Baltimore excelled in 2023 in its privatization/neoliberal practices of assuring elite private entities benefit disproportionately at the expense of public control and social good.
[Neoliberal- a theory of political economic practices proposing that human well-being can best be advanced by the maximization of entrepreneurial freedoms within an institutional framework characterized by private property rights, individual liberty, unencumbered markets, and free trade. The role of the state is to create and preserve an institutional framework appropriate to such practices, such as public:private partnerships (explicit or implicit)] Adapted from David Harvey
Let’s look at some of these privatization redevelopment practices which were camouflaged in the language of ‘benefiting the public’ in Baltimore throughout 2023.
Public:private strategies ignoring public control and social good
Most recently, the unanimous vote in the Planning Commission to allow a private developer, P. David Bramble of MCB Real Estate, LLC, to accumulate more of the Inner Harbor public waterfront space is a typical taking of public land (land owned by the city of Baltimore) for private development and profit. This will allow Bramble’s group to expand their holdings and profit while removing public access to the waterfront. In addition, there is existing legislation which requires that these lands remain accessible for the benefit of the public. Some city council members have already indicated they support amending this legislation to accommodate this privatization of public lands. This is how the state accommodates the private developer, hence neoliberal practices.
Another examples: earlier in 2023 the state of Maryland under the direction of Governor Wes Moore turned over the Orioles baseball stadium-Camden Yards- and management of the land to John Angelos, the Orioles owner. Camden Yards was previously managed by the Maryland Stadium Authority, a public entity. With the turnover to the private owner Angelos, a publicly controlled private entity is now set to work with a profit-making motive. What this means is in order to maximize profits, necessary infrastructure upkeep will need to be minimized to maximize profits. Assuring that the stadium receives the upkeep needed to maximize benefit to the public is of little value because the benefit is turned inward to the private entity and its profit-driven motive. Because of the control that sports franchises have over entertainment we can see this private entity demanding government support to maintain the stadium in the future.
Then there is the upcoming attempt to privatize our water and sewage system, again! [As a reminder, in 2018 Baltimore city voters turned out in high numbers to ban privatization of the city’s water and sewer systems.] And yet five years later in 2023, the neoliberal government (officials who have a responsibility to the public’s health but honor elite corporations) are back at it again with another attempt at privatizing a public resource. This time a Baltimore Regional Water Governance Task Force is making recommendations to allow privatization of our local water and sewage system which would potentially minimize local control of local resources while ensuring profit to private interests. With a suggested $5 – $15 million price tag for this transition, this line from the Task Force’s report leaves the public wide open to foot an indefinitely pricey bill:
Transition costs assumptions are forward-looking and actual costs will be based on resource availability for yet undetermined set of issues, by parties not yet determined that will once formed determine the extent of need for third-party support.
Baltimore Regional Water Governance Task Force
Why couldn’t this ‘undetermined’ cost be better directed to hiring and training up government staff to assure a functioning and adequately maintained water and sewer system? This would allow greater local control of this valuable resource instead of control by a private profit-driven entity: profit margin yet undetermined.
In 2023, Baltimore’s struggle with privatization did not stop with only one utility. We are experiencing the disaster of a profit-driven utility ownership with our gas and electric provider as well. Baltimore Gas and Electric (BGE) delivers gas and electric utilities to Baltimore city and surrounding counties and presented to the state’s Public Service Commission a rate increase over the next three years. Many residents testified as to the severe hardship this would incur for them, particularly those with lower and set incomes. Regardless of this public rally for fairness and benefit, public officials agreed to BGE’s rate hike resulting in a greater than 3% rate increase each year over the next three years. Besides continuing a reliance on gas through more infrastructure development, the company will receive almost an additional $408 million in revenue. Instead of voting against this severe hike, Maryland Public Service Commission voted to defray some of this cost from customers by using a federal tax credit and assure BGE receives its income. Again, using public funds to assure the company receives the income they want.
At the funding level of the state, Maryland’s Department of Housing and Community Development (DHCD) continues to misrepresent itself it stating it is supporting local grassroot efforts in impacted communities. Its’ supposed role of assuring equitable development that provides a social good has been slow to manifest. Instead what we see is consistent funding to the Goliaths of anchor institutions with profit-driven motives and little funding to organizations doing community-based cooperative redevelopment in historically low income and Black neighborhoods-legacied by urban renewal and redlining. Unless local community-driven organizations partner with anchor institutions known to the Department, funding is mostly denied. This reliance of the state on anchor institutions to define what equitable development looks like continues historical public:private partnerships that do not serve the public. For example, the Johns Hopkins Medical Complex and its proxy development arm East Baltimore Development Inc. receives yearly grant awards for inequitable development from Maryland’s DHCD (and city funders over the years). This occurs even while such institutions continue to engage in uneven development that disproportionately benefits the institution relative to the local Black community that it is gentrifying. One example of DHCD’s uneven grant funding can be seen in the lack of support for a local Black-led non-profit located in Old Town/Middle East, Village of Love and Resistance (VOLAR), two block from the Johns Hopkins Medical Complex. After four consecutive attempts to receive funding for its affordable cooperative housing and community hub development, it has resigned itself to stop seeking funding from the state which insists that it partner with the likes of Johns Hopkins University, who the state trusts. Meanwhile, the local community does not trust this anchor institution that has systematically exploited the people and the land of East Baltimore.
Organizing for local control and public good
With such clear corporate and elite preferential strategies advantaging private businesses over the public good and local control, organizing to reclaim benefits to local communities has been growing in 2023, extending into 2024.
While the Baltimore Planning Commission has shown their allegiance to elite ownership with little regard for community input in the planned expansion of the Inner Harbor (including increased parking, removing maximum height limits for buildings on the site), residents still have the opportunity to change this. Approval by the city council for the conditions that will allow redevelopment of the Inner Harbor by Bramble’s Team is required; this will require hearings with testimony and hopefully deep listening before a vote is made. The first public hearing will be held on February 13 at 2pm est and public testimony is invited. So 2024 will see residents and activists testifying as to the clear privatization disadvantages to the public good (less green space for public use, lost of view due to increased height of buildings and increased buildings, maintenance that is cost-cutting to assure larger profit margin, lost of flowing design from street to waterfront, city dollars supporting a private developer’s planning process, finding public funds to support a private developer’s development and profit making, lack of a transparent public process for development of this public land). Due to the existing City Charter governing the explicit use of this land for public benefit voters will decide through a ballot in November, whether to amend the City Charter. In addition, developers, activists and residents have organized themselves in the form of the Inner Harbor Coalition. This group hopes to build sufficient support to place an opposing plan on the November ballot for redevelopment of the Inner Harbor. They require 10,000 signatures to place this on the ballot.
The pushback on the attempt to privatize our water and sewage system is another of Baltimore’s growing social movement against privatization and for local control and public benefit. A coalition of organizations sent a clear letter opposing the Water Governance Task Force efforts toward privatization. On January 8th 2024 the sixth meeting to discuss the Task Force’s report was held by Baltimore City government. The seventh and final meeting will be held on January 25th at 6pm virtually. Notes from all six meetings can be viewed here (scroll to bottom). Please join the movement in opposing privatization of Baltimore’s water and sewage system by sending your comments (individual or organizations) to this email address: [email protected] and cc [email protected]
Another part of the movement to stop privatization has been 1199 SEIU’s organizing for fair payment by anchor institutions into the city funds, to be redistributed back to local community for investment in public health infrastructure, housing, transportation, education, recreation. This payment program is the PILOT (Payment in Lieu of Taxes) agreement that city council officials negotiate with big anchor institutions. Instead of these big institution, such as hospitals and universities, paying property tax like regular citizens or private corporations who own land and/or conduct businesses, they negotiate to pay a percentage of the taxes they would pay were they not in this category. The last PILOT negotiated in 2016-set to expire and renegotiated in 2026- literally gave these anchor institutions a way out of paying their fair share of taxes by paying only 10% of what most people pay. Yes, again Baltimore city government favored capitalist exploitation by not ensuring that big institutions pay their fair share of taxes even while the city continues to provide infrastructure and other city resources to them as it does to regular citizens. However, regular citizens do not get to ‘negotiate’ with the city, state, or federal government how much taxes they should pay. Now we have an opportunity to negotiate a more fair PILOT with these big institutions who, like the Johns Hopkins Institutions, receive grants from the city, state, and federal government (noted above). With decreased payment of taxes and continued grants from the government, these institutions do not pay their fair share into the city and state coffers to assure our city is habitable and safe. The 1199 SEIU campaign is organizing to assure this is on the ballot for voters in November 2024 and require 10,000 signatures. To support this campaign reach out to [email protected] for more information.
Placard reads: YOU’D NEVER GUESS
This forest you are walking through was once a beach. Although beaches always seem to look the same, geologists know that they are constantly changing. Three thousand years ago this was open ocean. Over time, the shoreline has moved to the west, while the cape has moved north, creating land where none existed before. If the same processes continue to operate as they have in the past, Cape Henlopen will join the inner breakwater of Lewes Harbor within the next 50 years.
Not all public officials consistently voted in favor of private wealth gain and neoliberal practices. In 2023 some government officials moved in the direction of increasing public benefit, joining our people’s movement for the social good. For example, state delegate Stephanie Smith consistently advocated for and acquired funding for organizations addressing the result of uneven development in Baltimore City. She fought for $11M in funding for community development and transit improvements across the 45th District, including funds for housing, the Pennsylvania Station redevelopment, and community retail spaces. City Council woman Odette Ramos led the fight for an Inclusionary Housing Bill, and won. The bill requires that any market-rate multi-family development building more than 20 units and receiving government subsidy must have more than 15% of their units as affordable housing (for 30 years). Read more about this legislation here. We look forward to continued public benefit from these individuals and hope that others do similar work in their capacity as public officials.
The year 2023 showed us the imbalance between private profit-driven elite institutions and public and non-profit organizations with a primary mission of assuring the social good in Baltimore and Maryland. The year 2023 also reminded us that those aware of the continued journey toward individualized wealth are rallying forward to stop these continued market-driven, winner-take-all strategies. Will 2024 move scales toward love and justice for the greater good or toward further competition, injustices, and satisfying the greed of the few? It’s up to us to decide how we will act toward justice and balance the social good and individual greed. Baltimore can continue building this people’s movement that aim to benefit the good by challenging the public officials who ignore their voters in favor of elite interests. This is an election year in the city and state and we have the opportunity to vote with our feet. Now that you see this, what is yours to do for the benefit of all?
