theatlantic | Cash-strapped cities have long looked
at privatizing services or selling off assets as a way to save money,
but Chicago in particular has a spotty record with the practice. In a
move orchestrated by Emanuel’s predecessor, Richard Daley, the city sold
off its parking meters to a private firm, allowing the company to reap
the revenues in exchange for a one-time, upfront payment. But the deal
has been widely criticized as a loser for the Windy City. The firm has already made
well over half as much revenue as the $1.2 billion lump sum it paid to
Chicago, and it will continue to earn 100 percent of the revenue for
nearly seven more decades under the agreement. Selling off the parking
meters and privatizing services is like “burning your furniture to heat
your house,” said Anders Lindall, a spokesman for the AFSCME Council
31, the union that represents city employees.
Emanuel,
a Democrat, ran for office criticizing the parking-meter deal, and in
his budget speech last week he specifically pledged not to sell off city
assets. That sale, and the political blowback it generated, is now
cited as a cautionary tale for mayors nationwide and has slowed the move
to privatization that began more than a decade ago.
“I think
since then the enthusiasm for privatization has tempered somewhat,” said
Ron Littlefield, the former mayor of Chattanooga, Tennessee.
Littlefield, who left office two years ago, told me that when they
looked at privatizing services, they focused on those “that don’t touch
citizens directly.”
In some ways, the 311 hotlines have become a
victim of their own success. The more calls come in, the more people you
need to answer the phone. The system had grown so popular in
Chattanooga, a city of 170,000, that the call center frequently ran
behind, Littlefield said, “because you just cant get people to keep up
with the calls.” But rather than outsource its operations, the former
mayor said that, like other cities, Chattanooga focused on encouraging
residents to contact 311 through its mobile app when possible. Reporting
a pot hole, for example, is now as easy as sending a photo with
embedded GPS coordinates—no phone call and no operator needed.
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