News summaries
IL: Chicago burning through privatization cash
...Chicago is burning its way through millions of dollars made through
privatization deals, threatening to leave the long-term financial
health in ashes. Since Chicago Mayor Richard M. Daley struck a deal to
lease the Chicago Skyway to a private group for $1.83 billion in 2005,
the city has had immediate access to hundreds of millions of dollars.
Privatizing four downtown parking garages in 2006 and the city's entire
parking meter system two years later bolstered this fund of available
cash. However, experts say the city is not channeling enough of these
proceeds into long-term funds or using them to pay off bonds and
pension liabilities. Instead, they say, the city is using too much of
the money to fill budget gaps and cover other day-to-day expenses, in
turn masking significant financial problems. "It's not a long-term
solution because we will have the same challenges next year," said
Peter Skosey, vice president of the Metropolitan Planning Council, an
area nonprofit that promotes regional growth. "This is masking the real
problem of the government spending more than it brings in." While the
city used most of the proceeds from the parking garage deal to pay off
old debt, almost half of the combined Chicago Skyway and parking meter
money already spent or set aside for the 2010 budget has gone toward
operating expenses. This is a practice John O'Leary, of Harvard
University, warns against, because the city is spending in less than
half a decade revenue intended to cover 75- or 99-years, depending on
the terms of the individual deal. "In general, proceeds from a
long-term revenue stream should be dedicated to long-term needs and
expenses," said O'Leary, a research fellow at the Ash Institute, a
branch of Harvard's Kennedy School of Government.
The Times of Northwest Indiania
NJ: Privatizing toxic clean ups
New Jersey companies involved in environmental cleanups are grappling
with major changes affecting their businesses stemming from a new state
law that makes consultants responsible for signing off on toxic site
mitigation. Remediation consultants and developers, as well as property
owners, are struggling to understand how they will be affected by the
legislation, which took effect in November, that accelerates cleanups
by privatizing the work. The measure imposes new liabilities and legal challenges
on consultants and holds those paying for cleanups to timelines and more specific
requirements. Higher project costs are likely and the potential for significant
fines is daunting. The result anticipated by the business community is that shifting
approval for the time-consuming cleanup process to a new breed of
licensed professional will accelerate redevelopment...Many in the
environmental industry have said for years the answer to expediting the
sluggish process of removing toxic waste from properties is giving more
responsibility to the remediators. In May 2009, Gov. Jon Corzine did
just that by signing the Site Remediation and Reform Act. The law
created a professional license program that qualifies consultants as
Licensed Site Remediation Professionals, or LSRPs. New sites, with some
exceptions, must be overseen by licensed experts.
The Record
MI: Detroit mayor misses deadline for turnaround plan
More than four months after his "crisis turnaround team" unveiled its
much-publicized report, the city has yet to meet milestones Bing wanted
to accomplish in 90 days, such as decommissioning the Mistersky Power
Plant, cutting by half the city's 300 bank accounts.....and privatizing
the city's payroll....The missed deadline comes amid debate on whether
Bing is moving swiftly enough to reform City Hall and address Detroit's
myriad problems...Bing said privatizing management of City Airport,
which could save $2 million, could happen in another three months.
"That's still on the table but that will happen," he said.
Detroit News
WI: Milwaukee county laying off 76
The county plans to hire a private firm to provide security at the
courthouse complex and juvenile court facilities, according to the
release from Walker’s office. It will hire an interim firm, Wackenhut
Corp., to provide security in the coming two weeks in case of an
unusually high rate of sick leave similar to what happened when the
county made the transition to private housekeeping services, said
spokeswoman Fran McLaughlin. Laid-off security staff will be able to
interview for vacant correctional officer positions and positions with
the private security contractor, the release says.
Milwaukee Business Journal
CO: CU-Boulder won't go private, despite funding cuts
CU officials say a package of flexibility legislation will help
universities stay open despite shrinking public funds....Ken Bonetti,
an academic adviser at CU, said he worries the legislation would turn
too much control over to the regents."In my view, the university
administration and regents would enjoy all of the perks of privatization,
with subsidies from the state and without calling it privatization," Bonetti said.
"It's de facto privatization." Boulder campus spokesman Bronson Hilliard said tuition
flexibility is not synonymous with privatization. "It's the desire of
the system leadership -- and the regents -- and the campus that we
remain a public university," Hilliard said. "We like, and are proud, of
our legacy as a public university." When there are tuition increases,
Hilliard said the university invests some of the extra revenue into
scholarships for low-income students.
Daily Camera
LA: Gov defends privatizing substance treatment centers
Governor Jindal came into town Friday and spoke about recent cuts
budget that will mean privatizing Pines Treatment Center. The Pines
treats 500 people each year for substance use disorders. This
privatization may mean dozens of jobs will be lost in the Shreveport
area. Following the privatization announcement, Pines administrator
George Sewell made valid points: the treatment center already cut back
on nursing positions; its staff is competent and caring; and the
savings in mental health budgets will translate into higher costs for
the Louisiana criminal justice system and hospitals. But why would the
Governor suddenly privatize a facility that opened its doors in 1976?
The Examiner
