Privatizing Recycling

OUR VIEW: Privatization done right can yield better services, cheaper

The Herald
— Mercer County commissioners this past week approved a contract for recycling that is expected to save the taxpayers about $450,000 over a three-year period.
While something like recycling doesn’t always stir a lot of interest, what should catch the eye is the savings that can be provided from shifting from public and private operations. It’s something that every level of government needs to closely view.
The contract with Tri-County Industries is for a three-year period at just under $150,000. When the county operated the business, it was costing almost $200,000 per year. That’s some big-time savings, although there may be a few minor changes in the county-run operation which would have cost more. But not hundreds of thousands of dollars more.
However, what should be noticed is the fact that privatization of services can often save money as compared to the usually cumbersome operations of public entities.

For example, an article in The Herald Friday concerned the Sharon sewage treatment plant and the fact that the new price to build the structure would be more than $40 million, at least $10 million more than originally thought.
What a surprise. A Herald editorial once encouraged the city to sell the entire operation to Aqua of Pennsylvania when an offer was on the table, pointing out that costs were surely going to rise as state and federal regulations toughen on waste treatment.
Instead the city tried to work out a deal to lease the sewer lines to Aqua, but that has hit some snags. So now the city — well, actually the taxpayers — are looking at huge bill increases anyhow.
On top of that, the city is paying penalties to the state Department of Environmental Protection every month because the current sewer plant is not up to standards.
Where was a professional city manager when you needed one?
Privatize is not a dirty word.
People in Sharpsville apparently thought it was, because a few years ago they voted down the sale of the borough’s water plant to Aqua, even though borough council wisely wanted to do so. People turned down an immediate windfall of $7 million to borough coffers. That vote was an enormously bad move.
Now the people complain about their high water rates.
And there are other examples of areas where municipalities could save by privatizing operations.
For too many years the county and many municipalities thrived on nepotism, providing high-paying jobs with great benefits for family and friends. This made for programs which cost a lot more to run than they would have from an outside firm.
But remember, privatization only works if done properly. When the county commissioners dumped the county nursing home Woodland Place years ago to a supposedly private group, they foolishly entered into an agreement that the county taxpayers would bail out the home if there are financial difficulties in paying on the bond issue.
Now it’s still costing the taxpayers and our commissioners have failed to step in and take control of the place.
Privatization can work and provide savings. But it also takes the operation of running programs out of the hands of elected officials who unfortunately are sometimes incompetent.