 90 percent stake in Wireless Generation, a company based in Brooklyn that specializes in education software, data systems and assessment tools to help teachers analyze student performance and customize lessons. Last year, New York State rejected a $27 million contract with Wireless Generation, citing “the significant ongoing investigations and continuing revelations with respect to News Corporation.”..While Mr. Klein still worked for Mayor Michael R. Bloomberg, Mr. Murdoch and Mr. Klein became close friends. They talked frequently about the state of public schools and Mr. Klein was lured to News Corporation with the promise that he could use the company’s deep coffers to put in place his vision of revolutionizing K-12 education. Mr. Murdoch has said he would be “thrilled” if education were to account for 10 percent of News Corporation’s $34 billion in annual revenue in the next five years. New York Times

CA: Could California rest areas soon be commercialized?
..Assemblyman Ben Hueso, D-San Diego, has sponsored a bill that would authorize the California Department of Transportation to sign deals with private business to operate rest areas. The state would keep ownership of all property…Opponents say the bill would hurt roadside communities and small businesses along affected roadways. OOIDA officials say that all avenues must be pursued on behalf of truckers and other travelers who need access to rest areas and parking. Land Line

TX: Trinity River Toll Road debate is back
The North Texas Tollway Authority is holding public hearings on the impact of the Trinity Parkway, a 9 mile toll road that would run along the Trinity River from US 175 to SH 183…Opponents of a toll road inside the levees claim it would reduce flood protection, ruin proposed parks and that the traffic benefits are not worth the price of more than $1 billion. NBC 5 Dallas-Fort Worth

VT: Privatization plan could bring jail to Hinsdale
Bids from Corrections Corporation of America, MTC Corrections, GEO Group Inc., and the Elayn Hunt Correctional Center are currently under review by committees within the New Hampshire Legislature, but Hinsdale Town Administrator Jill Collins said CCA is the only one that has met with town officials about the possibility of opening a private facility…It would hold 1,500 to 2,000 inmates and cost $100 to $120 million to build, with a possible expansion in the future. Brattleboro Reformer