Privatizing Milwaukee Water Works Is Risky Business

Wally Morics, Milwaukee's comptroller, has floated out an idea that has bobbed to the surface and been sunk in the past - - privatizing Milwaukee's Water Works.

Morics is independently elected, and serves as the city government's chief accountant.

Though it's a hugely valuable asset, and generates income that keeps the system solvent and minimizes taxpayer support, the notion is fraught with serious consequences.

First, it can remove control of the asset, and its policies, from city control, citizen participation and local management.

Secondly, unlike other public assets, a water utility is supplying a life-supporting resource, putting a deal and its ramifications into a special, almost unique realm.

Finally, it would guarantee higher rates for city residents and those neighboring communities now buying water or planning to do so, like New Berlin, and perhaps Waukesha, among others.

I'm unaware of meaningful examples of public services being privatized, and the cost of that service being reduced, because there is the need for profit introduced into the deal. And also the need for added revenue to pay off the acquisition or leasing cost. All that gets factored into the rates.

Mequon found it could reduce its costs if it moved away from a private supplier - - so should Milwaukee go the other way?

Milwaukee officials have to be very, very, very careful about how they approach this issue. It should be an item of last resort, and certainly not done in either a rush, or under pressure, or in an atmosphere charged with rhetoric about ruinous results if things aren't moved along quickly.