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‘Who does the world’s water belong to?’ Pa. Senate committee holds privatization hearing

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‘Who does the world’s water belong to?’ Pa. Senate committee holds privatization hearing


At a Senate Democratic Policy Committee hearing Monday in West Whiteland Township, Chester County, two panels of advocates, experts, and impacted residents debated Act 12’s impact on skyrocketing rate hikes and discussed legislative changes to remedy the situation.

“The fight we’ve been involved in here in southeastern Pennsylvania ultimately revolves around one fundamental question,” said David McMahon, of Neighbor’s Opposing Privatization Efforts (NOPE), to a full room of spectators. “Who does the world’s water belong to?”

The first panel of experts focused largely on the concerns of residents and advocates. (Kenny Cooper/WHYY)

McMahon said Act 12 has made it too easy to take what was once a public resource, and put it in the hands of profit-making companies.

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Suburban Philadelphia is a hot spot for water privatization including Aqua Pennsylvania’s takeover of Willistown Township’s sewer system in 2022 and Pennsylvania American Water’s acquisition of Upper Pottsgrove’s wastewater system in 2020. The trend spans state lines, and more than two dozen public water suppliers have been bought by investor-owned utilities across the region in the past five years.

Soon after the passage of Pennsylvania’s Act 12 in 2016, the Bryn Mawr-based Aqua, which owns water companies nationwide, purchased water systems in Cheltenham and Limerick, among other places.

The Pennsylvania Public Utility Commission has approved 22 acquisitions since the law’s passage. Advocates and lawmakers alike believe the subsequent spending spree to be no accident.

“Act 12 of 2016 made significant changes to the way water and wastewater systems are valued for acquisition,” said state Sen. Katie Muth, chair of the Pennsylvania Senate Democratic Policy Committee at the hearing.

In written testimony to the legislators, Aqua Pennsylvania President Marc Lucca defended the company’s practices, saying it has learned a lot since Act 12 was adopted.

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“We’ve heard concerns around the impact of purchase price on customer rates, transparency of the sale process, and ensuring that terms of contracts are met. To be clear, we stand ready to work to address those issues,” Lucca said.

However, Lucca rejected any notion that Act 12 should be repealed, arguing that municipality owned water utilities do not have the funds to update their aging systems.

“In summary, our nation’s infrastructure is failing because of lack of investment. We are leaving the next generation a significant problem they need to address simply because we did not. The condition of these systems occurred long before Act 12 so I simply do not agree with the sentiment that removing it will correct these problems,” Lucca said.

Public resource vs. private commodity

Bill Ferguson, a co-founder of Keep Water Affordable and a New Garden Township resident, testified that private water companies exist to expand and increase profits.

He acknowledged that’s what corporations do.

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“Our issue is with their methods used to acquire the municipal utilities, [which is] required to realize that growth,” said Ferguson. “Then there’s the municipal governments, too often infatuated by the seductive siren song of a huge candy jar of money — free money. It’s like winning the lottery but that money is in no way free. The failure of local government to properly serve their citizens is probably our biggest concern.”

He said ratepayers are paying for “Big Water’s” profits and deals. He likened the publicly owned water acquisitions to offering a car dealership $80,000 for a vehicle they’re selling for $40,000.

​​”That’s what’s happening under Act 12. Both parties at the negotiating table want the highest price possible. You’d ask why would Big Water want to pay higher prices? It’s simple. The more they pay, the higher their profits, as long as the purchase price goes into the rate base. And that’s what Act 12 enables. It enables the increase in rate base. The water companies cannot lose. It is one sweet deal for them,” Ferguson said.

Anthony Bellitto, executive director of the publicly owned North Penn Water Authority and a representative with the Pennsylvania Municipal Authorities Association (PMAA), said the PMAA’s stance is that Act 12 should be repealed.

In the case that it is not repealed, Bellitto said the organization suggests Act 12 be amended to include a voter referendum and a scope limitation to distressed municipalities.

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Anthony Bellitto, executive director of North Penn Water Authority, and Noel Brandon, board chair of Chester Water Authority, defended municipally-owned water systems during the Senate hearing. (Kenny Cooper/WHYY)

Bellitto said any assertion that low rates equals infrastructure disinvestment is false.

“We’re a nonprofit,” Bellitto said.We provide low cost and high value to our customers. At North Penn Water Authority, our average customer spends $1 per day for all the water for a household.”

Bellitto criticized the for-profit business model in public utilities due to the high salaries of top executives.

“My entire organization of North Penn Water Authority — 52 employees. Our whole aggregate salary is four and a half million dollars. There you go. You got the whole company doing all the work every day, 52 employees making the same amount of money as the top guy at Aqua. This is why they have to raise the rates,” he said.

“This aggressive push to privatize municipal systems is driven by an upper management of these private utilities who are motivated by their own personal financial benefit,” Bellitto said.

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But not everyone who testified wants to kill Act 12.

In some municipalities that have garnered the interest of private water companies — like Chester and Towamencin, residents have gone on the offensive to block the deals, oftentimes clashing with elected leaders. Results, however, have been mixed.

Kofe Osei, an organizer with NOPE and a newly elected Towamencin Township Supervisor, said privatization efforts have had a negative impact on democracy. He said Pennsylvania American Water’s attempt to purchase Towamencin’s sewer system, which is tied up in court, has laid bare issues of the state’s referendum laws.

“Even in the face of lawsuits from residents to compel the township to exit the sale, the pro-sale supervisors have committed public dollars in our budget to defending their clearly unpopular decision in court,” Osei said.



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Pennsylvania

How Philadelphia took care of its own through history

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How Philadelphia took care of its own through history


The Orphan Society was formed by a committee of wealthy Philadelphia women, notably Sarah Ralston and Rebecca Gratz, who each took the role of social reformer very seriously.

Gratz, the daughter of a wealthy Jewish merchant, also formed the Female Association for the Relief of Women and Children in Reduced Circumstances, the Female Hebrew Benevolent Society, and the Hebrew Sunday School. Gratz College in Elkins Park is named after her.

“She never married,” Barnes said. “She did things like put her money and her time toward doing that kind of public service.”

Ralston, the daughter of onetime Philadelphia mayor Matthew Clarkson, also formed the Indigent Widows and Single Women’s Society, which ultimately became the Sarah Ralston Foundation supporting elder care in Philadelphia. The historic mansion she built to house indigent widows still stands on the campus of the University of Pennsylvania, which is now its chief occupant.

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Women like Ralston and Gratz were part of the 19th-century Reform Movement that sought to undo some of the inhumane conditions brought about by the rapid industrialization of cities. Huge numbers of people from rural America and foreign countries came into urban cities for factory work, and many fell into poverty, alcoholism, and prostitution.

“These are not new problems, but on a much larger scale than they ever were,” Barnes said. “It was just kind of in the zeitgeist in the mid- and later-1800s to say, ‘We’ve got to address all these problems.”

The reform organizations could be highly selective and impose a heavy dose of 19th-century moralism. The Indigent Widows and Single Women’s Society, for example, only selected white women from upper-class backgrounds whose fortunes had turned, rejecting women who were in poor health, “fiery-tempered,” or in one case, simply “ordinary.”



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How did Pennsylvania’s top-ranked football teams fare on Friday, Nov. 22?

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How did Pennsylvania’s top-ranked football teams fare on Friday, Nov. 22?


St. Joseph Prep’s Khyan Billups (24) runs past Parkland’s Blake Nassry (7) during the PIAA Class 6A football quarterfinals at Pennridge High School on Nov. 22, 2024. (Alan Sylvestre | lehighvalleylive.com)Alan Sylvestre | lehighvalleylive.com contributor



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Pennsylvania Education Secretary Khalid Mumin is stepping down • Pennsylvania Capital-Star

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Pennsylvania Education Secretary Khalid Mumin is stepping down • Pennsylvania Capital-Star


Pennsylvania Education Secretary Khalid Mumin will resign from his position in Gov. Josh Shapiro’s cabinet next month, the governor’s office announced Friday afternoon.

Mumin was confirmed in June 2023 about six months after Shapiro took office and has presided over some of the administration’s early successes such as increasing funding for K-12 public schools by $1.5 billion over the last two budgets and providing free breakfast for 1.7 million public school students.

Mumin will resign Dec. 6 and Executive Deputy Secretary of Education Angela Fitterer will take over as interim secretary. A statement from Shapiro’s office did not say why Mumin is stepping down.

Shapiro said in a statement that Mumin has dedicated his life and career to ensuring that Pennsylvania children have a quality education that sets them up for success. 

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“He has led the Pennsylvania Department of Education with passion and integrity. I am grateful for his service to Pennsylvania’s students and educators and wish him great success in his future endeavors,” Shapiro said.

Mumin said it has been the honor of a lifetime to serve as education secretary. 

“I began my career as a teacher in a classroom, and those early experiences watching students get excited about learning inspired me to become a principal, a superintendent, and ultimately Secretary of Education, so I could continue to fight for those students to get more support and more opportunities,” Mumin said. “I’m so grateful to Governor Shapiro for this opportunity to lead the Pennsylvania Department of Education and help build a bright future for Pennsylvania’s students and educators.” 

State Sen. David Argall (R-Schuylkill), chairman of the Legislature’s education committee, said he wished Mumin the best and added, “I look forward to working with Acting Secretary Fitterer and the governor’s nominee to improve our education system, from Pre-K to graduate school.”

State Rep. Jesse Topper (R-Bedford), the ranking Republican member of the House Education Committee, said that from his point of view in the legislature “there were some definite bumps” during Mumin’s tenure as he presided over transformational change in the department.

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“It’s important to understand that running a bureaucracy of that size … is different than being a great superintendent in a school district, big or small,” Topper said. “I think there are times when those coming from the academic world find it a little jolting what they’re going to encounter in the realm of government. I think he found it challenging, as all of these roles are.”

Before Shapiro tapped Mumin for his cabinet, he served as superintendent of the Lower Merion school district in Montgomery County. Mumin, who began his career as a classroom teacher in the Franklin County community of Scotland in 1997, also has served as superintendent of the Reading public schools.

Dan Urevick-Ackelsberg, senior attorney at the Public Interest Law Center, said Mumin’s background gave him a useful perspective on Pennsylvania’s schools. Lower Merion is among the state’s wealthiest communities, while Reading is one of the least.

“He came to office with the experience of seeing everything that Pennsylvania public schools can offer and the kind of disparity that underfunding public schools creates,” Urevick-Acklesberg said, adding that an important part of Mumin’s legacy will be the first steps the commonwealth took toward bringing its public schools into constitutional compliance. 

Mumin’s tenure coincided with the resolution of a decade of litigation over the state’s public education funding formula, which a group of school districts, parents and advocates argued put students in less wealthy areas at a disadvantage because of its reliance on property taxes. 

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A Commonwealth Court judge ordered Shapiro and the General Assembly in February 2023 to correct the inequities and a interbranch commission found the state needed to invest $5.4 billion in underfunded schools to bring them up to par with the state’s most successful school districts.

This year’s budget includes about $526 million toward that goal, but lawmakers were unable to reach a compromise that would guarantee future installments to close the gap.

Sen. Lindsey Williams (D-Allegheny), who is the ranking Democrat on the Senate Education Committee, said she was grateful for Mumin’s service and experience as an educator, which helped the administration and lawmakers achieve shared goals such as  strengthening career and technical education programs, investing in student mental health, repairs for schools and providing free menstrual products for students. 

The governor’s office also credited Mumin with bringing together higher education leaders together to rethink higher education in Pennsylvania, establishing a state Board of Higher Education to provide more support for public universities and make college education more affordable.

Topper said the Education Department’s communications with the General Assembly were often found lacking by some members. Topper pointed to the higher education reform initiative, which the Shapiro administration billed as “a blueprint for higher education,” that many Republicans criticized for lacking detail or a clear proposal for how it would be funded.

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Williams noted that the next four years will bring profound challenges for public education, as President-elect Donald Trump appears poised to eliminate the U.S. Department of Education. This week he appointed professional wrestling executive Linda McMahon to head the agency.

“Given the President-elect’s nominee to head the federal Department of Education, any successor to Secretary Mumin must be prepared to defend Pennsylvania students’ constitutional right to a high-quality inclusive public education,” Williams said.

Fitterer, who will serve in Mumin’s place until Shapiro’s nominee is confirmed in the Senate, has a 25-year career in state government, serving in former Gov. Tom Wolf’s administration, as legislative director for the education department and in crafting public policy in the House and Senate.

(This article was updated about 4 p.m. on Friday, Nov. 22, 2024, to include additional comments.)

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