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“Successfully merging the best of the public and private sectors for the good of Connecticut, our families and our future requires a leader with courage and vision,” Lt. Governor Fedele said. “Without a significant shift in the way we do business, Connecticut is headed for a $4 billion budget shortfall in Fiscal Year 2012. As Governor, I will not lay that price tag on our taxpayers.” “Instead I am proposing a creative new direction to help us get out from under the burdens of underfunded pensions, massive employee health and benefit contracts and the highest debt in the nation,” Fedele said. “Public-private partnerships offer the potential of real savings and efficiencies without diminishing the essence of good government, which is to serve and protect its citizens.” Fedele said Connecticut presents a number of opportunities for the right private partner. The state has already taken a step in that direction in a contract with a private vendor to upgrade 23 services plazas on Connecticut’s major interstates. In addition to a percentage of the profits, the 35-year contract requires the vendor to pay the state $500,000 a year, increasing to $2 million in 2015 and increasing by $500,000 every five years over the life of the contract. The vendor will also invest $178 million to modernize and upgrade the 23 plazas, including the full replacement of three of them. Other opportunities that should be thoroughly explored include leveraging the following assets: · State-owned train stations and rail parking facilities: The 33 state-owned stations along the New Haven line and 200 commuter parking lots and garages would be an attractive opportunity for private investment in commercial, retail and residential development. The State needs to make significant investments to upgrade the thirty-three state-owned rail stations along the New Haven rail line, provide new stations for Shore Line East and upgrade rail parking on both lines. A public private partnership, similar to the one redeveloping Connecticut’s highway service plazas, represents one way to improve rail stations and parking at a minimal cost – and possibly a profit – to the state. · State parks: There is great opportunity for concession-lease arrangements as is done in Pennsylvania, New York, Rhode Island and other cash-strapped states. · Bradley International Airport: A phenomenal but underutilized asset that with the right organizational model -- such as a quasi-public authority and a plan that meets all federal regulations -- would be tremendous driver of jobs and enterprise. · Contracting services: The DOT already privately contracts 40 percent of its snow plow fleet. Privatizing the remainder and including year-round maintenance would eliminate costly equipment purchases. Department of Motor Vehicle functions, such as renewals of driver’s license and registrations could also be privatized, much like emissions testing is now. Care for developmentally disabled individuals is twice as costly when provided by state employees. New clients should be required to receive quality private provider, allowing for a reduction of state staff and facilities over time. Public-private partnerships in Connecticut would: · Generate new revenue to close the existing budget deficit · Generate a stable interest-bearing funding stream for transportation and capital investments · Create new private sector jobs · Reduce state labor costs · Reduce the size of government · Shift state expenses and risks to a private-third party Lt. Governor Fedele pointed to ample precedent in both the U.S. and abroad regarding the benefits of public-private partnerships. Government traditionally realizes cost savings of 20 to 50 percent when the private sector is involved in providing services or infrastructure. “More than 20 states, including Delaware, Virginia, Maryland and Florida, allow for these partnerships in the transportation sector to maintain infrastructure and develop new projects,” the Lt. Governor said. “Will every partnership proposal we study turn out to be one that we should pursue? We won’t know until we do a detailed analysis of each Connecticut asset – but we owe it to our taxpayers to find out. “For two years, our taxpayers have been footing the bill for the legislative Democrats’ spending party,” Fedele said. “Their spending and borrowing have created a blueprint for bankruptcy. We need a different plan – one that explores creative new solutions. When it comes to new ideas, the Democrats have had their hands clasped over their ears for far too long.” “Partnerships have the potential to combine the strength of each sector for the most cost-effective delivery of services and infrastructure. More and more governments are heading in this direction. In this economy, we have no choice to move forward toward innovation and away from business as usual,” Lt. Governor Fedele said. “This is not a one-time band-aid approach to plug a budget gap – it is a long-term solution for good government, good business, a lower tax burden and a better Connecticut.” © Copyright by ShorelinePlus.com. Some articles and pictures posted on our website, as indicated by their bylines, were submitted as press releases and do not necessarily reflect the position and opinion of ShorelinePlus.com, Canaiden LLC or any of its associated entities. Articles may have been edited for brevity and grammar. CURRENT HEADLINES: Top of Page
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