Category Archives: Studies/Reports/Audits

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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Charter schools cost three California school districts more than $142 million, think tank claims

Source: Lisa Fernandez, KTVU, May 9, 2018
 
Three California school districts, including two in the Bay Area,  lost a total of  $142.5 million to public charter schools during the 2016-17 school year, according to a report conducted by a think tank that critics claim is politically biased. The Oakland Unified School District lost $57.3 million and San Jose’s East Side Union High School District $19.3 million, according to In The Public Interest, a nonprofit centered on ” privatization and responsible contracting.” The report, “Cost of Charter Schools for Public School District,” published Tuesday, compared the school districts’ 2016-17 budgets to what they could have been if 15,487 students in Oakland’s charters and 4,811 in East Side Union’s charters enrolled in traditional public schools instead. The report also found that the San Diego Unified School District lost $65.9 million by the “unchecked expansion of privately managed charter school.” …

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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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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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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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Even discussing selling a nursing home leads to staff turnover, lower quality of care

Source: Rick Lee, York Daily Record, February 28, 2018
 
From Sweden to Taiwan to the United States, decades of international research has established that privatizing nursing homes results in increased staff turnover and decreased quality of care. Even discussing taking a nursing home out of government hands and putting it into the private sector causes staff turnover to begin, according to sociologist Steven Lopez, now an associate professor at Ohio State University. Twenty years ago, Lopez examined three Pennsylvania nursing homes – one that considered privatization; one that was taken over by a for-profit management company; and a privately owned nursing home documented as having low wages, high employee turnover and poor quality of care. Currently, the York County commissioners are exploring the possibility of selling the county-owned nursing home – Pleasant Acres Nursing and Rehabilitation Center. …

… Russ McDaid, the president and CEO of the Pennsylvania Health Care Association, an advocacy organization for many of the commonwealth’s nursing homes, said that is a problem facing many county-owned homes. … There are some people, McDaid said, who believe they can make a nursing home profitable through enhancing revenues and/or decreasing costs. The obvious places to cut costs is with staff numbers and wages, he said. … Both Adams and Lancaster counties sold their county nursing homes for similar financial reasons that are facing York County. …

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Results mixed for other counties that sold nursing homes
Source: David Weissman, York Dispatch, February 28, 2018

As York County Commissioners consider selling the Pleasant Acres Nursing and Rehabilitation Center, they can look for guidance from plenty of other Pennsylvania counties that have recently sold their nursing homes. A York Dispatch review of state Department of Health records and local news reports from across the state found that at least 18 counties have sold their nursing homes, primarily to for-profit companies, since 2005. York County is one of 18 counties that still owns their own nursing homes, according to the review. … Selling Pleasant Acres, which taxpayers have subsidized to the tune of about $75 million during the past 10 years, has been discussed for many years because of its rising costs. The county has contracted the assistance of Susquehanna Group Advisors to solicit bids for Pleasant Acres, though commissioners insist they haven’t made a final determination to sell the 375-bed facility. Andrisano said she has seen counties reverse course after expressing an interest in selling their nursing homes because of constituent feedback, though it’s rare and she couldn’t recall any specific example. York County administrator Mark Derr said he’s been told 15 companies have expressed some form of interest in the nursing home, and final bid submissions are due March 15. …

ICE Broke Contracting Rules in Establishing Its Largest Detention Facility

Source: Eric Katz, Government Executive, February 27, 2018
 
The nation’s largest immigrant detention facility was procured improperly, according to a watchdog report, with Immigration and Customs Enforcement in 2014 using an existing agreement with a town in Arizona as a vehicle to establish the center 900 miles away in Texas. Since 2014, ICE has spent $438,000 annually for Eloy, Ariz., to serve solely as a middleman for a 2,400-bed detention facility in Dilley, Texas, according to the Homeland Security Department’s inspector general. The agency first contracted with the city of Eloy in 2006 to establish the Eloy Detention Center, which the city subcontracted to a company called CCA. ICE reached the agreement with Eloy through a process known as an intergovernmental service agreement, or IGSA. …

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Texas prison is big business for Eloy
Source: Tanner Clinch, Tri Valley Central, July 4, 2016

The city makes more money from a private immigration detention facility located in Texas than it does from the one housed in Eloy, budget figures show. The tentative budget for Eloy is around $38 million, but that reflects only a fraction of the actual money that passes through the city. Every year roughly $290 million is given to the city by the federal government in what’s called agency pass-through funds, which go directly to Corrections Corporation of America. Of this $290 million, around $37 million goes to operate Eloy Detention Center and the rest, $253 million, goes to run another Immigration and Customs Enforcement detention center over 900 miles away in the small town of Dilley, Texas. … The federal government did not go through a traditional, and possibly long, bidding process to decide who would run the facility, and the Eloy City Council modified the intergovernmental services agreement it already had with ICE to include the Dilley facility. Eloy gets a good deal out of the agreement, according to City Manager Harvey Krauss. The city itself received $450,000 from the Dilley facility and $96,000 for the Eloy facility during fiscal year 2015-16 just to act as a fiscal agent between ICE and CCA, according to the city’s budget. …

Dept. of Corrections awards private prison beds contract
Source: Lindsey Reiser, KPHO CBS5, September 01, 2012

A private prison company is getting a multimillion dollar contract for a new prison in our Arizona. But not everyone is celebrating. The contract goes to “Corrections Corporation of America” and according to the Arizona Department of Corrections (ADC), the company will house 1,000 medium-security male inmates.

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Charter School Group, Known for Battling the Mayor, Will Close

Source: Kate Taylor, New York Times, February 5, 2018
 
Families for Excellent Schools, a charter-schools organization known for its battles with Mayor Bill de Blasio and its close relationship with Eva S. Moskowitz, the mayor’s frequent antagonist and head of the city’s largest charter school network, Success Academy, said on Monday that it was shutting down.  The organization announced last week that it was firing Jeremiah Kittredge, its chief executive officer, after an accusation of “inappropriate behavior toward a non-employee.” But the decision to close seemed to reflect financial problems rather than the loss of a single employee. …

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Stringer: Success Academy stiffed city
Source: Patrick Donachie, Times Ledger, December 22, 2016

Success Academy Charter Schools billed the Department of Education for special education services that may not have been delivered, an audit released by city Comptroller Scott Stringer found. Stringer’s audit additionally found that Success Academy was inconsistent in the financial statements submitted to its authorizer in fiscal year 2015, leading to a situation where the organization looked like it was spending more funds directly on students than it actually was. “We found situations in which Success Academy was violating its own standards, or those of oversight agencies. We hope Success Academy will embrace our recommendations and adjust its practices,” Stringer said in a statement following the release of the audit. “This isn’t about district vs. charter schools—it’s about protecting taxpayer dollars.” The scope of the audit spanned fiscal years 2013 through 2015. The audit included a broader analysis of Success Academy’s finances, along with a detailed examination of a particular school, Success Academy Harlem 3. Success Academy was founded by CEO Eva Moskowitz in 2006. It currently operates 34 public schools throughout New York City, 15 of which are in Queens.

Do School Vouchers Work? Milwaukee’s Experiment Suggests an Answer

Source: Tawnell D. Hobbs, Wall Street Journal, January 28, 2018
 
Almost three decades ago, Milwaukee started offering the nation’s first-ever school vouchers. Starting small, the program allowed poor children to use taxpayer money to attend private schools. Today, about a quarter of Milwaukee children educated with public funds take advantage, making the program a testing ground for a big experiment in education.  Did students in the program get a better education? That depends on how participating schools handled a critical issue: how many voucher students to let in.  A Wall Street Journal analysis of the data suggests vouchers worked best when enrollment from voucher students was kept low. As the percentage of voucher students rises, the returns diminish until the point when there is little difference between the performance of public and private institutions. …

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A new study suggests that school vouchers could actually hurt organized religion
Source: Matthew Rosza, Salon, February 15, 2017

Although school vouchers may be a boondoggle to churches, a new study from The National Bureau of Economic Research finds that “they offer financial stability for congregations while at the same time diminishing their religious activities.” The National Bureau of Economic Research found that more than 80 percent of private school students in the 2011/2012 school year attended a religiously-affiliated school, with Catholicism being the most common religious affiliation. The authors studied 71 Catholic parishes in Milwaukee from 1999 to 2013. … Whether this is a good or bad thing depends on whether one believes that religious institutions should focus on religion or on making money by supplanting public schools. … “Our numbers suggest that, within our sample alone, the Milwaukee voucher program has led over time to a decline in non-educational church revenue of $60 million. These large effects are driven by the large size of the voucher program itself,” the authors wrote. …

More Graduates, Less Criminals? The Economic Impacts of the Milwaukee Parental Choice Program
Source: Will Flanders and Corey A. DeAngelis, University of Arkansas Department of Education Reform Working Paper, February 3, 2017

Abstract:
Although an abundance of research indicates that private schooling can benefit individual children through higher test scores, the effects on society are less clear. We monetize and forecast the social impacts of the Milwaukee Parental Choice Program (MPCP) in the United States. We use existing literature on the impacts of the MPCP on criminal activity and graduation rates. Between 2016 and 2035, students who use a voucher in the MPCP will generate additional economic benefits of $473 million associated with higher graduation rates, and $26 million associated with fewer felonies and misdemeanors, relative to their traditional public school peers.

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