Trust local officials to vet public-private deals

Public-private partnerships (P3) legislation, sponsored by Rep. Leslie Combs, D-Pikeville, and Sen. Max Wise, R-Campbellsville, provides a framework, already established in most states, for governments in Kentucky to partner with businesses to help build infrastructure and other projects.

A recent Herald-Leader editorial endorsed the idea of P3 legislation, which we at the Kentucky League of Cities applaud, but the piece also unfairly attempted to portray local officials as not having the depth or sophistication to understand local needs and what’s possible.

The editorial singled out mismanagement in two counties as examples of the need for protections from private business taking advantage of “unsuspecting taxpayers and ratepayers.”

Mismanagement does occasionally happen at all levels of government, and there are as many, if not more, examples of lucrative state and federal contracts that can be categorized as “bad long-term deals.”

Many of these sweetheart deals end up being front-page news in this and other newspapers. Painting all local officials with the same broad brush ignores the reality that we are fortunate to have high levels of expertise and experience in the overwhelming majority of our Kentucky cities.

Surveys show local leaders are far more trusted than leaders in any other level of government. They are closest to the people, and their decisions receive far more scrutiny than those of state or federal officials. Mayors are citizens’ colleague, the person they see at ballgames, church and the grocery store. Who better understands a community’s dreams or cares more about its future?

As far as depth and sophistication, we can point to mayors across the commonwealth who operate or have operated businesses and have a vast array of experience. Lexington and Louisville are both led by mayors with vast private sector experience. Mayors are bankers, lawyers, educators, government agency heads, investment managers and more. These people volunteer their expertise to serve the places they call home. They are some of the brightest and most experienced leaders in our state — not full-time politicians. Kentucky’s city officials have learned a great deal over their private-sector careers and are certainly sophisticated enough to understand what a public-private partnership entails. One need only look at the Owensboro waterfront as a shining example of a public-private partnership success.

Furthermore, cities have access to a wide network of support through their municipal attorneys, finance officers, city managers and administrators, bond counsel and the KLC. There is no shortage of expertise available to help local leaders make the best decision possible, vet deals and protect the public interest.

And if this weren’t enough, the legislation includes language recommended by KLC to ensure the largest projects are vetted beyond the local level through an 11-member Kentucky Local Government Public-Private Partnership Board. It requires review and approval of any project that is more than 30 percent of the previous year’s general fund revenue.

KLC, which represents more than 360 cities, supports giving Kentucky communities the opportunities to move ahead. These are precisely the reasons for the P3 legislation, and why both local governments and businesses, including the Kentucky Chamber of Commerce, support both bills. As one of the architects of both the P3 bills, House Bill 309 and Senate Bill 132, KLC recognizes the huge, positive impact these measures can have on communities.

P3 is progressive. It brings collaboration between business and government and has the possibility to change the course of a community’s future. Cities are ready for P3, and city leaders are more than able to envision, create and negotiate what is best for their residents.

This story was originally published February 21, 2016 at 9:56 AM with the headline "Trust local officials to vet public-private deals."