Across the country, states are responding to the budget crunch by considering the selling of their assets.
Minnesota Governor Tim Pawlenty has some lucrative options to consider including a zoo, amateur sports complex, large airport, golf resort and massive landholdings.
Massachusetts is considering putting the Massachusetts Turnpike into private control.
New York Governor David Patterson has a commission reviewing bridges, parks, golf course, toll roads, beaches and the lottery.
These infrastructure projects can become good investments for pension funds and investors in an unstable financial time.
Lawmakers sometimes have regrets later. Sometimes the taxpayers do as well. Privatizing infrastructure allows monopoly pricing. The higher prices on toll roads, for example, can redirect drivers onto public roads. The public roads wear quicker and the travel time is increased.
It is estimated that governments need to invest $1.6 trillion over the next five years into infrastructure. That money is not there. Selling the problems seems like a reasonable solution at times.
Then there is the problem of long-term revenue. The valuable infrastructures produce an annual income. Without that, future governments face a tightening financial difficulty and no assets to sell.
