Carney Pushing Public-Private Partnerships, But What Are PPPs Really?

Filed in Delaware by on January 19, 2017

Governor Carney’s first executive order seems innocuous at first. The Delaware State News writes that Carney wants “to examine replacing the Delaware Economic Development Office (DEDO) with a public-private partnership.” The News Journal and the Delaware Business Times basically concur. Yes, Markell’s DEDO has had several issues which the News Journal goes into some detail about. But nestled deep in Carney’s Executive Order Number One, the governor asks the working group to look into the following:

d. The extent to which other states in the United States have used public-private partnerships (PPPs) as a tool to promote innovation and build an entrepreneurial community, the significant features of those partnerships and the degree to which they have achieved measurable results; and

e. The conditions necessary to making effective use of a PPP to foster economic development in Delaware.

Public-Private Partnerships are a long-term arrangement for the government and private business to provide a service. This is not in itself a way to provide jobs, it’s really a way that conservatives have found to privatize different government functions. If you don’t believe me, believe the National Council for Public-Private Partnerships:

A public-private partnership (P3) is a contractual arrangement between a public agency (federal, state or local) and a private sector entity. Through this agreement, the skills and assets of each sector (public and private) are shared in delivering a service or facility for the use of the general public. In addition to the sharing of resources, each party shares in the risks and rewards potential in the delivery of the service and/or facility.

If you are interested in driving on privatized highways, PPPs are your thing. Do you like less accountability when dealing with millions and billions of dollars, then PPPs are your thing. PPPs are just another business fad conjured up by the Chamber of Commerce to fatten their wallets at the expense of the taxpayer.

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Comments (14)

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  1. Jason330 says:

    Who wants to bet that this working group decides that a PPP would be great, and that the Delaware State Chamber of Commerce will be the perfect private entity to manage “economic development”?

  2. Oh, yeah, this didn’t spontaneously burst forth from the febrile mind of John Carney. His Chamber allies, the same ones who have already given him an award, cooked this up.

    No good will come of this. Nor, as it appears increasingly likely, from Carney himself.

  3. mediawatch says:

    Almost, Jason. Yes, they’ll decide that the PPP is great because the Business Roundtable report gives examples of what it considers successful PPPs in Arizona, Florida, North Carolina and Missouri.

    The DSCC won’t be the entity to manage economic development. There will be a new agency created and its board will be drawn largely from the Business Roundtable and the DSCC board of directors. They’ll toss in a representative from each county government, plus someone from city of Wilmington, and maybe Newark and Dover. And they’ll make sure they’ve got a couple of small-biz tech types on board, perhaps the proprietor of one of the Wilmington coworking spaces, or UD’s Horn entrepreneurship program.

    I would not anticipate this group paving the way for privately owned highways. I do see it as another example of the Delaware Way — putting a bipartisan group of fat cats in the room, shutting the door and making decisions on how to give away millions of tax dollars provided by the middle class. Bad as that seems, I can’t imagine them doing any worse than DEDO. And the PPP members would have to kick in some bucks — it’s a pay to play scheme — so the new DEDO would likely cost fewer tax dollars to run.

  4. chris says:

    Those four states you mention— Arizona, Florida, North Carolina and Missouri– are solid Republican or lean Republican. Delaware would be first true blue state to do a PPP then. Interesting. Definitely benefits the State Chamber and tries to make them relevant again.

  5. anonymous says:

    “Definitely benefits the State Chamber and tries to make them relevant again.”

    WTF are you talking about? At what point has the state Chamber not been a major player in Delaware governance?

  6. chris says:

    State chamber has had declining membership for years and lackluster leadership under ex Chrysler guy Jim Wolfe and the lady from New Jersey who only lasted a year before they sent her packing. They aren’t the major players they used to be decades ago.

  7. anonymous says:

    Decades ago, Republicans ran Delaware. They’re doing pretty well considering no Republican has run the place in 25 years.

  8. mediawatch says:

    Chris,
    The difference isn’t the chamber, it’s Delaware business as a whole. There are no Irv Shapiros, Al Giaccos, Charlie Cawleys, Barney Taylors anymore. The business community no longer has mega-leaders at the top. Ed Breen couldn’t find King Street without a map. The best we’ve got is Mark Turner at WSFS. “Mark who?” you ask. Well, that’s the point.
    That said, the Chamber still runs the business show in the state. Individually, the leaders might not be as powerful, but they flex their muscle when they have to. They don’t have to do it much, because most of the GA is already bought and paid for.
    If you want me — or anyone else — to believe otherwise, show me one significant piece of legislation the chamber opposed that was passed by the General Assembly.
    You might have to go back to 1971 and the Coastal Zone Act.

  9. Which they’re now trying to dismantle.

  10. anonymous says:

    Preach it, Mediawatch.

  11. donviti says:

    oh look another shooting in Wilmington

  12. chris says:

    mediawatch
    1-The Chamber opposed the enhanced eminent domain protections which passed the General Assembly and signed by Markell in 2009.
    2-The Chamber was largely silent when Markell increased the state income tax for top level a few years back. Decades ago, they would have fought that increase tooth and nail.

  13. anonymous says:

    @chris: They already rammed through the supermajority requirement for tax increases. Jesus, what more do you expect them to ask for? Remember, this is an entirely Democratic state at the moment and has been for many years now, and you’re going to cite a couple of examples that picayune?

    Pretty weak argument you got there.

  14. fightingbluehen says:

    Do they want venture capitalists of some sort coming in and acting like quasi lending institutions, or do they want it to be more like a chamber of commerce type set up?