News summaries
Europe: Privatized services back in public hands
After the wave of de-privatisation of water services facilities that
started across the world two years ago, municipalities in Europe are
now buying back the electricity utilities they sold to private
investors in the late 1980s and early 1990s....Similar trends in the
re-municipalisation of public utilities privatised during the last 20
years are emerging in many cities all over Germany, and in other
European countries. The city governments are only belatedly following
the advice of economists and local activists. In a study released in
2006, Heinz Josef Bontrup, professor of urban economy at the University
of Gelsenkirchen, concluded that 'the privatisation of municipal
utilities is not beneficial, both in financial terms and in the quality
of services to the people they provide.'
IPS
Obama plan privatizes astronaut launchings
President Obama will end NASA's return mission to the moon and turn to
private companies to launch astronauts into space when he unveils his
budget request to Congress next week, an administration official said
Thursday. The shift would ''put NASA on a more sustainable and
ambitious path to the future,'' said the official, who spoke on
condition of anonymity. But the changes have angered some members of
Congress, particularly from Texas, the location of the Johnson Space
Center, and Florida, the location of the Kennedy Space Center...''We
have already spent valuable time and billions of dollars developing
this program,'' Representative Michael McCaul, Republican of Texas,
said in an e-mail statement. ''It makes no sense to throw away a plan
backed by 50 years of NASA experience and institutional knowledge in
favor of start-up operations, which may encounter delays and unknown
obstacles.''
The New York Times
CO: Editorial: Caution on privatizing workers' comp
Talks are underway between Pinnacol Assurance and Colorado state
government to consider privatizing the quasi-public insurance provider.
The move could provide a windfall of much-needed cash for empty state
coffers, but state officials should proceed cautiously. The long-term
implications of such a move need to be fully investigated. The company,
which is charged with providing workers' compensation insurance to the
most dangerous of professions, became the target of an ill-advised, and
failed, government raid last spring. It then floated an idea to give
the state a one-time infusion of cash going forward in exchange for
more autonomy, but never officially submitted such a plan. Finally, Pinnacol
became the focus of a special legislative committee that proposed new
regulations that would alter Pinnacol's makeup and practices. All of the
proposals and rancor swirling around what we have called the Pinnacol Follies
ought to give any serious negotiator pause.
The Denver Post
CA: L.A. officials recommend privatizing 10 public parking garages
Los Angeles' top budget analysts are recommending that the city
privatize 10 public parking garages to help close a nearly $200-million
budget shortfall, hoping that such a deal could net between $100
million and $200 million. Mayor Antonio Villaraigosa recommended
privatizing half a dozen garages in his budget proposal in April but
met resistance from the City Council, in part, because of the political
backlash that occurred in Chicago after that city auctioned off garages
and meters, driving up parking rates. But support has grown as L.A.'s
tax revenue has continued to drop... Privatizing the garages would be
one of their few options to raise a major amount of revenue quickly,
although an auction would probably not close until the late summer or
fall....Under the proposal, the city would request bids for a long-term
lease -- potentially up to 50 years -- of 10 parking garages, allowing
them to be operated and maintained by a private concessionaire that
would retain the bulk of parking proceeds. In return, L.A. would
receive an immediate lump-sum payment and also could retain a small
negotiated share of future proceeds. A recent financial analysis of the
city's parking garages determined that a private operator could run
them more efficiently and more profitably. "It's the right thing to do
and is an effective use of an asset," Santana said. "We don't have the
capital to invest in our garages."
Los Angeles Times
IL: PP3 expressway bill not likely to go far
A public/private partnership to build the Illiana Expressway won
overwhelming support Thursday in the state Senate, but that vote belied
a storm of political gamesmanship in the House that brings serious
doubt to its chances.
Gary Post-Tribune
