Tread Carefully on Landfill Deals

The question of which jobs government should perform and which should be left to private companies has received much discussion since Orange County filed for bankruptcy nearly two years ago. A new report shows the complexity of the question.

Among the many agencies of county government is the Integrated Waste Management Department, which runs four operating landfills and more than 20 closed garbage dumps.

In searching for ways to raise funds after the bankruptcy, county officials rightly looked at all the county’s assets. The key was to identify those that could be sold or leased without causing harm to residents.

Privatizing jails was an idea that never gained altitude. Selling some property worked, but brought in far less revenue than enthusiasts estimated. The landfill system was considered likely to bring in much money, so much that county supervisors rejected a bid from the Sanitation Districts of Orange County to buy the entire landfill system for $300 million, paid over 20 years.

But a recent report from a consulting firm said attempts to sell or lease the county’s landfill system could face regulatory barriers and have only a moderate chance of succeeding. The report represents the latest caution light for privatization advocates and serves as a worthwhile reminder to study all proposals carefully. The potential for damage to the environment and harm to residents is great if garbage is disposed of improperly. That is why many regulations govern the industry.

Those regulations make private companies pause before deciding to take over a government operation, knowing it could take years to get the necessary permits to do business. The consultant’s report said there was a “medium probability” of the county getting out of the landfill business because of the restrictions. Letting the Integrated Waste Management District or another manager operate the landfills was rated “high probability.”

Government should let private business do jobs it can do more efficiently if the public welfare is not threatened.

But the report on landfills shows that privatization will not always work and can often be difficult.