An Interview With Richard Ravitch

On Friday we had a chance to speak with Richard Ravitch, the man who saved New York’s MTA in the ’70s and is trying to do the same now. We asked him about infrastructure privatization and the stalemate in Albany over his plan.

Governor Rendell and others have been very vocal that public private partnerships are going to play a key roll in dealing with our crisis of underinvestment in infrastructure. Do you agree?
I disagree with him about the privatization of infrastructure. The absence of capital, is a function of the absence of bankable revenue streams–whatever they may be: user charges, government appropriations, or taxes. If you have the revenue streams, you’ll get more capital if you finance on a tax exempt basis than you will on a taxable basis. You have to ask how can raise your capital most cheaply. The answer is with tax exempt financing. That’s why I don’t think privatization is the answer.

What do you see happening in the current standoff in Albany over your plan to bail out the MTA?
I cannot believe the politicians are not going to do enough to prevent the fare from going up. To what degree they’ll take into account the longer term need for capital and the financeability of the revenue streams they create and the fundamental policy issues associated with tolls–which Rendell has been eloquent about–I don’t know. If you don’t address the problem of congestion, you haven’t taken the steps that are necessary. But I don’t know what the outcome will be.

Do you have any sympathy for position of the Democrats who oppose your plan?
I have no sympathy for their position. I don’t think the support of tolls would endanger their political lives.

So, essentially, you think their actions are pointless and destructive.
I hate to characterize other people’s motives. But it certainly hasn’t been possible to have a serious dialogue with them on this issue.

Do you feel that Patterson is being helpful to your cause?
I don’t know, because I don’t what he’s been doing this past week. But in the past he’s been very supportive.

(image via Second Avenue Sagas)