A Sacramento agency running one of the few remaining foster care shelters in California has violated health and safety laws and the personal rights of children more than 120 times in recent years — a number matched only by state-licensed facilities that have been shut down or placed on probation. State citations since 2012 at the Children’s Receiving Home of Sacramento describe poorly trained staff, mishandled medications and filthy dorms. This year, an employee was terminated for an “inappropriate relationship” with an underage client and for smoking marijuana with runaway foster youth. On Sept. 8, a state inspector was unable to remain in a bedroom because the stench of urine overwhelmed her. The privately run facility has a troubled history of poor performance it has not yet overcome. Three years ago, state regulators placed the Receiving Home on an extensive 12-month correction plan, after its failure to make earlier, promised reforms. … A Chronicle investigation published this year revealed additional hazards for youth placed at the facility. The report documented hundreds of questionable arrests on shelter campuses following minor misbehavior by foster youth. …
Source: Becky Fogel, September 5, 2017
On Sept. 1, hundreds of new laws took effect in Texas. A number were aimed at improving the state’s child welfare system. Failure to do so was not an option. … In December 2015, after a wave of reports about Texas kids dying from neglect and abuse while in foster care, U.S. District Judge Janis Graham Jack found the state’s foster care system was unconstitutional and deemed it “broken.” Fast forward to May, when Gov. Greg Abbott signed a number of bills to overhaul that system. The case hasn’t been dismissed. But one of the major changes to the foster care system that lawmakers approved during this year’s legislative session was already in the works before Texas was sued in 2011. It was originally called Foster Care Redesign – and now that Senate Bill 11 has taken effect, it establishes a model that increasingly privatizes the foster care system. The program will begin rolling out across the state soon. But the term “model” is a bit misleading, since the redesign is not a one-size-fits all program.
… The foster care model envisioned by Senate Bill 11 is already in use by one community provider. In fact, ACH Child and Family Services in north Texas has been at it for three years. … Over the last three years, the non-profit ACH actually lost money. Carson says they spent $6 million building up services in the region they managed. Considering this extra investment, does the state really need to privatize the foster care system to get better results, or did it just get bad results because it was underfunded for decades? …
Abbott signs Texas bills on CPS, foster care, though federal judge may have last word
Source: Robert T. Garrett, Dallas News, May 30, 2017
Gov. Greg Abbott on Wednesday signed into law “landmark legislation” that he said would improve child protection in Texas. … Two of the bills he signed seek to give CPS workers more options after they remove children from abusive and neglectful homes. One begins moving toward a community-centered system of procuring foster care beds and services, using area nonprofits or local governments. By September 2019, in a total of five areas, the state would give private providers “case management” duties now performed by CPS workers. … The bill’s author, Sen. Charles Schwertner, R-Georgetown, and House sponsor James Frank, R-Wichita Falls, yielded to a decade-long push by foster care providers to be able to take over CPS conservatorship workers’ duties in those five regions.
… Skeptics have noted, though, that good early results in Tarrant and six nearby counties were achieved using state workers as well as the private entities. …
House approves Senate bill to expand foster care privatization
Source: Julie Chang, Austin American-Statesman, May 17, 2017
Scrambling to find a solution to the problems that plague the state’s child welfare system, the Legislature is one step closer to stripping the state of its responsibilities to provide major foster care services in certain parts of the state. The Texas House on Thursday tentatively approved Senate Bill 11, filed by Sen. Charles Schwertner, R-Georgetown, which would expand “community-based foster care” to two areas in the state over the next two years. The state would have to transfer foster care case management, including caseworker visits, court-related duties and decision-making on where children live, learn and receive services, to a nonprofit agency or a governmental entity such as a county or municipality. …
Battle may be looming over how quickly foster care bill outsources CPS workers’ duties
Source: Robert T. Garrett, Dallas Morning News, April 17, 2017
The Texas House sponsor of the big foster care bill signaled Monday he’s going to fight for his version of “community-based foster care,” including a slightly slower outsourcing of Child Protective Services workers’ duties. Wichita Falls GOP Rep. James Frank said in an interview that he made some concessions to the Senate by importing elements of the senators’ main foster-care bill on prevention and foster children’s medical care. … The outsourcing, long sought by foster-care providers, would not happen until the lead contractor showed it successfully has taken over placing all new or existing foster kids in a region. Under a Senate-passed bill by Sen. Charles Schwertner, a Georgetown Republican who runs the Senate Health and Human Services Committee, the state would simultaneously shift responsibility for both placements and case management to the contractor. …
Source: Associated Press, August 7, 2017
A judge has ruled that IBM Corp. owes Indiana $78 million in damages stemming from the company’s failed effort to automate much of the state’s welfare services. … Indiana and IBM sued each other in 2010 after then-Gov. Mitch Daniels cancelled the company’s $1.3 billion contract to privatize and automate the processing of Indiana’s welfare applications following numerous complaints. The Indiana Supreme Court ruled last year that IBM breached its contract. The justices affirmed a lower court’s award of nearly $50 million to IBM in state fees, but that ruling allowed Indiana to seek more than $172 million in damages from IBM.
IBM contests judge’s removal petition in welfare-privatization suit
Source: Dave Stafford, Indiana Lawyer, May 25, 2016
The state’s petition to remove a trial court judge who oversaw the civil lawsuit over the canceled $1.3 billion contract with IBM to overhaul Indiana’s welfare system is “factually incorrect,” according to an attorney representing IBM. Andrew Hull of Hoover Hull Turner LLP said in a statement that Marion Superior Judge David Dreyer did nothing to merit removal and didn’t violate Indiana Trial or Appellate Rules in an order issued on remand from the Indiana Supreme Court, as Barnes & Thornburg LLP lawyers representing the state argued in briefs filed Monday. Their petitions and brief seeking writs from the Supreme Court argue Dreyer overstepped his authority by issuing the order without proceedings, called into question his impartiality in the matter, and asked the court to vacate his order on remand and bar him from issuing further orders in the case.
Indiana Seeks New Judge After No Damages Awarded in IBM Case
Source: Rick Callahan, Associated Press, May 10, 2016
Attorneys for the state are challenging a judge’s decision not to award Indiana damages in its long-running fight with IBM Corp. over the company’s failed effort to privatize state welfare services, saying a new judge should be appointed to handle the case. The Indiana Supreme Court ruled in March that IBM had breached its $1.3 billion contract to automate much of Indiana’s welfare system. The high court directed the trial court judge to determine what damages IBM owed the state, opening the door for Indiana to seek up to $175 million. But on Friday, that judge, Marion County Superior Court Judge David Dreyer, ruled that “the costs for which the State seeks reimbursement were not adequately proven, and thus cannot be recovered as damages.” The state’s private attorneys in the case quickly filed a motion seeking a new judge to oversee the case. … The resulting lawsuits between Indiana and IBM were assigned to Dreyer, who found in 2012 that Indiana had failed to prove IBM breached its state contract and awarded the New York-based company about $50 million in state fees. Indiana appealed that ruling, and the state Court of Appeals found in February 2014 that IBM had committed a material breach of its contract by failing to deliver improvements to the state’s welfare system. But it also found IBM was entitled to nearly $50 million in state fees.
Mediation coming in IBM, Indiana contract dispute
Source: Associated Press, December 10, 2014
IBM Corp. and the state of Indiana are turning to mediation in hopes of settling their dispute over IBM’s failed attempt to privatize Indiana’s welfare services. The two parties said in a Monday court filing with the Indiana Supreme Court that they have agreed to mediation and chosen John R. Van Winkle of Indianapolis-based Van Winkle-Baten Dispute Resolution to hear their differences at a Feb. 25 mediation session. The state Supreme Court heard oral arguments in the welfare-privatization contract dispute on Oct. 30. The following week, Chief Justice Loretta Rush suggested that the parties consider mediation “to seek a mutually agreeable resolution of their dispute.” Rush’s order also said that if mediation failed, the court would move ahead to reach a decision in the long-running dispute.
Appeal of IBM-deal fees heard
Source: Niki Kelly, Journal Gazette, November 26, 2013
The fallout from the failed $1.3 billion IBM welfare modernization contract continued Monday as the Indiana Court of Appeals heard arguments over $100 million in disputed fees. … Attorney Peter Rusthoven, representing the state, said the system was plagued with problems from the outset and IBM refused to hire more people to add to the “human dimension.” …. But attorney Jay Lefkowitz, on behalf of IBM, pointed out that Indiana was trying to hire IBM to run the new hybrid system up until the day the company was terminated.
IBM, state in court Monday
Source: Tim Evans, Indianapolis Star, November 20, 2013
The Indiana Court of Appeals will hear oral arguments Monday in the legal battle over a $52 million judgment the state has been ordered to pay IBM over the failed attempt to privatize public welfare services under former Gov. Mitch Daniels. …. The state is appealing a Marion Superior Court judge’s 2012 ruling awarding $52 million to IBM after the state canceled a contract Daniels had hailed in 2006 as the solution for fixing one of the nation’s worst welfare systems. …. “Neither party deserves to win this case,” he wrote in his 65-page ruling. “This story represents a ‘perfect storm’ of misguided government policy and overzealous corporate ambition. Overall, both parties are to blame, and Indiana’s taxpayers are left as apparent losers.”
Part of food stamp website offline for two weeks
Source: Tony Cook, Indianapolis Star, November 6, 2013
Earlier this year, state contractor RCR Technology wrongly released the private information of Indiana welfare recipients. Now, part of the state’s benefits website administered by the company is broken. …. The problems come just four months after revelations that RCR wrongly revealed private data of FSSA clients, including Social Security numbers. … RCR was initially an FSSA subcontractor, but was later elevated to prime contractor after Gov. Mitch Daniels fired IBM over a botched 10-year, $1.37 billion deal to overhaul the state’s welfare system, Gavin said.
Ind. court sets hearing on IBM welfare lawsuit
Source: Associated Press, September 3, 2013
The Indiana Court of Appeals has set a November hearing in the state’s legal fight with IBM Corp. over a failed attempt to overhaul Indiana’s welfare system. The state is appealing a Marion County judge’s ruling last year awarding $52 million to IBM after then-Gov. Mitch Daniels canceled what was a 10-year, $1.37 billion contract to process applications for food stamps, Medicaid and other programs….
The Unequal State of America: Indiana’s rocky road to welfare reform
Source: David Rohde and Kristina Cooke, Reuters, December 20, 2012
In 2006, Gov. Mitch Daniels privatized the management of the welfare-benefits system with a project led by IBM. Two-thirds of Indiana’s social-service agency’s staffers became employees of IBM and its partners. In a process dubbed “welfare modernization,” recipients would apply for benefits online and by phone rather than meeting social workers face to face. It was, by Daniels’s own admission, a failure…..
JEditorial: Human toll of FSSA deal laid bare
Source: Journal Gazette, July 24, 2012
Editorial: Decision to privatize state welfare system a mistake from start
Source: Evansville Courier & Press, July 22, 2012
Judge denies Indiana claim over failed IBM project
Source: Charles Wilson, Associated Press, July 18, 2012
A judge on Wednesday spurned Indiana’s efforts to recoup roughly $170 million from IBM Corp. over its failed effort to overhaul the state’s welfare system as part of a broader privatization push that was an early hallmark of Republican Gov. Mitch Daniels’ tenure. Marion County Judge David Dreyer said in a 75-page order that neither side deserved to win the dispute, and awarded IBM only a small fraction of what it was seeking. … Dreyer blamed “misguided government policy and overzealous corporate ambition” for the failure of the system, which he called an “untested theoretical experiment.” … Dreyer said Indiana failed to prove that IBM breached its contract, and he denied the state any of the money it sought.
IBM questions Daniels’ resistance to deposition
Source: Carrie Ritchie, IndyStar.com, December 19, 2011
In court, state and IBM spar over welfare system’s design
Source: Carrie Ritchie, Indianapolis Star, March 9, 2012
IBM to begin making case in welfare trial
Source: Indianapolis Star, March 21, 2012
IBM: Indiana canceled deal because of budget woes
Source: Associated Press, April 3, 2012
IBM, state in final arguments at welfare system trial
Source: Carrie Ritchie, Indianapolis Star, April 3, 2012
Judge orders Gov. Daniels be deposed in IBM lawsuits
Source: Carrie Ritchie, IndyStar.com, December 16, 2011
A judge has ordered Gov. Mitch Daniels to share his knowledge of a canceled $1 billion contract with IBM to help resolve a legal battle between the state and the company.
Attorneys for the state had said a law protects Daniels and other high-ranking state officials from testifying….
Source: Tim Carpenter, Topeka Capital-Journal, August 28, 2017
The fate of thousands of Kansans with intellectual or developmental disabilities who don’t receive benefits for which they’re qualified remains a contentious issue more than four years into operation of the state’s privatized $3 billion Medicaid system. Shawn Sullivan, budget director for Gov. Sam Brownback, discussed during a presentation to a House and Senate oversight committee the need for sustained state government revenue growth to shrink the waiting list for home- or community-based services through Medicaid. …
Kansans share KanCare concerns with legislative panel
Source: Tim Carpenter, Topeka Capital-Journal, August 22, 2017
Individuals and associations representing enrollees in Kansas’ Medicaid program shared frustration Monday with difficulty securing services for thousands of people eligible for assistance as well as with Gov. Sam Brownback’s declaration of policy victory for saving the state treasury $1.4 billion after turning the system over to three insurance companies. … Dozens of issues were raised at the Capitol during a hearing of the Kansas Legislature’s joint committee on KanCare oversight. Testimony in support of the KanCare insurance providers and state agencies blended with complaints raised repeatedly over the years. This inquiry by legislators occurs at a time of transition, with Brownback preparing to leave office and the state applying to the federal government for permission to continue with KanCare, which serves more than 400,000 low-income adults, pregnant women and people with disabilities. …
Feds stop requiring bi-weekly Kansas reports on Medicaid
Source: Associated Press, July 12, 2017
Federal officials are no longer requiring Kansas to file bi-weekly reports on a large backlog of applicants for the state’s privatized Medicaid program. The Kansas Department of Health and Environment was notified last week by the Centers for Medicare and Medicaid that the state can discontinue the reports it has been sending since early 2006. At the time, Kansas had more than 7,000 backlogged applications that had been pending for more than 45 days for its Medicaid program, called KanCare. …
Health and Human Services Committee Chairman Merv Riepe announced to state senators last week that child welfare services in the Omaha and Sarpy County area could be in jeopardy. The state withdrew its intention to award a five-year, $70 million-a-year contract to Nebraska Families Collaborative on Thursday and rejected all bids after an opposing bidder filed a challenge to the bid award. The lack of a contract could lead to a gap in services for vulnerable children and families beginning in July, Riepe said. The department is attempting to negotiate a one-year emergency contract with Nebraska Families Collaborative, and then to restart the bidding process, he said. …
Nebraska HHS official recommends extending child welfare contract for another year
Source: Martha Stoddard, Omaha World-Herald, March 18, 2015
A top state official is recommending that Nebraska continue contracting out management of Omaha-area child welfare cases for another year. In a letter to lawmakers, Tony Green, acting children and family services director for the Department of Health and Human Services, said a contract extension would allow time to choose the best course of action for the future. Green said he would start negotiating the extension on April 1, unless the Legislature’s Health and Human Services Committee objects….The state’s contract with the Nebraska Families Collaborative, an Omaha-based nonprofit, expires June 30. It was originally signed in 2009 and has been extended once already for one year. The contract this year is worth up to $59.5 million….
Nebraska privatization of child welfare hasn’t produced ‘any measurable benefit,’ new study finds
Source: Martha Stoddard, Omaha.com, February 6, 2015
Nebraska’s five-year experiment with privatizing child welfare has not produced “any measurable benefit” for the state, according to a study report released Thursday. The study compared results achieved by state child welfare workers and by the Nebraska Families Collaborative, the private agency that manages child welfare cases in the Omaha area. It found no cost savings and no significant difference — either positive or negative — in outcomes for children and families….. They offered three options — staying the course with the private contractor, returning all case management responsibilities to the state or revamping the roles of the state and the collaborative to achieve real reform. ….
Source: Business Wire, May 12, 2017
A major state contractor has been accused of systematically failing to pay overtime wages to thousands of home care workers in Pennsylvania in a lawsuit filed Thursday in federal court. The suit alleges Public Partnerships, LLC, a subsidiary of the nationwide management consulting firm Public Consulting Group, knowingly refused to pay workers for overtime despite its active role in hiring employees, administering services and issuing paychecks, a violation of federal and state laws governing wages and labor conditions. The issues raised in the case mirror those at the forefront of ongoing litigation throughout the country on joint employers and their responsibilities to their workers. …
Performance Audit: Department of Public Welfare’s Oversight of Financial Management Services providers
Source: Commonwealth of Pennsylvania, Department of the Auditor General, November 2013
From the press release:
Auditor General Eugene DePasquale today said an audit of a Department of Public Welfare shows long-term mismanagement of home care worker payroll providers caused undue financial and emotional strain on tens of thousands of people. Thousands of workers had paychecks delayed for up to four months. … Beginning in December 2008, DPW had agreements with 36 different providers for payroll services of home care workers across the state. However, from 2009 through 2012, auditors found that DPW did not adequately monitor these providers resulting in numerous instances of noncompliance with applicable state and federal laws, regulations, and financial services standards by some of the providers. … DPW issued a request for applications in January 2012, and in August 2012 selected the Boston, Mass.-based vendor, Public Partnerships Limited, to provide payroll service statewide. In the short time frame that DPW had to transition 20,000 care recipient files to Public Partnerships Limited, DPW ignored many red flags — including concerns expressed by the vendor — that the new vendor was not fully prepared to pay all direct care workers by the DPW-imposed Jan. 1, 2013 deadline. The audit also found significant flaws in the procurement process used to select Public Partnerships Limited. …
Source: Associated Press, May 12, 2017
Kansas lawmakers have advanced a bill that would increase their oversight of the state’s privatized foster care system and the contractors running it. The House gave first-round approval to the measure Friday on a voice vote. Members planned to take another vote to determine whether the proposal goes to the Senate. The bill would create an 18-member task force to collect data from the state Department for Children and Families on the foster care system and its contractors and to make recommendations for improvement. …
Kansas House Committee Approves Foster Care Task Force
Source: Allison Kite, Associated Press, May 9, 2017
A House committee on Tuesday passed a bill that would allow Kansas lawmakers to more closely oversee the state’s privatized foster care system and the contractors that run it amid questions about how the state monitors the program. The bill passed by the House Children and Seniors Committee would create an 18-member foster care task force to study the system. The task force would collect data from the Kansas Department for Children and Families on the foster care system and its contractors and make recommendations for improvement. …
Audit finds problems in privatized foster care system, faults DCF for lax oversight
Source: Peter Hancock, Lawrence Journal World, April 28, 2017
The private nonprofit agencies that manage Kansas’ foster care system do not have the capacity in many parts of the state to handle the volume of cases they deal with, and the Kansas Department for Children and Families often does not conduct adequate oversight of those contractors. Those are the findings of a Legislative Post Audit report on the foster care program that was delivered to lawmakers Friday. However, auditors also said there would be enormous costs for the state if it decided to take back control and operation of the program itself. The report was the third and final part of a comprehensive audit that lawmakers ordered following two deaths in 2014 of children who were in the foster care system. …
Source: SNJ Today, April 18, 2017
Those hoping to win big in the New Jersey State lottery are spending less on their dreams. State lottery sales are down for the third year since being privatized. Lottery operations management firm Northstar New Jersey promised a return of more than $1.4 billion over 15 years when New Jersey Governor Chris Christie moved the games to privatization in 2013. Since then, Northstar has missed its income projections and spent $20 million in allowance funds to cover financial shortfalls. …
Privatizing lottery isn’t lucrative deal for New Jersey
Source: Michael Catalini, Associated Press, January 9, 2016
New Jersey might get $1 billion less out of its state lottery as part of an amended 15-year deal with the private company that runs part of it, according to an Associated Press analysis. The deal, unveiled by Gov. Chris Christie’s administration on New Year’s Eve, also reduces the amount the company must generate to avoid penalties. The revenue targets that Northstar New Jersey has to meet have been lowered by about $76 million per year over the contract, which was struck in 2013. The total revenue projection was decreased from nearly $16 billion to about $15 billion. … The underperformance — including a $5 million drop in revenue in 2015 — has raised questions from Democrats about the privatization strategy championed by Christie, a 2016 Republican presidential candidate who promoted lottery outsourcing as a way to shrink the government’s payroll and bring in more cash. The lottery brought in $960 million in fiscal year 2015, down from initial expectations of a little more than $1 billion.
New Jersey Having Second Thoughts After Privatizing Lottery
Source: John Reitmeyer, NBC Philadelphia, October 8, 2015
Two years after New Jersey turned over some state lottery functions to a private venture under a controversial long-term deal, lawmakers are questioning why revenues have not met expectations and whether the privatization contract is worth it. The Senate Legislative Oversight Committee announced yesterday that it will hold a hearing on October 19 to review New Jersey’s deal with Northstar New Jersey to address concerns raised in recent weeks about fees Northstar is collecting even as it has failed to meet net-revenue targets. An Assembly committee is also scheduling a hearing on the deal. … Gordon, the Senate committee chairman, said the hearing on October 19 will also review the broader privatization issue, and whether the state is up to the task of monitoring such large contracts. He cited problems the state has had with private companies handling some of the recovery efforts in the wake of Superstorm Sandy in 2012 as another reason to broaden the scope of the hearing.
Gov. Andrew Cuomo surpassed the state Legislature Tuesday in offering pay raises to people who work with those with disabilities. Cuomo’s $55 million goes beyond $45 million proposed by both the state Senate and Assembly. Cuomo had not included any increases for these workers in his initial state budget in January. The size of the increase will be worked out in ongoing budget negotiations between the two legislative chambers and the governor. The additional funds would help direct-support professionals who work for nonprofit organizations that contract with the state, such as the Adirondack Arc and Citizen Advocates, but not workers for state agencies such as the Office for People with Developmental Disabilities, who tend to have better pay and benefits. … #bFair2DirectCare, a statewide coalition of advocates for New Yorkers with developmental disabilities, their families and their direct care providers, has been fighting for better pay for these private-sector workers. … Most of the funding Adirondack Arc receives comes from Medicaid, and CEO Sadie Spada said consistent cuts to Medicaid affect her organization’s ability to pay workers what they deserve. …
…. The crying bothered Jessica Rotellini Law so much, she said, she told an employee at the agency that placed her, at age 16, in the Packers’ Allentown home with Grace, her toddler brother and a 13-year-old girl in 2006. Law said no one ever followed up with her, and that within days of reporting her concerns, she was sent to live with a family in Montgomery County. Sometime in the next year, the Packers adopted Grace and her brother.
In July, when Grace was 14, Sara Packer, 42, and her boyfriend, Jacob Sullivan, 44, tortured and killed the girl before dismembering her body and discarding it near a Luzerne County reservoir, police say. They are charged in her homicide.
Law found out about the horrific charges when a detective visited her last month, carrying a picture of Sara Packer. The concerns she said she voiced in 2006 should have raised red flags, social services experts say. Some wondered if Sara Packer’s connection to the social services system — sources have told The Morning Call that Packer started fostering children through The Impact Project when she also was a caseworker there — may have affected the process.
More counties consider cutting ties with agency connected to Sara Packer
Source: Bo Koltnow, WFMZ-TV, March 8, 2017
Another county cut ties with an area foster care agency after allegations involving alleged abuse by Sara Packer. Lehigh County cut ties with the 26-year-old agency Tuesday. Northampton County did the same Monday. At least two more counties are reviewing contracts with the foster care placement service. On its website, Impact Project boasts about winning the Program of the Year award from Pennsylvania’s Juvenile Court Judges Commission. Now, the private foster care agency is coming under fire. The agency serves 400 kids per year in nine counties. Northampton County broke the news that Impact allegedly knew about former employee Sarah Packer’s alleged abusive behaviors between 1999 and 2002, and did nothing. Late last year, Packer and her boyfriend were charged in the rape, murder and dismemberment of Packer’s 14-year-old adopted daughter, Grace. .. The Statewide Adoption and Permanency Network which licensed the Impact Project calls the news of Packer’s time at the agency alarming, and says it is currently looking into Grace Packer’s history. The Pennsylvania Auditor General announced his office will be auditing the child protection system Tuesday. … Officials at Impact — the for-profit agency that placed Law, Grace and dozens of other foster children in the Packers’ home — would not address Law’s account. …