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February 29, 2008

Detroit, Mich. Schools Investigate Aramark Food Service Contract

Source: AM Online (MI), 02/29/2008

Detroit, Mich. public school officials are investigating Aramark's food service management contract, according to The Detroit Free Press. The district could be forced to pay penalties to the state if it is found to have used federal money that by law was not supposed to be paid to Aramark, said Barry Sackin, a consultant and former vice president of public policy for the School Nutrition Association in Alexandria, Va.

Metronet P3 failure 'spectacular'

Source: CUPE.com, February 26, 2008

A British government inquiry into a P3 to upgrade London's subway system concludes the scheme was a "spectacular failure".

In a report released late last month, the House of Commons Transport Committee said the private consortium's "pathetic underdelivery" should be a warning against future P3 contracts.

Audit pans records system / Program for inmates' medical information fails expectations

Source: By STEVE SCHULTZE, Journal Sentinel (WI), Feb. 29, 2008


A nearly 5-year-old computerized medical records system for inmates at the Milwaukee County Jail and the House of Correction in Franklin has failed to provide more than $1 million in expected savings and has worked so poorly it should be trashed, a new audit (.pdf) says.

..... The vendor chosen for the system, Illinois-based Seaquest Technologies, did not have experience designing records systems for correctional facilities.

February 28, 2008

Daniels boosts privatizing Gary airport

Source: BY KEITH BENMAN, Northwest Indiana Times (IN), Thursday, February 28, 2008 | 20 comment(s)

Gov. Mitch Daniels told a conservative Washington think tank on Monday that leasing Gary/Chicago International Airport to a private operator represents a "heck of an opportunity" for Gary.

OMB: Competitive Sourcing Requirements in Division D of Public Law 110-161

Source: OMB M-08-11, Competitive Sourcing Requirements in Division D of Public Law 110-161 (February 20, 2008) (8 pages)


ยท "This memorandum provides guidance on certain government-wide provisions related to competitive sourcing in sections 739 and 747 of Division D of the Consolidated Appropriations Act, Fiscal Year (FY) 2008, P.L. 110-161. Specifically, this guidance addresses: (1) health and retirement fringe benefit comparability requirements, (2) the use of competitive sourcing for human resources (HR) activities, (3) application of the conversion differential, and (4) the performance of commercial activities by non-profit agencies under the AbilityOne Program."


Other OMB competitive sourcing documents

Employees speak out against privatization of school services

Source: By Mary Beth Almond, C & G News (MI), Feb. 22.


Members of Birmingham Public Schools' custodial and transportation staff are up in arms about the district's exploration of possible changes to school services.

...... On Feb. 5, an alert from the Michigan American Federation of State County and Municipal Employees Council 25 was placed next to the agenda outside the Board of Education meeting room for members of the community to pick up on their way into the meeting.

The flier, endorsed by Michigan AFSCME Council 25 President Albert Garrett and Secretary-Treasurer Lawrence A. Roehrig, stated, "As public school districts consider choosing moving forward with plans to privatize school services, they are treading a well-worn and ill-chosen path filled with pitfalls."


GAO chief rebukes spending discipline

Source: By: Samuel Loewenberg, The Politico, February 27, 2008 04:57 PM EST

Few people know the underbelly of government spending better than David Walker, who is stepping down next month as the head of the Government Accountability Office.

..... At the top of his hit list is Medicare, and in particular the new prescription drug benefit that went into effect in 2006. The true costs of that program were hidden from Congress and the American public, said Walker, who previously served as a Medicare trustee during the administrations of Presidents George H.W. Bush and Bill Clinton. The real cost of the drug program for seniors, Walker said, will be more than $8 trillion.

...... Another area that drew the comptroller general's fire was the use of contractors by government agencies, particularly the Department of Homeland Security, the Pentagon and other agencies in Iraq. "The biggest area of waste in this government is acquisition and contracting," Walker said.

Private Medicare Plans' Cost Questioned

Source: By ROBERT PEAR, New York Times, February 28, 2008

Private Medicare plans often cost beneficiaries more than the traditional government-run Medicare program, Congressional investigators say. Many private plans advertise extra benefits and low costs.

But in a report to be issued Thursday, the Government Accountability Office, an investigative arm of Congress, says that many people in private plans face higher costs for home health care, nursing homes and some hospital stays. About one-fifth of the 44 million Medicare beneficiaries -- 9 million people -- are in private plans, known as Medicare Advantage plans.

Related testimony from GAO: Medicare Advantage: Higher Spending Relative to Medicare Fee-for-Service May Not Ensure Lower Out-of-Pocket Costs for Beneficiaries

DeKalb OKs Grady shift to nonprofit corporation

Source: By CRAIG SCHNEIDER, The Atlanta Journal-Constitution (GA), 02/26/08

In a move expected to secure hundreds of millions in private and state funds, the DeKalb County Commission approved a lease agreement Tuesday that would shift operational control of Grady Memorial Hospital to a new nonprofit corporation. The unanimous vote is one of the last hurdles in the management restructuring designed to save the financially crippled hospital.

February 26, 2008

Privatization of clinics riles some supervisors

Source: By Alison Hewitt, Pasadena Star News (CA), 02/25/2008 12:36:26 AM PST


A proposal from the county's health department riled supporters and detractors last week, with disagreements fueled by confusion over what the plan would do - and whether the department misled county supervisors.

Supervisors said they were told that DHS intended to close 11 of the department's 12 health clinics. Department of Health Services Director Bruce Chernof and county CEO Bill Fujioka called that a misunderstanding. They said the proposal had always been to find private management for those 11 clinics, including the La Puente Health Center.

Idaho Governor Dumps Private Prison Plan

Source: Associated Press (ID), 02.25.08, 4:56 PM ET


Gov. C.L. "Butch" Otter has abandoned legislation to completely privatize Idaho's new prisons, relenting to lawmakers who weren't ready to let somebody else take control the state's correctional facilities.

ERB Ruling On Mental Health Stay Request

Source: AFSCME Local 3694, Josephine County, OR, Feb 22, 2008


This is an update on ERB Unfair Labor Practice ruling. To review, the Employment Relations Board (ERB) ruled in October that the Josephine County Board of Commissioners (Ellis, Riddle, and Raffenburg) illegally privatized Mental Health in 2006 and committed an Unfair Labor Practice in the process. This ruling only spoke to why the BCC chose to privatize the programs, not if there were other valid reasons for privatizing. ERB ruled the violations of the law were "egregious" and "flagrant."

The ERB Order included a half dozen main components, including back due compensation to employees as well as returning the programs to the County.


Oregon Employment Relations Board Case UP-26-06

February 25, 2008

Consultant reaps state windfall Payouts to tech firm near half-billion dollars

Source: BY JAN MURPHY, The Patriot-News (PA), Sunday, February 24, 2008


With the amount of money Deloitte Consulting has been paid by the state in recent years, some might consider it deserving to be a state agency in its own right.

During the last five years, state records show Deloitte Consulting, which opened an office in Susquehanna Twp. three years ago, has been paid nearly $414 million. With the contracts Deloitte still holds, the company is on track to approach or exceed the half-billion mark soon.

The international firm, with U.S. headquarters in New York City, provides audit, tax, consulting and financial advisory services. Most of its contracts with the state have been primarily for services related to information technology.

...... Treasury records show Deloitte's contracts over the last five years dwarf the state's $27.7 million payments to a competitor, Accenture.

Indiana Scraps State Hospital Privatization

Source: AFSCME Works Online Xtra, February 22, 2008


When it became clear it would cost taxpayers too much, plans to outsource the jobs at three state hospitals where employees are represented by AFSCME Council 62 were formally dropped last month.

AFSCME has said for years that all privatization efforts are costly to taxpayers. Two years ago, when Council 62 members first learned of the plans to privatize state hospitals in Richmond, Evansville and Madison, the direct care employees held rallies, put up signs and drummed up community support to defeat the proposal.

Deloitte Report: Outsourcing Programs Hampered By Poor Planning and Narrow Focus on Cost Savings

Source: Deloitte Services LP, Published: 2/14/08, Contact: John La Place

NEW YORK, February 14, 2008 - A new study from Deloitte reports that enterprises entering into outsourcing arrangements are focusing too heavily on reducing costs through labor arbitrage alone, resulting in high levels of disappointment and conflict even though most companies are realizing the cost savings that they had hoped for.

The Deloitte study, "Why Settle for Less: 2008 Outsourcing Report" reported that 83 percent of companies surveyed had achieved an ROI of over 25 percent on their outsourcing projects. However, 49 percent of the executives surveyed indicated they would have defined service levels that aligned better with their companies' business goals if they could start their outsourcing projects over and only 34 percent of respondents reported that they had gained important benefits from their service providers' innovative ideas or transformation of their operations.

In addition, by a 3-to-1 margin, the outsourcing service providers polled reported that their client companies did not have a solid outsourcing plan, lacked the operational data needed to make sound decisions and did not understand how the to-be organization would really work. Such contradictory findings could be the result of a failure to properly define the goals of the outsourcing projects as being more than saving money.

Some privatization fails the 'cheaper, better' test

Source: Bill Cotterell, Tallahassee Democrat (FL), February 25, 2008


The whole idea behind privatization is that it's supposed to be cheaper and better than having state employees do something.

Not one or the other, but both. Sometimes, however, it doesn't quite work out that way.


And when that happens, the test of a good administrator is to admit it and try something else. Politically, that's not always easy.

The Department of Veterans Affairs, for instance, wants to take over some staffing at three nursing homes that were opened with private nursing-assistant and kitchen employees during the administration of Gov. Jeb Bush. This is the latest example of something that looked good at the time, but apparently didn't work out precisely as planned.

Bush always advocated the "cheaper and better" idea, but his private-sector background and barely concealed disdain for most things governmental tilted any evaluation toward the outcome he wanted.

Fighting Fire With the Wrong Sector?


Source: By Stephen Barr, Washington Post, Friday, February 22, 2008; Page D04


The Government Accountability Office faulted outsourcing projects at the Forest Service in a report released yesterday, prompting renewed calls for more scrutiny of the Bush administration's effort to contract out federal jobs, a plan known as competitive sourcing.

The Forest Service does not have a realistic long-term plan for determining which agency jobs should be given to the private sector and does not have reliable data to back up claims of cost savings, the GAO said.

In addition, outsourcing substantial numbers of Forest Service jobs to the private sector could, over time, reduce the agency's ability to fight fires in the wilderness and to respond to emergencies such as Hurricane Katrina.

February 21, 2008

Ex-Inmate Crusades Against Judge Nominee

Source: By TRAVIS LOLLER, Associated Press (TN), February 21, 2008

A private prison company executive nominated to become a federal judge has run into a determined opponent -- a former inmate. President Bush in June nominated Gustavus A. Puryear IV, chief lawyer with Corrections Corporation of America, to become a U.S. district judge in Nashville.

...... He formed the group Tennesseans Against Puryear and enlisted the help of the liberal Washington-based Alliance for Justice and the American Federation of State, County and Municipal Employees, both of which sent letters opposing the appointment.

Cash crunch boosts government service firms

Source: By Helen Chernikoff, Reuters, Wed Feb 20, 2008 1:10pm EST

The weakening U.S. economy has unleashed layoffs, reduced profits and sucked value from the stock market, but some companies, such as those that run prisons and consult for government, can benefit from harsh economic times. When state and local budgets see shortfalls, cash-strapped governments hire companies like management consultant Maximus Inc, social services provider Providence Service Corp and prison company Corrections Corp of America, according to analysts.

..... States might begin a new wave of prison privatization sooner than in the 2001 recession because the United States is still suffering from prison overcrowding as a result of that last downturn, Campbell said.

February 19, 2008

Head Start agency's memo says it's time to lobby City HallC

Source: Ken Rodriguez, Express-News (TX), 02/17/2008 10:39 PM CST


The CEO of the nonprofit agency that runs Head Start didn't like what she heard during a recent meeting with city leaders. Dennis Campa, the city's director of Community Initiatives, said Parent/Child, Inc. failed to staff Head Start classrooms with the required number of teachers. City Councilwoman Diane Cibrian said some PCI administrators earn salaries 60 percent to 110 percent above average market value.

....... A member of the American Federation of State, County and Municipal Employees union, Gonzalez-Shaw said, "Our contract guarantees modest wage increases of between 8 and 15 cents for employees like teachers, teacher's assistants and bus drivers, many of whom earn between $6 and $8 per hour. "To date, PCI has refused to honor these modest pay increases, arguing that Head Start regulations prevent them from paying 'significantly higher than the average wage.' "

Interesting. An agency that refuses to reduce the above-average-market salaries of administrators refuses to grant an 8-cent raise for low-level employees. How's that for a talking point? PCI squeezes pennies from its poor.


Prison food supplier blasted

Source: BY DOMINICK TAO, Miami Herald (FL), Sat, Feb. 16, 2008

Sweat dripping from his brow, union representative Bruce Raynor promised a crowd nearing 100, including two state lawmakers, that he wouldn't rest until food service provider Aramark is stripped of its contract with the Florida Department of Corrections.

At the sidewalk rally outside downtown Miami government buildings Friday, Raynor, the president of the Unite Here union that represents more than 20,000 Aramark employees nationwide, accused the company of collecting millions of dollars of taxpayer money by charging for meals that were never served and using substandard ingredients in food preparation.

February 15, 2008

Privatizing support services -- a new trend for schools

Source: TRACI L. WEISENBACH , The Huron Daily Tribune (MI), 02/15/2008

UPPER THUMB -- As schools across this area and the state are working to trim their expenses wherever possible, school leaders are faced with some very difficult decisions. The goal is to make budget reductions that will affect students' education the least, and to that end, some districts are choosing to privatize non-instructional services.

According to survey data from the Mackinac Center for Public Policy, Michigan school districts have increased their use of competitive contracting with private firms for school support services in recent years. From 2005 to 2007, the percentage of districts that contracted food, busing or janitorial services rose from 35.5 percent to 40.2 percent. In the Upper Thumb, only a few districts are privatizing a support service -- Caseville, Deckerville, Harbor Beach and Port Hope, according to the Mackinac Center data.

February 13, 2008

Midway privatization cleared for take-off

Source: STNG News Service (IL), February 13, 2008


Mayor Richard Daley's plan to privatize Midway Airport to generate billions to shore up city pensions and rebuild Chicago's aging infrastructure is cleared for take-off: Five of seven airlines have signed off on the deal, the first of its kind in the nation.

Phila. school students and parents plan protest

Source: By Susan Snyder, Philadelphia Inquirer (PA), Wed, Feb. 13, 2008

Parent and student groups plan to block traffic at Broad and Spring Garden streets at 4 p.m. today to call on the Philadelphia School District to end contracts with six outside groups that manage nearly 40 city schools.

The group's action comes as the district finishes plans to overhaul 70 of its lowest performing schools. More than a dozen of the 70 are managed by the outside groups including Edison Schools Inc., Victory Schools, Foundations Inc., Universal Companies, the University of Pennsylvania and Temple University.

LSSI begins labor talks / NLRB complaint means workers rehired by library firm will still be unionized

Source: By Damian Mann, Mail Tribune (OR), February 13, 2008


A private firm that operates Jackson County's 15 libraries is being forced to recognize that a majority of its employees are members of a union to resolve a complaint filed with the National Labor Relations Board. "It means library employees will have their union back and more of a voice at their work," said Pauline Black, a library assistant in Ashland.

Service Employees International Union Local 503 filed an unfair labor practice complaint again Library Systems and Services LLC on Dec. 18, 2007, with the National Labor Relations Board, which was scheduled to rule on the matter later this week.

....... Frank Pezzanite, president and chief executive officer of LSSI, said he wants to work with the union but his company did not envision it would e nter into bargaining talks when it signed a contract with Jackson County to operate libraries.


Related article from the Rogue Valley Independent Media: Workers Get A Voice! BIG win for S. Oregon!!

Union billboards slam Aramark on trash bins

Source: Elizabeth Benton, New Haven Register (CT), Wednesday, February 13, 2008

Union-sponsored billboards that target Aramark Corp. will hit the Elm City this week as part of an accelerating union campaign to remove the Philadelphia-based company from oversight of maintenance of public schools.

The 10 billboards, paid for by the American Federation of State, County and Municipal Employees, Council 4, target Aramark for the purchase of what custodians claim are unwieldy, ineffective and overpriced "bear-proof" trash Dumpsters.


February 12, 2008

Private Security Contractors at War


Source: Human Rights First (.pdf), 2008

This report examines the dramatic and expanded use by the United States of private security contractors in Iraq, Afghanistan and elsewhere, and the abject failure of the U.S. government to control their actions or hold them criminally responsible for acts of excessive violence and abuse. As the ranks of private security contractors have grown and the number of serious incidents has increased, the U.S. government has failed to establish a workable accountability mechanism. In Iraq in particular the interplay between private security contractors, international military forces and local populations has exposed severe problems. But these issues are not unique to Iraq, and they will continue after Iraq.

Is selling the state lottery worth the gamble?

Source: By Benjamin N. Gedanm, Providence Journal, Sunday, February 10, 2008


For five decades, state governments have maintained a stranglehold on lotteries, reaping huge gambling profits from the monopoly.

That tradition could be coming to an end, as cash-strapped states consider selling their games to private operators. The sales would generate a windfall to pay for roadway and school construction or to erase unfunded pension liabilities, while drying up annual lottery revenues that have been propping up state budgets.

For global lottery operator GTECH Holdings Corp., however, the potential changes would likely boost yearly profits.

....... GTECH executives have been meeting with state legislators across the country to discuss privatization and to project the potential growth in lottery revenue. Their message: squeamish state governments are surrendering millions in gambling winnings.

Studies Suggest Higher Risk for Contingent Workers Than in Traditional Employment, NIOSH Researchers Report


Source: NIOSH Update, February 5, 2008


Studies in the U.S. and Europe suggest that contingent workers such as part-time, temporary, or contract workers are at higher risk for occupational injuries and illnesses than workers in traditional employment situations, researchers from the National Institute for Occupational Safety and Health (NIOSH) report.
Several possible reasons for the higher risk are suggested in the increasing scientific evidence, and warrant further scientific investigation, the researchers stated. The article, "Contingent Workers and Contingent Health: Risks of a Modern Economy," by Kristin J. Cummings, M.D., M.P.H., and Kathleen Kreiss, M.D., was published in the January 30 issue of the Journal of the American Medical Association.

February 8, 2008

Highway Public-Private Partnerships: More Rigorous Up-front Analysis Could Better Secure Potential Benefits and Protect the Public Interest

Source: Government Accountability Office, GAO-08-44 February 8, 2008

Highway public-private partnerships have resulted in advantages for state and local governments, such as obtaining new facilities and value from existing facilities without using public funding. The public can potentially obtain other benefits, such as sharing risks with the private sector, more efficient operations and management of facilities, and, through the use of tolling, increased mobility and more cost effective investment decisions. There are also potential costs and trade-offs--there is no "free" money in public-private partnerships and it is likely that tolls on a privately operated highway will increase to a greater extent than they would on a publicly operated toll road. There is also the risk of tolls being set that exceed the costs of the facility, including a reasonable rate of return, should a private concessionaire gain market power because of the lack of viable travel alternatives. Highway public-private partnerships are also potentially more costly to the public than traditional procurement methods and the public sector gives up a measure of control, such as the ability to influence toll rates. Finally, as with any highway project, there are multiple stakeholders and trade-offs in protecting the public interest.

AFSCME Council 5 GotGov? Website

Source: AFSCME Council 5

A website with information and resources for fighting privatization. Special sections for transportation, corrections and care givers including anti-privatization advertisements.

Minnesota's public services should not be for sale to the lowest bidder. Essential services are government's responsibility.

It's risky business to let cut-rate workers plow our roads, keep our dangerous criminals behind bars, and care for our sick and vulnerable.


Group criticizes privatization plan / Move could increase price of water, sewer for consumers, it says

Source: By Bob Downing, Akron Beacon Journal (OH), Friday, Feb 08, 2008

One national wastewater organization Thursday voiced concern about Akron's proposal to sell off its sewage system.

The National Association of Clean Water Agencies in Washington, D.C., is firmly opposed to privatizing public utilities, said Susan Bruninga, director of public and legislative affairs.

........The fear is that the prices paid by consumers for water or sewer will soar because private companies must make enough money to operate the utility plus satisfy their shareholders, Bruninga said.

February 7, 2008

Alaska Web Site Offers Transparency

Source: NPR Morning Edition, February 7, 2008

The government in Alaska launched a Web site this week listing every state expense of more than $1,000. It's the latest state to set up a Web site to let taxpayers see where their money is going. Ten other states have such sites.

State agencies may need to catalog commercial activities


Source: By Leigh Dethman, Deseret Morning News (UT), Thursday, Feb. 7, 2008 11:37 a.m. MST


A bill to make sure state agencies aren't doing a job private business should do passed out of committee Thursday.

HB75 would force most state agencies to create an inventory of commercial activities the government is providing.

February 5, 2008

Panel blasts staffing deal

Source: By Katherine Gregg, Providence Journal (RI), Tuesday, February 5, 2008


After a months-long inquiry last winter, the Senate Government Operations Committee yesterday issued a report slamming the Carcieri administration for giving a state staffing contract worth up to $11 million annually to a fledgling company under terms -- offered no other potential bidders -- that amounted to an "interest-free loan" from the state.

..... Among the key findings: The executive branch "inhibited" the Senate inquiry, "violated the spirit of the Access to Public Records Act" by withholding requested documents; and undermined the basic tenets of competitive bidding by offering to front the money to make each biweekly payroll to the newly incorporated Smart Staffing Services Inc., without giving the same opportunity to any other company.


February 4, 2008

Military contractors are hard to fire


Source: By RICHARD LARDNER, Associated Press, Feb 2, 6:00 AM ET

ITT Federal Services International, a defense contractor hired to maintain battle gear for U.S. troops in Iraq, repeatedly failed to do the job right.

........ Formal "letters of concern" were sent to the contractor. Still, the Army didn't fire ITT. Instead, it gave the Colorado Springs, Colo.-based company more work to do. Since October 2004, ITT has been paid $638 million through the Global Maintenance and Supply Services contract.

..... Contract personnel working for the Defense Department now outnumber U.S. forces in Iraq and Afghanistan; there are 196,000 private-sector workers in both countries compared to 182,000 troops.

Contractors are responsible for a slew of duties, including repairing warfighting equipment, supplying food and water, building barracks, providing armed security and gathering intelligence.

The dependence has come with serious consequences.

Congress may throw wrench in Texas privatization plan

Source: By Jason Embry and Corrie MacLaggan, AMERICAN-STATESMAN, Monday, February 04, 2008

In a direct response to problems in Texas, Congress is considering new limits on the role that private companies can play in states' public assistance programs. A provision in a major farm bill approved by the U.S. House would bar states from allowing employees of private firms to interact with people who are applying for food stamps or to decide someone's eligibility for the program. The measure could force Texas to rework its plans to privatize food stamp enrollment.

....... In 2007, Texas canceled what was originally a five-year, $899 million contract with Accenture LLP to run call centers enrolling people in services. But the state did not abandon its plans for private call centers.

State keeps control of hospital Audio / Finances shelve privatization of Richmond State Hospital

Source: BY PAM THARP, Palladium Item (IN), February 2, 2008


A plan to privatize the operation of Richmond State Hospital has been shelved for financial reasons, the secretary of the Indiana Family and Social Services Administration said Friday.

The state hospital, which employs 600 people and cares for 300 patients from across the state, will remain open as a state-operated facility, Mitch Roob said. No employees will lose their jobs, he said.

...... FSSA could have looked to for-profit companies to manage the hospital, but Roob said that's been tried in other states and doesn't work well in mental health care.

February 1, 2008

Rowland-era sweetheart deal cost millions

Source: By KEN DIXON, Connecticut Post, 01/31/2008


A multi-year investigation (.pdf) into a Rowland-era sweetheart contract to privatize Connecticut's worker's compensation claims, indicates the state may have overpaid tens of millions of dollars. The no-bid contract, awarded through the state Department of Administrative Services, used $80 million in state bonding funds, usually used for long-term capital construction projects.

....... Blumenthal, in a morning news conference in his office, said that while there was no apparent criminal activity - and no written order from Rowland to hire the consultants - the state clearly overpaid a consulting company to settle hundreds of worker's compensation claims, using college interns who were paid $105 per hour. He said that state employees were clearly capable of settling the claims, but in the move to privatize the work, taxpayer funds were misspent.


..... He said MRM Consulting, Inc. made a "deeply flawed" consultant's report advising an outside contractor be hired.

...... A firm called ACE Financial Solutions, LLC, was paid $80 million. About $60 million was spent to settle about 545 of the 600 worker's compensation claims and ACE has been collecting interest on the remaining $20 million.

Aramark faces allegations in city schools

Source: Samantha Broussard-Wilson, Yale Daily News (CT), Friday, February 1, 2008


Aramark, the food-services company formerly employed by Yale University Dining Services, is now facing allegations of mismanagement and poor food quality from cafeteria workers and custodians in New Haven Public Schools.

...... The rally is being organized by UNITE HERE, a union that includes hotel, restaurant and some cafeteria employees and is affiliated with the Federation of Hospital and University Employees, the union for service workers at Yale. Council 4 and Service Employees International Union, both custodial-worker unions, are also involved in the organizing the rally.

...... The Local 287 division of Council 4 had almost 100 percent of its membership sign a petition calling for the Board of Education to fire Aramark, said Larry Dorman, a Council 4 spokesman.

Public libraries find outside management

Source: Annie Gentile, American City & County, Jan 1, 2008 12:00 PM


....... In April, Jackson County, Ore., closed all 15 of its public libraries after the county lost $23 million from timber receipts after Congress failed to renew the Secure Rural Schools and Community Self Determination Act. County officials twice attempted to increase taxes for additional library funding, but both efforts were voted down, says County Administrator Danny Jordan. With no options left, the county closed the libraries, laying off 81 employees.

...... In October, the county contracted with Germantown, Md.-based Library Systems and Services (LSSI) to operate all 15 branches for five years for $27 million less than the county would have to spend to operate them in-house.

Private Instigator Indiana Governor Mitch Daniels is the foremost advocate of privatizing -- even at his political peril.

Source: By ALAN GREENBLATT, Governing Magazine, January 2008


........ Nevertheless, [Gov. Mitch] Daniels remains the most ambitious privatizer of any governor currently in office, turning over to outside entities not just control of a major cross-state highway but prisons, hospitals and welfare case management. Like most privatizers, Daniels doesn't like the term, but his pursuit of the idea led the New York Times last summer to dub him "Governor Privatize."

The toll road deal was the most striking illustration of Daniels' whole approach to government. The 58-year-old Daniels, who served as President George W. Bush's first budget director, is one of the most fervent believers in the familiar doctrine that government needs to operate more efficiently, in something resembling a competitive environment and with sets of incentives that bear some passing resemblance to the profit motive. Where government agencies or operations face no real competition, Daniels believes, you have to instill some. He has consistently challenged state workers and agencies to come up with ways of streamlining their shops and saving money. "The state government I see looking forward will be fewer people, better paid," Daniels says. "A lot of them will be overseeing contracts for compliance and results and therefore deserving of being very well compensated."

County taking Allied to court

Source: Jamie Page, Pensacola News Journal (FL), January, 31, 2008

Escambia County plans to sue Allied Waste Services over what the county claims is the garbage hauler's $1.1 million unpaid debt.

Since mid-November, the county and Allied have been trying to come to an agreement on the county's claim that Allied owes money for commercial garbage tipping fees -- a per-ton charge for disposal of waste at the county-owned Perdido Landfill.

New rules urged for private prisons / Napolitano wants ban on worst types of cons

Source: Amanda J. Crawford, The Arizona Republic, Feb. 1, 2008


Brandishing a fake gun and using ladders stolen from a maintenance building, two convicted killers climbed onto the roof and over the walls of a private prison in Florence in September. They navigated through several lines of razor wire and outmaneuvered security patrols, escaping to freedom, an investigative report on the incident says.

One was caught within hours. It was nearly a month before the other was caught, hundreds of miles away in his home state of Washington.

Now, in response, Arizona Gov. Janet Napolitano wants to tighten up rules for the state's growing private-prison industry, which is virtually unregulated by the state. A legislative proposal drafted by the Governor's Office and introduced by Republican Sen. Robert Blendu of Litchfield Park would bar private prisons from importing murderers, rapists and some other dangerous or seriously ill felons to Arizona. It would also require the companies to share security and inmate information with state officials.


...... The private-prison industry has grown rapidly in Arizona since the first such prison opened here in 1994, bringing jobs and thousands of out-of-state inmates to Pinal County.

Now, more than 9,000 felons from Alaska, Hawaii, Washington and other states and the federal government are housed in six of 11 privately run prisons in Arizona.

...... But unlike other states, Arizona has no restrictions on the kind of out-of-state inmates that can be brought here. And private-prison companies in Arizona are not required to share detailed information on inmates, staffing and security measures or have their facility designs approved by state officials.

County panel backs audit of bus security / Sheriff cites lack of public accountability

Source: By STEVE SCHULTZE, Journal Sentinel (WI), Feb. 1, 2008


Milwaukee County Sheriff David A. Clarke Jr. on Thursday blasted the private security firm hired to guard local buses, questioning whether the $1.1 million annual cost was worth it.

Wackenhut Corp., an international company headquartered in Florida, has provided security for Milwaukee County Transit System buses since 1993. Clarke said in a letter to the County Board that the company had "top-heavy administration that leads to fewer people actually performing a security function."

...... Clarke said Wackenhut had refused to provide detailed information about its bus security operations to his department. He also said Wackenhut guards spent too little time riding buses.

DUI suspect files class-action suit over prison strip searches

Source: Associated Press (PA), 2/1/2008 3:33 AM


Court rulings prohibit routine strip searches of minor offenders, but a privately run prison conducts them on all new inmates, a lawsuit charged.

The potential class-action suit, filed in federal court this week against The Geo Group, involves a drunken-driving suspect who was strip-searched at a county prison the firm manages near Philadelphia.

...... The Geo Group, previously known as Wackenhut Corrections Corp., does not comment on pending litigation, spokesman Pablo Paez said Thursday.

Prison health care lagging / Monitor's report cites continuing problems

Source: By LEE WILLIAMS and ESTEBAN PARRA, The News Journal (DE), Friday, February 1, 2008


Continued poor performance by the Department of Correction's medical vendor could hamper the department's efforts to get out from under supervision by the U.S. Justice Department, according to a new report by an independent monitor overseeing the state prison system.

Correctional Medical Services, a private company Delaware pays millions of dollars a year to provide medical care to inmates, suffers from a "lack of stable and effective leadership," independent monitor Joshua W. Martin III wrote in a 229-page report released Thursday.

When cultures clash, businesses turn from offshoring to backshoring

Source: Financial Week: February 1, 2008


A torrent of jobs are offshored every year. And every year, a trickle of jobs return home--or are "backshored"--after companies experience disappointment and frustration with remote, foreign workforces.

Accurate counts of both flows are elusive. Perhaps one dollar's worth of work gets backshored for every $10 offshored, according to some experts. Others say the numbers could be much higher. Companies don't reveal numbers of offshored or backshored jobs. Although efforts have been made to count offshored jobs, backshoring reports are anecdotal.