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December 20, 2007

Pickets Decry Tampa Layoffs

Source: By Ellen Gedalius, The Tampa Tribune (FL), December 20, 2007

TAMPA - Chanting "No justice, no peace!" more than 30 union workers, including several city employees, protested outside city hall this morning.

They said Mayor Pam Iorio shouldn't proceed with plans to lay off 100 employees.

In November, Iorio announced 100 people likely would lose their jobs next year when the city privatizes some services. About 50 security officers and 38 janitors are among those targeted.

December 19, 2007

Outsized Offshore Outsourcing

Source: By John Miller, Dollars & Sense (subscription req.), September/October 2007

Accelerated offshore outsourcing, the shipping of jobs overseas to take advantage of low wages, has forced some mainstream economists and some elements of the business press to have second thoughts about "free trade."

School Construction Authority / Back on the job!

Source: By GREGORY N. HEIRES, Public Employee Press (NY), November 2007

About 40 Local 375 members who were laid off in the budget crisis of 2003 have returned to the School Construction Authority, capping a long campaign by the union to win back their jobs.

..... The authority's failure to meet its legal obligation to assign 40 percent of its design, drafting and inspection to in-house staff was at the core of the lawsuit. For years, the local had contended that SCA was not meeting that requirement; the suit showed the union was right.

Highest Paid State Employees and State Vendor List Released

Source: Nebraska.tv, Dec 19, 2007 10:37 AM

State Auditor Mike Foley has released a list (.pdf) of over 800 vendors paid $500,000 and above by the State of Nebraska during Fiscal Year 07. In addition, the Auditor has released a list of University and State personnel with a gross income of over $100,000 during Fiscal Year 07, beginning July 1, 2006 and ending June 30, 2007.

Nevada study group pushing for private toll roads

Source: Landline Magazine, December 18, 2007


In hopes of tapping into public-private partnerships to build highways in Nevada, a special panel created by the governor has decided to call on state lawmakers to make it happen.

The study committee, created by Gov. Jim Gibbons, recommended asking the Nevada Legislature to authorize pursuing deals with private groups to build highways.

State investment chief considers privatizing investment pool

Source: By Paige St. John, Tallahassee Democrat (FL), December 19, 2007


As an audit committee attempts to unravel how Florida became so heavily invested in subprime-tainted securities, the state's new investment chief is considering leaving such future decisions to professionals.

Florida already seeks to privatize management of what remains of its $12 billion local government investment pool, after revelations it contained defaulted securities caused its near collapse.

......... Private management has already come at a cost -- the fund's new interim managers charge up to $39 for every $10,000 invested, compared to $1.50 formerly charged by the state.

Audit: No sign of savings on state Medicaid

Source: By Deborah Yetter, The Courier-Journal (KY), Tuesday, December 18, 2007

A state audit found no evidence of savings in the state Medicaid program promised by the administration of former Gov. Ernie Fletcher, who claimed Medicaid reform as one of his top accomplishments in his failed re-election bid.

...... Luallen, a Democrat, said her office waited until after the Nov. 6 election to release the audit so it would not become an issue in the governor's race.

....... Medicaid spends about $300 million a year on three private contractors to process claims, manage information, operate a call system for members and operate its prescription drug program. But until recently they operated with little oversight or accountability.

In July, Medicaid hired an outside company, Accenture, to monitor the three other outside contractors -- even though Texas fired that company last year for poor performance on a contract.

........ State Sen. Ernesto Scorsone, a Lexington Democrat on the Health and Welfare Committee, said he's concerned about the growth in outside contractors for the Medicaid program listed in the audit report.

"I think the only winners are the outside vendors who have made money off the state," he said.

December 18, 2007

Contracting and Sector Choice across Municipal Services

Source: Richard C. Feiock, James C. Clinger, Manoj Shrestha, and Carl Dasse, State & Local Government Review (subscription req.), Vol. 39, No. 1 (2007)

Whether organizations should contract out for goods and services or produce them internally continues to be a subject of debate. Service contracting patterns in cities may be explained by the characteristics of goods and services and the extent of political and administrative uncertainty in city leadership. Turnover in executive leadership can ­affect the ability of local governments to negotiate contracts, make credible commitments to suppliers, and faithfully uphold and enforce contracts. When transaction costs resulting from turnover are high, contracting out becomes less ­likely. The results of this study show that both city manager turnover and certain service types significantly reduce the likelihood of service contracting, particularly with private, for-profit providers.

Pima dropping 500 care workers / They'll likely move into same jobs, but under auspices of private firms

Source: By Becky Pallack, Arizona Daily Star, Published: 12.08.2007


About 500 Pima County caregivers must look for a new employer -- but they'll be doing the same jobs. Pima County is cutting their positions at Pima Health System as it privatizes some home-health support services.

...... The workers likely will be paid more and receive benefits, which weren't part of their contracts with the county. Independent agencies can pay more because "they're very competitive and very much want to retain their workers," Siemsen said. The attendant caregivers were among Pima County employees who voted to join Service Employees International Union Local 5 in April.


Gov't Lifts Contract Work Force To Save Money, Add Flexibility

Source: By JED GRAHAM, Investors Business Daily, December 10, 2007


The era of big government has made a strong comeback since the late 1990s, but federal payrolls have barely budged. The real growth has come in the hiring of contractors. Sen. Hillary Clinton says she would end that as president. She has proposed cutting 500,000 government contractors, claiming it would save $10 billion to $18 billion a year.

But independent analyses suggest the plan could hurt mission-critical work or boost costs if the government does the work. In Iraq alone, contractors -- many of them Iraqi -- outnumber troops by about 180,000 to 160,000.


........ "Her appeal is much less to the public and much more to labor organizations such as AFSCME (American Federation of State, County and Municipal Employees)," he [Paul Light] said. Indeed, at an AFSCME-sponsored debate earlier this year, Clinton made a strong pitch. "I stood with AFSCME against the privatization of Social Security," she said, "and now I want to stand with you against the privatization of our government."

State outsourcing tech jobs, cutting positions / 1,100 jobs to be affected in Georgia

Source: By JAMES SALZER, The Atlanta Journal-Constitution (GA), 12/11/07

Gov. Sonny Perdue this morning announced a consolidation and outsourcing of the state's technology services, a move that will lead to about 200 layoffs.

.... Four years ago, Perdue pulled the plug on a similarly ambitious initiative to consolidate all state government telecommunications under a private contractor, a plan worth $1.8 billion. It would have been the largest contract ever awarded by the state, putting as many as 500 state employees on the private contractor's payroll. That plan fell apart during the bidding process.

How are your taxes spent?

Source: Michael McNutt, NewsOK.com, December 17, 2007

Looking up state expenses soon will be as simple as clicking onto the Internet.

The Office of State Finance is in the final stages of developing a Web site that will allow people to view how state money is spent.

...... Vendors paid more than $25,000 and travel expenses by agencies also will be listed; it also will list expenditures by agencies. Eventually, every vendor will be listed on the site.

Rally held in opposition to Bellefontaine plan

Source: Maria Hickey, KWMU, December 17, 2007

A group of parents and employees held a rally Monday opposing plans for privatization at the Bellefontaine Habilitation Center.

The Missouri Department of Mental Health announced in August it would seek private vendors to take on 120 of the residents at private, community-based programs.

But many employees and parents are unhappy with the plan.

Ex-center workers sue

Source: By Niki Kelly, The Journal Gazette (IN), December 18, 2007 6:00 a.m.


Several former employees of the Fort Wayne State Developmental Center filed a class-action lawsuit in Marion Superior Court, seeking monetary damages as the result of an improper privatization process.

...... The lawsuit claims that many employees lost the benefits associated with state employment, and that the contract with Liberty should be declared void.

"The Daniels administration flagrantly violated the law," said David Warrick, executive director of AFSCME, the union representing the employees.

December 17, 2007

Privatizing in the Dark: The Pitfalls of Privatization & Why Budget Disclosure is Needed

Source: California Progress Report, December 13, 2007

"Privatizing in the Dark: The Pitfalls of Privatization & Why Budget Disclosure is Needed" is our site of the day.

The Progressive States Network (PSN), a national think thank, released a report today addressing the need for legislation to establish greater accountability and transparency in the privatization of state government services.

The 31 page report, entitled Privatizing in the Dark: The Pitfalls of Privatization & Why Budget Disclosure is Needed (.pdf), makes the case for a careful reevaluation of the practice of outsourcing traditionally government-administered public services such as education, transit, prisons, and health care to private corporations. In light of the penchant for Governor Schwarzenegger and California Republicans for privatization who see it as a panacea for budgetary and other problems, this is a timely report for those interested in California public policy.

Oversight group would be part of deprivatization

Source: By David Siders, The Record/Public Services International (CA), November 30, 2007


STOCKTON - A city panel Thursday endorsed a plan for the transfer of Stockton's water and sewer utilities from private to municipal control, promising in the transition's oversight to involve activists who sued the city to undo its privatization deal.

If approved next month by the City Council, the plan would establish an oversight group including labor groups, activists and the council's water panel, the body that recommended the plan Thursday.

The Characteristics of Offshorable Jobs

Source: by Jared Bernstein, James Lin, and Lawrence Mishel, Economic Policy Institute, November 14, 2007

In recent years there has been increased attention to the fact that more jobs, particularly white-collar jobs, have become vulnerable to being offshored. This new analysis examines the characteristics of these jobs. Examining the occupations identified by Princeton economics professor Alan Blinder as "potentially offshorable," this EPI analysis finds that between 18% and 22% of today's jobs -- about 25 to 30 million -- could potentially be offshored. Interestingly, the workers most vulnerable to offshoring are those with at least a four-year college degree.

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Welcome to USASpending.gov, Where Americans Can See Where Their Money Goes

Source: USASpending.org

Have you ever wanted to find more information on government spending? Have you ever wondered where federal contracting dollars and grant awards go? Or perhaps you would just like to know, as a citizen, what the government is really doing with your money. The Federal Funding Accountability and Transparency Act of 2006 (Transparency Act) requires a single searchable website, accessible by the public for free that includes for each Federal award:

1. The name of the entity receiving the award;
2. The amount of the award;
3. Information on the award including transaction type, funding agency, etc;
4. The location of the entity receiving the award;
5. A unique identifier of the entity receiving the award.

Welcome to www.USAspending.gov, a relaunch of www.FederalSpending.gov, that provides citizens with easy access to government contract, grant and other award data.

Resource Guide For Dealing With Budget Cuts: Strategies for Cities

Source: Minnesota League of Cities, Revised May 2004


........ As another strategy, cities may choose to enter service contracts with private or not-for-profit firms. Privatization can bring about savings through more efficient delivery of a service. By opening up local provision of services to competition in the marketplace, cost savings and increased responsiveness may be realized. Further, local governments may be able to access expertise and technology resources available in the private sector. None of these benefits are certainties however, and cities should be cautious when considering privatizing services or functions.

Report Documents Top 100 Private Contractors in Iraq and Afghanistan

Source: Public Integrity news release, November 19, 2007

Center Unveils Windfalls of War II Investigation

Center for Public Integrity: "It's been four years since the Center released its acclaimed Windfalls of War investigation, which first named Halliburton as the largest single contractor in Iraq and revealed the most comprehensive list of the top Iraq and Afghanistan contractors available at the time. That list included more than 70 American companies that had been awarded up to $8 billion in contracts from 2002 through July 1, 2004. By the end of 2006, U.S. contracts in Iraq and Afghanistan have grown to $25 billion, while oversight has seriously deteriorated, according to a new Center analysis, Windfalls of War II. The Center report shows that KBR, Inc., formally known as Kellogg, Brown and Root and a Halliburton subsidiary until April 2007, continues to top the list at more than $16 billion in U.S. government contracts from 2004 to 2006. DynCorp International, at $1.8 billion, came in at a distant second...The Center assembled its list of the top 100 contractors, where the reported place of performance was in Iraq and Afghanistan, by analyzing the General Service Administration's Federal Procurement Data System. After reviewing this federal database, the Center was able to piece together the 100 companies that received the most contracts from fiscal years 2004 to 2006. However, even this publicly available federal database does not include all Iraq and Afghanistan contracts, including the ones originating at the Baghdad contracting agency. The Baghdad contracting agency has rebuffed Center efforts to obtain missing contracts. The Center is now seeking to acquire them through Freedom of Information Act requests."

Impact of For-Profit and Non-Profit Management on Student Achievement: The Philadelphia Experiment

Source: By Paul E. Peterson and Matthew M. Chingos, Working Paper Number:RWP07-055. Harvard University John F. Kennedy School of Government, Submitted: 11/13/2007


Abstract
Using individual student test-score data from the School District of Philadelphia, we estimated the impact of for-profit and non-profit school management on student achievement by tracking the performance of students in math and reading from 2001 to 2006. After four years, the average student at schools managed by for-profit firms learned roughly two-thirds of a year more in math than would be expected had the schools remained under district management. However, the positive impact of for-profit management on average reading gains was smaller and not statistically significant. For non-profits, we found mainly negative impacts on student performance in both math and reading, but none were statistically significant. Treatment effects were identified using a quasi-experimental research design known as "difference-in-differences" analysis. We used as a control group the 71 schools under regular district management at which students were performing below the district median.

Defense Contracting in Iraq: Issues and Options for Congres

Source: Congressional Research Service (via Federation of American Scientists), January 26, 2007

This report will examine logistical support contracts for troop support services in Iraq primarily administered through the United States'(U.S.)Army's Logistics Civil Augmentation Program (LOGCAP). LOGCAP is an initiative to manage the use of civilian contractors that perform services in support of DOD missions during times of war and other military mobilizations. It was established on December 6, 1985 with the publication of Army Regulation 700-137.

LOGCAP has been used in a variety of military contingency operations and provides for the awarding of contingency, or bridging contracts, or for the inclusion of contingency clauses in peacetime contracts. LOGCAP contracts have been previously awarded for work in Rwanda, Haiti, Saudi Arabia, Kosovo, Ecuador, Qatar, Italy, southeastern Europe, Bosnia, South Korea, Iraq, and Kuwait. LOGCAP contracts are "costs-plus award fee" contracts, meaning that there is a fee paid based on contract costs, in addition to the potential for incentive fees based on performance. There has been a substantial shift in the types of contracts for troop support services, the size of the contracts, and the apparent lack of effective management control over the administration of the contracts and the oversight of the contractors.

Some observers have noted that costs-plus contracts have characteristics that can make oversight difficult. Others note that the very nature of the types of contracts employed in Iraq, combined with the challenges in contract administration, serve as major factors which make contract administration difficult. Given the size and scope of the contracts in Iraq, and the challenge of managing billions of DOD-appropriated dollars, many have suggested it appropriate to inquire whether these types of contracts can be managed better.