February 2006 Archives

Source: By BRIAN NEARING, Albany Times Union (NY), Tuesday, February 28, 2006

ALBANY -- The oldest charter school in the city is in danger of losing its charter. On Monday a committee of the State University of New York board of trustees warned New Covenant Charter School that it will be placed on probation for being chronically tardy for filing annual audits. ..... It's not the first problem for New Covenant, which was one of the first charter schools in New York when it opened in Arbor Hill in 1999. In 2004, the state forced the school to close its seventh and eighth grades, citing poor test scores and chaotic classrooms. ...... "The audit was filed late," said Laura Eshbaugh, executive vice president for communications for the New York City-based Edison Schools, a private company under contract to manage New Covenant and other charter schools in 25 states. "We are certainly sorry and are working with the school to make sure audits are filed timely in the future," said Eshbaugh.

Source: By Lynn Moore, Muskegon CHRONICLE (MI), Saturday, February 25, 2006

School bus drivers in six local districts could end up working for a private company next year under a plan to save money that the school districts are considering. The Muskegon Area Intermediate School District is seeking bids from private companies interested in employing 145 bus drivers in the six districts, beginning July 1. School officials think privatization of "employment management services" could save districts tens of thousands of dollars spent on retirement and health benefits for the drivers.

Source: By STEVE SCHULTZE, Journal Sentinel (WI), Feb. 26, 2006

Welfare protesters took to the streets, angry over the program they said was indifferent to the needy. "Wisconsin does not create work, it creates poor!" read one banner. Police eventually were called in and arrested a few of the dozens of protesters. The focus of the dispute was the "Wisconsin Plan," a controversial program to substitute work for welfare that aims to drastically reduce the welfare caseload. But the venue was Israel 2006, not Wisconsin in 1996. And despite its similarities to Wisconsin Works, or W-2, the Israeli program is an experimental reform plan formally called Mehalev, a Hebrew term meaning "from the heart," as well as an acronym for "from dependency to self-sufficiency."

Source: By MARK McDONALD, Philadelphia News (PA), Mon, Feb. 27, 2006

Responding to changes in technology and warnings that the city is violating its own air-quality laws, the Street administration is proposing to privatize the water department's biosolids recycling center in southwest Philadelphia. If Street convinces City Council to approve the contracts, the privatization will be the city's first major outsourcing in a decade. The city wants to sign a long-term agreement with Synagro, a Houston-based company that operates in 23 states, to build a $66 million plant on the city's current biosolids operation on Penrose Avenue near the airport. For the roughly 100 city employees who treat and compost the sludge into a dry substance that is either landfilled or turned into a compost known as "EarthMate," the city will offer jobs elsewhere in the government. Or, they can apply for jobs with the company. ...... But Herman "Pete" Matthews, president of AFSCME District Council 33, said he will ask City Council to hold the proposed contracts until the union can mount its own counter-offer. The bills were introduced Feb. 16 by Majority Leader Jannie Blackwell on behalf of the administration.

Source: Associated Press (WY), Sunday, February 26, 2006

CHEYENNE (AP) -- An independent audit of health services provided to Wyoming prison inmates reported improvement in the system since the last quarterly audit in October. The latest audit found that in December, only 5.8 percent of incoming inmates were not being given health screenings within 24 hours of arrival and only 1.6 percent of new arrivals were not screened within a week, according to the Department of Corrections. That was down from 36.2 percent and 27.3 percent, respectively, in October.

Source: By Carol D. Leonnig and Charles R. Babcock, Washington Post, Friday, February 24, 2006

Washington defense contractor Mitchell J. Wade is expected to enter a guilty plea in federal court here this morning for his role in the bribery-related case involving former Rep. Randall "Duke" Cunningham (R-Calif.), according to sources familiar with the investigation. Wade, who founded District-based MZM Inc., started cooperating months ago in the inquiry of Cunningham's alleged trading of "earmarks" in congressional appropriations for $2.4 million in cash, furniture, boats and house payments, sources said. The probe began last June after the San Diego Union-Tribune reported that Wade bought Cunningham's San Diego home and then resold it months later for a $700,000 loss. A short time later, another newspaper reported that the congressman also was living rent-free on Wade's 42-foot yacht while in Washington.

Source: Nashville Business Journal - 12:09 PM CST Friday, February 24, 2006

Corrections Corp. of America has signed a deal with the city of Eloy, Ariz., to house U.S. Immigration and Customs Enforcement detainees through an agreement between the federal government and the city. The agreement enables ICE to hold detainees in CCA's 1,500-bed Eloy Detention Center. As of Feb. 23, that prison had a total population of 920 inmates. In January, the Federal Bureau of Prisons notified Nashville-based CCA (NYSE: CXW) that it would not renew an option to have inmates held at the Eloy facility. Eloy has housed federal inmates as well as immigration detainees. The detainees were held through an agreement between ICE and the Bureau of Prisons. The way this new agreement works, ICE contracts with the city which, in turn, contracts with CCA to house the detainees. The company expects that the facility "will be substantially occupied" by ICE detainees.

CCA operates 63 correctional facilities, including 39 it owns, in 19 states and Washington D.C.

Source: By Kevin Rothstein, Boston Herald (MA), Thursday, February 23, 2006

Under fire from U.S. Sen. Edward M. Kennedy, the Romney administration yesterday defended its policy of outsourcing state jobs, saying that Massachusetts work formerly done in India is now handled in the United States - albeit in Utah. .... “Even governments are part of the offshoring bandwagon,” Kennedy said. “The state of Massachusetts has hired a contractor that uses workers in Bangladesh to process Medicaid data. It’s hired another contractor using workers in India to answer questions about food stamps.” Kennedy’s staff later acknowledged the jobs were sent to India, not Bangladesh, but argued that the principle is the same. ..... JPMorgan Chase, the previous food stamp contractor, had farmed out the call center work to India. When that contract expired, though, the state Department of Transitional Assistance required the work be done in the United States. Call center giant ACS was awarded the $27 million, seven-year contract.

Source: SUSAN HAIGH, Associated Press (CT), February 23, 2006, 1:39 AM EST

HARTFORD, Conn. -- Democratic legislators on Wednesday questioned whether it's possible to pass a package of reforms to the state's contracting system that Republican Gov. M. Jodi Rell will sign this year. A bill that would have established a new board to oversee all state contracting was considered a key piece of reform legislation in the wake of the corruption scandal that sent former Gov. John G. Rowland to prison. But Rell vetoed two versions of the bill last year because they also would have regulated the outsourcing of state work. ..... Democrats and state unions say privatization standards, such as rules for wages paid to private employees and whether deals make financial sense, are necessary because there are no regulations now when a state agency hires an outside contractor to perform state work.

Source: By Deirdre Cox Baker, Quad City Times (IA), Feb 22, 2006

An annual contract for food and laundry services at the Scott County Jail may switch from area firms to a national company based in Philadelphia. Scott County Sheriff Dennis Conard said Tuesday that the change to Aramark Correctional Services Inc. will provide a cost savings to the county and include several other advantages. But a county employee said the change may cost her job, and a representative of Thoms Proestler Co., Rock Island, said food costs would be less with the area firm. ..... Further, Aramark can provide food transportation to the jail annex at 46th and Tremont streets in Davenport, work that is handled now by county staff. Laundry services now managed by a Scott County correctional officer would be managed by an Aramark employee, and Conard said additional savings should come from bulk purchases made by the Aramark, which has services across North America and in Europe.