Category Archives: Studies/Reports/Audits

The Effects of State Delinquent Tax Collection Outsourcing on Administrative Effectiveness, Efficiency, and Procedural Fairness

Source: Sungkyu Jang, Robert J. Eger,
The American Review of Public Administration, April 6, 2018

Abstract
Since the 1980s, state governments have been using private debt collection agencies as facilitators and expediters in the delinquent tax collection process. The use of private collection agencies incorporates administrative effectiveness, efficiency, and procedural fairness, which can lead to an increase in revenues without affecting either the tax base or rate while protecting taxpayers. Using state-level panel data for the years 2000 to 2011, the administrative effectiveness outcome is that private collectors do not reduce the aggregate delinquent tax inventory, but the administrative efficiency outcome is that private collectors reduce collection cost. For procedural fairness, private collectors have a positive effect on the number of tax appeals filed in a state tax department with a Republican governor; however, they decrease the number of tax appeals filed with an outside-independent tax appeal agency.

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Citizen Attitudes Towards Public–Private Partnerships

Source: Eric J. Boyer and David M. Van Slyke, The American Review of Public Administration, April 12, 2018

Abstract
This study examines the factors that influence public attitudes toward public–private partnerships (PPPs) through an analysis of public opinion data collected in 2014. Although previous literature has examined public attitudes toward government contracting and asset privatization, there is little understanding of how the public feels about more collaborative forms of public–private interaction. Counter to previous studies that suggest that support for free enterprise and a disdain for government increases support for private involvement in public services, we find that attitudes toward PPPs are nuanced: Respondents favor them not only when they have positive feelings toward the business sector but also when they also report trust in government. PPPs are thus perceived not as a replacement to public administration, but as a delivery model that demands competence and trust of both public and private partners. The results also explain a previously unstudied relationship between respondent familiarity with PPPs and their attitudes toward them. Counter to expectations, we find that the more familiarity that respondents have with PPPs, the more likely they are to view them favorably. We also identify factors that predict public opinions of PPPs which can inform public outreach and public involvement programs involved with PPPs.

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Sheriff ‘aggressively worked’ to correct problems found in review of Milwaukee County Jail operations

Source: Ashley Luthern, Milwaukee Journal Sentinel, April 5, 2018

An outside review of the Milwaukee County Jail found outdated policies, lengthy waits for inmate medical screenings, widespread use of overtime because of staff shortages and other problems. … Acting Sheriff Richard Schmidt asked the National Institute of Corrections to review all operations at the jail in the wake of seven custody deaths over two years. One of those deaths — that of Terrill Thomas who died of dehydration in April 2016 — led to criminal charges being filed against three jail staffers and Armor Correctional Health Services, the private medical contractor at the jail. …

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Company Hired to Provide Health Care for Milwaukee Inmates Charged With Falsifying Records
Source: Marti Mikkelson, WVUM, February 21, 2018

The company that cares for inmates at the Milwaukee County Jail is facing criminal charges. Employees allegedly lied about checking on a man who died of dehydration, after water to his cell was shut off. The Milwaukee County District Attorney’s office on Wednesday charged Armor Correctional Health Care Services with seven misdemeanor counts of intentionally falsifying health records. The company is the latest defendant to face charges in the death of Terrill Thomas,who spent a week without water in his cell as punishment in 2016. …

Shortage of medical staff plagues Milwaukee jails
Source: Jacob Carpenter, Milwaukee Journal-Sentinel, October 29, 2016

The private contractor responsible for medical care at Milwaukee County’s jails has failed to meet basic standards of care and staffing mandates, putting inmates’ health at risk, newly obtained documents and interviews with former employees show. At one point this spring, a court-appointed watchdog found that 30% of all medical jobs at the county’s two jails weren’t filled, a rate he called “inconsistent with adequate quality of service.” Inadequate staffing by Armor Correctional Health Services and poor record-keeping by employees have led to a failure to deliver timely medical treatment, according to the records and former employees. … Armor’s issues come as investigators look into four deaths since April at the Milwaukee County Jail, including one reported on Friday. It’s not clear whether Armor’s performance contributed to any of the deaths, but one inmate died of dehydration and a woman gave birth to a stillborn child without jail or medical staff noticing. Armor’s failures are documented in a May report by Ronald Shansky, who monitors overcrowding and medical services at the Milwaukee County Jail and House of Correction. Shansky, a medical doctor, inspects the jail twice a year under terms of a 2001 legal settlement between the county and inmates. … In separate interviews with the Milwaukee Journal Sentinel, the former staffers said they saw inmates who didn’t get necessary medications and went weeks without being seen by a nurse or doctor. Sandra Baumgartner, a former nursing supervisor at the House of Correction, said she was stretched so thin that she feared being unable to respond to a major medical emergency — which could put her nursing license at risk.

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Audit finds state lacks documented oversight of new foster care model

Source: Allie Morris, San Antonio Express-News, April 1, 2018

A recent audit found flaws in the state’s oversight of a new foster care model that further privatizes the system and is set to roll out in Bexar County soon. In the new model, a contractor manages foster care providers within a certain region, instead of the state. The Legislature approved expansion of the model last session as a way to improve the embattled foster care system, which is facing a long-running class-action lawsuit by foster children who claim they faced abuse, constant movement and overmedication. The state audit found the Department of Family and Protective Services conducted site visits to ensure contractor ACH Child and Family Services was in compliance. But the state didn’t have documentation to show whether it verified that ACH monitored all 107 foster care providers in its seven-county area, which includes Fort Worth, or whether their oversight was effective. In one instance, state auditors reported that ACH hadn’t monitored one foster care provider for more than 18 months as children continued being placed there. …

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New Texas Law Will Create A More Private Foster Care System
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. …

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Iowa Democratic gubernatorial candidates ready to reverse Medicaid privatization

Source: Paige Godden, Des Moines Register, April 11, 2018
 
Six Democrats in the running to be Iowa’s next governor made it seem as though nearly all the state’s problems could be solved by reversing Medicaid privatization during a recent forum hosted at Simpson College. Candidates were asked questions ranging from how they’d help veterans to how they’d save rural Iowa, and their answers kept circling back to Medicaid.…

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Iowa lawmakers stake out positions on state’s privatized Medicaid woes
Source: Jason Clayworth, Des Moines Register, April 8, 2018
 
There’s a lot of politics entangled in Iowa’s privatized Medicaid problems. Since then-Gov. Terry Branstad first proposed transferring management of the state’s Medicaid program to for-profit companies, back in April 2016, Democrats and Republicans have staked out positions on the wisdom of the plan. Since then, Iowa’s privatized Medicaid program has come under fire for failing to do right by the state’s 680,000 poor or disabled patients. …

Boulton unveils his labor agenda
Source: Ed Tibbetts, The Courier, February 22, 2018
 
Iowa would reverse the year-old limits on collective bargaining rights for public employees, start a new family and medical leave plan for workers around the state and raise the minimum wage under an agenda Democratic candidate for governor Nate Boulton unveiled this week. Boulton, a state senator from Des Moines, is one of seven candidates for the party’s nomination for governor. And his plan is an attempt to lay out a vision for Iowa. … In releasing the plan, Boulton’s campaign said he would seek to implement it in his first legislative session if elected. The agenda essentially packages a number of proposals he and other Democrats have introduced in the Republican-controlled Legislature that have gone nowhere. The proposals include reversing the move to put the state’s Medicaid program under the management of private insurance companies and closing the state-run mental health institutions. …

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Push to end privatized prison food clears first hurdle

Source: Jonathan Oosting, Detroit News, April 10, 2018
 
A state House budget panel Tuesday unanimously approved Gov. Rick Snyder’s plan to end controversial privatized food service in Michigan prisons, meaning the proposal to rehire state workers for kitchen jobs cleared an early hurdle. But legislators and the Michigan Department of Corrections are at odds over a separate budget provision that would require the state to close its third prison since 2016 due to a steadily declining population. Michigan’s Republican-led Legislature voted to privatize prison food service in 2012, a move that was projected to save the state $16 million a year as contract workers replaced more than 370 state employees. …

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Gov. Rick Snyder: State to end problem-plagued privatization experiment with prison food
Source: Paul Egan and Kathleen Gray, Detroit Free Press, February 7, 2018
 
Gov. Rick Snyder announced Wednesday that the state will end a four-year experiment with privatizing its prison food service after years of maggots in food, smuggling by kitchen employees, kitchen workers having sex with inmates, inadequate staffing levels and other problems documented by the Free Press in a series of articles. … The Free Press, using Michigan’s Freedom of Information Act, documented a litany of problems, including meal shortages, maggots in the kitchen, the smuggling of drugs and other contraband by kitchen employees, kitchen workers engaging in sex acts with prisoners and even attempting to hire one inmate to have another inmate assaulted.  Nick Ciaramitaro, legislative director for American Federation of State, County and Municipal Employees Council 25, whose members used to staff the prison kitchen, said many of the more than 300 former workers have moved on to other jobs or retired, but he expects there will be a core workforce available to train new hires.  “It was a shocker,” Ciaramitaro said of Snyder’s announcement.  “I give him credit. It’s one thing to try something — it’s another thing to admit that it didn’t work.” …

… The state and Aramark Correctional Services of Philadelphia opted to end their $145.1-million contract about 18 months early in 2015 after the state balked at billing changes requested by Aramark. The state switched to a $158.8-million contract with Florida-based Trinity Services Group, but problems continued. Corrections Department Director Heidi Washington said the state plans to bring about 350 state workers back into the prison kitchens when the Trinity contract expires July 31. The state and Trinity have mutually agreed to part ways after Trinity sought price increases, she said. …

Michigan Department of Corrections, Trinity Services Group mutually agree to end contract
Source: Upper Michigan Source, February 7, 2018

The Michigan Department of Corrections will return to state-run food service operations this summer after coming to a mutual agreement with Trinity Services Group to end the partnership when the contract expires. The change, which would bring about 350 state workers back to correctional facility kitchens, was announced in Gov. Rick Snyder’s budget recommendation presentation Wednesday. … Budget language first approved in 2012 required the open bidding of food service operations to reduce correctional costs. The boilerplate language requiring the open bidding of food service is no longer in place, but the change would still require the Legislature to appropriate sufficient funds for these operations moving forward.

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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. …

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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. …

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Editorial: The Student Loan Industry Finds Friends in Washington

Source: Editorial Board, New York Times, March 18, 2018
 
Education Secretary Betsy DeVos made clear even before taking office last year that she was more interested in protecting the companies that are paid by the government to collect federal student loan payments than in helping borrowers who have been driven into financial ruin by those same companies. Ms. DeVos’ eagerness to shill for those corporate interests is apparent in a craven new policy statement from the Education Department. The document claims that the federal government can pre-empt state laws that rein in student loan servicing companies if such a law “undermines uniform administration of’’ the student loan program. …

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Banks Look to Break Government’s Hold on Student-Loan Market
Source: Josh Mitchell and AnnaMaria Andriotis, Wall Street Journal, March 7, 2018
 
Private lenders are pushing to break up the government’s near monopoly in the $100 billion-a-year student-loan market. The banking industry’s main lobbying group, the Consumer Bankers Association, is pressing for the government to instate caps on how much individual graduate students and parents of undergraduates can borrow from the government to cover tuition. That would force many families to turn to private lenders to cover portions of their bills. While that could mean lower interest rates for some, it could constrain funding to households with blemished credit histories. A group of investors also is lobbying for legislation to provide a clearer legal framework for “income-share agreements,” under which private investors provide money upfront to cover tuition in exchange for a portion of a student’s income after school. …

DeVos drops plan to overhaul student loan servicing
Source: Michael Stratford, Politico, August 1, 2017
 
Education Secretary Betsy DeVos on Tuesday abandoned her plan to overhaul how the federal government collects payments from the nation’s more than 42 million student loan borrowers after it faced growing resistance from congressional Republicans and Democrats.  The Trump administration announced that it was scrapping plans to award a massive contract to a single company to manage the monthly payments of all student loan borrowers, and said it would come up with a new proposal aimed at improving customer service for student loan payments. …

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Privatization talks continue for Osawatomie State Hospital

Source: Charity Keitel, Miami County Republic, March 7, 2018
 
The word “privatization” was the elephant in the room during Thursday’s Osawatomie State Hospital (OSH) town hall meeting at Memorial Hall. Residents met with representatives from Correct Care Recovery Solutions, Secretary Tim Keck of the Kansas Department for Aging and Disability Services (KDADS) and area legislators hoping to learn more about what a transition from a state-operated facility to a privately-operated facility would entail. And it wasn’t just residents who had questions. Rep. Jene Vickrey questioned Keck a few times, clarifying some of his concerns about the request for proposal (RFP) for privatization as well as his displeasure that KDADS is drafting a bill, regarding the RFP, to be introduced this late into the legislative session. …

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KDADS Secretary makes pitch to privatize Osawatomie
Source: Melissa Brunner, WIBW, August 30, 2017
 
The Kansas Dept. for Aging and Disability services is making the case to privatize the Osawatomie State Hospital.   Secretary Tim Keck presented information Wednesday to state lawmakers and community leaders. Over nearly two hours, Keck detailed the history Osawatomie, the issues it has experienced in recent years and steps the state has taken to address the problems.  Looking to the future, Keck detailed a bid from Correct Care Recovery Solutions to rebuild and run Osawatomie, which lost federal certification in 2015. Correct Care runs mental health facilities around the country. …

State officials hope to replace, privatize Osawatomie State Hospital
Source: Peter Hancock, Lawrence Journal-World, August 30, 2017

State officials in Kansas began laying out their case Wednesday for why they think the state should replace the aging and troubled Osawatomie State Hospital with a new facility and hand over management of the facility to a for-profit, out-of-state corporation. Tim Keck, secretary of the Kansas Department for Aging and Disability Services, which manages the psychiatric hospital, said the hospital has become too challenging for the state to manage, and it is time for the state to make a decision. …

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Despite 34 making six figures, true amounts of JobsOhio salaries still lowballed

Source: Randy Ludlow, Columbus Dispatch, March 12, 2018
 
JobsOhio continues to under report the amounts it pays employees — including 34 workers who make at least six-figure annual salaries — in a move that could run contrary to state law. In its 2017 filings with the state, Gov. John Kasich’s privatized economic development agency again reported employees’ taxable income — which does not include salary diverted to non-taxable retirement contributions and health insurance costs — instead of their gross income. State law requires the nonprofit to report “total compensation.” But its practice of reporting only taxable income serves to understate employee earnings by thousands of dollars each. …

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Justices again rule JobsOhio can’t be challenged
Source: Randy Ludlow, Columbus Dispatch, August 31, 2016

The Ohio Supreme Court stood on identical ground Wednesday to reject another attempt to declare JobsOhio unconstitutional. In a 6-1 vote, the court ruled that Victoria Ullmann, a Columbus lawyer, lacked the legal right — or standing — to pursue her action seeking to declare Gov. John Kasich’s privatized economic development agency as illegal. … The court threw out another challenge to JobsOhio in 2014 on grounds the parties lacked proper standing, leaving some to question then if the legality of the nonprofit could ever be questioned in the courts. Ullmann argued she had standing to sue since she, and other Ohioans, support JobsOhio through their purchase of liquor, the profits from which support the entity under its long-term lease of state’s liquor sales enterprise. … Ullmann sued Kasich, Secretary of State Jon Husted and Auditor Dave Yost, asking that the court order the Republicans to take steps to dissolve JobsOhio. A spokesman for Attorney General Mike DeWine, who defended the officeholders, said his office was pleased with the ruling. … JobsOhio reported earlier this year it attracted a record 23,602 new jobs and $6.7 billion in corporate investment in 2015. The agency reported revenue of slightly more than $1 billion last year, largely from the state’s liquor-sales operation, which racked up record sales last year to produce net income of $235.2 million. …

Liberal group’s challenge to JobsOhio rejected by Ohio Supreme Court
Source: Jackie Borchardt, Northeast Ohio Media Group, June 10, 2014

Ohio’s highest court on Tuesday rejected a challenge from a progressive group and two Democrats challenging the constitutionality of JobsOhio, the state’s private, nonprofit economic development agency. In a 5-2 decision, the Supreme Court held that ProgressOhio.org, state Sen. Michael Skindell of Lakewood and former state Rep. Dennis Murray do not have standing — the legal right to pursue its claim in court — to bring an action against the legislation that created JobsOhio. The court also held that the plaintiffs lack a personal stake in the outcome of the case.

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