Toll road woes show risk of loans lawmakers aim to expand
NY: Lawmaker asks AG to investigate privatization of Nassau sewage plants
ID: Idaho striving to privatize liquor
AZ: Legislators approve 2nd private school tuition tax credit
IL: Chicago will pay big time during upcoming parking lockdown
NJ: Law lets private companies to build schools in needy areas
CA: Government privatization talk scheduled
CO: Task force members grill Pinnacol CEO about privatization plan
News summaries
Toll road woes show risk of loans lawmakers aim to expand
Democratic and Republican leaders in Congress are united in pushing an eightfold boost to a loan program designed to attract private highway funding, even as revenue gaps in existing projects may cause taxpayer losses. Of the six open highways backed by the Transportation Infrastructure Finance and Innovation Act, one reorganized in bankruptcy at an upfront cost to taxpayers of $79.5 million; a second probably needs its debt restructured, and the rating on a third is six notches below investment grade, according to Fitch Ratings reports and government records. A Senate panel chaired by California Democrat Barbara Boxer has approved a proposal to increase TIFIA’s funding to $1 billion a year and allow it to cover almost half of a project’s costs. Representative John Mica, a Florida Republican who leads the House transportation committee, has said he plans to press for a similar measure to help offset a six-year decline in tax revenue for new roads. “People are treating this like it’s free money, but it isn’t, and it’s not without risk,” said Robert Puentes, an analyst with the Washington-based Brookings Institution, a nonprofit public-policy organization. “The risk involved here is a sleeper issue which needs to get much more attention as they move to expand the program.” Bloomberg
NY: Lawmaker asks AG to investigate privatization of Nassau sewage plants
County Legislator Dave Denenberg, of the 19th District, announced his request for State Attorney General Eric Schneiderman to investigate the legality of County Executive Edward Mangano’s plan to privatize the county’s sewage treatment plants… He said his request is on behalf of several residents regarding the sale or lease of the county’s sewage treatment plants and infrastructure, with concerns that the deal is a “‘one shot budget gimmick’ that will result in higher sewage charges to taxpayers and less public oversight of this vital county function and environmental issue.” Denenberg also calls into question a contract between Nassau County and Morgan Stanley regarding the privatization deal. “The contract, for which Morgan Stanley will be paid $100,000 per quarter, is for the evaluation and assessment of the county’s sewage treatment plants and disposal infrastructure for the purpose of preparing bid documents to sell the plants to a private company,” said Denenberg. “The county’s financial control board, NIFA, has already criticized the plan because instead of retiring debt, the proceeds of the sale will be used as one-shot revenue.” “I request an investigation into this process whether state municipal laws and/or regulations with respect to proper bidding processes and proper contracting processes were violated. Levitttown Tribune
ID: Idaho striving to privatize liquor
Idaho could be the next state to privatize liquor sales, right behind Washington. In November, Washington voters said “yes” to taking liquor sales out of the hands of the government. Just as Costco pushed the initiative in Washington, the grocery industry is pushing to privatize liquor in Idaho. Enoteca is a business in Post Falls that offers more than a thousand bottles of wine. They hope the initiative will be passed in Idaho and their inventory will expand. KXLY Spokane
AZ: Legislators approve 2nd private school tuition tax credit
State lawmakers moved Thursday to let Arizonans divert more of what they owe in taxes to help students attend private and parochial schools, and to ease the legal requirements for those schools. East Valley Tribune
IL: Chicago will pay big time during upcoming parking lockdown
The 75-year, $1.15 billion lease that privatized Chicago parking meters requires the city to compensate the concessionaire – at the newly increased downtown rate of $5.75 an hour – whenever metered spaces are temporarily taken out of commission. In the case of the May 19-21 event expected to draw President Barack Obama and other world leaders to McCormick Place, that compensation could be substantial. On Wednesday, host committee spokeswoman Jennifer Martinez acknowledged that access to the Loop would be restricted, and motorists would be temporarily inconvenienced. She further acknowledged that Chicago Parking Meters LLC would have to be compensated for lost revenue tied to scores of metered downtown spaces. Chicago Sun-Times
NJ: Law lets private companies to build schools in needy areas
Gov. Chris Christie today signed the first of what he hopes will be a series of education reforms: a measure giving private nonprofit companies the authority to build a total of 12 schools in Newark, Camden and Trenton. The Star-Ledger
CA: Government privatization talk scheduled
The League of Women Voters will meet at 1 p.m. Monday, Jan. 16, to discuss the privatization of governmental services, assets and functions. The discussion will include how privatization of government services, functions and assets works; if it is cost-effective; and the pros and cons of such action. The purpose of the talk is to identify policies and parameters that should be considered when any governmental entity is planning to undertake some type of privatization process. It will review the stated goals and the community impact of such transfers, and identify strategies to ensure transparency, accountability, and preservation of the common good. The Herald-Dispatch
CO: Task force members grill Pinnacol CEO about privatization plan
Pinnacol Assurance executives have spent more than two months touting their proposal to make the state-chartered workers’ compensation insurer a private company. A task force appointed by Gov. John Hickenlooper is expected to send its opinions and analysis of the plan to him in early February. The task force won’t be voting to recommend for or against the privatization plan. Colorado businesses have so far appeared reluctant to back the plan — an important critiquing group, as Pinnacol insures roughly 57 percent of all companies in the state. Denver Business Journal