Policy Note: Water Affordability and Accessibility in Baltimore, Maryland

Steve H. Hanke () and Christopher Arena ()
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Steve H. Hanke: Johns Hopkins Institute for Applied Economics, Global Health, and the Study of Business Enterprise, USA
Christopher Arena: Johns Hopkins Institute for Applied Economics, Global Health, and the Study of Business Enterprise, USA

Water Economics and Policy (WEP), 2022, vol. 08, issue 02, 1-14

Abstract: Water system revenue losses, inefficiency, mismanagement, lack of productivity, and federal mandates are rapidly escalating the cost of water and wastewater for Baltimore consumers. Baltimore’s water and wastewater systems are municipally owned and poorly managed by Baltimore City. Due to a lack of maintenance, these systems are plagued by an immense number of leaks, main breaks, and sewage backups. In addition, the billing system has a long history of errors. The overall deterioration of the systems, inadequate capital management, and operational problems are symptomatic of the fact that the Baltimore City Department of Public Works lacks proper accounts, including a balance sheet. Despite these glaring flaws, the systems have been politicized and are now protected by an amendment to the Baltimore City Charter that prohibits the assistance of private enterprise and markets in addressing Baltimore’s endemic water and wastewater problems by tapping the competency and skills available in the private marketplace. In order to reverse the politicization of Baltimore’s water system, which will only make operation and capital mismanagement problems worse as well as increase costs for the citizens of Baltimore, the charter amendment must be eliminated, allowing for the private provision of infrastructure and its maintenance. We recommend that this private provision is based on the centuries-old tried and tested French model.

Keywords: Water; wastewater; water leakage; mismanagement; revenue losses; politicization; privatization (search for similar items in EconPapers)
Date: 2022
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DOI: 10.1142/S2382624X22500047

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