Category Archives: Laws/Legislation

P3 bill signals new infrastructure path for New Jersey

Source: Andrew Coen, Bond Buyer, August 15, 2018 (Subscription Required)
 
Legislation signed by New Jersey Gov. Phil Murphy to expand the state’s use of public-private partnerships lays the groundwork for increased infrastructure investments throughout the state, supporters say. The bipartisan bill Murphy signed Tuesday enables local governments, school districts, public authorities and state colleges to enter into P3s for capital projects. P3 opportunities in New Jersey previously only applied to public colleges and universities. …

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New Jersey bill seeks P3 expansion
Source: Andrew Coen, Bond Buyer, April 13, 2018 (Subscription Required)
 
New Jersey lawmakers are pushing again for an increase in the use of public-private partnerships to jump-start infrastructure improvements in the cash-strapped state. Two and a half years after former Gov. Chris Christie conditionally vetoed an expansion of New Jersey’s P3 program, a state senate committee advanced legislation on April 5 that if enacted would permit localities to enter into P3 agreements for building and highway infrastructure projects. The measure would make local governments, school districts, public authorities and state colleges eligible to enter into P3s where the private entity would assume full or partial financial and administrative responsibility for capital projects. …

Labor Dept. Wants Religious Freedom Focus in Bias Probes

Source: Ben Penn, Bloomberg Law, August 10, 2018 (Subscription Required)
 
The Trump administration is expanding the circumstances in which federal contractors can use religious beliefs as a defense against job discrimination charges, a move likely targeting the Obama Labor Department’s ban on bias against gay and transgender workers.  The DOL’s Office of Federal Contractor Compliance Programs issued a new enforcement directive Aug. 10 calling for investigators to factor in recent U.S. Supreme Court rulings and White House executive orders that protect religious freedom. Lawmakers, administrative agencies, and courts have grappled with drawing a line between religious liberty and unlawful discrimination. …

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“We just get by check to check”: Workers cheated as federal contractors prosper
Source: Talia Buford and Maryam Jameel, Salon, April 6, 2017
 
… But each year, thousands of contractors enriched by tax dollars skirt federal labor laws and shortchange workers. In fact, U.S. Department of Labor data show that upwards of 70 percent of all cases lodged against federal contractors and investigated by the department since 2012 yielded substantive violations. … The Center for Public Integrity examined a subset of 1,154 egregious violators — those with the biggest fines, highest number of violations or most employees impacted — included in the Labor Department’s Wage and Hour Division enforcement database and cross-referenced them with more than 300,000 contract records from the Treasury Department. The Center found that between January 2015 and July 2016:

  • Federal agencies modified or granted contracts worth a total of $18 billion to 68 contractors with proven wage violations. Among them: health-care provider Sterling Medical Associates, Cornell University and Corrections Corporation of America
  • Of all agencies, the U.S. Department of Defense employed the most wage violators – 49, which collectively owed $4.7 million in back pay to almost 6,200 workers. The department paid those 49 contractors a combined $15 billion
  • Violations by the 68 contractors affected some 11,000 workers around the country — about the same number of people who moved to D.C. in 2016.

…The Labor Department tried to address the problem in 2016 with a rule that would have required federal contractors to disclose wage and safety violations and come into compliance with the law if they wanted to keep doing business with the government. Invoking a statute rarely used prior to the Trump administration, however, Congress voted to undo the regulation — already on hold because of a legal challenge — and Trump sealed its fate with his signature. …

Trump’s Courageous, Valiant Decision to Gut Government Worker Safety
Source: Michelle Chen, The Nation, April 5, 2017
 
As he gets ready to put Americans to work on big-league federal projects, President Trump seeks to cut “burdensome red tape” for federal contractors. But that might mean cutting a few fingers and toes, too. That’s because Trump has repealed an Obama administration executive order ensuring fair pay and safety standards for workers contracted for government projects. So the workers Trump wants to supposedly rebuild bridges and highways will be working under a regulatory regime that’s now more likely to ease up on abusive employers in “public-private partnerships.” …

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Bill Protecting Social Services Determinations Against Privatization Passes Legislature

Source: Oakland Post, August 11, 2018
 
AB 3224, authored by Assemblymember Tony Thurmond (D-Richmond), will protect Californians against private sector employees determining eligibility for Medi-Cal, CalFresh, and CalWORKs applicants. The bill passed out of the Legislature with bipartisan support and now heads to the Governor for consideration. … AB 3224 ensures that Medi-Cal, CalFresh, and CalWORKs employee determinations will remain unchanged, regardless of federal law.  This bill is sponsored by the Western Center on Law and Poverty and is supported by the American Federation of State County and Municipal Employees. …

White Hat Management Leaves Ohio Charter Industry

Source: Mitch Felan, WKSU, August 8, 2018
 
White Hat Management, the once-prolific Ohio charter school operator and early advocate for school choice in the state, is leaving the charter school business. The company has been steadily losing contracts over the past few years in the competitive market. …

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When it comes to facing down Ohio’s well-heeled charter school lobbyists, will state lawmakers be leaders — or lapdogs?
Source: Brent Larkin, Northeast Ohio Media Group, July 24, 2015

…… In the past 17 years, Ohio’s two largest charter school management companies — David Brennan’s Akron-based White Hat Management and William Lager’s Columbus-based Electronic Classroom of Tomorrow (ECOT) — have funneled more than $6 million to Republican candidates and causes. In the last election cycle, ECOT alone gave more than $400,000. The payoff? About $1.76 billion in taxpayer money has flowed into charter schools run by Brennan and Lager since 1998.

Start the investigation of the state Department of Education
Source: Editorial Board, Beacon Journal, July 18, 2015

Let the formal investigation begin, preferably by David Yost, the state auditor, or an independent investigator tapped by the State Board of Education. The target? The Ohio Department of Education, its director of school choice admitting last week that he removed or ignored failing grades for online and dropout recovery charter schools as part of evaluating the performance of sponsors, those organizations that oversee the publicly funded yet privately run schools.

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ALEC Sets the Table for Gerrymandering, Union Busting, Protecting Fossil Fuels, and Privatizing Schools

Source: Mary Bottari, PR Watch, August 7, 2018
 
When the American Legislative Exchange Council (ALEC) convenes its 45th annual meeting of legislators and corporate lobbyists at the swank Hilton New Orleans Riverside hotel on August 8, it will serve up a veritable banquet of union-busting, gerrymandering, pro-fossil fuel, and school privatization proposals for lawmakers to take back home. … With citizens turning to the courts and ballot box in a growing number of states to clamp down on hyper-partisan “gerrymandering” schemes, ALEC members will instead be voting on a resolution to defend the right of politicians to keep hand-picking their voters. … ALEC’s latest union-busting bill, which would force unions to hold recertification elections every other year, has long been pushed by anti-union PR man Richard Berman and others. … Over the years, ALEC has worked hand-in-hand with the DeVos family’s group, American Federation for Children, to advance a “cash for kids” model of school privatization, including dozens of bills promoting school vouchers. For decades, ALEC billed vouchers as a civil rights ticket for low-income kids, but then ALEC’s “Education Savings Account Act” created a “universal” system that siphons off public education dollars to private school parents of any income level. Now ALEC is debating a new bill, the “Economic Development Zone ESA Act,” to require the state to pay the equivalent of public school aid toward any private school for students who live in majority low-income economic development zones. Given the cost of a private school education, the likely effect would be to subsidize the ability of middle- and upper-income families in economically distressed areas to pull their kids out of public school. …

Petty charges, princely profits

Source: Joseph Neff, The Marshall Project, July 13, 2018

… Brian Corbett has sewn up the bail bond trade in this largely rural corner of the nation’s poorest state, minting millions from people charged with minor offenses. Operating out of a Tupelo storefront behind the county jail complex, Corbett Bonding pocketed $2.6 million in fees over a recent span of 18 months — 46 percent on bonds of less than $5,000, the ceiling for most misdemeanors in the state. Brian Corbett, right, poses for a photo with Dog the Bounty Hunter. Corbett has 73 percent of the bail business in Lee County and 84 percent in neighboring Union County. (Photo: Marshall Project/USA Today Network) It was the highest take in Mississippi, according to a Marshall Project analysis of bonds tracked by the state Department of Insurance.

It is difficult to peer into the financial workings of the bail industry, where public sector services are performed by private companies largely shielded from scrutiny. New data collected by Mississippi and obtained by The Marshall Project offers a rare glimpse into how bail companies profit from the steady march of low-level offenders into county jails. Corbett Bonding is one of 193 bail companies in the state that over 18 months collectively took in $43 million — 36 percent from small bonds — in a state where the average annual income is under $22,000. … But this lucrative trade in petty charges may be coming to an end. A little-noticed but seismic change in state court rules last year — bolstered by lawsuits and a blunt-spoken state insurance commissioner — is making it easier for people charged with misdemeanors to leave jail earlier, or avoid it altogether, without securing a bond. It is a striking shift in a state that has long been one of the friendliest places in the nation for the bail bond industry. …

Editorial: Iowa’s Medicaid money mystery is growing old

Source: The Gazette, July 7, 2018
 
More than two years has passed since Iowa moved to privatized Medicaid. This board, as well as others statewide, have demanded transparency. Unequivocally, we’ve said Iowa taxpayers have a right to know if the switch is saving money, how much is being saved and how those savings are being realized.  Amid these calls, nearly every agency remotely connected to Medicaid has sounded alarm bells. Iowans who rely on the program’s coverage report denied services. Providers who care for these patients point to unresolved claims. Medical suppliers have presented unpaid bills.  The Iowa Office of the Ombudsman saw a 157 percent increase in cases connected to Medicaid managed-care organizations, leading the agency to issue one of the most scathing annual reports in its history.  Accurate numbers and a full, public accounting of the program isn’t unreasonable and shouldn’t be this difficult. Such transparency is, after all, what the governor promised. …

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Iowa’s new private Medicaid manager has paid millions of dollars in penalties in a dozen states
Source: Jason Clayworth, Des Moines Register, July 1, 2018
 
The corporation selected to help manage Iowa’s controversial privatized Medicaid system has faced serious charges of mismanagement resulting in at least $23.6 million in penalties in more than a dozen states, a Des Moines Register investigation shows.  Iowa Total Care, a subsidiary of Centene, was awarded a state Medicaid contract in May by the Iowa Department of Human Services despite scoring nearly 14 points lower on its evaluation than when it had applied and was rejected in 2015, public records show.  But with only two companies bidding for the work, Iowa Total Care won a spot managing Iowa’s annual $4.8 billion Medicaid program. The Centene subsidiary replaces AmeriHealth Caritas, which pulled out because it said it was losing too much money. …

The state has no data to support Medicaid savings claim, health care official says
Source: Michaela Ramm, Sioux City Journal, June 30, 2018
 
As Iowa Medicaid Enterprises Director Michael Randol continues to assure lawmakers and the public that the state’s managed-care model is saving money, the Iowa Hospital Association contends the director has no data to back up the claim.  And as the dispute continues, Iowa hospitals say the state is saving money because the Medicaid insurance companies are not adequately reimbursing health care providers for their services — including a Vinton hospital that says it is owed $90,000 in emergency room visits alone.  According to the latest estimates from the Iowa Department of Human Services, the state of Iowa is saving $140.9 million from having privatized the Medicaid program. …

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These U.S. Workers Are Being Paid Like It’s the 1980s

Source: Josh Eidelson, Bloomberg, May 25, 2018
 
Thanks to a web of loopholes and limits, the federal government has been green-lighting hourly pay of just $7.25 for some construction workers laboring on taxpayer-funded projects, despite decades-old laws that promise them the “prevailing wage.” Over the past year, the U.S. Department of Labor has formally given approval for contractors to pay $7.25 for specific government-funded projects in six Texas counties, according to letters reviewed by Bloomberg. Those counties are among dozens around the nation where the government-calculated prevailing wage listed for certain work—such as by some carpenters in North Carolina, bulldozer operators in Kansas and cement masons in Nebraska—is just the minimum wage. …

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Inviting Private Sector to Build Roads Raises Wage Questions
Source: Chris Opfer and Jasmine Ye Han, Daily Labor Report, April 13, 2018 (Subscription Required)
 
The Trump administration wants the private sector to take the wheel on many U.S. road and other upgrades, raising questions about whether construction workers will still get the compensation required under federal contracts. The Davis-Bacon Act obligates contractors to pay workers on federally funded construction projects a local prevailing wage and certain benefits set by the Labor Department. The law is meant to ensure that the government doesn’t shortchange workers. But some Republican lawmakers, businesses, and conservative advocacy groups say “prevailing wages” exceed market rates and bloat taxpayer-funded construction projects as a handout to labor unions. Although the law isn’t likely to be scrapped anytime soon, lobbyists have stayed busy pushing to get Davis-Bacon provisions explicitly included in new spending legislation. That activity ticked up following a post-recession infrastructure spending binge and kept the questions coming about which projects require prevailing wages. …

Trump’s Davis-Bacon Quote Turns Construction Industry Heads
Source: Elliot T Dube, Bloomberg BNA, April 14, 2017
 
Construction industry stakeholders got a jolt when President Donald Trump recently approached what a U.S. Chamber of Commerce official called a “third rail issue” for building trades unions: changes to the Davis-Bacon Act. Trump said in a New York Times interview published April 5 that he was “going to make an announcement in two weeks” regarding Davis-Bacon. The law requires contractors on federally funded construction projects to pay prevailing wages for a given area. …

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The Woman Standing in the Way of the Privatization of Thousands of Jobs in Tennessee Was Just Fired

Source: David Dayen, The Intercept, May 7, 2018

A university chancellor who took a controversial stand to protect the jobs of thousands of public workers has now lost her own. University of Tennessee-Knoxville Chancellor Beverly Davenport was abruptly fired from her post last week, in a move representatives for unionized campus workers are calling another step toward the privatization of thousands of facilities management jobs. The battle in Tennessee pits the state’s GOP governor, Bill Haslam, against its public workers, and UT-Knoxville is where the workers, backed by a student movement, have made their stand. The workers see Davenport’s firing as an effort to remove a key obstacle to privatization. …

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Public Workers Worried That Tennessee’s Billionaire Governor Is Taking Another Run at Them
Source: David Dayen, The Intercept, April 4, 2018

Last year, Tennessee’s governor attempted a frontal assault on the unionized workers that staff the state’s facilities and management jobs at public buildings, two-thirds of which are state-run colleges. Gov. Bill Haslam, the richest U.S. elected official not named Donald Trump, signed a contract with a facilities management firm to privatize those jobs. But a prodigious campaign by the campus employee union and student activists led to nearly the entire University of Tennessee system publicly opting out of the contract. … But Haslam appears to have found a work-around. The Tennessee legislature is on the verge of passing a bill to overhaul the University of Tennessee’s entire board of trustees, allowing Haslam to hand-pick the replacements. That board could pressure campuses to opt back into the privatization contract at any time over the next four years. …

How a Scrappy Campus Union Saved Tennessee From Privatization
Source: Chris Brooks and Rebecca Kolins Givan, In These Times, March 20, 2018

… The resulting $1.9 billion contract was the largest in Tennessee government history, and privatized the maintenance and management of up to 90 percent of state-run facilities, including state and university buildings. It was awarded to Jones Lang LaSalle (JLL), a multinational with a history of bribery accusations. … What the privatizers didn’t plan for was the United Campus Workers (UCW), a scrappy higher education union affiliated with the Communication Workers of America (CWA). Public-sector unions in Tennessee are legally barred from engaging in collective bargaining, and the state has no obligation to recognize or negotiate with them. Instead, the union relies on a mixture of legislative advocacy, workplace actions and mass mobilizations. Few unions exist in a harsher political and legal environment, yet the UCW is punching far above its weight, increasing its membership while securing victories against better-funded foes. …

Workers’ unlikely victory over outsourcing in Tennessee
Source: Elizabeth Stanfield and Jon Shefner, Facing South, February 6, 2018
 
Last fall, United Campus Workers-Communications Workers of America Local 3865 (UCW) achieved an important victory for organized labor’s fight against privatization and erosion of public-sector jobs. For more than two years, they campaigned to stop Tennessee’s billionaire Republican governor, Bill Haslam, from outsourcing all state facilities service jobs. Their campaign involved multiple constituencies and tactics and played a key role in the University of Tennessee system’s decision not to participate in the outsourcing contract. The fact that this victory was won in a red state by a union without collective bargaining or dues check off is a powerful reminder of what organized workers can achieve against great odds. This victory is worth paying attention to because it reminds us that even in the face of tremendous obstacles, organized workers can win. …

University of Tennessee campuses will not outsource facilities jobs
Source: Rachel Ohm, USA TODAY, October 31, 2017

In a move celebrated by state workers on college campuses, University of Tennessee administrators announced Tuesday they will not be participating in a proposed facilities outsourcing plan pushed by Gov. Bill Haslam. The announcements by UT Chattanooga, UT Knoxville, UT Martin and the UT Health Science Center ended more than two years of speculation about whether campuses in the UT system would participate in the plan. …

Council urges Univ. of Memphis to decline state outsourcing contract
Source: Michelle Corbet, Memphis Business Journal, September 20, 2017

With the University of Memphis’ next Board of Trustees meeting set for early October, members of the Memphis City Council are asking that the group think twice before opting into the state’s facilities management contract. It’s no secret the University of Memphis plans to opt into the state’s property management contract, said Councilman Martavius Jones, who sponsored a resolution Sept. 19 urging local universities and their administrators to do the opposite. In May, the State of Tennessee entered into a contract with Chicago-based JLL to privatize maintenance, security, janitorial and landscaping services for state-owned public colleges and universities. “Based on my experience on the school board, the quality of the service, the cleanliness and the general morale suffered [when outsourced],” said Jones, who served on the Memphis City Schools Board from 2006 to 2013. …

Does Outsourcing Some State Jobs Save TN Taxpayers Money?
Source: Local Memphis, August 31, 2017
 
Many Tennessee lawmakers hope to see if outsourcing some state jobs actually saves taxpayers money. It’s been a controversial topic since Governor Bill Haslam began implementing the idea a few years ago.  Questions about outsourcing are always the same. Does it save money and is there accountability?  “There’s… people concerned about state jobs all over Tennessee,” said one protester.  Many state lawmakers have heard and seen the protests about the ongoing outsourcing of state jobs. That’s why a majority of legislators from both parties signed a letter of concern earlier this year to Governor Haslam. The Governor has defended outsourcing state jobs in some areas, especially on state college campuses. …

UT campus workers protest Gov. Haslam’s outsourcing plan
Source: WBIR, August 28, 2017

University of Tennessee Knoxville staff, faculty and students joined local business leaders, state representatives and faith leaders in a demonstration Monday to call on university officials to “opt-out” of Gov. Bill Haslam’s outsourcing plan. The demonstration was organized by United Campus Workers. Last week, a bill to introduce oversight in outsourcing was heard in summer study in the General Assembly. If the university were to “opt-in”, United Campus Workers believe as many as 10,000 facilities jobs, including hundreds in Knoxville, would be outsourced. Those who oppose the plan fear it will result in job loss, loss of oversight and accountability, reduced services and negative consequences for local businesses which provide services to campuses. …

Outsourcing is not working and it hurts working Tennesseans
Source: Dwayne Thompson, Tennessean, August 10, 2017
 
Since August 2015, Gov. Bill Haslam’s administration has pushed a radical experiment in outsourcing that would turn thousands of state facilities workers jobs, millions of square feet of Tennesseans’ real estate, and hundreds of millions of taxpayer dollars to the multinational giant JLL.   There has been widespread opposition to the outsourcing plan. Facilities services workers, faculty, and staff have significant concerns that outsourcing will compromise the quality of services on which effective teaching, research and service rely.  Students have spoken up about fears for safety if a revolving workforce replaces the workers they know and trust. …

Tennessee Inks Collaborative Facilities Management Contract With JLL
Source: Kate Vitasek, Forbes, June 29, 2017
 
The state of Tennessee has signed a facilities management contract to help the state provide the best service to citizens and employees at the lowest possible cost for taxpayers.  The contract was awarded to Jones Lang LaSalle (JLL) for five years with up to five one-year extensions. It allows the state of Tennessee’s various agencies and institutions to utilize JLL’s professional facilities management services. The potential scope covers over 7,500 state run properties spanning 97 million square feet. …

Controversial state plan to outsource college jobs moves forward
Source: Adam Tamburin, The Tennessean, May 26, 2017

Tennessee moved forward with a controversial plan to outsource jobs at public colleges Friday when officials finalized a contract with a corporation that already handles a sizable amount of state business.  Under the contract, JLL — which currently manages about 10 percent of state facilities — will oversee the potential expansion of outsourcing at college campuses, state parks and prisons. It is a pivotal moment for the proposed expansion, which has been in the works for two years. …

Majority of lawmakers ask state to slow down on outsourcing
Source: Adam Tamburin, The Tennessean, May 2, 2017

Seventy-five state lawmakers have signed a letter urging Gov. Bill Haslam’s administration to postpone a plan to outsource jobs on college campuses and other state-owned property, delivering yet another blow to the controversial proposal. In the letter to Finance and Administration Commissioner Larry Martin, signed by Republicans and Democrats from both chambers, the lawmakers ask to delay the outsourcing plan to allow “enough time to address concerns from the General Assembly.” … This is only the latest sign of deep reservations surrounding the project, which Haslam has championed against wide-ranging criticism for more than a year. Workers’ rights advocates, including a union representing campus workers, have blasted Haslam for prioritizing money over state workers and their families. College leaders have predicted the change would hurt services on campus. …

Tennessee’s billionaire governor works with his corporate buddies to privatize government jobs
Source: David Dayen, The Intercept, April 27, 2017
 
Tennessee’s state government has inked a sweetheart deal with a company linked to the state’s billionaire governor to privatize thousands of facilities and management jobs at colleges, prisons, and other public buildings.  It’s being touted by some officials in other states as a model for the nation.  The $330 million, five-year contract covers custodial services, groundskeeping, and repair and maintenance work. Government officials say that each public facility can choose to only partially comply, or opt out, keeping their employees on the public payroll. “If they’re happy with business as usual, there’s nothing to do,” said Michelle Martin, a spokeswoman for the office that issued the contract. …

Jones Lang LaSalle Wins Bid for Haslam’s Campus Outsourcing
Source: Associated Press, March 30, 2017

Real estate giant Jones Lang LaSalle has been selected as the winning bidder for Republican Gov. Bill Haslam’s plan to privatize property management on the campuses of the Tennessee’s public colleges and universities. The Chattanooga Times Free Press reports (http://bit.ly/2nwO7Dh) the Chicago-based company that already manages a large number of general state government buildings beat out proposals by Aramark and Compass Group. It’s not yet clear how many campuses will choose to participate in the privatization plan. Final cost details won’t be known until the five-year contract is signed. …

Officials say state outsourcing is working, but plenty of skepticism remains
Source:Jake Lowary, USA TODAY NETWORK – Tennessee, March 8, 2017

Despite $26 million in savings reported by state administration officials, some lawmakers and state employees remain skeptical or outright opposed to Gov. Bill Haslam’s effort to privatize many state agencies or operations within state government. Privatization of facility management, especially at public colleges and universities, has been a sort of sidecar initiative of Haslam for the past three years, in an effort to make state government more efficient and reduce costs. But many state workers still fear they will either lose their job or the areas that some have committed their lives to will suffer in quality. Larry Martin, state finance commissioner, was flanked by several officials from his department and told a Senate Oversight and Investigations Committee on Wednesday that the governor’s plan is working.

… Sen. Jeff Yarbro, D-Nashville, said he’s not been able to fully ascertain how the state arrives at the data it does regarding its overall savings, and requested that information from Martin and Hull. He questioned the data, specifically as it relates to the labor force, where the savings have not come. … Sen. Janice Bowling, R-Tullahoma, also questioned the notion of privatization, saying that it’s almost impossible for the state to restart or regain the management of those services once they’ve been outsourced to private companies. Representatives from the United Campus Workers offered some of the sharpest criticism to the privatization proposal from Haslam’s office, which has yet to be finalized and was indefinitely delayed last week. Melanie Barron, an organizer with UCW, said the request for proposal laid out by Haslam is “rife with loopholes” and despite promises from Haslam and other state leaders that agencies will be able to opt out of the RFP, little clarity about how to opt out has been provided. … The RFP for public facility management, which is separate from a different RFP to manage Fall Creek Falls State Park facilities, closed at the end of February. The state intends to issue a letter of intent to award at the end of March, Martin said. …

Opinion: Outsourcing state jobs hurts Tennessee
Source: Rep. John Ray Clemmons, The Tennessean, December 20, 2016

Gov. Bill Haslam is gambling with our tax dollars and Tennesseans’ lives. His outsourcing scheme involves eliminating up to 17 percent of current state employees’ jobs at state college and universities, parks and elsewhere. Outsourcing public jobs will result in great profits for private corporations but less oversight, lower quality, and the elimination of all accountability for citizens. The tragic school bus accident in Chattanooga is an unfortunate illustration of this fact. Hamilton County Schools contracted with Durham School Services, a private company, to operate its school buses. After 36 injury crashes in Tennessee since 2014, Durham was still transporting children. … Haslam’s steadfast outsourcing efforts, in the face of statewide opposition, stand in stark contrast to his other endeavors. For instance, his administration spent 18 months crafting Insure Tennessee, a plan supported by a majority of Tennesseans. Though Haslam publicly professed a passion for the cause, he exerted such little effort behind the scenes that he willingly raised the white flag to a vocal minority within his own party after less than three days of a special session. … These lackadaisical efforts on healthcare and transportation are easily contrasted with Haslam’s exhaustive efforts on outsourcing, a solution in search of a problem. Our governor created a new office focused solely on outsourcing and focused the bulk of his energies on an effort to pay private corporations hundreds of millions of dollars to perform jobs that state employees already do well and reliably. …

Democrats Say Nashville Firm Reviewing Benefits Of Outsourcing Is Too Close To Haslam
Source: Chas Sisk, Nashville Public Radio, December 12, 2016

Tennessee Democrats say they’re still not sold on the benefits of potentially outsourcing thousands of state jobs at college campuses, parks and prisons. They’re calling for yet another round of analysis on the proposal, even though two so far have found it could save the state more than $35 million a year. State officials were the first to come up with that estimate for what Tennessee could save from privatizing jobs currently done by public employees. But when questions were raised about their analysis’s validity, Nashville-based KraftCPAs stepped in. And after reviewing the state’s calculations for several weeks, the firm has decided Gov. Bill Haslam’s administration was more or less correct. That doesn’t satisfy state Sen. Lee Harris, D-Memphis. He wants an out-of-state firm brought in to take a third look. He notes that Kraft has done work for Haslam’s campaign and that some Kraft employees have made donations to it — connections, Democrats say, call Kraft’s independence into question. …

Haslam administration: Review confirms outsourcing savings
Source: Associated Press, November 22, 2016

An outside firm hired by Gov. Bill Haslam’s administration agrees that privatizing maintenance work at public colleges and universities could save $35 million per year. Haslam’s outsourcing advisers and consultants have touted the outsourcing plan as a way to save money while protecting the jobs of all currently employed campus maintenance workers who are deemed to be “qualified and productive.” The outside review was conducted by KraftCPAs PLLC.

Outsourcing state services doesn’t save taxpayers money
Source: Randy Stamps, Knoxville News-Sentinel, November 19, 2016

Saving taxpayer money is the main selling point behind every proposal to outsource a state service. But, when analyzed, outsourcing is often found to be more expensive than promised. For example, in January 2012 the state paid Jones Lang LaSalle $1 million to assess the condition and management of state properties. That November, the state expanded JLL’s contract to include procuring outside leases, a job previously handled by state employees. JLL would also receive a 4 percent commission on any leases it procured. By April 2013, funding for the contract had increased from $1 million to $7.6 million. In June 2013, Tennessee signed a $330 million, five-year contract with JLL to outsource the facilities management of all state buildings. In November of 2013, the state comptroller found JLL’s contract “created an organizational conflict of interest whereby Jones Lang LaSalle can profit from its own planning recommendations.” … In 2014, the state signed a $276 million contract with Trousdale County for a 2,400-bed private prison for Corrections Corporation of America. This contract also includes a 90 percent occupancy guarantee for CCA for per diem fees, which means if the private prison doesn’t remain above 90 percent occupied, taxpayers will pay per diem fees for empty beds. The contract also guarantees annual 2.5 percent operating per diem rate increases. In contrast, state employees do not receive guaranteed pay increases. … Tragically, in July, a man committed suicide by jumping off the Tennessee Tower in Downtown Nashville. According to a WSMV report, “Security at the tower falls under the state’s General Services division. They contract with private security companies Walden Security and Allied Barton.” In August, an accident at a Tennessee county fair sent three children plummeting 45 feet to the ground, severely injuring one. The Associated Press reported, “The state relies on private inspectors hired by operators and other states’ regulators to determine whether roller coasters, zip lines and Ferris wheels are safe.” State employees used to handle this work. In conclusion, as taxpayers, we must ask harder questions and demand more oversight on any contracts that outsource a state service. The notion of cost savings from outsourcing is simply no longer credible.

America’s Richest Politician Is Putting Thousands of Jobs at Risk
Source: Donald Cohen, The Huffington Post, October 14, 2016

Donald Trump isn’t the only one who won’t release his tax returns. Tennessee Governor Bill Haslam, whose family owns the Pilot Flying J chain of truck stops, has refused to release his since running and being elected in 2010. It wouldn’t matter so much if Haslam were your run-of-the-mill governor. But he’s the country’s richest politician, with a net worth of $2 billion. … It matters because Haslam has a plan that could plunge thousands of state workers into poverty. Since being elected, he’s slowly handed over management and operation of public buildings to a private company. All state-owned real estate is on the chopping block—from college campuses and prisons to state parks. The company, the Chicago-based Jones Lang LaSalle, is the world’s second largest commercial real estate brokerage. While running for office in 2010, Haslam held a financial stake in the company. He might still be invested but we don’t know for sure—he’s since placed many of his investments in a blind trust. The governor clearly hasn’t read our new report, How privatization increases inequality. …
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Kentucky’s first charter school director resigns after less than a year. Here’s why.

Source: Valarie Honeycutt Spears, Lexington Herald-Leader, May 9, 2018

Less than a year after he was hired as the first director of the Kentucky Department of Education’s charter school division, Earl Simms said he is resigning May 25 so that his wife can go back to her previous job in St. Louis. Simms told WDRB-TV in Louisville and the Herald-Leader that he was not leaving because former Kentucky Education Commissioner Stephen Pruitt suddenly resigned in April at a state school board meeting, one day after Gov. Matt Bevin appointed several new board members. The board of all-Bevin appointees that same day hired charter school proponent Wayne D. Lewis Jr. as an interim Commissioner. … Though the charter school movement appears to be stalled, Lewis has said he will work with Kentucky Department of Education officials to determine if there is a path for charter schools that doesn’t require the General Assembly to approve a funding mechanism. …

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A closer look at the future of charter schools in Kentucky
Source: Emilie Arroyo, WKYT, April 18, 2018

The Kentucky Board of Education is taking a new direction after the resignation of education commissioner Dr. Stephen Pruitt and Gov. Matt Bevin’s appointments of new board members this week. Many expect that direction to be a stronger push for charter schools, but Kentucky’s legislature ended its 2018 session with no funding process in place. … While it’s unclear when Kentucky will see it’s first charter school, we do know how it will work. …

Kentucky Lawmakers Approve Charter School Law
Source: Lesli A. Maxwell, Education Week, March 15, 2017

After years of failed attempts, Kentucky lawmakers have approved a charter school law. The measure passed the state Senate on a vote of 23-15 Wednesday afternoon, largely along party lines. Republican Gov. Matt Bevin—an enthusiastic supporter of charters—is expected to sign the measure. The Kentucky House approved the bill—HB 520—last week and will still have to sign off on changes made by the Senate. … Kentucky has been one of the hardest places to pass a charter law, but with the 2016 election, Republicans in the state took control of the legislature and the governorship, clearing the way for a charter bill to succeed. The bill says nothing about how charters in Kentucky will be funded. Under its provisions, there will be no limit on the number of charter schools that can be authorized. … And while the bill says that parents, community members, public organizations, school administrators, and nonprofits can apply to operate a charter school, there is nothing in the legislation that prevents charter school operators from contracting out all of their management and operations to a for-profit entity. …

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