Labor moves to bar welfare privatization
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.