Selling Roads to Boost Revenue?
Cash-Strapped States Consider Selling Roads, Parks To Boost Revenue (AP, 12/28/2008):
“Like families pawning the silver to get through a tight spot, states such as Minnesota, New York, Massachusetts and Illinois are thinking of selling or leasing total roads, parks, lotteries and other assets to raise desperately needed cash.”
In response to the inquiry from Chris in CNN Minneapolis, I expressed my concerns about governments rushing into selling or leasing infrastructure as the last resort of the desperate in the current budget crisis.
Increased private-sector involvement has been considered in many areas of public service delivery for reasons such as cost saving, operational efficiency, service quality, or service diversity, etc. However, results from past attempts have been mixed about the achievement of these goals. More specifically, some recent cases of long-term leasing of transportation facilities have led to widely spread concerns on whether the public interest is protected in these concessions.
What a government "owns and does" is not merely a budget issue, but also a political decision. Some services tend to be reserved for the public-sector because of their "public good" nature that won't be factored into consideration by profit-oriented businesses. Without careful research, a desperate rush into privatizing public facilities may lose value on public assets, lose long-term interests of the public in the exchange of short-term budget benefits, and lose democratic control.