July 11, 2012

Headlines
States Face Tough Choices Even as Downturn Ends
CO: Fracking: Aurora votes to “lease” water to Anadarko Petroleum
NJ: Trenton Lawmakers Plan Review of Halfway Houses
IN: Hoosier Lottery seeks bids for privatizing some of agency’s work
VA: Slow down plans to privatize port
NC: The privatization scam
MO: Input on roads favors taxes over tolls
FL: Two political insiders to survey Florida’s big landowners about toll road routes
NY: Madison County considers privatization to combat growing budget pressures
ID: Supporters of liquor privatization look forward to 2013 legislative session

States Face Tough Choices Even as Downturn Ends
As state governments begin to emerge from the long downturn, many are grappling with a difficult choice: should they restore some of the services and jobs they were forced to eliminate in the recession or cut taxes in the hopes of bolstering their local economies? The debate over the proper balance between taxing and spending has been raging in Congress, on the presidential campaign trail and in statehouses around the country, and no two states have settled it more differently this year than Maryland and Kansas, whose fiscal years began July 1.  New York Times

CO: Fracking: Aurora votes to “lease” water to Anadarko Petroleum
Gaylord Entertainment dumped its plans for a giant hotel/convention center/resort in Aurora, and GE has postponed its big new plant in Aurora — if not ditched it entirely. But at least Aurora had control over one business deal: It had no problem selling its water to an oil and gas company.  Despite recent rains, much of Colorado has been declared a drought disaster area, and parched Weld County farmers just to the north are begging for water. Still, last night the Aurora City Council voted to “lease” water to Houston-based Anadarko Petroleum Corp., which will use it for hydraulic fracturing…possibly the only practice less controversial than opening the city tap to give a hotel a $300 million subsidy, as Aurora was willing to do for Gaylord.  Denver Westward

NJ: Trenton Lawmakers Plan Review of Halfway Houses
New Jersey lawmakers stepped up their calls for more scrutiny of the state’s troubled halfway house system on Tuesday, announcing plans for hearings and demanding that the Corrections Department explain its “disturbing history of mismanagement and neglect.” State Senate leaders said they would conduct a hearing on July 26 to examine oversight of the sprawling network of large, privately run halfway houses, which contract with the state to hold inmates who are finishing their sentences and parolees who are re-entering society. Senate officials said they would invite halfway house executives to testify, along with corrections officials, independent experts and others with insight into the system, which houses about 3,500 inmates and parolees, and has been plagued by escapes, gang activity, sexual attacks and rampant drug use.  New York Times

IN: Hoosier Lottery seeks bids for privatizing some of agency’s work
Its eyes on privatizing some of its functions in hopes of boosting revenue, the Hoosier Lottery is asking companies to lay their ideas out in binding bids that are due by the end of August. The move comes after 10 companies responded to the lottery’s initial inquiry to see whether there were ways to tweak its functions to make more money. The final round of bids allows companies to make proposals along two lines — their base bid, which just deals with the lottery’s current structure, and enhanced bids, which can involve new games, platforms, delivery mechanisms and more. Evansville Courier & Press

VA: Slow down plans to privatize port
Perhaps the most puzzling aspect of the state’s renewed interest in privatizing port operations in Hampton Roads is also the most arbitrary: A 50-day, state-imposed window for companies to submit proposals that compete with the unsolicited bid earlier this year from APM Terminals Inc.  That period is set to expire Thursday. Fortunately, several prospective bidders have complained that they need more time, and state officials are weighing whether to extend the deadline another 30 days. They should. The Virginian-Pilot

NC: The privatization scam
We’ve written a lot on this website about the ways in which corporate overlords are gradually buying up our core public structures and converting them into private assets that can be squeezed and otherwise manipulated to maximize profits. Still, it’s always powerful to learn of new, brazen examples of this process in action. Take for example this story on Blue NC this morning documenting the relationship between a leading candidate for Governor and a private “infrastructure” company with a less-than-stellar record in a neighboring state. The formula is startlingly simple and works well with politicians of both parties:Establish a company that performs some kind of service(s) that government ordinarily provides (e.g. road maintenance, mental health care or even running a school or a prison).  The Progressive Pulse

MO: Input on roads favors taxes over tolls
Several who spoke before a citizens committee on transportation yesterday in Columbia expressed support for tax increases as a way to generate new money for Missouri’s roads, but few defended the idea of charging a toll on state highways. The feedback was given during a meeting of the Blue Ribbon Citizens Committee, formed by Missouri House of Representatives Speaker Steve Tilley, R-Perryville, to gather input on transportation. The panel visited Columbia yesterday to hear from Mid-Missourians about how they benefit from the state’s roadways and how the Missouri Department of Transportation might be better funded….State Rep. Bart Korman, R-High Hill, testified that toll roads could have negative economic effects on residents in his district, which encompasses Interstate 70 between Fulton and Wentzville. “They would take a tax over a toll road,” Korman said of his constituents. Columbia Daily Tribune

FL: Two political insiders to survey Florida’s big landowners about toll road routes
Two developers who played a role in dismantling growth management laws in Florida are getting paid by the Department of Transportation to consult on what could be the largest state road project in history. The project is Future Corridors, a series of at least four toll roads that would crisscross the state’s rural areas to spur economic growth, create jobs and birth another generation of suburban communities. Billy Buzzett and Chris Corr were hired in March to conduct up to 20 interviews with major landowners who own large tracts where the roads could go. After interviewing the landowners, the two would come up with a strategic memo based on the discussions. The contract is worth $106,000; potential land deals could be worth much more. Both Buzzett and Corr have close ties to Gov. Rick Scott’s administration. Miami Herald

NY: Madison County considers privatization to combat growing budget pressures
With an eye on the growing pressure of state mandates, Madison County officials and other Central New York lawmakers are looking to the private sector to take over traditional county programs. County officials issued a request for proposals last month for their Alcohol and Drug Abuse Prevention and Treatment program, known as ADAPT, which provides psychiatric evaluation and treatment for individuals and families. The inquiry comes on the heels of last year’s sale of the county’s 44-employee certified home health agency to Home Care of Rochester Inc. – a transition that will save county taxpayers $750,000 in next year’s budget, said Madison County Administrator Mark Scimone. Syracuse Post Standard

ID: Supporters of liquor privatization look forward to 2013 legislative session
An initiative that would have privatized the distribution and sale of liquor in Idaho failed to gather enough signatures to be placed on the November ballot, but supporters of the effort are already planning to work with the 2013 legislature in the hope of achieving the same goal.. The Northwest Grocers Association (NWGA) met with Idaho officials in late December to determine the steps they would need to take in completing a privatization initiative, before deciding to wait. Ultimately, the Idaho Federation of Reagan Republicans (IFRR), a group based in north Idaho, came forward a month later to announce their own initiative effort, but that too was abandoned after the Idaho attorney general’s office released its report on the text of the measure, expressing legal concern regarding some of its provisions. IdahoReporter.com