Post on 08-Jun-2015
description
Connecting The Dots -Privatization is the
Symptom, Not the Cure
Connecting The Dots -Privatization is the
Symptom, Not the Cure
June 23, 2012Tom Tresser
June 23, 2012Tom Tresser
Store front space for activists & educators to collaborate, research, teach, build tools/apps that will help
accelerate CIVIC ENGAGEMENT &
COMMUNITY IMPROVEMENT efforts.
http://www.dailymail.co.uk/news/article-558211/London-2012-cost-20billion--TEN-times-original-budget-ex-Olympics-chief-predicts.html
“You’re next! You’re next!”
Bad dealsbleed city.
5% or 40%?
Richard Norment,
Executive Director, The
National Council for
Public-Private Partnerships
Watch this 2 ½ minute video @ http://tinyurl.com/InfrastructureTrustExplained
June 18, 2012
“Until the case is made that this trust is
necessary and will operate on the behalf of
the public, the entire
enterprise should be scrapped.”
Richard Norment,
Executive Director, The
National Council for
Public-Private Partnerships
“You’re next!”
“You’re next!”
The Frame for PrivatizationThe Frame for Privatization
He who frames the argument wins the argument…
The Frame for PrivatizationThe Frame for Privatization
1.We are broke.
2.Government is stupid. Private sector is genius.
The Frame for PrivatizationThe Frame for Privatization
Therefore…
If you (Ms. Citizen) want anything new or improved from
government, we need to turn to the private
sector.
OOPS!
Maybe private
sector is NOT the
best steward of the public
good.
“The average private government contractor with a security clearance earns about $20,000 more each year than a government employee with the same clearance.”
So what’s the REAL reason...?So what’s the REAL reason...?
Paul Krugman, Winner Nobel Prize in Economics, 2008
From his column in the New York Times, June 21, 2012….
Paul Krugman, Winner Nobel Prize in Economics, 2008
From his column in the New York Times, June 21, 2012….
“But the main answer, surely, is to follow the money. Never mind what privatization does or doesn’t do to state budgets; think instead of what it does for both the campaign coffers and the personal finances of politicians and their friends. As more and more government functions get privatized, states become pay-to-play paradises, in which both political contributions and contracts for friends and relatives become a quid pro quo for getting government business. Are the corporations capturing the politicians, or the politicians capturing the corporations? Does it matter?…The point, then, is that you shouldn’t imagine that what The Times discovered about prison privatization in New Jersey is an isolated instance of bad behavior. It is, instead, almost surely a glimpse of a pervasive and growing reality, of a corrupt nexus of privatization and patronage that is undermining government across much of our nation.”
We are not broke!
Watch the first 6 minutes of this video @ http://tinyurl.com/NewYork-Is-Not-Broke
New York State faces a budget deficit of$10 billion in 2011 ~ 1/13th of
a total $132 billion operating budget
Public employees are blamed (for a crisis we did not create)Threatened with 9,800 layoffs
WHAT’S HAPPENING?WHAT’S HAPPENING?
WHAT’S HAPPENING?
A major assault A major assault upon upon
public education, education, public health health
and and public safety safety
A major assault A major assault upon upon
public education, education, public health health
and and public safety safety
An offensive An offensive against public workers, public workers,
led by the nation’s led by the nation’s Governors Governors
and lawmakers, and lawmakers, state by statestate by state
An offensive An offensive against public workers, public workers,
led by the nation’s led by the nation’s Governors Governors
and lawmakers, and lawmakers, state by statestate by state
ANTI-UNION LEGISLATION INTRODUCED IN OVER 20 STATES
RIGHT-TO-WORK LAWS INTRODUCED IN 14 STATES
WISCONSIN AND OHIO HAVE PASSED SWEEPING ANTI-UNION LAWS
TEACHERS’ UNIONS TARGETED… States with bills to limit or eliminate collective bargaining for teachers, or otherwise target teachers' unions include Wisconsin, Ohio, Tennessee, Indiana, Nebraska, Texas, New Hampshire, Michigan, Idaho, Massachusetts, Oklahoma, Pennsylvania, Alabama, Florida, Minnesota, Missouri, Utah, Arizona, and others
Public employeePublic employeeunion membersunion members7.6 million.7.6 million.
Private sector Private sector union members union members 7.1 million.7.1 million.Source: Source:
““(Government) workers of the (Government) workers of the world unite! Public-sector world unite! Public-sector unions have had a good few unions have had a good few decades. Has their luck run decades. Has their luck run out?” out?”
The EconomistThe Economist, 1/6/11, 1/6/11
www.economist.com/node/17849199www.economist.com/node/17849199
A major assault A major assault upon organized labor,upon organized labor,an offensive against an offensive against
all of the unionsall of the unions
A major assault A major assault upon organized labor,upon organized labor,an offensive against an offensive against
all of the unionsall of the unions
We need to take We need to take our own pulse! our own pulse!
Remember the Remember the adage: “the best adage: “the best defense is a defense is a good offense.”good offense.”
We should ask: We should ask: Who are they defending?
We need to take We need to take our own pulse! our own pulse!
Remember the Remember the adage: “the best adage: “the best defense is a defense is a good offense.”good offense.”
We should ask: We should ask: Who are they defending?
BILLIONAIRES! BILLIONAIRES!
THE ASSAULT ON THE
UNIONS IS REALLY A
DEFENSE OF THE BANKERS
AND
BILLIONAIRES
THE ASSAULT ON THE
UNIONS IS REALLY A
DEFENSE OF THE BANKERS
AND
BILLIONAIRES
In the universe there are 1,210 billionaires
In the universe there are 1,210 billionaires
412 Billionaires in the USA! 412 Billionaires in the USA!
How many Billionaires in
New York?
68!
New York
IS NOT BROKE!
68 Billionaires
in New York
The wealthiest New Yorker is no longer Mayor Bloomberg…
(he’s now the 2nd wealthiest)…
The wealthiest New Yorker is no longer Mayor Bloomberg…
(he’s now the 2nd wealthiest)…
XX
Today the richest New
Yorker isDavid Koch,
worth about $22
Billion!
Today the richest New
Yorker isDavid Koch,
worth about $22
Billion!
During the heyday of America’s middle class (1950-1980) the top 1% had about
10% of total income.
They now take 25%!
During the heyday of America’s middle class (1950-1980) the top 1% had about
10% of total income.
They now take 25%!
Top 1% Income Share 1914 to 2006Top 1% Income Share 1914 to 2006
^ ^ Eisenhower Reagan
Growing income inequality
James Parrott, Ph.D., Fiscal Policy Institute, “Grow Together or Pull Farther Apart? Income Concentration Trends in New York,”
http://www.fiscalpolicy.org/FPI_GrowTogetherOrPullFurtherApart_20101213.pdf
We have the most unequal income concentration of any state in the
nation.
New York’s wealthiest 1% get more than
35% of all income in New
York State.
Income shares and household incomes in New York 1980 compared with 2007
(2007 dollars)
Shares of Total Income (AGI) % change1980 -Top 5% - 22%2007 - Top 5% - 49%
1980 - Bottom 95% - 78%2007 - Bottom 95% - 51%
Income shares and household incomes in New York 1980 compared with 2007
(2007 dollars)
Shares of Total Income (AGI) % change1980 -Top 5% - 22%2007 - Top 5% - 49%
1980 - Bottom 95% - 78%2007 - Bottom 95% - 51%
James Parrott, Ph.D., Fiscal Policy Institute, “Grow Together or Pull Farther Apart? Income Concentration Trends in New York,”
http://www.fiscalpolicy.org/FPI_GrowTogetherOrPullFurtherApart_20101213.pdf
Since 1990,the top 5% have
GAINED.
THE bottom 95% have LOST.
Since 1990,the top 5% have
GAINED.
THE bottom 95% have LOST.
Income shares and household incomes in New York 1980 compared with 2007
(2007 dollars)
Average Income (AGI) % change1980 -Top 1% $446,507
2007 - Top 1% $2,730,973 +511.6%
1980 - Bottom 50% $16,0742007 - Bottom 50% $14,045 -12.6%
Income shares and household incomes in New York 1980 compared with 2007
(2007 dollars)
Average Income (AGI) % change1980 -Top 1% $446,507
2007 - Top 1% $2,730,973 +511.6%
1980 - Bottom 50% $16,0742007 - Bottom 50% $14,045 -12.6%
James Parrott, Ph.D., Fiscal Policy Institute, “Grow Together or Pull Farther Apart? Income Concentration Trends in New York,”
http://www.fiscalpolicy.org/FPI_GrowTogetherOrPullFurtherApart_20101213.pdf
Top 0.01% Income Share 1913 to 2008Top 0.01% Income Share 1913 to 2008
“Striking it Richer:The Evolution of Top Incomes in the United States”Emmanuel Saez, July 17, 2010http://www.econ.berkeley.edu/~saez/saez-UStopincomes-2008
The eve of the Depression
0.01% of householdsThat’s 1/10,000th! take more than 5%
of total income
This isUNSUSTAINABLE
0.01% of householdsThat’s 1/10,000th! take more than 5%
of total income
This isUNSUSTAINABLE
The Wealthiest 1% (80,000 households) together pull in
over $200 billion annually, more than 1/3rd of all income in NY.
The state budget deficit is 5% of $200 billion ($10 billion).
Source: James Parrott, Ph.D., “Grow Together or Pull Farther Apart? Income Concentration Trends in New York,” Dec. 13, 2010, Fiscal Policy Institute
The Wealthiest 1% (80,000 households) together pull in
over $200 billion annually, more than 1/3rd of all income in NY.
The state budget deficit is 5% of $200 billion ($10 billion).
Source: James Parrott, Ph.D., “Grow Together or Pull Farther Apart? Income Concentration Trends in New York,” Dec. 13, 2010, Fiscal Policy Institute
Reinstituting the 1972 NYSincome tax
structure would yield $8 billion more in income tax
revenue for New York,
while reducing income taxes for 95% of us!
http://www.fiscalpolicy.org/taxhistory2.htm
Lost revenue: billions & billions & billionsNY’s tax-cutting binge from 1994-2000, has lead to the current fiscal crisis.NY’s tax-cutting binge from 1994-2000, has lead to the current fiscal crisis.
“Back on Track: Why Progressive Tax Reform is an Essential Part of New York’s Budget Solution,” March 2009, Fiscal Policy Institute
http://www.fiscalpolicy.org/CWFandFPI_BackOnTrackPersonalIncomeTaxReform_20090323.pdf
Tax wealthnot work.
TIFS =Giant Slush
Fund
Where are TIFs?Where are TIFs?
All over Chicago and Cook County
• 161 in city of Chicago
• Additional 264 in suburban Cook County
• 2010 = 425 TIF districts in Cook County
Where are TIFs?Where are TIFs?
How Many TIFs?How Many TIFs?
How Much Revenue Do TIFs Collect?
How Much Revenue Do TIFs Collect?
Cook County Clerk’s Office
How Much Revenue Have Chicago TIFs
Collected?
How Much Revenue Have Chicago TIFs
Collected?
Ouch!
2010 TOTAL TIF REVENUE FOR COOK COUNTY
City of Chicago
TIFs diverted $510 MILLION
Suburban Cook County
TIFs diverted $297 MILLION
TOTAL FOR 2010 = $807 MILLION
How Much Revenue Do TIFs Collect?
How Much Revenue Do TIFs Collect?
Who Is Harmed By TIFs? Who Is Harmed By TIFs?
In Chicago, The Board of Education is SUPPOSED to get almost 54% of your property taxes. But…
Who Is Harmed By TIFs? Who Is Harmed By TIFs?In Chicago, The Board of Education is SUPPOSED to get almost 54% of your property taxes. But…
This property owner is in the Touhy/Western TIF District and 24% of HIS property taxes were captured by the district. The Board of Education only got 39% of his property taxes. That’s a loss of 15% in revenues from this single taxpayer.
Who Is Harmed By TIFs? Who Is Harmed By TIFs?
TIF for North Side auto dealer is a boondoggle. (Opinion)(city officials plans to give Grossinger Auto Group $8.5 million in tax-increment financing )
Crain's Chicago Business – Jan 14, 2008
TIF addiction in Chicago reached a new low last week.
City officials endorsed a plan to give Grossinger Auto Group $8.5 million in tax-increment financing to build a dealership at the bustling intersection of North and Clybourn avenues on the North Side. The site isn't in a TIF district, but the officials were kind enough to create one just for the building Grossinger plans to convert into a four-level auto mall.
2009 revenues of
$2.6 BILLION!
2009 revenues of
$2.6 BILLION!
IN 2009 THE CITY GAVE CHICAGO MERCHANTILE EXCHANGE
$15 MILLION TIF $ FOR REHABBING CORPORATE HQ.
APPROVED BY ALDERMAN BOB FIORETTI.
New Mayor is “Shocked”!New Mayor is “Shocked”!
The Chicago Sun-Times (5/25/11) reported that "Without criticizing Daley directly, Emanuel said he was ‘shocked’ to learn that TIF districts have been multiplying for more than two decades without any job creation standards."
THE CITY HAD $1.4 BILLION IN UNSPENT TIF FUNDS AT THE END OF 2008 AND NEARLY AS MUCH AT THE END OF 2009 AND 2010!
CAN YOU SAY “UNACCOUNTABLE
SLUSH FUND”?
These TIF transfers of property taxes to wealthy and successful companies divert public funds from vital units of government. They are yet more examples of the 99% being ripped off to enrich the 1%.
The Problem Is State-WideThe Problem Is State-Wide
In Illinois, 360 municipalities have 943 TIF Districts
In 2010, across the state, 414 TIF districts were in “non-compliance” for not filing any or proper financial statements, according to The Office of the State Comptroller. That’s 44% of all Illinois TIFs!
?
Stopgiving away
our stuff!
The Fedsare wasting our money
Illinois net loss of $253 billion from
1991 – 2001
ILLINOIS NET FEDERAL TAX
LOSS
$ 4 BILLION/YEAR.
Stopwars now.
Demilitarize USA.
To Sum UpTo Sum Up
• We are NOT broke
• Tax wealth, not work
• Don’t give away our stuff
• Stop the wars
• Start planning for 2015!
• Take back our stuff. Protect & extend the public. Cut class size in half. We take care of our own!
• We are NOT broke
• Tax wealth, not work
• Don’t give away our stuff
• Stop the wars
• Start planning for 2015!
• Take back our stuff. Protect & extend the public. Cut class size in half. We take care of our own!