Bush Order Facilitates Selling of Public Assets by Local Governments

President Bush on Thursday gave states and cities greater freedom to sell to private investors many public facilities built with federal help--including airports, bridges, roads and sewage treatment plants.

Bush announced his action on an abbreviated trip to Ohio, where he spoke to the Ohio Assn. of Broadcasters.

In an executive order, Bush directed that states and local governments may be allowed to keep a larger share of the profits from the sale of facilities built with the help of federal funds. Traditionally, Washington has demanded a hefty share of the proceeds.

The order said assets that could be sold include--but are not limited to--roads, tunnels, bridges, electric plants, mass transit and rail facilities, airports, ports, waterways, water supply facilities, recycling and waste water treatment facilities, solid waste disposal facilities, public housing, schools, prisons and hospitals.

Frank Hodsoll, deputy director of the Office of Management and Budget, said the move would encourage states to sell public assets but would not require them to do so. He said the sales would result in more toll roads--but not on interstates--and more toll bridges and other facilities where consumers pay private companies.

“We hear complaints that America’s infrastructure is crumbling and that states aren’t putting enough money into expanding or repairing it,” Bush told the broadcasters. “At the same time, many private companies want to invest in these projects. So our executive order will remove impediments to competitive enterprises buying infrastructure assets.”

He said his initiative “could generate billions of dollars of new investment and millions of new jobs.”

The move was promoted as a revenue raiser for cash-starved states and communities. However, it was viewed warily by the National Governors’ Assn. and the U.S. Conference of Mayors.

“We’re somewhat skeptical of this thing,” said Tom Cochran, executive director of the mayors’ organization.