Privatization: A Bill of Goods!

Image via Wikipedia

Today I am going to comment on the news of the day. I can find my camera adapter and its very early in the morning.
I read that NJ is going to end motor vehicle safety inspectionsand just do emissions testing. Are we going to see savings in taxes? Where is the 17 Million our money going to go to?? A good point  to be made is  the cost of auto maintenance. Folks who barley can afford their cars are going to skimp on repairs and guess what drive on OUR streets. Oh yes, watch the insurance companies hike rates. Yup, penny-wise and pound foolish I say.
The Christie Administration wants to privatize more state servicesto save 210 million.

A New Jersey task force created by Gov. Chris Christie said Friday the state could save at least $210 million a year by privatizing motor vehicle inspections, turnpike toll booths, preschools, state parks and some services at state prisons.

The five-member task force, commissioned in March to examine the potential savings of privatization, submitted a 57-page report to the governor. The group is made up of lobbyists and business interests.

Now, we seem to hear the wonderful savings and efficiencies that come with privatization. Note the quote above mentions that the group charged with writing the report is made up of LOBBYISTS and BUSINESS INTERESTS! They stand to gain big time on any privatization scheme that passes. We all remember what happened when Governor Christie Whitman did this in 1998 with motor vehicle

inspections and the whole plan had to be scrapped due to cost overruns that cost the TAXPAYER millions. This report by the State of New Jersey Commission of Investigation shows what does happen when privatization goes wrong. The proposed "savings" will line the pockets of the business lobbyists and the any savings will cease to exist due to lax oversight. This is a history of poor results with privatization. Another blogger explains it quite nicely:

But doing it “right” does not mean firing state workers and employing a private company to do the same job with lower-paid (and most likely less qualified) employees while the politically-connected contractor skims off a handsome profit at the taxpayers’ expense. Since the contractor is accountable to shareholders and not voters, steps must be taken to ensure that the taxpayers’ interests are being addressed appropriately. This requires oversight and insight by qualified and empowered state employees. That cost must be included in the equation when considering privatization.
The New Jersey Legislature MUST take a steely-eyed look at ANY proposal to follow though on these recommendations. They are the folks with the obligation to watch our tax dollars and not sell out to the highest bidder.
The recent decision on emission is short-sighted and so is the Governor's proposals.

Related articles by Zemanta

• N.J. Democrats criticize Christie administration report suggesting privatization (nj.com)
• N.J. Governor Christie to Examine Privatization to Cut Costs (businessweek.com)
• Chris Christie Privatizes New Jersey (maggiesnotebook.blogspot.com)
• N.J. will drop requirements for mechanical inspections of cars to save $12M yearly (nj.com)
• N.J. auto repair shops steamed after buying expensive equipment as state dumps inspection rule (nj.com)