Privatization cp ddi 2012 1 Privatization + Coercion 1


The public would rather pay tolls from private companies than an increase in the gas tax by the federal government



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The public would rather pay tolls from private companies than an increase in the gas tax by the federal government


Ezra Klein, writer and columnist for The Washington Post, Bloomberg, and a contributor to MSNBC, 04/01/2012, http://www.washingtonpost.com/blogs/ezra-klein/post/more-states-privatizing-their-infrastructure-are-they-making-a-mistake/2012/03/31/gIQARtAhnS_blog.html
Still, as many states find themselves scrounging under sofas for cash, privatization may prove increasingly appealing. And drivers, at least, sometimes appear more receptive to paying for roads via tolls, where it’s obvious what the money’s going toward, than via gas taxes. “The lack of revenue,” says Peters, “is really forcing people to consider these options more seriously.”

2NC A2 - Politics Links

PPPs are becoming increasingly popular – prefer our predictive evidence


Stephen J. McBrady is a Government Contracts attorney in the Washington, DC office of Crowell & Moring LLP, March 2009, “Funding America’s Infrastructure Needs: Public Private Partnerships May Help Close Infrastructure Gap”, http://www.crowell.com/documents/funding-americas-infrastructure-needs_construction-briefings.pdf; AB
The concept of building and operating infrastructure through the use of PPPs has become increasingly common. Presently, 23 states have enacted enabling legislation permitting the government to build transportation infrastructure using PPPs. 13 Several states have taken unique approaches towards PPPs, with some states operating tentative pilot programs, while others have enacted broad enabling statutes permitting them even to accept unsolicited proposals for transportation infrastructure projects. 14 Each of these states, however, has shown a commitment to explore PPPs as one option in trying to upgrade and maintain transportation infrastructure. Thus, while the contours of PPP projects will be defined by the individual state regulations, and will mirror the risks and costs assumed by the public and private entities, it is likely that PPPs will continue to become an increasingly popular vehicle for undertaking large infrastructure projects.

Doesn’t link to politics – PPPs get past political controversy


Emilia Istrate, Senior Research Associate and Associate Fellow at the Metropolitan Policy Program and Robert Puentes is a senior fellow with the Brookings Institution's Metropolitan Policy Program, 12/09/11, http://www.brookings.edu/up-front/posts/2011/12/09-infrastructure-puentes-istrate, “A Path to Public Private Partnerships for Infrastructure”; AB
The problem is not just the unwillingness to consider these arrangements. Increasingly, it seems to be an institutional challenge as public entities are ill-equipped to execute such deals while at the same time fully protecting the public interest. As a result, nothing gets done. Today the private sector is seeking more legislative certainty prior to bidding on projects and has little appetite for negotiating transactions that are subject to legislative or other major political approvals. While 31 states have PPP enabling legislation for highways, roads and bridges, and 21 for transit projects, the wide differences between them makes it time-consuming and costly for private partners wishing to engage in PPPs in multiple states to handle the different procurement and management processes.

CP is shielded from politics – closed bids and no public debate. EVEN IF it is unpopular with the public, they won’t know about it


Bethany McLean, writes a weekly business column for Slate, 3/15/11, “Cities for Sale: Psst! Wanna buy the New Jersey Turnpike?” http://www.slate.com/articles/business/moneybox/2011/03/cities_for_sale.html; AB
Actually, the privatization of state and, especially, local government assets is a very real, very national issue, albeit one in which the left's favorite villains in Wisconsin—the Koch brothers—don't figure as prominently as the left's other favorite villain—the banks. The deep budgetary woes of states and cities around the country have made the quick (but one-time) infusion of cash resulting from an asset sale a handy temporary solution. The big banks advise cities about whether privatization is a wise choice. They also control the ability of states and cities to access the market for their financing needs. But the banks' investment funds may also stand to make money off privatizations. As Josh Rosner, a managing director at the research firm Graham, Fisher who was a prescient critic of the housing boom, says, "Given what we've seen [in other deals], I have concerns that the banks will or could use their lending power" to push privatization deals that get done via closed bids, aren't publically debated, and may not be in the public interest. Privatization of assets that most of us consider public goods—like airports and highways—has a long, often-uncontroversial history. Australia and Europe have used so-called "private public partnerships" to fund infrastructure projects that otherwise might not have been feasible. But as a 2008 report by the Government Accountability Office noted, there is a right way and a wrong way to privatize. The right way includes shorter leases, some revenue sharing between the private owner and the government allowing taxpayers to benefit from any upside, and a transparent, deliberative decision-making process.
2NC A2 - Politics Links

CP is popular with politicians and the public – reduces spending and prevents taxes


Asieh Mansour, Managing Director of Research @ RREEF and Hope Nadji, Director of Research September 2006, http://www.irei.com/uploads/marketresearch/69/marketResearchFile/Infr_Priv_Pub_Policy_Issues.pdf, “US Infrastructure Privatization and Public Policy Issues”; AB
Several factors appear to be driving the current trend toward privatization of infrastructure: • A perception or belief that private enterprise can develop and/or operate critical facilities more cheaply and efficiently than public agencies. • Provide a source of capital to fund needed infrastructure that would otherwise need to be funded through tax revenue or public financing. • In the case of an outright sale, provide cash to bolster public finances or to be used for other public needs. • To provide the revenue to maintain the infrastructure over time Remove critically needed facilities from on-going political meddling, which can often impede the efficient and economical provision of services. Of the above-mentioned factors, the ability to provide infrastructure without sizeable public funding and the ability to generate cash through a sale of an asset are the most appealing to government officials and politicians. Because voters are highly resistant to increased taxes and higher public debt at all levels of government, opportunities to shift costs from the public to the private sector are appealing.



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