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While Chicago moves to privatize Midway Airport, the debate about Mitchell International Airport (pictured) rages. |
| By Doug Hissom Special to OnMilwaukee.com E-mail author | Author bio More articles by Doug Hissom |
| Published Oct. 3, 2008 at 5:28 a.m. |
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Milwaukee County is not the only place where there's talk of privatizing the airport.
Chicago Mayor Richard Daley announced plans this week to lease out that city's Midway Airport. A private group would take over the airport and pay $2.521 billion for a 99-year lease. Unlike the Milwaukee County plan pushed for study by County Executive Scott Walker, 99 percent of the money would fund infrastructure projects around the city.
Walker has floated the idea of turning over the airport to some other entity, despite county supervisors relishing the revenue it brings into the cash-strapped county government. Walker's proposed budget for next year calls for $500,000 to study the option.
The County Board balked at that plan.
"We believe the $500,000 proposed for an airport lease study can be better spent elsewhere," Milwaukee County Board Chairman Lee Holloway and Supervisors Michael Mayo, Sr., and Christopher Larson, whose district includes Mitchell airport, said in a joint statement.
"The airport uses no property tax dollars in its operation and all revenues generated from passengers and airlines are used to maintain and improve the airport. A private operator, however, would keep profits and could put additional cost burdens on both passengers and airlines, which cannot sustain additional financial obligations in the current environment of a challenging economy and high fuel costs.
"In addition, due to the slowing economy and tight credit markets, the airport may be worth less than what the County Executive is projecting. We are also concerned about a plan that does not provide safeguards for property tax payers in the event that privatization would fail."
Midway Airport serves over 17 million travelers each year while Mitchell processed 7.7 million passengers.
A county study group last year suggested a quasi-public authority run the airport and pay rent to the county. It determined a private sale of the airport was the least desirable option. A study last year by the conservative Wisconsin Policy Research Institute claimed that privatizing the Mitchell airport operations would bring hundreds of millions of dollars to the county.
State Rep. Jeff Stone (R-Greendale) pushed a plan for a regional authority last year as well, but it fizzled due to lack of enthusiasm.
It appears that for now Chicago farther along in dumping its airport to a private entity. The City Council takes up the matter next week and the Federal Aviation Administration would have to give its blessing, too.
Mental Health Complex: Another of Walker's privatization proposals met resistance from the County Board, which rejected by an 11-8 margin the idea of leasing the former St. Michael's Hospital from Wheaton Franciscan Healthcare to use as a new mental health complex. The board favors building a new complex at the current County Grounds site.
The board and Walker dickered over which was the cheaper option, with Walker's team bringing some last-minute numbers to the table showing his plan was substantially cheaper than building anew. Walker's plan would also privatize the workforce at the new complex. He says he will veto the board's action.
Not surprisingly, the debate made for some interesting quotes.
County Supervisor Joe Sanfelippo, elected in the spring, termed the vote as "buying cats in a bag."
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