Stop the proposal for public private initiatives and design-build.
Keep road and bridge projects public.
Heading off public-private boondoggles
By SHERRY HALBROOK
A vigorous campaign by PEF succeeded in getting two major state transportation
proposals — public-private partnerships and design-build — excluded from the
budget bills passed by the state Legislature in March, but the union is not
lowering its guard.
“For several years, the governor has proposed these programs as ‘innovative
approaches to building and financing major transportation projects’ and ‘…leverag(ing)
private-sector investment to expand and enhance the state’s transportation
infrastructure,’” said PEF President Roger Benson.
“But really they are dangerous schemes that could hurt taxpayers and potentially
undermine the safety and quality of our vital state highway system.
“We’re continuing our campaign to inform state leaders and the public about the
hazards of buying into these proposals,” Benson said.
“Public-private partnerships are nothing more than a shell game,” he said,
“intended to make it appear the state has less debt. But New York taxpayers will
still get stuck with the tab for financing these highway and bridge projects and
at a higher interest rate.
“And the private partner expects to make a hefty profit,” Benson added.
“Ultimately, the taxpayers pay many times the amount of the privately financed
debt.”
Nationally, public-private partnership roads have been spectacular failures
involving bankruptcies and/or loan defaults in Virginia and Texas. South
Carolina, Florida and California are also careening toward default.
New York state already owns its bridges and roads and can finance, build and
maintain them better and at a lower cost than any private entity.
Design-build is a soup-to-nuts approach that would have the state Transportation
Department (DOT) hand off to a single contractor the entire responsibility for
all of the designing, engineering and construction on a project — a scope so
broad that it excludes all but the largest contractors from competing.
It also means shifting the accountability for construction procedures to ensure
safety, quality and cost-effectiveness from state professionals to the private
contractor — making it very difficult for DOT to head off problems such as time
and cost overruns, flawed designs and shoddy construction.
For more information, go online to
www.stopprivatization.com and click on Fact Sheets
The Communicator May 2007
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