Buried in an NJ.com story on a potential state bond vote that could provide a much-needed $750 million in construction money to the state’s colleges was this little gem:
Lawmakers also want to give college presidents the power to leverage revenue-producing assets like dormitories to entice developers to build academic buildings and research centers. Under the bill, which will be considered by the Senate Budget and Appropriations Committee on Monday, colleges could give developers the rights to dormitory fees and other revenue streams in exchange for financing construction projects.
The story offered nothing more, but the paragraph should be a red flag for New Jerseyans concerned about the privatization of public resources. Like former Gov. Jon Corzine’s effort to sell off the lottery and the Turnpike and Gov. Chris Christie’s plan to privatize state park management, the long-term outlook for leasing out college dorms to developers seems not to be part of the discussion.
If I’m reading this correctly, schools would be allowed to turn over their dorms and other facilities in the hopes that these developers will use the proceeds to help fund on-campus construction. What this in fact would mean is that developers old generate profit from college dorms, and possibly push campus housing costs up.
These partnership always are sold as win-win, as a way to impose market efficiencies on public budgets, but efficiencies rarely occur and if they do they are at the expense of the people being served.
Hank Kalet 