PHOTO/LENA SMITH
ATLANTIC CITY – People in Atlantic City, NJ, are resisting efforts to privatize their water system.
Atlantic City (AC) saw its economy stumble with the general decline in the nation’s economy in recent decades, and with the fall-off in the city’s casino gambling industry since 2006. Casino jobs shrank, and little of the billions in profits earned by the casinos had been put back into the community in a way that would help the local economy. AC’s property tax base, once valued at $20 billion, has shrunk to less than $7 billion and the city is in debt.
Over the last seven years, the state has used the economic crisis as an excuse to begin taking over the city government. In January 2015, Gov. Chris Christie appointed two Michigan-style emergency managers, Kevin Lavin and Kevyn Orr, to oversee the operations and finances of AC and make recommendations. (Orr was the emergency manager in Detroit.) Lavin recommended in January 2016 that AC consider eventually privatizing certain city assets. In November 2016, the state took over AC, effectively stripping local elected officials of their power.
The AC Municipal Utilities Authority (MUA) supplies the city’s water. A moratorium preventing the state from privatizing the MUA expired May 26, 2017. Activists organized as AC Citizens Against the State Takeover have been trying to force a public referendum on whether the MUA should be sold – a right that every other citizen in New Jersey has under state law. Linda Steele, a member of the AC NAACP, and Lena Smith, the South Jersey organizer with Food & Water Watch, are among the leaders of the referendum effort.
The state is “absolutely” trying to privatize AC’s water system, said Linda. “We are in fire sale mode. The water in AC is some of the best in the country. They have maintained their facilities, they have wonderful water ratings and good credit ratings. You can’t really put a price on the value of our water. We have aquifers in the county that have years and years of life and quality there….After seeing what happened to Flint and other cities where privatization comes in, [I don’t want it here].” She noted that water bills are low in AC, and are likely to rise, along with sewage rates, if the water is privatized.
“It’s about the money, about big business, and the future they see in acquiring these utilities,” said Linda.
Lena noted that the state takeover law prevents AC residents from voting on whether their water utility can be sold. As this story was being written, the referendum campaign had gathered enough signatures to bring the matter before the AC City Council. Lena said she expected the council to pass an ordinance allowing the referendum, but said the state might block the ordinance. Even if there is a referendum, referendums are only advisory under the state takeover law, Lena said, so the state could ignore the results of the vote. However, she added, “The number of signatures that we gathered should be enough to show the governor and the city council that we won’t go down without a fight.”
“These state takeover laws are a way to push residents out and to implement very conservative and pro-corporate municipal models,” said Lena. She added that both Democratic and Republican politicians have played a role in the AC takeover. “It’s not one party or the other, but corporate control of our government that is impacting cities and communities,” she said.
Bob Lee is a professional journalist, writer and editor, and is co-editor of the People’s Tribune, serving as Managing Editor. He first started writing for and distributing the People’s Tribune in 1980, and joined the editorial board in 1987.
