Category Archives: Transportation

New York’s prevailing wage law: A cost-benefit analysis

Source: Russell Ormiston, Dale Belman, and Matt Hinkel, Economic Policy Institute, November 1, 2017

… State prevailing wage laws across the country have increasingly been assailed by those who appeal to lawmakers’ other responsibility—minimizing taxpayer costs—in an attempt to weaken or repeal these policies. These nationwide campaigns are built almost entirely upon a single argument: higher wages must equate to higher taxpayer costs. … And with a recent publication by the Empire Center (McMahon and Gardner 2017), it has become apparent that some in New York will attempt to pitch the same narrative to state lawmakers. There’s one problem. According to the most advanced economic research on state prevailing wage laws, the simple narrative largely isn’t true.

To separate fact from fiction as it relates to New York’s prevailing wage law, this report provides a thorough cost-benefit analysis of state policy relying extensively on independent, peer-reviewed research. As summarized in this report, academic economists from around the country have made prevailing wage laws a research priority over the last 15 years. In study after study, economists have found no evidence that these laws have had any significant cost effects on the biggest drivers of New York’s capital budget: highways and institutional buildings (e.g., schools). …

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Public Private Partnerships (P3s) in Transportation

Source: William J. Mallett, Congressional Research Service, November 2, 2017

Public private partnerships (P3s) in transportation are contractual relationships typically between a state or local government, who are the owners of most transportation infrastructure, and a private company. P3s provide a mechanism for greater private-sector participation in all phases of the development, operation, and financing of transportation projects. Although there are many different forms P3s can take, this report focuses on the two types of agreements that generate the most interest and discussion: (1) design-build-finance-operate-maintain (DBFOM); and (2) longterm lease. …

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Trump boosts disaster aid for Puerto Rico rebuild

Source: Roberta Rampton, Reuters, November 2, 2017
 
U.S. President Donald Trump on Thursday agreed to expand the use of disaster aid to help rebuild Puerto Rico’s power grid and other infrastructure wrecked by Hurricane Maria, the White House said. In a unique agreement recognizing both the massive devastation on the island and its dire financial problems, aid from the Federal Emergency Management Agency (FEMA) for infrastructure projects will be released in a faster, more flexible way than is typical after disasters, a senior White House official told Reuters.  The plan, agreed to with Puerto Rico Governor Ricardo Rossello, will also provide for third-party advisers to estimate how much money is requires for big-ticket projects, and how it is spent – a provision aimed at protecting taxpayer dollars in what is expected to be a massive, long-term effort to rebuild the island. …

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Puerto Rico Lays Out Energy Future With Tesla, Privatization
Source: Jonathan Levin, Bloomberg, October 22, 2017

A Puerto Rican official who has been in talks with Tesla Inc. said the island is serious about transforming its energy infrastructure after it was leveled by Category 4 Hurricane Maria, despite questions about how such an overhaul would be funded.  Speaking in a telephone interview Sunday, Department of Economic Development and Commerce Secretary Manuel Laboy said Puerto Rico’s government understands its skeptics: The island’s finances are shot and its electricity system is in tatters. But he said the U.S. territory has a historic opportunity to use federal funds to modernize an aging and weak power grid.  At the core of the argument is the government’s belief that funding related to the Federal Emergency Management Agency, or FEMA, can be used to build a new system, not just repair the old one, so that it won’t be susceptible to collapse when the next storm hits. Laboy said Governor Ricardo Rossello’s government is prepared to make its case. …

Puerto Rico taps public private partnerships to boost economy
Source: Robert Slavin, Bond Buyer, October 19 2017

…The island government said Monday that it’s working on six public private partnership projects that would lead to $300 million to $400 million of investment in projects ranging from a hydroelectric dam to student housing.  Puerto Rico will seek requests for qualifications for three of the projects and it is already working with companies on the other three. If the projects go forward, they would boost an economy that has been struggling with long-term economic decline compounded by the impacts of two major hurricanes in the last two months….

Elon Musk Is Not the Hero Puerto Rico Needs
Source: Kate Aronoff, In These Times, October 11, 2017

… According to a tweet from the governor late last week, the two are now in talks about bringing renewable energy from Musk’s Tesla and SolarCity operations to the island, whose long-embattled public utility—the Puerto Rico Electric Power Authority (PREPA)—was decimated by Hurricane Maria. … On the one hand, the talks can be seen as a positive development: More than 80 percent of the island remains without power, and the storm could be a once-in-a-lifetime opportunity for Puerto Rico to get back online and become a leader in the transition away from fossil fuels. But the budding friendship between Rossello and Musk is also taking place in the context of a massive attempt to privatize Puerto Rico’s electric utility. Musk’s companies could deliver tangible improvements to Puerto Rico’s grid, but they could also prime the pump for a corporate takeover of the United States’ largest public power provider, putting decisions like who gets power and how much it costs into the hands of corporate shareholders. …

Puerto Rico Faces Restart on Financial Plan After Maria
Source: Heather Gillers and Andrew Scurria, Wall Street Journal, September 26, 2017

It took months to put together a financial overhaul plan for Puerto Rico. Now officials may have to start over following Hurricane Maria. The federal board supervising Puerto Rico’s bankruptcy plans to meet Friday and is likely to discuss possible changes to a commonwealth fiscal plan it approved in March, according to a person familiar with the matter. The conversations could affect the severity of write downs on Puerto Rico’s $73 billion in debt.

… Reconstructing Puerto Rico’s power grid may prove particularly costly because of financial difficulties at its struggling electric utility. … Congress is starting to debate how best to rebuild Prepa. Setting up a reliable power system will require expensive modernization using federal dollars. Prepa is a flashpoint in Puerto Rico’s financial crisis because power rates are a drag on family incomes and company budgets. The oversight board has said it wants to privatize power generation to lower costs and transition Prepa to a regulated utility model. Creditors are skeptical of privatization, concerned that by selling off assets Prepa would lose the revenue streams backing its debt. But raising power rates to repay creditors is politically toxic in Puerto Rico, where the cost of importing fuel from oil tankers has driven power prices higher than in any U.S. state but Hawaii. …

Puerto Rico’s bondholders worried after Hurricane Maria turns out lights
Source: Francine McKenna, MarketWatch, September 21, 2017

If Puerto Rico is without power for months after Hurricane Maria, as authorities now warn, many investors in the $9 billion of Puerto Rico’s outstanding electric utility bonds risk never seeing their money. … The plight of Prepa bondholders—Prepa is Puerto Rico’s main supplier of electricity—was grim even before Irma. … Prepa’s bonds, $9 billion worth, are revenue bonds whose funding stream is based on collecting customer fees. Even before Hurricane Maria knocked power out for good, bondholders were worried that Prepa would deliberately force some plants offline, jeopardizing the collateral, creating justification for a privatization plan that could leave current bondholders high and dry. Proponents argue that a brand new electric authority, free of debt, would be a huge boon to the Puerto Rican economy. …

Hurricane Irma Unleashes the Forces of Privatization in Puerto Rico
Source: Kate Aronoff, Angel Manuel Soto, and Averie Timm, The Intercept, September 12, 2017

For struggling governments around the world, privatizing utilities has come to be seen as a kind of get-rich-quick scheme, offering an upfront infusion of cash to underfunded municipalities. Given Prepa’s size and that of its debt — $9 billion — it has been a long-standing target for privatizers, even before Congress passed the Puerto Rico Oversight, Management, and Economic Stability Act last year to help rein in Puerto Rico’s mounting debt crisis. The blackout following Irma just added fuel to the fire. Days before Irma hit, Rosselló emphasized that privatization is firmly on the table, telling the New York Times that Irma “can become an opportunity or another liability.” …

Irma Grazes Puerto Rico but Lays Bare an Infrastructure Problem
Source: Luis Ferré-Sadurní, New York Times, September 10, 2017

As government workers cleared roads obstructed by uprooted trees and repaired toppled electricity lines, residents of Puerto Rico felt some relief that the eye wall of Hurricane Irma had skirted the island on its recent rampage through the Caribbean.  But while the commonwealth had largely been spared the 185-mile-an-hour gusts that had flattened its smaller island neighbors, hundreds of residents still lost their homes, at least three people died and almost 70 percent of households were plunged into darkness. The storm knocked out Puerto Rico’s fragile power grid, exposing the island’s decrepit infrastructure and raising questions about its future viability amid a worsening economic crisis.

… How a commonwealth going through a decade-long recession will be able to pay for much-needed upgrades is the key question. One option is to turn to the private sector, local economists say. Private investments, Mr. Rosselló said, could be accelerated under a provision of a contentious new law called Promesa, which placed the island’s finances under the oversight of a federal board. The provision could expedite and facilitate the process for private investment in electric, highway and water projects. … But the idea of privatizing public utilities is a divisive one on the island. The electrical workers’ union fears that the government purposely let Prepa deteriorate over time to justify privatizing it. …

Puerto Rico wasn’t ready for Hurricane Irma. We couldn’t possibly be.
Source: Carla Minet, Washington Post, September 7, 2017

On the surface, Puerto Rico was as ready as it could be for Hurricane Irma. Government agencies and Gov. Ricardo Rosselló have been taking a proactive, hands-on approach. President Trump has declared a state of emergency, which will generate emergency funds from the federal government. Refugees from the northeastern corner of the island, where Irma’s Category 5 winds already reached Wednesday afternoon, were arriving in shelters. … But Irma — a storm the likes of which we haven’t seen here in decades — is heading for an island whose resources to truly prepare for an emergency are already in grave doubt. … Now Irma may be used as a new rationale for the strategy of privatizing the public service by the Fiscal Control Board, whose members have publicly declared support for selling off the utility. The agency announced that 44 percent of the population — 692,350 clients — were already without electricity service by Wednesday afternoon. …

Government labor strife is latest test for fractured Puerto Rico
Source: Nick Brown, Reuters, August 30, 2017

Puerto Rico’s already frail economy faces a fresh test this week, as the bankrupt U.S. territory’s financial overseers try to force a defiant governor to furlough public workers, the single biggest block of employees on the island. An escalating power struggle between the democratically elected Governor Ricardo Rossello and the federally appointed oversight panel culminated on Monday when the board sued Rossello, saying he had no authority to reject pension cuts and furloughs ordered by the board. The measures are set to begin Sept 1. A competing lawsuit from the American Federation of State, County and Municipal Employees (AFSCME), which represents 12,000 Puerto Rican workers, argues the exact opposite – that the measures violate the U.S. Constitution, and should be halted. At least six unions are staging protests on Wednesday to oppose the austerity, featuring a midday march to the board’s San Juan offices. … Noting a Rossello initiative to privatize some public assets, Eiler said “the unions’ cooperation is imperative” for public-private partnerships. …

Hedge Fund Sues to Have Puerto Rico’s Bankruptcy Case Thrown Out
Source: Mary Williams Walsh, New York Times, August 7, 2017

A hedge fund sued on Monday to have Puerto Rico’s bankruptcy case thrown out, arguing that the federal oversight board guiding the island’s financial affairs was unconstitutionally established.  In a lawsuit filed in United States District Court in San Juan, the hedge fund, Aurelius Capital, cited the “appointments clause” of the United States Constitution, which calls for all principal officers of the federal government to be appointed by the president, and then confirmed by the Senate.  That did not happen when the seven members of the Financial Oversight and Management Board for Puerto Rico were selected, Aurelius said in its motion to dismiss the bankruptcy-like proceedings. …

Puerto Rico Teachers’ Union-AFT Join Forces Amid Debt Woes
Source: Jaclyn Diaz, Daily Labor Report, August 4, 2017 (subscription required)

The economic devastation in Puerto Rico has pushed the American Federation of Teachers to lend a hand to the island’s educators. Asociación de Maestros de Puerto Rico will continue to represent the 40,000 plus Puerto Rican educators. It signed a three-year affiliation agreement with the 1.6 million-member AFT to help it combat the island’s economic challenges, the two unions announced Aug. 3. … AFT and AMPR will work together to fight austerity measures and privatization on the island, Randi Weingarten, AFT president, told Bloomberg BNA Aug. 4. AFT will lend resources to help AMPR train teachers for the future and to bring in legal assistance to fight the fiscal plan adopted by the Puerto Rican government, she said. …

Is Congress’ plan to save Puerto Rico working?
Source: Edwin Melendez, San Francisco Chronicle, July 31, 2017

A year ago, Congress cobbled together a plan to try to save Puerto Rico from its US$123 billion debt and pension crisis without costing American taxpayers a penny.  The law, signed by former President Barack Obama on June 30, 2016, effectively steered Puerto Rico into bankruptcy-like proceedings in federal court to prevent a massive default, while saddling the commmonwealth with an oversight board to ensure it put its fiscal house in order.  Though the vote was bipartisan, critics called it a “Band-Aid” that would do little to solve Puerto Rico’s core problems: unsustainable debt that has kept the country mired in recession for almost a dozen years. …

For Sale: Puerto Rico
Source: Heather Gillers, Wall Street Journal, June 26, 2017

Puerto Rico has no cash and can’t borrow money anymore. So it is looking to sell itself off in parts. The troubled U.S. territory is preparing to seek bids in coming months from private companies willing to operate or improve seaports, regional airports, water meters, student housing, traffic-fine collections, parking spaces and a passenger ferry, according to a government presentation reviewed by The Wall Street Journal.

The Bankers Behind Puerto Rico’s Debt Crisis
Source: Michelle Chen, The Nation, June 8, 2017

Puerto Rico’s economic crisis has now washed the burden of its colonial legacy onto Washington’s doorstep. Congress has been trying to contain the island’s ballooning debt under the hardline austerity program of the Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA). But since the program is governed by a control board run by the same financiers responsible for driving the debt crisis in the first place, the island continues to sink into poverty while its creditors feast on the spoils.  To underscore how Puerto Rico’s revolving door of big finance and politics is underwriting the debt crisis, a report by the AFL-CIO and the community-labor coalition Committee for Better Banks (CBB) traces the career of the head of PROMESA, Carlos M. García, from his role as a head banker of Santander to his current political post overseeing the privatization and pillage of Puerto Rico’s anemic public assets.

Puerto Rico strikes second restructuring deal with bondholders
Source: Hazel Bradford, Pensions & Investments, May 15, 2017

Puerto Rico reached a restructuring agreement with bondholders invested in the commonwealth’s Government Development Bank, officials announced Monday in San Juan. … Puerto Rico’s Federal Affairs Administration said in that statement that GDB creditors “have agreed to substantial discounts to the principal,” but did not provide further details on the agreement, which calls for bondholders to exchange claims for one of three tranches of bonds issued by a new municipal entity. The new bonds will have varying principal amounts, interest rates, collateral priority, and other payment terms.  It is the second agreement reached with bondholders and Gov. Ricardo Rosello, following one announced April 6 with holders of bonds issued by the Puerto Rico Electric Power Authority. The PREPA agreement restructures $9 billion in debt by offering them 85 cents on the dollar, and giving PREPA more time to begin making payments. …

Puerto Rico board extends budget deadline by two weeks
Source: Robert Slavin, Bond Buyer, May 9, 2017 (Subscription Required)

The Puerto Rico Oversight Board extended the deadline for Puerto Rico Gov. Ricardo Rosselló to submit a fiscal year 2018 budget by two weeks.  Board chairman José Carrión III told Rosselló that the board had originally set May 8 as the deadline for either the board approving the governor’s budget or notifying the governor of violations and providing a description of corrective actions. “We have received a working draft of the proposed budget and are reviewing the submission and its completeness,” Carrión wrote Monday. “The board will provide the governor an additional 14 days to amend and improve the submission before it approves it or identifies violations.” …

Puerto Rico unveils energy PPPs amid economic turmoil
Source: David Casallas, BNamericas, May 5, 2017

Puerto Rico’s embattled government released a list of priority project proposals for this year, among them energy sector initiatives that would be carried out through public-private partnerships (PPP). The projects envision natural gas use at power utility AEE’s residual fuel oil fired-plants Costa Sur (990MW) and Palo Seco (602MW) which would cost US$150mn-265mn and US$200mn-360mn, respectively. Information from the Puerto Rico Public-Private Partnerships Authority also reveals that AEE seeks partners to develop renewable energy projects, including photovoltaic and wind, for between US$100mn and US$700mn. …

Puerto Rico Declares a Form of Bankruptcy
Source: Mary Williams Walsh, New York Times, May 3, 2017

With its creditors at its heels and its coffers depleted, Puerto Rico sought what is essentially bankruptcy relief in federal court on Wednesday, the first time in history that an American state or territory had taken the extraordinary measure.  The action sent Puerto Rico, whose approximately $123 billion in debt and pension obligations far exceeds the $18 billion bankruptcy filed by Detroit in 2013, to uncharted ground.  While the court proceedings could eventually make the island solvent for the first time in decades, the more immediate repercussions will likely be grim: Government workers will forgo pension money, public health and infrastructure projects will go wanting, and the “brain drain” the island has been suffering as professionals move to the mainland could intensify. …

Puerto Rico faces bank closure, privatizations
Source: Danica Coto, Associated Press, April 28, 2017

Puerto Ricans will be facing a water rate increase, privatization of government operations and the closure of a bank that once oversaw the island’s debt transactions, officials said Friday as they worked on measures to offset an economic crisis.  Some of the changes were outlined in new fiscal plans presented to a federal control board overseeing the island’s finances. The plans for four heavily indebted Puerto Rico agencies will be amended in upcoming weeks, although officials noted that the water rate increase will start in January and that the Government Development Bank will be liquidated within a decade.  The board recently approved an overall fiscal plan for the central government that contains several austerity measures. …

Puerto Rico pushes to privatize operation of public services
Source: Danica Coto, Associated Press, April 20, 2017

Puerto Rico is ready to sign dozens of new deals to privatize the operation of public services as government funds dwindle amid a decade-long recession, the island’s governor told some 800 investors attending a two-day financial summit Thursday.  Gov. Ricardo Rossello said public-private partnerships could create up to 100,000 new jobs and generate some $5 billion in the next three years for a U.S. territory mired in economic crisis and its government facing a $70 billion public debt load that it is struggling to restructure.

AFSCME Pres. Lee Saunders on Puerto Rico Fiscal Plan
Source: AFSCME Press Release, March 13, 2017

AFSCME Pres. Lee Saunders issued the following statement on the oversight board’s approval of a fiscal plan for Puerto Rico:  “The plan approved by the Oversight Board will have devastating consequences for the people of Puerto Rico, especially its most vulnerable citizens. The plan adopts an austerity approach that will slash services, cut pensions and create yet more economic hardship for Puerto Ricans. The winners are wealthy investors who stand to gain from the mass privatization of the services that remain. These actions are the foreseeable result of an anti-democratic law adopted by the last Congress. The people of Puerto Rico have been forgotten; we call on the federal government to act quickly to restore services and pensions.”

Board to Puerto Rico: Cut Pension System, Impose Furloughs
Source: Danica Coto, Associated Press, March 13, 2017

A federal control board on Monday said Puerto Rico’s government needs to cut its public pension system by 10 percent, furlough tens of thousands of its workers and eliminate Christmas bonuses if it cannot generate other types of savings amid a nearly decade-long recession. The seven-member board created by Congress last year to oversee the U.S. territory’s finances voted unanimously to add those measures to a 10-year fiscal plan presented by the island’s governor that the panel approved Monday. The measures will be implemented if the government fails to find other ways to cut spending and increase revenue. Board members said the spending cuts will be necessary so the government will have enough funds to pay for essential services such as education, health and public safety. … The plan drafted by the government and approved by the board also will cap some Medicaid benefits, effectively raise property taxes and scrap some infrastructure projects while possibly turning ferries, ports and parking lots over to private companies. It will freeze salaries until 2020, seeks to privatize the generation of power and increase motor vehicle license fees by 10 percent. …

Puerto Rico governor wants fewer austerity measures
Source: Danica Coto, Associated Press, March 1, 2017

Puerto Rico’s governor submitted an austerity plan made public on Wednesday that would cut deeply into the U.S. territory’s budget while avoiding some of the most painful measures recommended by a federal control board that is overseeing the island’s effort to confront a debt crisis that has led to repeated defaults. Gov. Ricardo Rossello’s plan would cap some Medicaid benefits, effectively raise property taxes and collect a tax on internet purchases. It would also scrap some infrastructure projects and could turn ferries, ports and parking lots over to private companies. But it would fall short of the board’s recommendation of a 30 percent cut in payroll costs and 10 percent reduction in the government pension system, which is on track to run out of money next year. …

County services for disabled moving to private providers

Source: Rita Price, Columbus Dispatch, October 30, 2017
 
Federal rule changes about case management and Medicaid payments are forcing county disabilities boards throughout the state to privatize and outsource many of their remaining programs. The Centers for Medicare and Medicaid Services has mandated “conflict-free case management” by 2024 in Ohio, which means counties cannot be both the coordinator and the provider of services paid with Medicaid waiver funds.  But county boards still must pay for services and put up the local share of the Medicaid match — in Franklin County, more than $60 million a year for adult waiver services. Medicaid waivers provide money for community-based services so that people don’t have to be in an institution to get the care and programs they need. … Some 300 members of the county’s adult-services staff are to become ARC Industries employees in January 2019. … ARC is the disabilities program that provides job training, workshop employment, transportation and other services. Although ARC already was a nonprofit employer for people with disabilities, the workshops and programs have been staffed by county employees. Early childhood and school programs can continue to be operated by the board because they’re not funded through Medicaid waivers. … Initially, Morison said, the board’s costs might increase as a new infrastructure is established. He expects it to even out in coming years. …

White House says it’s considering increasing the federal gas tax for infrastructure

Source: Ashley Halsey III, Washington Post, October 26, 2017
 
The White House is revisiting an increase in the federal gas tax to pay for infrastructure improvements President Trump promised to deliver on the campaign trail.  That news was conveyed to House members Wednesday in a meeting by Trump’s chief economic adviser, Gary Cohn. … After campaigning on a promise he would lure private capital to invest in infrastructure, Trump in late April said he would be open to bumping up the federal gas tax, which has not seen an increase since 1993.  Some Democrats, notable among them Rep. Peter A. DeFazio (Ore.), ranking Democrat of the House Transportation Committee, have fought an upstream battle to increase the tax. …

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White House eyes 7-cent gas tax hike for infrastructure plan
Source: Melanie Zanona, The Hill, October 25, 2017
 
The White House may back the first hike in the federal gasoline tax in decades in order to pay for President Trump’s $1 trillion infrastructure package.    Trump’s economic adviser Gary Cohn told moderate House lawmakers at a private meeting on Wednesday that they’ll get a chance to vote on a gas tax hike early next year as part of an infrastructure bill, according to two lawmakers who were present. The discussion over the fuel tax during the meeting was first reported by Politico Playbook.  “Cohn seemed receptive to it,” one meeting participant told The Hill.  Separately, an industry source tells The Hill that the White House intends to back a 7-cent gas tax increase to pay for U.S. roads, bridges, highways and other public works, though it’s unclear if the proposal would be included in initial infrastructure legislation or if the administration will push to have it added at the committee level. …

Rural America looks to Trump to help with crumbling infrastructure
Source: Josh Siegel, Washington Examiner, October 16, 2017

Lawmakers and policy experts say the White House cannot forget rural America as it prepares to release the outlines of its infrastructure spending package. … The emphasis on partnerships worried proponents of rural infrastructure investment. Partnerships with private investors face tougher obstacles in rural areas, because it’s difficult for companies in places with smaller populations to generate the revenue needed to sustain the project. …

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Ige applauds work in progress at rental car hub

Source: Brian Perry, Maui News, October 6, 2017
 
The governor also expressed support for a Senate bill — now pending before state lawmakers — that would create the Hawaii Airport Corp. as an entity to consolidate the ownership, control and management of the state’s airport system. It would take that responsibility from the state’s Transportation Department, although that department would be administratively attached to the corporation. Senate Bill 658 advanced to a conference committee this year, but lawmakers were unable to achieve final passage of the measure supported by the Department of Transportation. Next year, legislators may pick up where they left off .Referring to the Kahului rental car facility’s construction, Ige said Transportation Department Director Ford Fuchigami and his team “have done a terrific job in moving the project forward, but we are pursuing the airport authority because we believe even with the work that has been done we can do better.” … Funds for construction of the consolidated rental car facility come from a pool of money generated by customers who pay $4.50 a day to rent vehicles in Hawaii. Funds for the airport corporation would come from fees paid by airlines and other airport vendors.Hawaii Government Employees Association Executive Director Randy Perreira submitted testimony opposed to the bill. …  “The bill advances the notion that such a corporation addresses delayed decision-making and inefficiency resulting from multiple agencies involved in the planning, development and operation of Hawaii’s airport infrastructure,” Perreira said. “We assert that multiple agencies, each with their own area of responsibility, are rightly involved to collectively protect the public interest.”

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Effort to establish airports corporation advances
Source: Ivy Ashe, Hawaii Tribune Herald, March 24, 2017

Another attempt to consolidate management and planning for Hawaii’s airports is making its way through the state House of Representatives.  The measure was first brought to the Senate last year by the late Hawaii Island Sen. Gilbert Kahele. That legislation died during conferencing.  This year’s bill, Senate Bill 658, was introduced by Sen. Lorraine Inouye, D-Hilo, Hamakua, Kohala, Waimea, Waikoloa, Kona, and would establish a Hawaii airport corporation comprised of a governor-appointed board of directors. … The measure has been opposed by labor groups such as the Hawaii Government Employees Association. In written testimony during Senate hearings, executive director Randy Perreira stated having multiple agencies involved in airport management was a way to “collectively protect the public interest.”  “The public benefits from the involvement of the Department of Health with respect to addressing environmental concerns, the Board of Land and Natural Resources with respect to protecting public lands and the Department of Human Resources Development with respect to enforcing the civil service law to render impartial service to the public,” he wrote. …

Lawmakers, union leaders want MBTA privatization reigned in

Source: Metro, October 3, 2017
 
The MBTA privatization debate may change course after lawmakers urged their colleagues Monday to start rolling back the privatization powers they granted the T after the disastrous 2015 winter.  After winter storms suspended the MBTA’s train service more than once, lawmakers gave Gov. Charlie Baker three years to fix the T without the constraints of the Taxpayer’s Protection Act, called the Pacheco law. That law requires private contractors to prove cost savings and no service reduction before any state service can be outsourced.  Since the law’s suspension, the MTA has outsourced cash handling and equipment management operations and is considering privatizing bus maintenance at three garages. …

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Quincy officials to speak against privatization of Quincy T facility
Source: Sean Philip Cotter, The Patriot Ledger, September 22, 2017

As the prospect of privatizing services at the MBTA maintenance garage in Quincy approaches, two Quincy officials plan to speak in a state Senate hearing against the prospect. State Sen. John Keenan and state Rep. Tackey Chan will speak Oct. 4 before a hearing of the Senate Committee on Post Audit and Oversight, letting their concerns about privatizing the operations of Quincy’s and similar garages. The T’s request for proposals for contractors to take over up to three garage’s operations are due on Wednesday. If the T wishes, the contractors could begin operations around the start of the new year, according to the request for proposals the agency issued in July. …

MBTA union blasts Baker’s privatization plan
Source: Christian M. Wade, Gloucester Times, August 14, 2017
 
Union workers at the MBTA are pushing back against Gov. Charlie Baker’s plans to privatize bus maintenance, saying it will cost jobs and compromise safety.  Hundreds of workers rallied Thursday outside the MBTA’s Lynn garage, where they blasted Baker’s support for hiring private companies to take over bus maintenance.  “Gov. Baker has chosen to gamble with the taxpayers, the safety of riders and the livelihoods of these hardworking men and women,” said Michael Vartabedian, who heads the International Association of Machinists Local 264, a union representing 120 MBTA bus maintenance machinists. “We won’t let core public services like MBTA bus maintenance be dismantled and destroyed.” …

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KC Council picks Edgemoor team for KCI terminal job

Source: Rob Roberts, Kansas City Business Journal, September 21, 2017

A joint meeting of two Kansas City Council committees voted Thursday in favor of selecting a team led by Edgemoor Infrastructure & Real Estate LLC to design, develop and arrange financing for a new airport terminal. … The committee’s decision comes after heavy lobbying and criticism by two other teams pursuing the roughly $1 billion project. … The airport ordinance calls for the city manager to begin negotiating a memorandum of understanding with Edgemoor. At the request of Councilman Jermaine Reed, it also spells out components of a community benefits agreement that must be part of the MOU, requires Edgemoor to institute a local hiring preference and requires negotiation of minority- and women-owned business and workforce participation goals that recognize “the transformative possibilities for disadvantaged businesses and workers that can result from a public infrastructure project of the magnitude of the proposed terminal modernization project.” …

Federal Labor Lawsuit Accuses LAZ of Failing to Pay Overtime

Source: Robert Storace, The Connecticut Law Tribune, September 15, 2017

A Georgia man has filed a prospective collective action lawsuit claiming Connecticut-based LAZ Parking company violated federal labor laws when it failed to pay for overtime. The federal lawsuit filed Wednesday in U.S. district court claims Hartford-based LAZ Parking regularly does not pay assistant managers overtime in violation of the Fair Labor Standards Act. …

… The company has been the target of several lawsuits including at least one class action. Most recently, LAZ agreed to pay $5.6 million to settle a lawsuit with the Massachusetts Bay Transportation Authority. LAZ was accused of failing to detect and stop the theft of millions of dollars in cash belonging to the MBTA. Separately, the parking company agreed to pay $1.1 million to Massachusetts to settle allegations it failed to implement contractually-required revenue controls and auditing tools at 13 MBTA parking lots. LAZ is also a defendant in a February 2017 class action claiming the ParkChicago app resulted in false parking tickets. That suit is still pending. And, in 2010, LAZ paid $46,000 to settle a U.S. Equal Employment Opportunity Commission religious discrimination lawsuit. …

Labor Unions, Civil Rights, Progressive Groups Unite To Oppose ATC Privatization

Source: Aero News Network, September 13, 2017
 
The Professional Aviation Safety Specialists (PASS), AFL-CIO, along with 36 other unions, civil rights groups and progressive associations representing thousands of employees across the country, united to send a strongly-worded letter to lawmakers on Capitol Hill late last week opposing any efforts to privatize the U.S. air traffic control system. In addition to PASS, the letter was signed by the NAACP, the American Federation of Government Employees (AFGE), American Federation of State, County & Municipal Employees (AFSCME), American Federation of Teachers (AFT), Service Employees International Union (SEIU), United Steelworkers (USW), the Leadership Conference on Civil and Human Rights and many more. …

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Trump’s Dire Air-Traffic Claim Contradicted by Government Report
Source: Alan Levin, Bloomberg, September 7, 2017

Efforts to upgrade the U.S. air-traffic system are on budget and steadily improving flight efficiency, a government watchdog found, contradicting assertions by President Donald Trump and airline executives. Just as the House is set to debate a bill that would separate the air-traffic system from the Federal Aviation Administration, a Government Accountability Office report requested by lawmakers shows that the existing system is performing well, undercutting one of the chief arguments by proponents of the change. …

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Unions representing air traffic controllers, flight attendants support House bill to reauthorize FAA
Source: Kim Riley, Transportation Today, August 29, 2017
 
Two of Capitol Hill’s prominent aviation-related labor unions have found more than one thing to support in the House proposal that aims to reauthorize the Federal Aviation Administration (FAA).  Specifically, one of the main thrusts of the 21st Century AIRR (Aviation Innovation, Reform, and Reauthorization) Act, H.R. 2997, would be to transfer air traffic control (ATC) operations currently overseen by the FAA into a private, separate, not-for-profit corporation. The bill also would reauthorize FAA funding and other programs. …

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