San Diego, CA
Background on Water Privatization
The privatization of water systems has a poor track record in communities across the U.S., including Lexington KY, Milwaukee, New Orleans, and Indianapolis. Corporations claim that they’ll do a better job of managing municipal water systems than the government, offering funding and new technology. But more and more elected officials and citizens are becoming skeptical of water privatization.
Households in California districts with privately-managed systems are paying, on average, 20.3% more per month for water than households served by public water systems. Many times we equate higher prices with better service, but the exact opposite is true with water privatization. Corporations cut costs by reducing customer service, neglecting maintenance, and lobbying against higher water quality standards.
In addition to compromised water quality and customer service, water privatization lacks transparency and accountability. Decisions about the management of water are made in private meetings and undisclosed corporate financial reports. Only public control and operation of water systems will ensure communities have access to safe and affordable water.
Learn more about water privatization.
Our Work
America’s Finest is looking to privatize its water and wastewater systems. In 2007, San Diego Mayor Jerry Sanders put out his proposal to give the private sector control of these municipal systems. Read our fact sheet.
This announcement came shortly after San Diego voters approved Proposition C, also known as Managed Competition. Mayor Sanders touts managed competition as the solution to San Diego’s pension and fiscal problems. What Sanders fails to recognize is the success of the San Diego Water and Metropolitan Wastewater departments Bid-to-Goal program, in which a ‘mock’ bid from a private contractor is used as a benchmark for city workers to do the same work for less money. Bid-to-Goal and city workers have saved San Diego taxpayers millions of dollars on wastewater treatment and reduced the number of sewage spills since the implementation of the program.
In early October 2009, the city of San Diego released a five-year financial report that projected the largest budget deficit of in the history of the city: $179 million. San Diego City Councilmembers Carl DeMaio and Kevin Faulconer are now pushing for immediate implementation of Managed Competition, otherwise known as privatization, to help solve the city’s projected $179 million budget deficit.
Food & Water Watch’s San Diego office has responded to the mayor’s proposal and councilmembers’ push for privatization by building relationships with local organizations, citizens and elected officials to prevent the privatization of San Diego’s water. We have also given several presentations and sponsored speaking events to further educate the public about the perils of water privatization.