City of Milton, GA Ends Privatization Contract with CH2M Hill

According the the AJC Milton, Ga has ended its privatization "experiment" of city services. CH2M Hill was contracted to perform the "day to day duties" of municipal government such as sanitation, keeping the roads in good repair and keeping up with zoning compliance.

“We just elected to eliminate the middle man,”according to Chris Lagerbloom Milton's City Manager.

The municipality hired 20 of CH2M Hill employees to stay on with the city AND GAVE THEM A SMALL PAY RAISE with existing benefits. One employee said that CH2M Hill did not offer her to continue working for the company according to the article.

The city will save about $1 million dollars a year. How about that " business is more efficient than government?" What the hell happened here?

During The late 90's and early 00's water privatization in large cities was viewed as a way for municipalities to save revenues. Mayor Bill Campbell of Atlanta in 1998 entered a water works contract with United Water Services. The Atlanta Business Chronicle in August 2002 detailed the souring of this relationship between Mayor Shirley Franklin and United Water. The complaints from the city included "billing, maintenance, timely emergency responses and consistent record-keeping." During this time I do recall friends of mine getting water bills that were up in to hundreds of dollars for one month's use. The Downtown area's antiquated water system was in desperate need of complete overhaul as storm runoff and sewage were going through the same lines and the city was levied huge fines from the EPA for all the disrepair. United Water was just not the answer to all these issues.

So, free market folks, tell me why this did not work?

Remember when President Bush proposed that part of payroll taxes for Social Security into private saving accounts that would be invested in stocks? These accounts are like 401(K) accounts. Let me ask you this: over the past ten years how much did you earn on your 401(k) after the the market booms and busts and all the fees? Probably would have done better putting it in a jar and burying it in the back yard. Privatized accounts would have been reduced as much as 20% to 30% by fees charged by investment bankers, trustees and account administrators. "This occurred in Great Britain, Chile and other countries that adopted privatization. In both Great Britain and Chile, privatizing Social Security has been judged a failure because retirees' benefits were greatly decreased by 'fees.' " More facts on that here.

I am not against companies doing business and making a profit. I am against business taking over functions that the government should handle. Things that are for the public good, that everyone needs, that will benefit everyone. Like education, health care and clean water.

Damn. I am such a commie.................