Generally speaking, when considering privatizing what is publicly being run, it would be prudent to know how deep into the red the budget currently to operate that function is. Also, know that publicly run functions don’t pay sales tax for purchases. Those who consider taking over that function might find that operating in the black extremely difficult, not because they are incompetent, but because it cost real money to operate.
An example in reverse is what happened in my city: Most all of the water and sewer system was run by different private owners throughout the county. They all were approaching a condition where they could no longer afford to improve and develop the sewer demand increase. Most all the equipment was on the verge of critical failure.
The public owned electric utility, attempting to protect itself from the purchased by a larger investor-owned utility found a win-win opportunity. The electric utility took over both the water and sewer service for the entire county. The electric side far exceeded viability and operated far into the black. The budget surplus allowed the city owned electric side to completely fund the water and sewer side.
Absolutely no investor-owned utility had any interest in buying the water and sewer side because it was a money pit with millions of dollars away from operating in the black, if ever. The electric side was protected from being purchased, because they went as a packaged deal. You buy the electric, you must also buy the water and sewer.
Simply: Just because a public function is run by less than best practices, doesn’t mean it is a good fit to being privatized. Even knowing that the private sector can run a business much leaner, doesn’t mean that the business is even capable of being run in the black, at least in a reasonable amount of time.
You bring up a good point. But, I would say it is both ways. Toll roads are popular because they are cash engines. the hard part is the capital up-front cost. The OM&A and cost of money is built into the formula and the more time goes by, the stronger the revenue picture gets. Until, you reach replacement age, about the age alot of the US infrastructure is right now. To maintain safe bridges and roadways, it cost money. To replace is A LOT of money. But there is not more revenue, these repairs are not going to induce new trips just serve what has been there. So, it is a hit that private sector firms don’t want to take and they sell. The road does not get rebuilt properly because the profit hit is extreme. Someone has to make sure that it gets done or you have failures. This is not a competency issue, actually the opposite. Both sides have DAMN good people. The public guys look to operate at a set level of service and the private guys to maximize profit.
Where I get mad is that people look at the cost and say it is Government waste. It is not, I would say the Government side is closer to what it should be but the money gets in the way. Private will try to get out as cheap as possible, which is not bad IF it is apples to apples. Most of the time it isn’t. Low bid requirements made the world a much less safe place!
Well, to start there is a 15 to 20% profit built into the private sector that the public doesn’t have. Anytime we looked at a P3, we always walked away saying why give them 20% of the top, we can do it ourselves and turn it into bike lanes, transit or sidewalks at ramps?
The second part is what I pulled out of the article, they don’t care. They only want their profit. It does not matter that NW Indiana people want the Transit and Pedestrian Plan, if it interferes with their plans. Court.
They are difficult to work with. Coordination is tough, they just don’t respond. Transportation is a system, you don’t care who owns what. It has to work seamlessly, that requires cooperation. Maybe the Aussies will be better.
Finally, who owns America? You want Aussie and China? Some would say who cares? Funny how people are so concerned with 10k migrants, yet China can buy 10% of our farmlands or Aussie can own your road and its fine. How much of your Nation do you want foreign owned?
As I said there are some good things, but that is what bothers me about it. Sorry to bore. Off to the gym…
I work in tolls. Mostly with engineers. I have yet to meet an engineer that wants his license on the line with a failure. The ones I work with are usually damn good. Nobody wants to be the Engineer of Record when a bridge collapses. That ends Companies and people.
I have worked both for 33 years. Last 20 as PM, so I usually have say in who we hire.
As I said, worst thing ever - Low bid. I have met more private sector scum-bag engineers than public sector. Sometimes the public ones want to get to retirement so you have to light a fire under them, but they at lease care about quality. But, as I said I am in roads, no one wants a road failure. Too big…
It’s one of those local issues I wouldn’t have a strong opinion on without doing a lot more homework.
Has it resulted in a revenue loss for taxpayers? I’m not sure, but boy did the overall situation in Indiana seem to be so much better than Maine. Clean municipal parks, no needles everywhere and Indiana State Parks seem to be functioning quite well. Turkey Run and Pokagon were just as wonderful as I remember them being, with good staffing and maintenance.
Valparaiso has grown and flourished in the same time that my current home of Lewiston has fallen into dysfunction and failed to attract businesses and productive people. In the year 2000 you would be hard pressed to notice any major differences between the two medium-sized college towns. It is like living in a different country today.
I couldn’t get over the wind farm along I-65 near Lafayette. I came upon it at night wondering what in the hell all of these flashing lights in the sky were. I figured it out quickly enough and was shocked at how massive it was when I could see it in daylight. I’m glad I don’t live in the middle of it.
Indiana is a good State, the guys I worked with were NW Indiana and good. Chicago, another story. Either top notch or clock punchers.
My brother was in Bloomington for years, nice town. I go to Maine every Christmas, only because my daughter is in Boston and I will take Maine over Boston if for no other reason cost!
Wind farm is wild on I-65. I worked on the I-65 River Bridges in another life…
I was pleasantly surprised at my visit to Chicago on the same trip. I was expecting much worse but they’ve done a good job at making downtown a place that’s welcoming to families. It was much nicer than downtown Lewiston, which is not a place that’s welcoming to families.
I was also somewhat shocked at how polite the Chicago drivers seemed. I remember a lot more recklessness and mayhem from them in the 1990’s. We called them FIPs in Indiana. (Fuckin’ Illinois People)
The engineers where I worked were generally, fairly dedicated. Now switch your focus to the hourly paid workers and you will find many entitled deadbeats who are next to impossible to fire without a mountain of paperwork and many sessions with a union representative. Those are the bottom 20% who do more effort hiding and avoiding work than simply trying to do the job.
I can tell you some horror stories of the waste of dollars concerning the bottom 20%.
Like a true neocon? Let’s hope not. If he wants to end the Left, I wish him the best. Everything the Left wants involves taking things and rights from others.
My wife is from WI, she calls them FIBS. Downtown is surprisingly nice, especially around the river. I used to take the Hiawatha Line down for meetings at Sears Tower.
Down by U of Chicago and Comeisky Park, well…
Like anywhere, if you have enough money it is nice. Evanston and up by Loyola-Chicago (one of the great campuses in the Nation on the Lake). There are great areas.
He better make some deals or it is 4 years of fighting impeachment. Haven’t you guys learned anything from last time? Those NeoCons and even a few Dems are necessary to get his agenda through. Executive Orders get rescinded daily. That is the different, DeSantis knows how to use the system, Trump never learned. DeSantis only problem is he has the charisma of a rock.
Neocons are on the way out. Don’t be surprised to see them clamoring to get on board to keep their jobs. There’s always the Liz Cheney #resistance media personality route for those who still want to #nevertrump.
This is a big improvement for the Republicans, IMO. I hated the neocons. They are old relics of when Washington was run by Democrats and Republicans with precious few differences.
I don’t think there’s any going back to carefully-curated politicians presented by compliant partners in mainstream media. Not for President, not anymore. If you can’t do Rogan or something like it, you’re not going to be taken seriously by Gen X and younger.
Hopefully the increasing scrutiny trickles down to local candidates, but I’m not holding my breath for that.
He won, all for it. He has to work with Congress, even Reagan had to work with Congress. It’s not hard, want to reduce troops abroad and make Europe pay for their fair share of NATO, great have at it. He has the juice to do that. He wants to pull out of NATO? He will find himself in same situation as 4 years ago. Same with Japan and Korea. He wants a wall on the Border and deport criminals, have at it. Tries to deport Grandma? He will have a fight. Just need some common sense to go with the policies.
He wants to re-organize appointed positions, have at it. Fire 75% of Government workers and go after civil service? He will be in a war. Problem is he is sloppy, makes mistakes and Politicians remember. As we have seen the last 6 years. He is too heavy handed, he will spend 4 years defending himself. Work with the GOP…
As for locals, I have seen the local MAGAs come to the center more, not centrists but more to the center. The Left is whacked out, we don’t need the Right being whacked out too. We have to make some progress on real problems, regardless of ego.
Well, based on what I’ve seen of the new border czar, illegal immigration is coming to a hard stop.
I’m actually starting to feel sympathy for the illegal immigrants that are here already, not criminals, and not on the gov’t dole because they are gainfully employed.
Impeachment comes from the House of Representatives. Trump looks safe the next two years. If the Republicans lose the House in 2026 there very likely will be another impeachment fest.