Connecting The Dots -  Privatization is theSymptom, Not the Cure      June 23, 2012       Tom Tresser
Store front space for activists & educators to collaborate, research,teach, build tools/apps that will help             ac...
http://www.dailymail.co.uk/news/article-558211/London-2012-cost-20billion--TEN-times-original-budget-ex-Olympics-chief-pr
“You’re next!You’re next!”
Bad dealsbleed city.
5% or40%?
Richard Norment, ExecutiveDirector, The  National Council forPublic-PrivatePartnerships
Watch this 2 ½ minute video @http://tinyurl.com/InfrastructureTrustExplained
June 18, 2012“Until the case is made that  this trust isnecessary andwill operate on the behalf ofthe public, the     enti...
“You’re  Richard Norment,                  next!” ExecutiveDirector, The  National                 “You’re                ...
The Frame for Privatization      He who frames      the argument      wins the      argument…
The Frame for Privatization      1.We are broke.      2.Government is        stupid. Private        sector is genius.
The Frame for Privatization             Therefore…       If you (Ms. Citizen) want            anything new or             ...
OOPS!  Maybe  private sector is NOT the   beststeward ofthe public   good.
“The averageprivategovernmentcontractor witha securityclearance earnsabout $20,000more each yearthan agovernmentemployee w...
So what’s the REAL reason...?         Paul Krugman, Winner         Nobel Prize in         Economics, 2008         From his...
“But the main answer, surely, is to follow the money.Never mind what privatization does or doesn’t do tostate budgets; thi...
Weare notbroke!
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           oper...
Public employees are blamed(for a crisis we did not create)Threatened with 9,800 layoffs    WHAT’S HAPPENING?       WHAT’S...
A major assault      uponpublic education,  public healthand public safety
An offensive against   public workers, led by the nation’s     Governors  and lawmakers,    state by state
TEACHERS’                          UNIONS                          TARGETED…                          States with bills to...
Public employeeunion members7.6 million.Private sectorunion members7.1 million.Source:“(Government) workers of theworld un...
A major assaultupon organized labor,an offensive against  all of the unions
We need to takeour own pulse!Remember theadage: “the bestdefense is agood offense.”We should ask:Who are theydefending?
THE ASSAULT                      ON THE                   UNIONS IS                    REALLY ABILLIONAIRES!    DEFENSE OF...
In the universe there are    1,210 billionaires
412 Billionaires in the USA!
68! How manyBillionaires in New York?
68           Billionaires                 in               New                YorkNew YorkIS NOTBROKE!
X    The wealthiest    New Yorker    is no longer    Mayor    Bloomberg…    (he’s now the 2nd    wealthiest)…
Today therichest 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%!
Top 1% Income Share 1914 to 2006                                                                Growing                   ...
New York’s     We have the most wealthiest 1%    unequal income get more than   concentration of   35% of all     any stat...
Income shares and household incomesin New York 1980 compared with 2007                                 (2007 dollars)   Sh...
Since 1990,the top 5% have    GAINED.THE bottom 95%  have LOST.
Income shares and household incomesin New York 1980 compared with 2007                                 (2007 dollars)     ...
Top 0.01% Income Share 1913 to 2008                       →                           ↑                 The eve of the Dep...
0.01% of households  That’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 in...
Reinstituting the 1972 NYSincome tax      would yield $8 billionstructure     more in income tax   revenue for New York, w...
Lost revenue: billions & billions & billionsNY’s tax-cutting binge from 1994-2000, has lead to the current fiscal crisis. ...
Tax wealthnot work.
TIFS =   GiantSlush Fund
Where are TIFs?           All over Chicago and               Cook County        • 161 in city of Chicago        • Addition...
Where are TIFs?
How Many TIFs?
How Much Revenue Do                              TIFs Collect?Cook County Clerk’s Office
How MuchRevenue HaveChicago TIFs Collected?     Ouch!
How Much Revenue Do        TIFs Collect?2010 TOTAL TIF REVENUE FOR COOK COUNTYCity of ChicagoTIFs diverted $510 MILLIONSub...
Who Is Harmed By TIFs?In Chicago, The Board ofEducation is SUPPOSED to getalmost 54% of your propertytaxes. But…
Who Is Harmed By TIFs?In Chicago, The Board ofEducation is SUPPOSED to getalmost 54% of your propertytaxes. But…This prope...
Who Is Harmed By TIFs?
TIF for North Side auto dealer is a boondoggle. (Opinion)(cityofficials plans to give Grossinger Auto Group $8.5 million i...
2009 revenues   of $2.6  BILLION!
IN 2009 THE CITY GAVE CHICAGO   MERCHANTILE EXCHANGE      $15 MILLION TIF $ FOR  REHABBING CORPORATE HQ.   APPROVED BY ALD...
New Mayor is “Shocked”!          The Chicago Sun-Times          (5/25/11) reported that          "Without criticizing Dale...
THE CITY HAD $1.4BILLION IN UNSPENT TIFFUNDS AT THE END OF 2008 AND NEARLY AS  MUCH AT THE END   OF 2009 AND 2010!     CAN...
These TIF transfers of property taxes to wealthy andsuccessful companies divert public funds from vitalunits of government...
The Problem Is State-Wide     In Illinois, 360 municipalities have     943 TIF Districts?    In 2010, across the state, 41...
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.
Stop wars now.Demilitarize   USA.
To Sum Up•   We are NOT broke•   Tax wealth, not work•   Don’t give away our stuff•   Stop the wars•   Start planning for ...
tom@civiclab.us  @tomstee@civiclabchicago 312-804-3230www.civiclab.us
The Privatization Story
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The Privatization Story

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Tom Tresser presented at a forum of privatization and the Chicago Infrastructure Trust at SEIU's Chicago HQ on Saturday, June 23, 2012. Visit http://www.civiclab.us. Contact Tom = tom@civiclab.us

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  • If you view this, please let me know what you think - email me at tom@tresser.com. Are you fighting privatization in your city? Do you know of any deals gone bad or privatization schemes that were over sold and under performed? Have you been put out of work because of privatization? Please let me hear from you.
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  • The amount of federal subsidies these states received OVER the amounts they PAID in taxes.
  • This map shows the amount of federal taxes states paid OVER the amount that received from the federal government.
  • The Privatization Story

    1. 1. Connecting The Dots - Privatization is theSymptom, Not the Cure June 23, 2012 Tom Tresser
    2. 2. Store front space for activists & educators to collaborate, research,teach, build tools/apps that will help accelerate CIVIC ENGAGEMENT &COMMUNITY IMPROVEMENT efforts.
    3. 3. http://www.dailymail.co.uk/news/article-558211/London-2012-cost-20billion--TEN-times-original-budget-ex-Olympics-chief-pr
    4. 4. “You’re next!You’re next!”
    5. 5. Bad dealsbleed city.
    6. 6. 5% or40%?
    7. 7. Richard Norment, ExecutiveDirector, The National Council forPublic-PrivatePartnerships
    8. 8. Watch this 2 ½ minute video @http://tinyurl.com/InfrastructureTrustExplained
    9. 9. June 18, 2012“Until the case is made that this trust isnecessary andwill operate on the behalf ofthe public, the entire enterprise should be scrapped.”
    10. 10. “You’re Richard Norment, next!” ExecutiveDirector, The National “You’re next!” Council forPublic-PrivatePartnerships
    11. 11. The Frame for Privatization He who frames the argument wins the argument…
    12. 12. The Frame for Privatization 1.We are broke. 2.Government is stupid. Private sector is genius.
    13. 13. The Frame for Privatization Therefore… If you (Ms. Citizen) want anything new or improved from government, we need to turn to the private sector.
    14. 14. OOPS! Maybe private sector is NOT the beststeward ofthe public good.
    15. 15. “The averageprivategovernmentcontractor witha securityclearance earnsabout $20,000more each yearthan agovernmentemployee withthe sameclearance.”
    16. 16. 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….
    17. 17. “But the main answer, surely, is to follow the money.Never mind what privatization does or doesn’t do tostate budgets; think instead of what it does for boththe campaign coffers and the personal finances ofpoliticians and their friends. As more and moregovernment functions get privatized, states becomepay-to-play paradises, in which both politicalcontributions and contracts for friends and relativesbecome a quid pro quo for getting governmentbusiness. Are the corporations capturing thepoliticians, or the politicians capturing thecorporations? Does it matter?…The point, then, isthat you shouldn’t imagine that what The Timesdiscovered about prison privatization in New Jerseyis an isolated instance of bad behavior. It is, instead,almost surely a glimpse of a pervasive and growingreality, of a corrupt nexus of privatization andpatronage that is undermining government acrossmuch of our nation.”
    18. 18. Weare notbroke!
    19. 19. Watch the first 6 minutes of this video @http://tinyurl.com/NewYork-Is-Not-Broke
    20. 20. New York State faces a budget deficit of $10 billion in 2011 ~ 1/13th of a total $132 billion operating budget
    21. 21. 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?
    22. 22. A major assault uponpublic education, public healthand public safety
    23. 23. An offensive against public workers, led by the nation’s Governors and lawmakers, state by state
    24. 24. TEACHERS’ UNIONS TARGETED… States with bills to limit or eliminateANTI-UNION LEGISLATION collective bargaining for teachers, orINTRODUCED IN OVER 20 otherwise target teachers unions include Wisconsin, Ohio, Tennessee,STATES Indiana, Nebraska, Texas, New Hampshire, Michigan, Idaho, Massachusetts, Oklahoma, Pennsylvania, Alabama, Florida,RIGHT-TO-WORK LAWS Minnesota, Missouri, Utah, Arizona,INTRODUCED IN 14 STATES and othersWISCONSIN AND OHIO HAVEPASSED SWEEPING ANTI-UNION LAWS
    25. 25. Public employeeunion members7.6 million.Private sectorunion members7.1 million.Source:“(Government) workers of theworld unite! Public-sectorunions have had a good fewdecades. Has their luck runout?”The Economist, 1/6/11 www.economist.com/node/17849199
    26. 26. A major assaultupon organized labor,an offensive against all of the unions
    27. 27. We need to takeour own pulse!Remember theadage: “the bestdefense is agood offense.”We should ask:Who are theydefending?
    28. 28. THE ASSAULT ON THE UNIONS IS REALLY ABILLIONAIRES! DEFENSE OF THE BANKERS AND BILLIONAIRES
    29. 29. In the universe there are 1,210 billionaires
    30. 30. 412 Billionaires in the USA!
    31. 31. 68! How manyBillionaires in New York?
    32. 32. 68 Billionaires in New YorkNew YorkIS NOTBROKE!
    33. 33. X The wealthiest New Yorker is no longer Mayor Bloomberg… (he’s now the 2nd wealthiest)…
    34. 34. Today therichest New Yorker isDavid Koch,worth about $22 Billion!
    35. 35. During the heyday of America’s middle class(1950-1980) the top 1% had about 10% of total income. They now take 25%!
    36. 36. Top 1% Income Share 1914 to 2006 Growing income inequality ^ ^ Eisenhower Reagan 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
    37. 37. New York’s We have the most wealthiest 1% unequal income get more than concentration of 35% of all any state in theincome in New nation. York State.
    38. 38. Income shares and household incomesin New York 1980 compared with 2007 (2007 dollars) Shares of Total Income (AGI) % change 1980 -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
    39. 39. Since 1990,the top 5% have GAINED.THE bottom 95% have LOST.
    40. 40. Income shares and household incomesin New York 1980 compared with 2007 (2007 dollars) Average Income (AGI) % change 1980 -Top 1% $446,507 2007 - Top 1% $2,730,973 +511.6% 1980 - Bottom 50% $16,074 2007 - 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
    41. 41. Top 0.01% Income Share 1913 to 2008 → ↑ The eve of the Depression “Striking it Richer:The Evolution of Top Incomes in the United States”Emmanuel Saez, July 17, 2010 http://www.econ.berkeley.edu/~saez/saez-UStopincomes-2008
    42. 42. 0.01% of households That’s 1/10,000th! take more than 5% of total income This isUNSUSTAINABLE
    43. 43. 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
    44. 44. Reinstituting the 1972 NYSincome tax would yield $8 billionstructure more in income tax revenue for New York, while reducing income taxes for 95% of us! http://www.fiscalpolicy.org/taxhistory2.htm
    45. 45. Lost revenue: billions & billions & billionsNY’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
    46. 46. Tax wealthnot work.
    47. 47. TIFS = GiantSlush Fund
    48. 48. 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
    49. 49. Where are TIFs?
    50. 50. How Many TIFs?
    51. 51. How Much Revenue Do TIFs Collect?Cook County Clerk’s Office
    52. 52. How MuchRevenue HaveChicago TIFs Collected? Ouch!
    53. 53. How Much Revenue Do TIFs Collect?2010 TOTAL TIF REVENUE FOR COOK COUNTYCity of ChicagoTIFs diverted $510 MILLIONSuburban Cook CountyTIFs diverted $297 MILLIONTOTAL FOR 2010 = $807 MILLION
    54. 54. Who Is Harmed By TIFs?In Chicago, The Board ofEducation is SUPPOSED to getalmost 54% of your propertytaxes. But…
    55. 55. Who Is Harmed By TIFs?In Chicago, The Board ofEducation is SUPPOSED to getalmost 54% of your propertytaxes. But…This property owner is in theTouhy/Western TIF District and24% of HIS property taxes werecaptured by the district. TheBoard of Education only got39% of his property taxes.That’s a loss of 15% inrevenues from this singletaxpayer.
    56. 56. Who Is Harmed By TIFs?
    57. 57. TIF for North Side auto dealer is a boondoggle. (Opinion)(cityofficials plans to give Grossinger Auto Group $8.5 million intax-increment financing )Crains Chicago Business – Jan 14, 2008TIF 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 atthe bustling intersection of North and Clybourn avenues on theNorth Side. The site isnt in a TIF district, but the officials werekind enough to create one just for the building Grossingerplans to convert into a four-level auto mall.
    58. 58. 2009 revenues of $2.6 BILLION!
    59. 59. IN 2009 THE CITY GAVE CHICAGO MERCHANTILE EXCHANGE $15 MILLION TIF $ FOR REHABBING CORPORATE HQ. APPROVED BY ALDERMAN BOB FIORETTI. 2009 revenues of $2.6 BILLION!
    60. 60. 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."
    61. 61. THE CITY HAD $1.4BILLION IN UNSPENT TIFFUNDS AT THE END OF 2008 AND NEARLY AS MUCH AT THE END OF 2009 AND 2010! CAN YOU SAY “UNACCOUNTABLE SLUSH FUND”?
    62. 62. These TIF transfers of property taxes to wealthy andsuccessful companies divert public funds from vitalunits of government. They are yet more examples ofthe 99% being ripped off to enrich the 1%.
    63. 63. The 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!
    64. 64. Stopgiving away our stuff!
    65. 65. The Fedsare wasting our money
    66. 66. Illinois net loss of $253 billion from 1991 – 2001
    67. 67. ILLINOIS NET FEDERAL TAX LOSS$ 4 BILLION/ YEAR.
    68. 68. Stop wars now.Demilitarize USA.
    69. 69. To 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!
    70. 70. tom@civiclab.us @tomstee@civiclabchicago 312-804-3230www.civiclab.us
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