an article by coalition member Ron Jones
In 2008 the city of Chicago leased all its 36,000 parking meters to an investment arm of the Wall Street bank of Morgan Stanley. The deal gives the investors an income of at least $11.6 billion dollars over the term of the 75 year lease. In addition, because of an “Adverse Action” clause inserted in the contract, the city has to reimburse the investors for any “lost parking meter revenue” any time parking access is blocked by an outside event such as sewer repair, street fairs, a parade or other such local event. Who will pay the extra amount? City residents -through higher taxes.
On January 20, 2014 Pennsylvania Governor Tom Corbett’s administration announced their intention to sign a forty year contract to privatize Pennsylvania’s bridges. In the agreement will be an Adverse Action clause awarding compensation to the investor owners if the revenue from tolls falls below an amount the investor expects to receive. Who will pay that extra amount? State taxpayers will.
The Corrections Corporation of America – largest domestic operator of private prisons — has written to 48 states offering to take over the running of their prisons, provided the states guarantee a 90% occupancy. The systemic corruption this invites is breathtaking. Prisons are not meant to be nor should they be profit-making enterprises.
All across the western world there is enormous pressure being brought to “privatize everything.” Why? Where is the pressure coming from? Why are municipalities rushing to privatize everything in sight? The short answer – money – an immediate cash infusion and a smaller municipal payroll over the period of the contract incentivizes the political leaders – as does campaign contributions from the investors’ lobbyists. And, the oddity of it is those who are rushing in to privatize are the same Wall Street Bankers and investors who put us in such dire straits in the first place by their risky hedge fund investments which lost big money and drained public pension coffers of their funds in 2007-08. The issue of privatization may be the most important public issue we are facing in the U.S. and it is causing terrible dislocation and political chaos in Europe right now.
The privatization of social services and mental health care has been on a fast track trajectory for a long time in Broome County. And it shows no signs of easing up. Now the local legislature is considering privatizing our community busses and nursing homes. Will the jail be next? How about libraries? Water? All of our roads? Schools? Let’s stop this craziness before all governmental services have been turned over to profit-makers. And, don’t believe the myth that private corporations are better run and more efficient than governmental services. It is simply not true. I know – I have worked on both sides of this equation. Companies and organizations are just as good – or bad – as the people who run them.
Remember, private corporations are responsible only to shareholders. Municipal organizations are beholden to its citizens. If you have an issue with a privatized community service you have no voice. With a public utility at least you can vote the rascals out of office.
Ron Jones Former Johnson City Trustee
149 Ackley Ave
Johnson City, NY
348-5462