At first glance the “privatization” of Los Angeles may have an appealing sound, especially during these challenging financial times.
Unfortunately we are dealing with local LA Politicians and Venture Capitalists with no system of checks and balances to protect the tax payer.
We have seen a clear example of what to expect and in some cases the truth has been kept in smokeless back rooms.
Let us look at the LA Zoo for just one example. The city is racing to spend 40 to 60 million on just one exhibit, the Asian Elephants.
Bond money from various sources is placing the city in more debt and is draining General funds. Once complete the city is planning on “privatizing” (giving the Zoo the GLAZA) to run.
As in many schemes taking place in Los Angeles, public funds are being used to cover the risk normally assumed by private sector and then the Tax Base is being comprised with sweetheart deals when no bed tax needs to be paid for decades.
In the case of the community redevelopment agency, public funds are once again used to cover the risk, money is shimmed of the top to friendly non-profits and the increase in tax money generated by the new development is diverted from the General Fund and goes back to the CRA to be used in a legal ponzie scheme. All the while the politically connected and friendly developer rakes in millions.
If one wants to go private, then go private all the way, risk and service are a part of the private sector that separates it from the public sector.
Candidate for Mayor of Los Angeles