AFSCME Privatization Update

Source: By JEROME R. STOCKFISCH The Tampa Tribune (FL), Sep 27, 2007

...... Now, the state lottery and a handful of toll roads and bridges are drawing the interest of private investors who are putting a price tag on those assets and want a piece of the action.

Facing a $1.1 billion hole in the state budget because of an economic slowdown, the state is listening.

This summer, major Wall Street firms approached Florida, as they have other states, with the prospect of leasing the state lottery.

Posted by Info Center at 3:07 PM in Asset Sale/Lease | Lottery | Transportation | Permalink

Source: By Don Michak, Journal Inquirer (CT), 09/28/2007

Accenture, the giant consulting company at the center of the controversy over a stolen computer tape containing confidential information on Connecticut taxpayers and government agencies, was involved in three other high-profile data breaches last year.

The Bermuda-based corporation last week became the target of a civil lawsuit filed by Attorney General Richard Blumenthal, who accused Accenture of negligence, unauthorized use of state property, and breach of its contract to implement the state's problem-plagued $124 million financial management system known as CORE-CT.

Posted by Info Center at 2:44 PM in Horror Stories | Information Technology | Permalink

Source: Indianapolis Star (IN), September 26, 2007

Our position: The governor should set policy barring private compensation of public employees.

Let's concede that Neil Pickett is a valuable member of Gov. Mitch Daniels' management team.

Pickett, the governor's senior policy adviser and a former executive at Eli Lilly and Co., brings a wealth of experience and talent to the Statehouse.

But the method by which Pickett is compensated should give the public pause. That's because more than half of his $156,840 salary comes from a private source, the Lilly Endowment.

....... The potential for conflicts of interest, however, is clear. As Common Cause/Indiana policy director Julia Vaughn told Star reporter Mary Beth Schneider: "He who pays the piper calls the tune.''

Posted by Info Center at 11:12 AM in Overview/General | Permalink

Source: By Susan Snyder, Philadelphia Inquirer (PA), Fri, Sep. 28, 2007

Two national unions that represent cafeteria and custodial employees in the Philadelphia School District yesterday called on Gov. Rendell to appoint an independent auditor to investigate the state-run district's recently severed contract with the Aramark food-service company. The unions said the district's full-service cafeterias continued to operate in the red under Aramark, finishing with a $4 million deficit in 2005-06 - the first year they were managed by Aramark - and a nearly $7 million shortfall last June.

...... "The community has the right to know why Aramark was not able to live up to its proposed sales and expense projections, which resulted in continued deficits for the school district," said the Service Employees International Union (SEIU) and Unite Here.

Posted by Info Center at 11:08 AM in Food Services | Schools K-12 | Permalink

Source: By Damian Mann, Mail Tribune (OR), September 28, 2007

........ Prchal is one of many former Jackson County library workers who are applying for jobs with the private company known as LSSI that will operate the 15 branch libraries that have been closed since April 6.

...... LSSI has agreed to operate libraries for a limited number of hours. Talent was scheduled to get 16, but the City Council voted to add a utility surcharge of $1.25 to $1.50 a month per household to bump the hours up to 40.

Posted by Info Center at 10:59 AM in Library | Permalink

Source: Associated Press (PA), Friday, September 28, 2007

PHILADELPHIA - Prison officials violated workplace discrimination laws when they fired a Muslim nurse who insisted on wearing a head scarf on the job, the Equal Employment Opportunity Commission charged Thursday.

The agency charged in a lawsuit that The Geo Group Inc., a private company that operates the Delaware County Prison in Thornton, refused to make religious accommodations for Carmen Sharpe-Allen and other female Muslim employees.

Posted by Info Center at 10:57 AM in Corrections | Horror Stories | Permalink

Source: By Hank Gross, Daily Freeman (NY), 09/27/2007

NEW WINDSOR - The Port Authority of New York and New Jersey intends to take over the operation of Stewart International Airport on Nov. 1, but before that can be accomplished, a number of steps must be completed.

The state Transportation Department, the airport's owner, is in the process of revising the operating lease, which was written for National Express Corp. about six years ago. The remaining 93 years of that lease is being sold to the Port Authority.

......The Port Authority is paying $78.5 million for the remainder of the airport lease. National Express paid $35 million for it in 2001.

Posted by Info Center at 3:20 PM in Asset Sale/Lease | Publicization | Transportation | Permalink

Source: By Jerel Wohl, Academe Online, September/October 2007

Nearly ten years ago, the University of Pennsylvania announced that it would outsource its facilities and real-estate operations to Trammell Crow Higher Education Services, Inc. The agreement included management of school facilities--155 buildings over 269 acres on the West Philadelphia campus, excluding the four hospitals and other units of the health system, an off-campus arboretum, and the veterinary school's large animal hospital, which is located outside of Philadelphia.

...... The contract, however, was reduced in scope in March 2000, when operations and maintenance components reverted back to the University of Pennsylvania while Trammell Crow continued to manage the capital project and real-estate components. Then, in 2002, the agreement with Trammell Crow was completely terminated and the university took back the responsibility for management of its capital projects, as well as the property management of real-estate holdings. Trammell Crow no longer had a presence on the Penn campus.

Posted by Info Center at 3:07 PM in Higher Education | Maintenance | Publicization | Permalink

Source: By Patrick Brantlinger, Academe Online, September/October 2007

Seeking to raise money for new academic buildings and programs, Indiana University's board of trustees is exploring outsourcing its "auxiliary-service" units. These units manage printing and food services, the university's bookstores, campus motor pools, and other functions.

To prevent job loss and wage cuts among hundreds of long-term university employees, the pro-labor organization Jobs with Justice--of which I am a member --has joined forces with local and state officials and IU's unions: the American Federation of State, County, and Municipal Employees (AFSCME), which represents service and maintenance staff, and the Communications Workers of America (CWA), which represents clerical and technical employees.

...... Daniels also signed a $1.16-billion deal with IBM to run Medicaid, food stamps, and other poverty-relief programs. In fact, he would like to privatize the entire state welfare system, which he calls "the worst" in the nation. ( Just how he knows that it is the worst is unclear, but he obviously dislikes welfare.)

Posted by Info Center at 3:01 PM in Higher Education | Social Services | Permalink
Tags: Indiana

Source: By JONATHAN WALTERS, Governing Magazine, September 2007

It's been just over a half a year since the Texas Health and Human Services Commission cancelled its $900 million, five-year contract with Accenture to run four call centers that would handle social services intake and screening over the phone. In the aftermath of the Texas contracting debacle, both the state and advocates have been working to pick up the pieces. Not surprisingly, though, state officials and advocates for children and family have a fairly divergent view of how it's going right now.

Posted by Info Center at 2:59 PM in Horror Stories | Social Services | Permalink

Source: By JONATHAN WALTERS, Governing Magazine, September 2007

Texas' first foray into a high-profile streamlining of social and health services delivery paid off impressively: In 1993, the Lone Star state won an Innovations in American Government award for its landmark effort to knit more than a dozen separate child care programs together through a "unitary" application. Even more revolutionary, parents and guardians no longer had to travel to a state welfare office to apply for the programs in person; they could do that by phone or mail.

Fast-forward to the spring of 2007, when Texas was back in the social and health services spotlight. This time, however, instead of emerging as a model of success, the state became Exhibit A in how to engineer a multimillion-dollar meltdown.

....... The reasons offered for the meltdown are manifold; the finger-pointing in the wake of the disaster has been dizzying. But everyone involved seems to own a piece of the problem. Contractors over-promised on performance. HHSC rushed to meet deadlines before people and systems were in place and ready to work. Hundreds of state workers experienced in the complex application and eligibility process were either terminated or left state service knowing that privatization was coming. Old and new computer systems didn't mesh, requiring vast amounts of information to be re-entered manually.

Posted by Info Center at 2:55 PM in Horror Stories | Social Services | Permalink

Source: JONATHAN WALTERS, Governing Magazine, September 2007

...... After several years of relatively little congressional interest in this subject, the premise is coming under new scrutiny in a Congress newly controlled by Democrats. That is in no small part because of the string of recent privatization disasters that have befallen a variety of states in areas ranging from child protective services to Temporary Aid for Needy Families.

...... But if states want the right to use federal money to continue experimenting -- on privatization or any new strategy for doing the public's business -- then it's crucial that those experiments produce some tangible successes that can be demonstrated to the public. Otherwise, at least as long as the Democrats control Congress, there will be increased scrutiny in all program areas where states want to let their fingers do the walking and let the private sector do the work.

Posted by Info Center at 2:53 PM in Federal | Permalink

Source: By Adam Wise, Daily Tribune (WI), September 26, 2007

The Wisconsin Rapids School Board elected Tuesday night to fill current custodial vacancies with non-union employees on its own, a change from its recent plan. For the past month, the School Board has contemplated outsourcing its custodians as another measure to cut spending in the district.

This past summer, the American Federation of State, County and Municipal Employees Local No. 1075 bargained language into its latest contract that limited the school district's ability to outsource only through attrition.

Posted by Info Center at 2:51 PM in Custodial | Schools K-12 | Victories | Permalink

Source: By David Whitney, Sacramento Bee (CA), Thursday, September 27, 2007

Medicare officials have declared a temporary "pause" in a controversial auditing program that has put a strain on dozens of California rehabilitation hospitals forced to surrender tens of millions of dollars on allegations that the care they provided elderly patients was medically unnecessary.

....... The association has been the leading critic of the program and the California contractor, Atlanta-based PRG-Schultz International, because of its rejection of almost all Medicare claims involving elderly patients treated at rehabilitation hospitals after knee or hip replacement.

...... The audit program was established as a test by Congress in 2002 in an effort to reduce unnecessary Medicare spending. It took effect in 2005 in three states -- California, New York and Florida, all high-cost Medicare states. But rather than being paid a fee for their work, auditors are paid commissions of between 25 percent and 30 percent of the money they collect from rejecting claims as far back as five years. In the case of PRG-Schultz, its contract permits it to keep the bounty so long as its decisions are not overturned at the first and second stages of administrative review. The reversals, however, are coming in the third stage.

Posted by Info Center at 2:49 PM in Health | Permalink

Source: By Ann Scott Tyson, Washington Post , Thursday, September 27, 2007

Defense Secretary Robert M. Gates said yesterday that his concerns over insufficient oversight of private security firms in Iraq led him this week to dispatch a team to the country to investigate the issue, while also instructing commanders to tighten their controls over the armed guards.

Posted by Info Center at 2:20 PM in Federal | Permalink

Source: By Dave Maass, Santa Fe Reporter (NM), September 26, 2007

Over the last year, whistle-blowers have come forward, auditors have released findings, legislative committees have convened. All concluded that Wexford Health Sources Inc., the private company that secured an exclusive contract in 2004 to provide health care to New Mexico inmates, cut corners at the cost of prisoners' well being.

Last year, SFR published an award-winning 15-part series focusing on health care professionals' allegations about the care in the prisons "The Wexford files."

Although Wexford's contract expired on June 30, 2007, inmates are now filing handwritten civil suits leveled at Wexford, the State of New Mexico and its private-prison contractor, the GEO Group.

Posted by Info Center at 1:09 PM in Corrections Health | Horror Stories | Permalink

Source: By JAN TUCKER, Globe (MI), Tuesday, September 25, 2007 3:57:26 PM

Questions surrounding the Michigan Employee Retirement System and its effect on certain employees at Ontonagon Memorial Hospital and the Village of Ontonagon were discussed at Monday's village council session. Bob Murphy, of the American Federation of State, County and Municipal Employees, and hospital employee Lynn Owens discussed the plight of 10 OMH employees with the council.

The 10 employees are all nearing 15 years of employment at the hospital, but could be short of the milestone by just months on Nov. 1, the date Aspirus is scheduled to assume ownership of OMH.

Posted by Info Center at 10:54 AM in Health | Permalink

Source: By Mary Beth Schneider and Mark Nichols, Indianapolis Star (IN), September 23, 2007

The number of Hoosiers working full time for the state since Gov. Mitch Daniels took office in 2005 has fallen by more than 4,000, partly because some jobs have been turned over to private companies. Most state employees have seen their salaries go up, but dollars spent on the executive and judicial branches have dropped by more than $15 million. These are among several findings in a new state-pay database The Indianapolis Star is making available on its Web site today.

....... The database shows that shifting jobs to the private sector is reducing the amount taxpayers spend on state salaries, although those savings are offset by the contracts the state has signed with private firms to take over the work.

Posted by Info Center at 10:51 AM in Overview/General | Websites/databases | Permalink

Source: By Sudarsan Raghavan and Thomas E. Ricks, Washington Post, Wednesday, September 26, 2007

A confrontation between the U.S. military and the State Department is unfolding over the involvement of Blackwater USA in the shooting deaths of Iraqi civilians in a Baghdad square Sept. 16, bringing to the surface long-simmering tensions between the military and private security companies in Iraq, according to U.S. military and government officials.

Posted by Info Center at 10:50 AM in Federal | Permalink

Source: Journal Gazette (IN), September 23, 2007

On his third day in office, Gov. Mitch Daniels told reporters his administration would conduct an inventory of state assets and consider holding a "very large garage sale." He slapped his first big "for sale or lease" tag on the Indiana Toll Road.

........ If Hoosiers can expect privatization to be a major issue, it's worthwhile to take note of where it's working and where it's not. Here's a look at a few of the areas where the administration has turned to the marketplace in search of efficiencies.

Posted by Info Center at 10:46 AM in Overview/General | Permalink

Source: WTAP News (OH), 11:22 PM Sep 24, 2007

The Ohio Association of Public School Employees, or OAPSE, says the Marietta City Schools Board of Education is considering outsourcing bus drivers and custodial staff to cut costs.

People were saying this is a trend that has happened in larger cities in Ohio but here staff members are afraid if this happens, they will be out of jobs. Nearly one hundred employees, students, and parents lined the driveway of Marietta High School carrying placards in support of long-time employees.

Posted by Info Center at 10:44 AM in Schools K-12 | Transportation | Permalink

Source: Neal McNamara, Herald Bulletin (IN), September 26, 2007

Five hundred in Daleville. Some 600 to 700 in Muncie. More than 2,000 in Fishers and Castleton. And now 500 in Anderson.

With companies like IBM, Sallie Mae and now Affiliated Computer Services, call centers seem to be de rigeur in Madison and its contiguous counties.

...... But companies like IBM and Affiliated have a larger stake in the state than most companies. IBM, with help from Affiliated and other companies, is overseeing the privatization of the state's welfare system, a Mitch Daniels initiative. Daniels asked companies interested in the privatization to create jobs for state residents. The call center in Daleville, and the one planned for Anderson, are part of that.

Posted by Info Center at 10:40 AM in Social Services | Permalink

Source: By John Petroski, Special to The Recorder (CT), September 26, 2007

A mysterious object was found in a blueberry muffin purchased in Memorial Hall last week; initial rumors suggested that the object was a beetle.

Although students confessed faith in Memorial Hall's food, Bob Hermann, the Director of Dining Services, confirmed what many could not believe.

....... The blueberry muffin was a Sysco product purchased by Sodexho campus services.

"There was a foreign matter in the muffin," said Hermann.

Posted by Info Center at 10:38 AM in Food Services | Higher Education | Permalink

Source: POGO blog, September 24, 2007

Today, I attended a meeting featuring www.ffata.org, a recently unveiled database operated by Global Computer Enterprises, Inc. - the same company that owns and operates FPDS-NG.

Following in the footsteps of OMB Watch's www.fedspending.org, GCE brings federal contract and grant spending information to the public in a very user-friendly format. GCE's portal to government information mirrors the recently added "ezSearch" function in FPDS-NG (if anyone still uses that data) and more features (RSS, exporting, and company synonyms) are forthcoming. GCE's new database allows users to conduct word searches to find information about agency contract actions, contractors receiving federal dollars, and the types of goods or services purchased by the government.

Posted by Info Center at 10:35 AM in Federal | Websites/databases | Permalink

Source: BY LARRY LEBOWITZ, Miami Herald (FL), Mon, Sep. 24, 2007

....... Florida is in another budgetary down cycle.

...... Faced with multibillion-dollar shortfalls, Gov. Charlie Crist is considering selling long-term leases on such valuable state assets as the Florida Lottery and toll roads. ''Everything is still on the table,'' said Pamela Griffis, a spokeswoman for Transportation Secretary Stephanie Kopelousos. ``Nothing is set in stone, but we're looking at everything.''

Posted by Info Center at 1:49 PM in Asset Sale/Lease | Transportation | Permalink

Source: Janet Elliott, San Antonio Express (TX), 09/21/2007 10:56 PM CDT

Texas is still struggling with slow processing times for social service benefits and overburdened phone lines as it unwinds a failed privatization contract, health and human services officials said at a public hearing Friday.

They outlined plans for several smaller private contracts in the coming three years as the state continues transitioning to call centers where people apply over the phone for a host of state and federal benefits.

But state employees criticized the plan, saying it would be better to hire more state workers for local offices where people apply for benefits in person.

....... The Texas Health and Human Services Commission is developing the next steps in the transition to a new eligibility system. In March the state ended a troubled contract with Accenture, an outsourcing company the state had hired in 2005 to operate call centers and process applications for the Children's Health Insurance Program.

Posted by Info Center at 1:46 PM in Horror Stories | Social Services | Permalink

Source: By DON BEHM, Journal Sentinel (WI), Sept. 23, 2007

The next 10-year contract to operate the Milwaukee Metropolitan Sewerage District's regional sewers, deep tunnels, wastewater treatment plants and Milorganite production facility - worth several hundred million dollars to the company hired to do the work - is up for grabs.

....... One union representing United Water employees does not expect the next private contract to provide any savings to local ratepayers. For that reason, Local 366 of the American Federation of State, County and Municipal Employees forecasts a return to MMSD operations, said Rich Abelson, executive director of AFSCMA [sic] District Council 48.

Posted by Info Center at 1:44 PM in Water & Sewer | Permalink

Source: Pioneer Press (MN), 09/22/2007 12:01:00 AM CDT

Ramsey County told 564 employees Friday that their Social Security numbers and employee ID numbers are among data apparently stolen from Accenture, the accounting firm that served as a consultant on a 2001 payroll study.

A letter to employees from county manager David Twa didn't include names, dates of birth, addresses or any other individual data.

Posted by Info Center at 1:42 PM in Horror Stories | Information Technology | Permalink

Source: By GINGER THOMPSON and ERIC SCHMITT, New York Times, September 24, 2007

...... Pentagon officials are investigating some $6 billion in military contracts, most covering supplies as varied as bottled water, tents and latrines for troops in Kuwait, Iraq and Afghanistan. The inquiries have resulted in charges against at least 29 civilians and soldiers, more than 75 other criminal investigations and the suicides of at least two officers. They have prompted the Pentagon, the largest purchasing agency in the world, to overhaul its war-zone procurement system.

Posted by Info Center at 1:41 PM in Federal | Permalink

Source: By Ellen Nakashima and Brian Krebs, Washington Post, Monday, September 24, 2007

The FBI is investigating a major information technology firm with a $1.7 billion Department of Homeland Security contract after it allegedly failed to detect cyber break-ins traced to a Chinese-language Web site and then tried to cover up its deficiencies, according to congressional investigators.

At the center of the probe is Unisys Corp., a company that in 2002 won a $1 billion deal to build, secure and manage the information technology networks for the Transportation Security Administration and DHS headquarters. In 2005, the company was awarded a $750 million follow-on contract.

Posted by Info Center at 1:39 PM in Federal | Permalink

Source: By CHARLES DUHIGG, New York Times, September 23, 2007

....... Habana is one of thousands of nursing homes across the nation that large Wall Street investment companies have bought or agreed to acquire in recent years. Those investors include prominent private equity firms like Warburg Pincus and the Carlyle Group, better known for buying companies like Dunkin' Donuts. As such investors have acquired nursing homes, they have often reduced costs, increased profits and quickly resold facilities for significant gains.

Posted by Info Center at 1:37 PM in Health | Permalink

Source: Journal Gazette (IN), September 23, 2007

On his third day in office, Gov. Mitch Daniels told reporters his administration would conduct an inventory of state assets and consider holding a "very large garage sale." He slapped his first big "for sale or lease" tag on the Indiana Toll Road.

....... If Hoosiers can expect privatization to be a major issue, it's worthwhile to take note of where it's working and where it's not. Here's a look at a few of the areas where the administration has turned to the marketplace in search of efficiencies.

Posted by Info Center at 1:33 PM in Overview/General | Permalink

Source: By Sharon Stello, Davis Enterprise (CA), September 20, 2007

UC Davis food workers urged UC regents Wednesday to support their effort to become university employees, then disrupted the meeting's start by chanting and marching out of the auditorium.

UCD is the last of the University of California's 10 campuses and five medical centers still contracting with outside companies to provide food service. At UCD, about 500 food workers are employed by Sodexho.

Posted by Info Center at 1:31 PM in Food Services | Higher Education | Permalink

Source: Stephanie Jevtic, Chicago Flame (IL), 9/24/07 Section: News

A boycott is ensuing at Northeastern Illinois University against Sodexho after the $6.7 billion corporation decided to increase food prices for NEIU this school year. Sodexho is also the new food provider here at UIC campus.

Posted by Info Center at 1:29 PM in Food Services | Higher Education | Permalink

Source: Kim Kozlowski, The Detroit News (MI), Friday, September 21, 2007

The unions representing Wayne County Friend of the Court employees are making legal moves this week to halt privatization of the state's largest court, which enforces $313.7 million in child support collections.

The American Federation of State, County and Municipal Employees, Council 25 and three locals, on Wednesday filed an unfair labor practice complaint against the Friend of the Court with the Michigan Employment Relations Commission.

The complaint alleges the administration went behind the union's back during recent contract negotiations when it launched an effort to privatize most of the court's operations.

Posted by Info Center at 1:46 PM in Laws/Legislation | Social Services | Permalink

Source: By SUSAN HAIGH, The Associated Press (CT), 9:14 PM EDT, September 20, 2007

...... The Senate earlier passed a bill setting standards for state contracts. But the House was debating the legislation into the evening. The legislation has been years in the making. It became a hot topic three years ago after former Gov. John G. Rowland resigned amid a corruption scandal involving a state contractor.

The bill establishes a board that will oversee the contracting process. It also creates a procedure for privatizing state functions. That process includes conducting a cost benefit analysis to ensure that state employees won't be able to provide the same services less expensively.

"I think it's a good first step. I'm sorry it took so long for it happen," said Sal Luciano, AFSCME Council 4 executive director. But Luciano questions whether the legislation will lead to an accounting of how many privatized contracts the state has with various companies.

Posted by Info Center at 1:44 PM in Laws/Legislation | Oversight/Contract Management | Permalink

Source: By Eamon Javers, Business Week, OCTOBER 1, 2007

........ Across the federal government, tens of thousands of baby boomers like Fretwell are hitting retirement age: In 2006, more than 60,000 people bowed out of the civil service. The federal Office of Personnel Management expects 2009 will be the peak year for boomer retirements, when more than 61,000 workers will leave their jobs. As the wave of retirements hits, agencies are offering enticements--from signing bonuses to subsidized college degrees--to attract new blood. Few expect the government to fill all the slots itself, however.

And waiting in the wings are contractors like Accenture (ACN ), BearingPoint (BE ), and Computer Sciences (CSC ). They're angling to take over swaths of the bureaucracy and further accelerate the outsourcing of the government. "For us, that's where the business opportunity lies," says Lisa M. Mascolo, Accenture's group CEO for public service. "My expectation is not to replace federal workers body for body, but for us to help transform the mission."

Posted by Info Center at 1:42 PM in Federal | Permalink

Source: By ERIC SCHMITT and GINGER THOMPSON, New York Times, September 21, 2007

Military officials said Thursday that contracts worth $6 billion to provide essential supplies to American troops in Kuwait, Iraq and Afghanistan -- including food, water and shelter -- were under review by criminal investigators, double the amount the Pentagon had previously disclosed.

In addition, $88 billion in contracts and programs, including those for body armor for American soldiers and matériel for Iraqi and Afghan security forces, are being audited for financial irregularities, the officials said.

Posted by Info Center at 1:38 PM in Federal | Permalink

Source: By Matt Barnwell, Macon Telegraph (GA), September 20, 2007

.........Waste Pro says it intends to employ all of the city workers for at least a year if they can pass a drug screen and pre-employment tests.

But it seems likely also that the company may pare down the size of the work force at some point beyond that first year.

"There's a lot of questions that are going to impact these employees and their families and this city," said Chip Warren, who represent many city workers in the Service Employees International Union.

He also wondered how older and mid-level employees would mesh their city pension contributions with Waste Pro's private retirement plan, and what the pre-employment tests might entail.

Posted by Info Center at 1:26 PM in Waste Management | Permalink

Source: By Geoffrey Fattah, Deseret Morning News (UT), Sept. 20, 2007

Privatizing Utah's prison system would have no clear cost advantages, according to an independent study that was presented to lawmakers on Wednesday.

The study by the University of Utah's School of Social Work and Criminal Justice Center compared existing studies conducted in other states that have both private and public prisons and found "no clear empirical advantage or disadvantage to privatize."

Study co-author Brad Lundahl told members of the Law Enforcement and Criminal Justice Interim Committee that the majority of private prison facilities are medium- to minimum-security facilities.

Posted by Info Center at 1:15 PM in Audits/Reporting | Corrections | Permalink

Source: Public Employee Federation news release, 09/18/2007

The New York State Public Employees Federation (PEF) presented Gov. Eliot Spitzer with an anti-privatization award during its annual convention today in Manhattan.

PEF President Ken Brynien recognized the governor's bold efforts to reduce the state's reliance on costly private consultants by replacing them with state workers who can do the job better and for less.

Posted by Info Center at 3:23 PM in | Permalink

Source: AFSCME Council 25 News Release, September 19, 2007

Albert Garrett, President of Michigan Council 25 of the American Federation of State, County and Municipal Employees (AFSCME), AFL-CIO, issued the following statement regarding the proposal to privatize Wayne County Friend of the Court operations:

"AFSCME Locals 409, 1905 and 3309, all representing court employees, and all affiliated with Michigan AFSCME Council 25 will conduct informational picketing at the Coleman A. Young Municipal Center, Woodward and Jefferson in Detroit, from 11:00 AM to 2:00 PM on Wednesday, September 19, 2007," stated Garrett.

"We are protesting the planned privatization of the Wayne County Friend of the Court," continued Garrett. "Despite public opposition to the idea, Chief Judge Mary Beth Kelly has issued a Request for Proposals (RFP), and has posted the RFP on the court's website at https://www.3rdcc.org/rfp/rfp.pdf. The RFP actually calls for staffing at 133 percent of current levels. This is a clear indication that the plan will slash the wages and benefits of the workers involved, and will produce a spurious, apples-and-oranges comparison of the work accomplished by the public workers now staffing Friend of the Court, and the performance of the contractor."

Posted by Info Center at 3:20 PM in Social Services | Permalink

Source: By DOUG SWORD, Herald Tribune (FL), September 18, 2007

A $600,000 increase in the cost to provide medical services to jail inmates has spawned accusations between the Sarasota County Sheriff's Office and the consultant who was in charge of negotiating the deal.

The allegations surround Sheriff Bill Balkwill's decision last month to switch health care providers in the jail. Prison Health Systems, which has had the contract for five years and charged $2.4 million for this year, is out. Armor Correctional Services will be the new provider as of Oct. 1.

Posted by Info Center at 3:09 PM in Corrections Health | Permalink

Source: By JOHN DARLING, Mail Tribune (OR), September 19, 2007

Jubilant Ashland Library backers say doors should open in late October -- Nov. 1 at the latest -- after nearly three-fourths of voters Tuesday night approved a property tax levy to operate the library up to 40 hours a week.

...... Like scores of other employees laid off last spring because of library closures, Sexton said he would like his post back but has no indication from Library Systems and Services (LSSI), a Maryland company, whether he will be rehired or what the pay would be.

Posted by Info Center at 3:03 PM in Library | Permalink

Source: By The Associated Press (NM), 09/19/2007

The state Court of Appeals has ruled (.pdf) that a private prison company is not entitled to a refund of taxes for operating prisons that house inmates for the state and federal governments.

Corrections Corporation of America had sought a refund of state gross receipts taxes, claiming it was allowed a deduction for the leasing of its prisons under agreements with the Department of Corrections and the federal Bureau of Prisons.

The Court of Appeals concluded Tuesday there was no lease of real property.

Posted by Info Center at 2:59 PM in Corrections | Laws/Legislation | Permalink

Source: SUSAN HAIGH, Associated Press (CT), 5:28 PM EDT, September 18, 2007

Connecticut is officially demanding that a Virginia company reimburse the state $6.2 million it spent on a failed upgrade of a major law enforcement database.

In a letter to Maximus Inc., Attorney General Richard Blumenthal said the firm failed to fix some 800 defects in the retooled database system, which state officials have not put into operation for fear it could endanger police and the public.

Posted by Info Center at 2:56 PM in Horror Stories | Information Technology | Permalink

Source: By Bill Cotterell, Tallahassee Democrat (FL), September 17, 2007

The big business of incarceration comes to the Panhandle town of Graceville this week, as Florida opens what will be its biggest for-profit prison in a competitive system marked by controversy.

........ In addition to the $61 million, three-year contract with GEO Group Inc. for the new prison, this year's Legislature approved an expansion.

Private prisons are required to operate at least 7-percent cheaper than state institutions. Graceville's baseline $42.74 per diem rate is $9.33 per prisoner below the daily average cost provided by the Department of Corrections.

But critics maintain that private prisons do it by scrimping on pay and benefits, or cutting corners on staffing levels, health care and inmate education programs.

Posted by Info Center at 2:47 PM in Corrections | Permalink

Source: Hawaii Channel, September 17, 2007

Another lawsuit has been filed against the mainland prison corporation that houses thousands of Hawaii inmates.

This lawsuit claimed the company knowingly hired sexual predators as guards to torment inmates.

.......... He said Corrections Corp. of America did not respond to his complaints. CCA had a history of hiring predatory homosexuals in order to control inmates, according to the lawsuit.

Posted by Info Center at 2:46 PM in Corrections | Permalink

Source: By SCOTT WILLIAMS, Journal Sentinel (WI), Sept. 18, 2007

Seeking to trim the size of government, Waukesha County Executive Dan Vrakas is proposing to privatize part of the county's child-support collection program.

Vrakas said his 2008 county budget proposal will include a plan for hiring an outside contractor to handle all incoming calls from parents, employers and other program users.

....... As an experiment, the county tried outsourcing the telephone call center this summer to Affiliated Computer Services Inc., the same firm that handles the state's child-support calls.

County staffers now handle up to 2,000 calls a month, or about 100 a day.

Posted by Info Center at 2:42 PM in Social Services | Permalink

Source: WaterOnline, 9/17/2007

The North American industrial water services and outsourcing market is largely driven by government regulations, environmental awareness and risk management. The primary buyers of outsourcing services for water and wastewater treatment are large manufacturing or industrial companies. This includes water treatment for use in manufacturing activities in several industrial sectors. Outsourcing also includes the disposal of industrial wastewater - treating the water before discharging it into any public body of water.

New analysis from Frost & Sullivan, North American Industrial Water Services & Outsourcing Market: Investment Analysis and Growth Opportunities, reveals that the market earned revenues of $6.5 billion in 2006.

Posted by Info Center at 2:31 PM in | Permalink

Source: Reason Foundation, September 12, 2007

San Diego taxpayers could save $80 to $200 million per year by allowing the private sector to compete with government agencies to do things like clean city buildings, perform maintenance on government vehicles, and run golf courses, according to a new study by the Reason Foundation and San Diego Institute for Policy Research (SDI).

Posted by Info Center at 2:29 PM in Overview/General | Permalink

Source: By D.L. BENNETT, The Atlanta Journal-Constitution (GA), 09/19/07

Fulton County voters overwhelmingly rejected the proposed city of South Fulton on Tuesday, preventing the county from becoming the first in Georgia with every property inside a city. The decision means Fulton County commissioners will continue to decide local issues such as planning, parks, public works and public safety for an island of unincorporated land that sprawls over 62,000 acres and sweeps in about 45,000 people south of Atlanta all the way to Palmetto.

....... The vote saves Fulton County's unincorporated services. Fulton once spent more than $100 million and had more than 1,000 employees providing services to unincorporated communities. But the 2005 vote to incorporate Sandy Springs started a parade of new cities -- Johns Creek, Milton and Chattahoochee Hill Country.

Posted by Info Center at 2:27 PM in Contract Cities | Permalink

Source: By Josh Verges, Argus Leader (SD), September 17, 2007

In three years of camera traffic enforcement at a downtown Sioux Falls intersection, red-light runners have paid $1.59 million in tickets. The city has kept about one-third of that revenue, sending the rest to the Arizona-based camera company. But this year, as drivers continue to pay closer attention to the traffic signals, almost none of the ticket proceeds are staying in the city.

......... In its 2008 budget, Sioux Falls expects to give Redflex all of the $300,000 it collects from drivers.

Posted by Info Center at 2:20 PM in Information Technology | Transportation | Permalink

Source: By Louis Porter, Rutland Herald (VT), September 13, 2007

MONTPELIER -- State officials and advocates are worried a provision in this year's national farm bill could, if it becomes law, make it more difficult for some Vermonters to get the food stamps they need and are qualified for. A provision in the U.S. House-passed version of the bill was apparently included to limit the ability of states to privatize the administration of food stamp programs that provide grocery assistance to the poor.

...... Nationally, unions of government workers have pushed for the provision, partly in response to problems in states that have privatized their food stamp programs, in some cases with poor results, according to officials and news reports.

Posted by Info Center at 10:48 AM in Federal | Social Services | Permalink

Source: Misty Bell, The Messenger (AL), September 13, 2007

With gas prices rising (along with the prices for most everything else), the Pike County Road Department is feeling the pressure.

"The bottom line is that there's not enough revenue to maintain the county's roads and bridges at today's prices," Herb Huner, head of the county road department, said.

...... Gov. Bob Riley favors privatization over a new gas tax, Gipson said. Privatization would allow private investors to pay for roads and then charge a toll for their use.

Posted by Info Center at 10:46 AM in Asset Sale/Lease | Transportation | Permalink

Source: By DAVE LEVINTHAL, The Dallas Morning (TX), Wednesday, September 12, 2007

Forty more red light cameras will monitor Dallas intersections as the City Council voted Wednesday to more than double the size of its service contract with camera vendor Affiliated Computer Services.

The 8-2 vote boosts Dallas-based ACS's contract from five years and $13.29 million to seven years and $29.1 million. It also means Dallas will operate 100 total red light cameras -- not including dummy devices meant to mimic functional cameras.

Posted by Info Center at 10:21 AM in Information Technology | Permalink

Source BizJournals, September 12, 2007

The Hawaii Department of Human Services has extended its contract with Affiliated Computer Services Inc. to provide information technology and claims-management services for the state's Medicaid program.

The six-month contract extension is worth $6.4 million.

Posted by Info Center at 10:18 AM in Health | Information Technology | Social Services | Permalink

Source: By Kelly Mahoney, Inside Tucson Business (AZ), Wednesday, September 12, 2007

Arizona's state government is spending $98 million over the next five years to replace outdated and redundant networking systems. The effort, called AZNet, has already saved taxpayers $3.8 million. The effort is called AZNet and is being executed by Accenture, an outside consulting group. The five-year contract is worth $98 million and was awarded to the company in 2005.

Posted by Info Center at 10:08 AM in Information Technology | Permalink

Source: Lisa Black, Chicago Tribune (IL), September 12, 2007

As about 75 senior citizens and supporters looked on, Lake County officials Tuesday overwhelmingly approved a plan to build a new nursing home to replace the tax-supported Winchester House in Libertyville.

...... Officials said they could not rely on the private sector to fill that need, but they will form an advisory board of professionals to help the new facility avoid repeating past problems.

....... Talks regarding the nursing home's future escalated in late 2005, when the county laid off 54 Winchester workers -- or 16 percent of its 330 employees -- because of its financial woes. That is a scenario officials said they would like to prevent from recurring. "They've been talking about privatizing this place or closing it," said Matthew LaPierre, who represents 250 Winchester workers through the American Federation of State, County and Municipal Employees.

Posted by Info Center at 1:55 PM in Health | Victories | Permalink

Source: Michael Zeigler, Democrat & Chronicle (NY), August 23, 2007

A state commission has concluded that a private company gave inadequate mental health treatment to a teenager who hanged himself in Monroe County Jail.

A report by the state Commission of Correction stopped short of saying that Correctional Medical Services Inc. of St. Louis, which contracts with the county to provide medical care to jail inmates, was responsible for the death of 16-year-old Javon Leggett on Aug. 29, 2004.

Posted by Info Center at 2:20 PM in Corrections Health | Horror Stories | Permalink

Source: Submitted by Terry Davis, Hutchinson Leader (MN) , September 10, 2007 - 3:53pm.

Final approval of a quintet of ordinances signing over control of city-owned Hutchinson Area Health Care to a new nonprofit agency is expected when the City Council meets Tuesday, Sept. 11.

Council approval of the transfer of the hospital, Burns Manor and other HAHC operations to Hutchinson Health Care will mark the near completion of more than two years of work on the proposal.

Posted by Info Center at 10:42 AM in Health | Permalink

Source: By RANDY GRIFFITH, The Tribune-Democrat (PA), September 10, 2007 05:36 pm

Airport Director Joseph McKelvey and all other airport employees lost their jobs Monday in a stunning move that turns over management of the county-owned facility to a private company.

MountainTop Technologies subsidiary MTT Aviation Services will operate the airport for $74,500 a year, under an agreement unanimously approved Monday by the Johnstown-Cambria County Airport Authority.

Posted by Info Center at 10:39 AM in Transportation | Permalink

Source: Ken Dilanian, USA TODAY, September 10, 2007

In December, Indiana Gov. Mitch Daniels sidestepped opposition from unions and Democrats when he signed a deal outsourcing the administration of his state's welfare and food stamp programs to a consortium led by IBM. For organized labor, the fight didn't end there.

In December, Indiana Gov. Mitch Daniels sidestepped opposition from unions and Democrats when he signed a deal outsourcing the administration of his state's welfare and food stamp programs to a consortium led by IBM. For organized labor, the fight didn't end there.

........... Daniels, a Republican who was President Bush's budget director, argued the privatization would improve services and save state taxpayers up to $1 billion over a decade. The union and other groups said it would hurt beneficiaries.

In June, at the urging of AFSCME and other groups, Democrats on the House Agriculture Committee voted to place a provision in the farm bill barring states from outsourcing the administration of food stamp programs.

Posted by Info Center at 3:09 PM in Social Services | Permalink

Source: InsideINdianaBusiness.com Report, September 7, 2007

The Indiana Family and Social Services Administration (FSSA) has issued a direct response to a mass e-mail sent to employees' work e-mail addresses, saying any response would violate state guidelines. The mass e-mail was sent September 4 by advocate and former state employee Beryl Cohen, asking workers to report on the transition to privately-run state eligibility services.

Cohen said the reports could be made anonymously at http://www.concerned citizens.org. [Ed note - that website it invalid, they may mean: http://www.concernedhoosiers.org/] In her response, FSSA General Counsel Jessaca Turner-Stults says any response would be an inappropriate use of state resources.

Posted by Info Center at 10:52 AM in Social Services | Permalink

Source: BY JACK KRESNAK, Detroit FREE PRESS (MI), September 7, 2007

Wayne County's chief circuit judge today will announce a plan to privatize most of the county's Friend of the Court system, which handles more than 20% of Michigan's child-support payments and has been criticized as inefficient, overburdened and mistake-prone.

Chief Judge Mary Beth Kelly said the company that wins the bid to run the $28-million-a-year operation would be required to hire the 169 Friend of the Court employees affected by the change as well as to increase staffing by 33% in the first year.

....... The plan is certain to face stiff opposition from Council 25 of the American Federation of State, County and Municipal Employees (AFSCME), which represents the 169 Friend of the Court workers. AFSCME's contract with the county expired Sept. 1.

Posted by Info Center at 10:47 AM in Social Services | Permalink