[Privatizing government business services means losing local democratic control to corporations and loss of local jobs. We have recently learned that our own Ukiah business licensing has been outsourced to a company in Atlanta. Why? More efficient and cheaper and non-union? Lowering the budget to save overpaid management?... -DS]
Selling public resources to private companies for them to profit off of is a hot trend in cities and states—not all of them controlled by Republicans, either. Privatization deals affecting everything from parking meters to child welfare to public water systems are often negotiated in secret, carried out with little oversight, and subject to massive cost overruns and corruption. The sordid story of Chicago’s parking meters has to be a top entry in any “worst privatization stories” competition. Rick Perlstein laid out the ugly details in The Nation a couple months back:
Mayor Richard M. Daley in 2008 struck a deal with the investment consortium Chicago Parking Meters LLC, or CPM, that included Morgan Stanley, Allianz Capital Partners and, yes, the Sovereign Wealth Fund of Abu Dhabi, to privatize our meters. The price of parking—and the intensity of enforcement—skyrocketed. The terms were negotiated in secret. City Council members got two days to study the billion-dollar, seventy-five-year contract before signing off on it. An early estimate from the Chicago inspector general was that the city had sold off its property for about half of what it was worth.