February 17, 2015

News

A “Grand Alliance” To Save Our Public Postal Service. The conservative/Wall Street/1-percent/Republican anti-government strategy is to set government up to fail (usually by starving it of funding). Then they point to the resulting “crisis” they created and say that it proves that government doesn’t work and that we should therefore “privatize” it — in other words, rig the system against the majority by handing our common wealth over to a few wealthy people to harvest for personal profit. Now they’re coming for the U.S. Postal Service. Huffington Post

Citizens worldwide mobilize against corporate water grabs. The US and other governments are pushing a failed model of water privatization, writes Victoria Collier – but water is a human right, not just a commodity to be traded for profit or monopolized by corporations, and citizens and communities worldwide are fighting back, from Detroit to Cochabamba, from Berlin to Malaysia, to reclaim their water commons. The Ecologist

Rep. Jim Bridenstine seeks to privatize NOAA weather satellite program. . . As new chairman of the House Science, Space and Technology Subcommittee on Environment, whose responsibilities include the National Oceanic and Atmospheric Administration and its subagency, the National Weather Service, Bridenstine is in a position to begin implementing his ideas for changing the way NOAA does business. . . . “There is a large commercial industry that has incredible potential to assist us in providing accurate information,” he said. “Considering options that reduce the burden on massive government satellite systems (would) allow us to more accurately predict the weather.” Bridenstine takes over chairmanship of the subcommittee at a pivotal moment for NOAA. Its two primary satellite systems, one in polar orbit and the other in stationary orbit over the United States, are both nearing the end of their operational lives. Their replacements, however, are not expected to be in orbit and fully functioning until months or even years after the existing satellites are scheduled to go silent. . . Bridenstine’s support of commercial satellites and data-gathering have led some to think he wants to end the ongoing NOAA projects, but in interviews and again Thursday he said that is not the case. Tulsa World

NE: Nonprofits criticize lack of county support during health center privatization.  . . . Many former clients expressed concern about a lack of information about which mental health center services would be continued and which wouldn’t, and how the changes would affect them. Other former clients said they were satisfied with their new therapists and caseworkers. A particular area of frustration for many former clients was the brief interruption of medication management services during the transition. There were two periods of a few days each when medication was not available for pick-up by consumers. One woman said she went a week without her meds because she didn’t have the information she needed. Lincoln Journal Star

WI: School Board Member: Scott Walker’s plan for charter schools outdoes ALEC in privatizing education. Gov. Scott Walker’s plan to privatize authority over charter schools is a trifecta of bad public policy, “untested, excessive, and irresponsible,” Madison School Board member Ed Hughes on his blog. Walker’s plan, as laid out in his 2016-2017 budget proposal, would privatize and politicize charter schools beyond what is being done anywhere else in the country, Hughes wrote.   Madison.com

MI: Lawmakers propose privatizing Michigan Lottery. The bills — one in each chamber — would require state Lottery Commissioner M. Scott Bowen to seek bids from private companies for management of the state lottery, though the legislation wouldn’t require the commissioner to accept those bids. Both bills were just referred to committee and haven’t yet had a hearing. WZZM

TX: Smaller Trinity toll road: a legitimate plan or political ploy?. . . Opponents view the findings – and the consultants’ privately funded task itself – as a political distraction that ignores the financial and bureaucratic realities of a road whose designs call for six lanes and several large interchanges. Dallas Morning News

February 13, 2015

News

An experiment in privatizing public land fails after 14 years. . . The Cato Institute, a Washington, D.C.-based libertarian think tank, is of that opinion and has developed models to replace federal agencies with private interests. What many people don’t know is that Congress implemented one of the Cato Institute’s ideas in 2000, on the 89,000-acre Valles Caldera National Preserve in New Mexico. For some critics of the federal government, this was the experiment in land management that would signal the end of the BLM and Forest Service in the West. The Cato experiment in New Mexico, however, failed, chewed up by the friction between monetizing the “services” that landscapes provide — recreation, timber, grass, wildlife — and fulfilling citizens’ expectations for public access and protecting natural resources. For example, New Mexicans had very little tolerance for paying high fees to visit public property that had already been paid for using federal Land and Water Conservation Fund dollars. High Country News           

New Alliance Takes on Corporate Push to Privatize the Post Office. CWA and more than 60 other labor, public interest, faith, community and civil rights organizations have formed the Grand Alliance to Save Our Public Postal Service. Communications Workers of America

NY: Report Faults Charter School Rules on Discipline of Students. Most of New York City’s charter schools have disciplinary codes that do not meet either state or federal requirements, according to a report by a children’s advocacy organization that is to be released on Thursday. New York Times

NY: UUP pushes back against efforts to privatize SUNY hospitals. The president of the United University Professions, Frederick Kowal, weighed in against the governor’s budget this week, testifying at a joint legislative budget hearing that it “continues a trend of the state’s disinvestment in public higher education.” Of particular concern to UUP and other public employee unions is the budget’s weakening support for SUNY’s public hospitals. “Once again,” Kowal said, “the governor is attempting to privatize our SUNY hospitals by allowing corporations to own and operate these facilities.” Albany Times Union (blog)

TX: New commissioner spotlights toll authority. . . Shea, who took office last month, is hoping to install a “watchdog” to look out for environmental and social justice concerns on the board of the Central Texas Regional Mobility Authority, which has been tasked with building the controversial Texas 45 Southwest project. Her efforts are drawing backlash from the mobility authority, which Shea has said is dominated by real estate and development interests….Shea, who co-founded the Save Our Springs Alliance in 1992, has led the charge against the road, which is planned to be built over the environmentally sensitive Edwards Aquifer recharge zone, potentially harming endangered species populations and topographical features such as caves. Austin American-Statesman

NC: MNPS Audit Looks for Savings Through Outsourcing, Raises Questions About Charter Costs. The audit focused on seeking private contractors for some or all of the district’s nutrition, transportation and energy programs as well as some facilities management, saving between $2 million and $13 million per year, beginning in year two. In an official response from management, the district plans to hire an in-house energy manager and implement a comprehensive energy management program, but keep the jobs with MNPS instead of an outside firm. MNPS rejected some of the audit analysis on transportation and nutrition programs, arguing that the audit started with flawed assumptions. Nashville Scene

SC: Firestorm of protest hits Columbia city council over possible privatization of privatization of city water, sewer. In fiery speeches to Columbia city council members, more than a dozen Columbia residents Tuesday night denounced any effort by council to allow a private company buy or lease the city’s water and sewer systems. “Water is the new oil,” Howard Duvall told council members at a regular meeting, stressing that profit-minded companies have only one goal – to tap into the city’s lucrative revenue streams. “Companies are accountable to shareholders –not consumers,” Elaine Cooper told council. Like many in the audience, she wore an anti-privatization badge. Hers said, “NO!” over the image of a water faucet. The State

PA: Pa. Senate Democrats to counter liquor privatization plan….Wolf unequivocally disagrees with the concept of privatization, and instead supports expanded Sunday hours and opening state stores inside supermarkets. Tribune-Review

 

February 11, 2015

News

Vast majority opposes gas tax hike, poll shows. Nearly 70 percent of U.S. residents are opposed to the idea of raising the federal gas tax to pay for new transportation projects, according to a poll released Friday by a group that is working to stop such an increase…..The poll found 21 percent of its respondents agreed with the statement “because the cost of gasoline is falling, now is the right time to increase the federal gasoline tax. Our roads, bridges, and highways are in disrepair and this extra money would help increase the amount of money available for transportation construction.” The Hill

MI: Up to 170 state-worker jobs at stake in lottery bills. . . The bills — one in each chamber — would require state Lottery Commissioner M. Scott Bowen to seek bids from private companies for management of the state lottery, though the legislation wouldn’t require the commissioner to accept those bids. Both bills were just referred to committee and haven’t yet had a hearing. Detroit Free Press

NY: NYC Housing Authority deal with developers raises concerns. Elected officials asked Tuesday whether a deal to give private developers a 50 percent stake in six New York City Housing Authority properties could signal a trend toward privatization of the nation’s largest public housing agency. The partnership deal, which closed in December, affects 875 apartments in buildings where rents are subsidized under the federal Section 8 program. Newsday

IN: Lake, LaPorte counties still in hunt for bankrupt Toll Road. Tolls paid by motorists at the Indiana Toll Road Portage exit, shown here, could help fund road projects in LaPorte and Lake counties under plans being formed by both counties to buy the Toll Road out of bankruptcy. nwitimes.com

LA: Inmate Care More Complicated Since Privatization. When Earl K. Long Hospital closed nearly two years ago, LSU’s private partner in Baton Rouge — Our Lady of the Lake — took over patient care, but refused to take care of inmates. That meant a whole lot of scrambling for Angola Warden Burl Cain. WRKF

TX: State hospital’s privatization on hold. The Texas State Auditor’s Office is looking into whether the Health and Human Services Commission followed proper procedure when it worked to privatize Terrell State Hospital last year. State Sen. Robert Nichols, R-Jacksonville, requested the audit last year, amid questions about both the agency’s process, and whether the agency even has the authority to hand off the running of a state psychiatric hospital to a private company, without legislative approval. Tyler Morning Telegraph

PA: Pennsylvania House Republicans plan vote to privatize liquor sales. As a “starting point” for Pennsylvania’s 2015-16 budget talks, House Republicans said Tuesday that they will lay their first marker, once again, on a full-scale privatization of the existing state-run liquor monopoly. House Majority Leader David Reed said his caucus plans to run and expects to pass a mirror-image of the privatization bill that passed the House of Representatives two years ago. The House vote is scheduled for the week of Feb. 23. PennLive.com

TN: Haslam proposes privatizing troubled Woodland Hills…The troubled youth detention facility in Nashville was the site of two mass escapes last fall. Under Haslam’s proposal, the state will save $7.7 million by handing the reins to a private contractor, eliminating 131 positions at the facility in the process. The Tennessean

CT: Former Malloy aide joins toll-road operato. A builder and operator of highway tolls has hired a firm employing a former top adviser to Gov. Dannel P. Malloy as the governor is making transportation a major issue of his second term. Hearst Connecticut Media reports that Roy Occhiogrosso, who led Malloy’s unsuccessful 2006 gubernatorial campaign and his winning races in 2010 and 2014, is a managing partner at the Hartford-based Global Strategy Group. It entered a $60,000-a-year agreement last month to represent the HNTB Corp. in Kansas City. Occhiogrosso is listed with the state as the main Connecticut lobbyist for HNTB, a consulting firm for public works, including management of tolls. Waterbury Republican American

 

February 9, 2015

News

NJ: Christie signs law greenlighting fast track sale of N.J. public water systems. . . The Water Infrastructure Protection Act removes the public vote requirement to sell water systems throughout the state under emergency conditions that many systems currently meet. . . . Opponents warn that it is an attempt to turn private profits off public infrastructure at the expense of taxpayers — who themselves will end up paying for the purchase prices with increased rates. NJ.com

NE: Study: No real gains in attempt to privatize child welfare. Nebraska’s attempt to privatize its child welfare system has brought “no measurable benefits,” according to a new study produced for state lawmakers. The study compared results achieved by state child welfare workers and by the Nebraska Families Collaborative, the private agency that manages child welfare cases in the Omaha area. The study found no cost savings and no significant difference in outcomes for children and families. “It was, perhaps, a worthy experiment, but it has failed,” the authors, Helaine Hornby and Dennis Zeller, wrote in their report. Grand Island Independent

TX: Audit reviewing state contract to run North Texas psychiatric facility. As state health officials continue to take fire over the agency’s technology contracts, they’re facing another investigation into a proposed deal with a private company to run a North Texas psychiatric facility. The State Auditor’s Office is conducting a review into whether the Health and Human Services Commission followed state procurement laws when it awarded Correct Care Solutions a tentative contract to run Terrell State Hospital. The cost and the scope of the proposed deal aren’t publicly known. Austin American-Statesman

SC: Editorial: Columbia, SC, officials must keep public informed on water, sewer proposals. . . We aren’t opposed to Columbia exploring public-private or public-public partnerships — or even privatization that involves leasing or selling the system. Privatization isn’t inherently bad; it works well in some instances, although it’s not always the best way to deliver government services. In this instance, the question is what’s the best way to deliver more efficient water and sewer service at a reasonable rate and in a manner consistent with governmental principles. The State

NC: North Carolina School Privatization Could Impact Students With Disabilities. Advocates for children with disabilities are concerned about the impact North Carolina’s expanded charter school and private school voucher program may have on them. . . . Jane Wettach, director of the Children’s Law Clinic at Duke University, says the shifting of funds and focus to charter schools could specifically impact students who need additional support services. “Because charter schools tend to be independent, they don’t have the depth a public school district would have to deal with lots of different kinds of disabilities,” she says. Public News Service

Letter to Editor: Public Must Be Wary of Public-Private Partnerships. . . I believe the biggest attraction of public-private partnerships for elected officials is that those contracts allow surrogates to reach into the wallets of travelers at rates much higher than fuel taxes—with the additional bonus of the ability to increase taxes (toll rates) each year. There are no free roads. Wall Street Journal

The Spread of Privatization. . . The 1980s ushered in an era of privatization, where the state gave up on controlling many of the state owned assets it once championed as national symbols of success. As the government moved away from its role as producer to become a passive umpire in the domestic economy, decentralization and market provision of goods and services were deemed superior to state involvement in both providing efficiency and effectiveness. . . Many countries in the developing world started to question the success of privatization and the merits of pulling the government out of ownership in the economy. It is difficult to fault privatization for the mixed reviews it has received in corners of the global South, since it has ostensibly accomplished many of the merits it promised. But, increased societal demands and an aware public, raised questions and doubts about what was achieved and if privatization went too far. Centre for International Governance Innovation

February 5, 2015

News

WI: Walker backs off removing ‘Wisconsin Idea’ from UW mission. Gov. Scott Walker abruptly backed off Wednesday from a contentious plan to eliminate the University of Wisconsin System’s public service mission statement known as the “Wisconsin Idea” and replace it with the charge of meeting the state’s workforce needs. . . . The governor, who does not have a college degree, has proposed $300 million in cuts to the UW System in exchange for more autonomy and freedom from state oversight. . . .Walker angered faculty and staff, though, by suggesting they don’t work hard enough and should teach more classes. His proposal to delete the Wisconsin Idea generated more anger from the university community. “The Wisconsin Idea is embedded in our DNA,” said UW President Ray Cross in a statement. “It is so much more than words on a page. It is the reason the UW System exists. It defines us and forever will distinguish us as a great, public university. Wisconsin must not abandon this core principle and value.” Associated Press

TX: Texas Lawmaker Proposes Ban On Toll Road Land Confiscation. Opponents of toll roads in Texas no longer want to see the public gets the worst end of the bargain in “public-private partnerships. That is why state Representative Cindy Burkett (R-Sunnyvale) introduced legislation for the current session to strip private entities of the power of taking land from citizens for the use of toll road builders. . . . The issue came to light last year when the state quietly included construction of the Blacklands Tollway-Northeast Gateway corridor in its long-term transportation plan. This tolling project would have cut through Burkett’s district, and her constituents turned out in large numbers at public meetings to express their disapproval, citing the corporation’s ability to take homes away serving as a top concern. TheNewspaper.com

FL: City may privatize building services. Can a private firm better handle the city’s building services needs, including plan reviews, inspections, issuing of building permits, flood plain and zoning issues, than the current arrangement with Pinellas County? Belleair Beach officials are taking steps to find out, inviting representatives from a building service firm to present their case at the Feb. 2 City Council meeting. County building department officials will get the chance to say why they should be retained at next month’s council meeting. Tampa Bay Newspapers

FL: VIDEO: Fort Myers set to privatize city marina. Nine companies expressed an interest in managing the City of Fort Myers Yacht Basin downtown, which means the city-owned marina could become a private business. . . . Although privatizing the yacht basin probably would include improvements and save the city money, many who use the basin are concerned that the rates will go up. “They might make it look fancy and add some amenities, but I don’t feel that the basic service of being able to keep a boat here and feel happy and comfortable and welcome — I don’t think that’s going to be the case anymore,” yacht basin customer Debbie Lazar told the network. Trade Only Today

NY: Health and Hospitals Corp.’s dialysis plan scrutinized. The New York City Health and Hospitals Corp. wants to privatize its dialysis operations to help stem a $103 million operating loss it suffered last year. . . . But privatization is a politically charged issue. At a public health hearing last week, the dialysis proposal was opposed by the New York State Nurses Association, a union for registered nurses; Doctors Council SEIU, which represents HHC physicians; and Public Advocate Letitia James. Speaking at the hearing, Ms. James said, “We know for a fact this company underperforms. They put products ahead of patients.” Crain’s New York Business

February 4, 2015

News

TVA Avoids Privatization. For many months President Obama has been looking to privatize TVA. Now, after releasing Monday’s budget, it looks like he is softening his stance. WTVC

The growing gap between the wealthy and everybody else – Opinion. Private clubs and restricted lounges come with monthly dues that approximate mortgage payments for some of us. San Francisco and Manhattan are becoming velvet- roped cities. The Daily Advertiser           

Tolls impede the American spirit of the open road. Jack Kerouac would weep, were he alive today. The author famous for making road trips a rite of passage would be shocked to find how tolls, tickets and traffic fines are being used as revenue enhancement schemes and an extension of the American surveillance state. Equipment World Magazine

VA: House considers safeguards on public-private transportation deals. A bill to take the public risk out of public-private transportation deals is due before the House of Delegates for a final vote, while a companion bill to overhaul Virginia’s transportation funding formulas is scheduled for debate. Roanoke Times

CA: Controversy Heats Up Over DA Outsourcing Proposal. Controversy continues to swirl around a DA proposal seeking to outsource background investigations, with Orange County’s chief prosecutor irked over questions about a lack of disclosure regarding a longtime work relationship between the vendor and a top DA official recommending the contract. VoiceofOC

OH: NKY group demands Kasich apologize. A group fighting to keep tolls off the Brent Spence Bridge is demanding that Ohio Gov. John Kasich formally apologize after his latest critical comments about Northern Kentucky leaders. Northern Kentucky United launched an online petition Friday morning, hoping to get 2,500 signatures to pressure Kasich to apologize for verbal jabs he took this week at Kentucky state lawmakers who do not support using tolls to fast-track construction of the $2.6 billion Brent Spence Bridge project. . . Kasich isn’t backing down from his aggressive push to get the Brent Spence Bridge project done and has no plans to apologize. Cincinnati.com

MS: LOOM: Single benefactor giving education privatization edge at Capitol. Well-funded privatization forces are gaining ground in their efforts to privatize Mississippi’s public education system, a move that would hand state tax dollars and our children’s futures to unaccountable for-profit, virtual, and private schools. Mississippi Business Journal (blog)

TX: Don’t railroad our neighborhoods. A high-speed rail line linking Houston and Dallas sounds like a good idea. But as they say, the devil is in the details. Texas Central Railroad, a recently-formed private company, is proposing to build such a link with funding obtained largely from Japanese banks, and has applied to the Federal Railroad Administration for permission to do so. The nine candidate routes examined so far have been winnowed down to two. Unfortunately, the last stretches of these routes run directly through Houston residential neighborhoods.   Houston Chronicle

February 2, 2015

News

TX: In Texas contracting, failure is an option. Yet the questionable no-bid contract awarded to the Austin tech firm 21CT for Medicaid fraud detection software is just the latest chapter in Texas’ troubled adventures in outsourcing. . . . For two decades, Texas has pursued a wave of privatization of public functions with the belief that corporations could save taxpayer money while improving the delivery of essential government services. But multiple contracts representing billions in public dollars have blown up in the state’s face, leading to lawsuits, ethics investigations, wasted funds and frustrated Texans. The pattern that emerges is one of famously business-friendly Texas repeatedly fumbling its efforts to hold the businesses it hires accountable. Fort Worth Star Telegram

OH: Gov. John Kasich wants to add teeth to charter school oversight rules and let charters seek local tax levies. Gov. John Kasich’s budget proposal Monday would offer charter schools in Ohio two new potential funding sources — a $25 million facilities fund and the ability to seek local tax levies from voters — while putting a greater focus on charter school sponsors, or authorizers, as a way to improve school quality. Kasich’s proposals, to be unveiled Monday afternoon, will put increased pressure on the sponsors — agencies that help create and oversee the charter schools — to be better at that task. cleveland.com

OH: Governors stump for tolls on Brent Spence Bridge.The governors of Kentucky and Ohio held a press conference Wednesday to promote tolls to fund the replacement of the Brent Spence Bridge that carries Interstates 75 and 71 across the Ohio River. As OOIDA and anti-toll groups have already pointed out, tolls would not just pay for bridge construction and maintenance, but also guarantee profits to a private investor. Land Line Magazine

NY: Group says Cuomo’s education reforms don’t ‘cut the mustard’. The Alliance for Quality Education on Friday issued a point-by-point rebuttal to the governor’s education agenda, criticizing his proposals to change the teacher evaluation, lift the cap on charter schools and offer a tax credit for donations to private schools. “In a moment of rhetorical flourish designed to justify his entire agenda, he called the current teacher evaluation system ‘baloney,’ but his own agenda simply does not cut the mustard,” said a statement from the organization. . . . The group also panned the governor’s other proposals including lifting the charter school cap. The organization said a proposal to make sure charter schools aren’t “cherry picking” the best students from public schools won’t be enforced even if enacted. It said a $100 million tax credit for contributions to private schools would be a giveaway to the wealthy and takeover of failing schools by private outside entities won’t work without funding. The Alliance for Quality Education concluded that market-based reforms don’t work in education. PostStar.com

LA: Prison privatization might save Baton Rouge money, but is there a higher cost?. . . Several council members say that having an outside, private company build and operate the parish prison is something the city should at least look into, particularly in light of how much money it could save. But the privatization of prisons is controversial: While communities typically want to see fewer citizens imprisoned, the business model of a private prison relies on keeping people locked up. And in East Baton Rouge, where the sheriff has the ultimate say on how the prison is operated, it could be a tough political challenge for the city-parish and sheriff to make a change that drastic and relinquish control over the facility. NOLA.com

January 30, 2015

News

Beefs over food in Georgia jail feed outsourcing debate. One prisoner said he eased hunger pangs by eating toothpaste. One complained he got so little food that he trembled at night in his cell. Another filed grievance after grievance, each consisting of a single word: “Hungry.” These complaints, all from the Gordon County Jail in Calhoun, Georgia, highlight a growing debate involving correctional institutions nationwide. In an era of tight government budgets and little sympathy for the incarcerated, three square meals a day in jail are giving way to aggressive cost-cutting through outsourcing of food services. The Detroit News

IN: Indiana Toll Road driving toward a sale. Lawyers for the bankrupt operator of the Indiana Toll Road on Thursday told a judge they could have a final offer on the table for the 157-mile expressway in as little as two or three months. Lawyers for Indiana Toll Road Concession Co. told Federal Bankruptcy Judge Pamela Hollis there are “many” interested parties participating in the bidding process for the 75-year lease for the interstate but kept the names confidential. Judge Hollis also approved without objections an incentive bonus plan for top Indiana Toll Road executives that could have them splitting a multimillion dollar bonus pool if the road fetches a rich price. nwitimes.com

NC: State extends toll-lanes financing deadline. The deadline for the developer of the planned high-occupancy toll lanes on Interstate 77 to secure financing for the project has been extended three months, documents obtained from the N.C. Department of Transportation show. The project calls for Cintra, a Spanish company, to build private toll lanes on the remaining public right-of-way and operate them under a 50-year contract. Under the original terms Cintra was required to secure financing by Jan. 22 or forfeit a $15 million security deposit to NCDOT. Mooresville Tribune

NC: Opinion: Google Fiber deal not in best interest of NC public. The announcement of a deal with Google to bring ultra-fast Internet to the Triangle is being hailed like rain in the desert. Amid an economy that, flashes of optimism aside, remains in stagnation, we imagine that the super-fast Internet will super-charge our businesses, our schools, our very lives. . . .The upshot of the Google deal is that an enormously valuable piece of public infrastructure, which ought to be owned in common by the public, is handed over lock, stock and barrel to a private company based in California. This same company was deeply involved in the illegal, secret surveillance of all our Internet usage by the NSA. Its entire business model is founded on the premise that Google has the right to meticulously monitor and record every morsel of data that passes within its reach. Do we in North Carolina share this premise? News & Observer

AK: Kodiak fishermen say privatization not helping. . .Study participants cited privatization as a significant change that had divisive, negative impacts in the community, Carothers found. Nearly all the Kodiak fishing participants interviewed for the study expressed concerns about the future of fisheries access, with substantial financial barriers to entry being the reason. Just 13% of participants said privatization had stabilized the local economy, made for better fish prices and safer fishing or higher pay and more jobs; while 77% said privatization had a negative effect on Kodiak. Undercurrent News

January 29, 2015

News

Tailing Europe, US Is on the Road to New Investment Bond. . . The administration’s idea is to combine some of the most attractive features of public-private partnerships with those of wholly public projects. Local governments would get a private equity partner willing to share the risk of a project, while the private sector would get access to low-interest loans. The program would require congressional approval, and some observers think it may have a good chance among lawmakers looking for new ways to finance transportation and infrastructure projects because receipts from the federal excise tax on motor fuel have been inadequate. The costs are unclear since the administration has withheld details in its initial release of the plan. The idea has support in the transportation industry, but whether the financial world comes on board is an open question. Roll Call

Obama abandons plan to put telephone metadata in private hands. President Barack Obama’s administration has quietly abandoned a proposal it had been considering to put raw U.S. telephone call data collected by the National Security Agency under non-governmental control, several U.S. security officials said. . . Under the proposal floated by a Presidential review panel, telephone call “metadata” generated inside the United States, which NSA began collecting in bulk after the Sept. 11, 2001 attacks, could instead be collected and retained by an unspecified private third party. The Obama administration has decided, however, that the option of having a private third party collect and retain the telephone metadata is unworkable for both legal and practical reasons. “I think that’s accurate for right now,” a senior U.S. security official said. Reuters

Commentary: A tale of two turnpikes. . . And let me tell you, the Indiana Toll Road sucks, although anecdotal evidence would indicate that you are less likely to get a ticket In Indiana than in Ohio. The Ohio Turnpike has clean bathrooms and clean restaurants. The gift shops have things you might actually buy as gifts! Meanwhile, the rest stops on the Indiana Toll Road are just sad. . . . They have to gouge, as they are losing money. The Indiana Toll Road filed for bankruptcy in September 2014. The concession is owned by Ferrovial, a Spanish company, and Macquarie Group, an Australian investment bank. . . .The Ohio Turnpike, meanwhile, is still controlled by the state. In 2013, the Ohio Turnpike took in $2.3 million from its State Fuel Tax Allocation and posted an increase in net position (profit) of $49.6 million. The taxpayers are making a profit, and the customers who ride the road are happy with the services provided. R Street

GA: ‘P3’ bill back before Georgia Senate. Legislation introduced in the Georgia Senate Tuesday would expand the ability of state agencies and local governments to work with the private sector to finance and construct public buildings and infrastructure. The state currently is using public-private partnerships to finance and build toll lanes along metro Atlanta interstate highways and non-instructional buildings on university campuses, including dorms.   Atlanta Business Chronicle (blog)

CA: Proposal may allow developers to get around creating public plazas in SF. . . Since 1985, developers have been required to build and maintain POPOS to ensure big downtown buildings don’t crowd out people on the streets and sidewalks. Many are filled with art or activities. But with a development boom underway, a new proposal before the City’s Planning Commission would allow developers to pay into a fund in lieu of building new public spaces. KTVU San Francisco

MI: ACLU: Group Improperly Barred Protesters From Detroit Park . . . The lawsuit contends that a security guard asked four members of the anti-foreclosure group Moratorium NOW! to leave Campus Martius as they began petitioning last February against cuts to city pensions in Detroit’s bankruptcy plan. The guard told the group that the public park was in fact private and that they risked arrest, according to the lawsuit. . . . “As privatization becomes more widespread (there is concern) that people will somehow lose their rights,” said Michael Steinberg, ACLU legal director. “Campus Martius is a public park owned by the city of Detroit for the people of the city of Detroit, and they should be able to express their views on matters of public importance just like at any other public park.” CBS Local

NY: Officials: Cuomo still wants privatize NYRA. Although the New York Racing Assocation’s return to private hands might take longer than expected, a proposal by Gov. Andrew Cuomo to extend the changeover was only introduced as a backstop, officials for the governor said. Oneida Dispatch

PA: Charter school takeovers: As York schools near privatization, lessons from New Orleans and Michigan. . . The plan to privatize the district has spurred an outcry from parents, teachers, students, and local officials, who fear that a company will shortchange education in exchange for profit. Pennsylvania’s newly elected governor, Tom Wolf, has openly blasted the plan, which was initiated under his predecessor Tom Corbett. While it remains unclear what power Wolf may exercise to stop the proposal, and an appeal have been launched to stop the state from implementing it, the situation is being closely watched by scores of academics, teachers, and school officials across the country. Should it go ahead, York City School District will not only become the first district in Pennsylvania to convert all of its schools to charter schools, it will, according to education researchers interviewed by PennLive, become only the fourth in the nation to attempt something of its kind.   PennLive

NJ: Commentary: Key Elements Conveniently Left Out of the Story About Water Privatization Bill. . . The bill was introduced at the behest of private water companies to help them achieve their business goals which are to grow their service areas and increase control of water supply by acquiring water and wastewater systems. In places such as Haddonfield, sales of systems have been approved, but private water companies want to speed up the process. newjerseynewsroom.com

January 23, 2014

News

Jeb Bush’s educational experiment. . .That year, Bush found a compatible source for ideas on education when he joined the board of the Heritage Foundation, which was generating papers and proposals to break up what it viewed as the government-run monopoly of the public-school system through free-market competition, with charters and private-school vouchers. Bush found school choice philosophically appealing. “Competition means everybody gets better,” he said. He enlisted Fair to help promote a state law authorizing charter schools, which, unlike vouchers, were gaining some Democratic supporters, including President Bill Clinton, who saw them as a way to allow educators to innovate within the public-school system. The law passed in 1996, with bipartisan support, and that year Bush and Fair founded the first charter school in the state. The New Yorker

The Beginning of the End of the Public University. Tom Hayden in an article on Mario Savion argued, “The current era of privatization and neoliberalism was born in Berkeley as a countermovement to the ’60s”. We did not see what was on the horizon, too caught up with our perceived victories perhaps to see a reaction building that would change higher education. EGP News

IL: Rauner OKs Tollway’s construction plans. . . Tollway Executive Director Kristi Lafleur said Rauner’s administration gave the go-ahead after a review of the Tollway’s plans by Rauner’s staff and the Office of Management and Budget. A Rauner spokesman confirmed that information in an email to the Tribune. . .The Tollway’s Finance Committee on Wednesday approved four major construction contracts totaling $174 million for roadway and bridge reconstruction and widening on the Jane Addams Memorial Tollway (Interstate 90) between Elgin and the Kennedy Expressway.   Chicago Tribune

TX: Bill would strip Dallas toll road builder of its eminent domain powers. . . State Rep. Cindy Burkett, R-Sunnyvale, filed a bill to strip the Texas Turnpike Corp. of its eminent domain powers, the Texas Tribune reported. The bill was filed in response to the corporation’s attempt to build the so-called Northeast Gateway, a controversial 27-mile tolled highway linking Garland to Greenville. A “grassroots uproar” started within Burkett’s district last year that ultimately killed the project, the Texas Tribune reported. Dallas Business Journal

OH: Head count shows ‘unusually high’ discrepancies at charter schools. When state auditors made a surprise visit to a Youngstown charter school, they found staff members but no students. Not one. . . . A report released yesterday by Ohio Auditor Dave Yost found significantly lower attendance at half of the 30 charter schools where auditors conducted unannounced head counts this past fall. The report raises questions about whether the schools receive more tax money than they are entitled because the state relies on student enrollment — reported by the schools — to calculate aid. The privately operated, publicly funded schools get nearly $6,000 per student each year. Columbus Dispatch

OR: Bottled water wars: Nestle’s latest move in Cascade Locks sparks outcry from opponents. . . So the world’s largest food and beverage company has hung on for six years, enduring legal challenges and public protests as it awaits state permits that would allow it to bottle and sell spring water now owned by the state government. Opponents warn against privatizing a public resource for corporate profits. Nestlé contends it’s simply responding to consumer demand. Now, Nestlé wants to scrap the existing permitting process for an approach with the potential to cut the remaining wait time in half.    OregonLive.com

NJ: Christie’s ‘aggressive action’: Emergency managers for A.C. Gov. Christie on Thursday installed an emergency management team in Atlantic City, asserting that outside assistance was needed to curtail the city’s financial free fall. . . . Asked whether the plan for Atlantic City could mirror actions taken in Michigan – where emergency managers could slash budgets, sell assets, privatize departments, and in some cases essentially sideline elected officials – Orr said he would be “very, very careful” in trying to “analogize” different communities. Philly.com

FL: Our opinion: Gov. Scott’s state workforce cuts extreme. . . A report issued last week documents that state employment fell by nearly 11,000 positions in Scott’s first term — a rate of reduction faster and further than any recent governor has recorded. Florida is dead last in the country for ratio of state employees to population and in the average monthly cost of state personnel. Those ratios don’t signify efficiency, but rather, an extreme approach to cutting with little regard for the consequences. Tallahassee.com