Public-private partnerships can work

By Dubuque Telegraph Herald

----

One week ago today, the Telegraph Herald offered an extensive report on public-private partnerships, which have powered many of Dubuque's major accomplishments the past two decades.

Dubuque officials and economic development leaders believe local governments need to work with the private sector toward the community common good. When other communities ask how Dubuque has been so “lucky” with development, such as the addition of IBM and its 1,300 jobs, officials point to public-private partnerships. ...

Some critics question the accountability and transparency of quasi-public boards handling taxpayer dollars. Their concern is reasonable, but the issue should not create an insurmountable obstacle.

If public-private partnerships can work in communities, how about at the state level? Gov. Terry Branstad thinks so. While on the campaign trail, and again after taking office last month, he advocated replacing the Iowa Department of Economic Development with a public-private partnership.

The body would be governed by an independent board filled with figures from business, and while initially financed by public money, private-sector investment would be encouraged.

At first blush, the transformation is intriguing. If Branstad's partnership can do for Iowa what those partnerships have done for Dubuque, there is potential for success.

But the state doesn't have the greatest track record on oversight of quasi-governmental entities. Remember the Central Iowa Employment & Training Consortium, where top executives were pulling down exorbitant salaries? How about the Iowa Association of School Boards, famous for no-bid contracts and an executive director who raised her own salary by $157,000 without anyone's approval?

If Branstad's public-private board is to succeed, a game plan for oversight and transparency would have to be spelled out. If private companies invested in the board, would their contributions be disclosed? How else would citizens know whether conflicts of interest existed when the board doles out tax incentives? ...

Iowans will need some assurances first on how such an entity would be held accountable.