Privatization Plan Defeated in NH

Source: Melissa Weinstein, AFSCME Now, May 30, 2018
 
What if you and your co-workers were forced to leave a job you loved, to which you’d dedicated your career, so that non-union private contractors could be hired for a fraction of the cost? More than 100 Nashua, New Hampshire, School District custodial workers had been facing that prospect for the past 2½ years. Until recently, that is.  Members of AFSCME Local 365 (AFSCME Council 93) finally won the battle against privatization of Nashua School Custodian services. Faced with the threat of politicians putting corporate interests before quality public services, members successfully mobilized to elect Nashua School Board members who understand the value and commitment of public service workers. Following that victory, the board voted 6-1 in late February to negotiate a new contract with AFSCME members, whose contract had expired in 2016. …

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Nashua BOE rejects privatization plan
Source: Hannah Laclaire, The Telegraph, February 28, 2018 (Abstract)
 
The Nashua Board of Education has rejected privatization, ending two and a half years of discussion about the topic and protecting more than 100 union service-based jobs within the district. … Last fall, the Supreme Court of New Hampshire sided with the Nashua School District in an appeal from the union that the district committed an unfair labor practice by refusing to bargain with the Nashua Custodial/Janitorial Staff concerning the district’s plan to move toward privatization at the end of the term of the “collective bargaining agreement between the parties.” …

School board-custodian case moves close to Supreme Court
Source: Tina Forbes, The Telegraph, September 22, 2016 (Abstract)

The Nashua School District is one step closer to having its case considered by the New Hampshire Supreme Court after the state Public Employee Labor Relations Board denied the district’s request for a rehearing on its plan to privatize some of its custodial workforce. The labor board handed down its decision on Tuesday, more than a month after the school board voted to appeal the labor board’s initial decision in favor of the district’s custodians.

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

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

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

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

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Ann Arbor council shuts down talks of privatizing trash pickup

Source: Ryan Stanton, MLive, May 24, 2018
 
Talks in city hall about possibly privatizing more of Ann Arbor’s solid waste services such as trash pickup have concerned the city’s unionized workforce and left the City Council divided. The council voted 7-4 this week to shut down those talks, directing the city’s administration to cease all actions that further any plan to privatize solid waste services now performed by city staff. The council also directed the city’s administration to end the practice of using temporary employees on a long-term basis to forestall the hiring of permanent full-time union employees. … The city already contracts with private entities such as Waste Management, Recycle Ann Arbor and WeCare Denali for some solid waste services, but the city also has in-house staff that performs certain collection functions. The council’s approved resolution proclaims opposition to privatization of solid waste services not already performed by an outside contractor, though it doesn’t preclude the creation of a regional public partnership to consolidate services, something the city has talked about. The council intends to make its position against privatization clear to the consultant now helping the city evaluate how to better deliver solid waste services, including trash, recycling and composting. …

MEU fails by three votes

Source: Sarah Strandberg, The Decorah Newspapers, May 14, 2018

The special election May 1 on whether the city of Decorah should be authorized to pursue a municipal electric utility (MEU) has been defeated by three votes. Following a recount Friday morning, two more “yes” votes were added, bringing the final total for the referendum to 1,385 “no” votes to 1,382 “yes” votes. Alliant Energy is the city’s current electrical provider. A citizens group, Decorah Power, asked the city to explore the possibility of a MEU. … Since the MEU was defeated, the matter cannot be brought back for a vote for another four years. … The “incredibly close” vote is a testament to the work of Decorah Power volunteers and supporters, Decorah Power volunteer Emily Neal said after the recount. … “We hope that the Iowa Utilities Board and Iowa lawmakers are paying attention to what happened here. If the role of the Iowa Utilities Board is indeed to look out for the consumers’ best interest, then the process for municipalizing needs serious reconsideration. …

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Power struggle: Iowa muni campaign heats up ahead of public vote
Source: Karen Uhlenhuth, Energy News Network, April 9, 2018

Voters in Decorah, Iowa, will decide May 1 whether they want the city to move ahead with a proposal to leave their current electricity provider and create a city-owned utility to take its place. … According to municipalization advocates, the utility, which is based 100 miles south in Cedar Rapids, has hired a community liaison to represent it at community gatherings. … Both camps developed feasibility studies, with vastly differing conclusions. Interstate’s study found that creating a municipal utility would be very costly and raise bills for customers using the 8,100 meters in the Decorah area. Decorah Power’s consultant concluded that a city utility would serve the community well and through 2023 charge at least 4 cents less per kilowatt hour than Interstate has projected. Estimates of what the city would have to pay for Interstate’s assets and startup and application fees were similarly at odds. … The election’s outcome won’t have a binding impact but will convey the thoughts of the city’s 5,250 registered voters, including some of the 2,000 Luther College students, whose election participation is once again the source of contention. …

Iowa town’s municipal utility effort is financially feasible, consultant finds
Source: Karen Uhlenhuth, Midwest Energy News, January 17, 2018

A northeastern Iowa community could lower its electric bills by creating a municipal-owned utility, according to a feasibility study presented to its city council Tuesday. Supporters of an effort to create a city-owned electric utility in Decorah, Iowa, got a boost this week from a consultant’s report that concludes the move is financially feasible. … Talk of a municipal utility surfaced after several attempts to develop renewable energy in the city ran into policies of Interstate Power and Light, the investor-owned utility that currently serves Decorah and much of the state. …

… Although the feasibility study, conducted by NewGen Strategies & Solutions and two other consultants, signaled that municipalization could work, Johnson said he’s aware of what a long and arduous process it would entail. The City of Boulder (Colo.), for example, last November approved a tax measure that will provide the funds needed to continue exploring the possibility of creating a city utility. That process began seven years ago. … Every year there are communities that start to explore creating a municipal utility to take the place of a for-profit utility, Schryver said. Although motivations tend to vary, she said that the desire for clean energy has been the main driver recently. A few new municipal utilities have taken shape lately. In California, the South San Joaquin Irrigation District, which provides water service, recently won approval from state authorities to create an electrical utility as well, meaning it will displace Pacific Gas & Electric in that locality. … Jefferson County in Washington state formed a municipal utility in 2013 to serve about 18,000 customers who formerly purchased electricity from Puget Sound Energy. Three smaller communities — two in Alaska and one in Ohio — also created new municipal utilities in the past few years, according to Schryver. Although exploration of municipalization doesn’t always result in a city-owned utility, Schryver said it can effect change in other ways. In Minneapolis, for example, efforts to depart from Xcel Energy ceased when the utility agreed to expand its clean-energy portfolio. …

Young Boy With Autism Abused By His School Bus Aide And Driver

Source: Dave Savini, CBS Chicago, May 11, 2018

Nicky O’Toole has autism and struggles to communicate. For months, when he was just nine years old, he was hit and threatened by his school bus aide and driver. … O’Toole said as she struggled to figure out why her son’s behavior was changing, she initially did not suspect the First Student bus employees. … She says months of disturbing videos are in First Student’s possession. … There are training questions too. First Student’s contract with the District says they provide, “..a well-developed special-needs training program.” The bus aide says otherwise, according to O’Toole’s team of attorneys, Michael Krzak of Krzak and Rundio Law and Robert Clifford from Clifford Law Offices.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Waste Management sues over ‘arbitrary’ bidding process in Carson, California

Source: Ellen Ryan, WasteDive, May 9, 2018

Claiming that its bid would have brought Carson 15 times more revenue than the eventual winner’s, Waste Management — a major player across the state — wants Los Angeles Superior Court to overturn the new contract and restart the bidding process. This is not the first time a waste collection company has turned to the legal system over a bidding loss. Late last year Republic Services sued Middletown, New Jersey, claiming the township violated state law in awarding a five-year hauling contract to Central Jersey Waste and Recycling. … Meanwhile, public complaints have grown as the City of Los Angeles revamped its waste hauling system in recent months, and citizens attempted a referendum to end it. Waste Management is one of the companies involved in the multi-zone, supposedly more efficient system that has broken down into complaints of lapsed service and higher fees. …

Privatized student housing – Four key trends will differentiate older and newer P3 projects next year

Source: Moody’s Investors Service, May 1, 2018 (Subscription Required)

Privatized student housing projects are vulnerable to negative pressures in the higher education sector, but will hold steady because of solid real estate fundamentals and marginally improving financial performance. … Examining how trends differ between older projects that have been operating for four years or more (seasoned) and new construction that opened in 2015 or later (recent) underscores how a project’s early years carry the most risk, seasoned projects’ upside potential is limited and no project is immune from an unfavorable operating environment. … Rent growth trend diverges for seasoned projects. … Sector maintains solid occupancy despite disappointing initial lease up at some new projects. … Financial performance strengthens overall, but year-to-year fluctuations at individual projects are the norm. … Unfavorable operating conditions contributed to five downgrades last year. …

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U.S. public universities turning to private sector to meet campus needs
Source: Stephanie Kelly, Reuters, August 26, 2016

U.S. public universities are increasingly turning to public-private partnerships to develop student housing and other campus projects, sometimes using the structure to transfer borrowing and liability risks to the private sector. Over the last five years, there has been an “uptick” in universities and colleges leveraging the private sector to deliver housing needs, said Kevin Wayer, an international director and co-president of the Public Institutions group at commercial real estate firm Jones Lang LaSalle. … Use of P3s can contribute to reduced debt on universities’ balance sheets, said Todd Duncan, assistant vice president of housing, food and retail services at the University of Cincinnati’s main campus. While still only a “fraction” of the U.S. municipal infrastructure market, the P3 market is building, Moody’s Investors Service said in a report issued in March. … Universities might engage in P3s for a number of different reasons, including the efficiency that developers can bring to projects, Duncan said. Increased operating costs for institutions and decreased state contributions have led to a financing gap, said Kurt Ehlers, managing director at Corvias Campus Living, a development group. From fiscal 2008 to fiscal year 2016, state spending per student at public two- and four-year colleges decreased 18 percent, according to Michael Mitchell, a senior policy analyst at the Washington, D.C.-based Center on Budget and Policy Priorities. The National Council for Public-Private Partnerships, a non-profit that advocates for P3s, lists 18 types of P3 partnership structures on its website. The council did not have a national figure for how much money is being spent on higher education P3 projects. …

Parking meter deal keeps getting worse for city as meter revenues rise

Source: Fran Spielman, Chicago Sun Times, May 14, 2018

Chicago’s parking meter system raked in $134.2 million last year, putting private investors on pace to recoup their entire $1.16 billion investment by 2021 with 62 years to go in the lease, the latest annual audit shows. Four underground, city-owned parking garages took in $34 million in 2017, while the privatized Chicago Skyway generated $99.9 million in cash, separate audits of those assets show. Not a penny of those revenues, once a mainstay for city government, went to ease the avalanche of tax increases imposed by Mayor Rahm Emanuel to solve the city’s $36 billion pension crisis. That’s because all three of those assets were unloaded by former Mayor Richard M. Daley, who used the money to avoid raising property taxes while city employee pension funds sunk deeper in the hole. …

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Parking meters, garages took in $156M — but city won’t see a cent
Source: Mick Dumke and Chris Fusco, Chicago Sun-Times, February 13, 2017

Chicago’s parking-meter system took in $121.7 million last year, while four underground city-owned garages reaped another $34.7 million — with not a penny of that money going to the cash-strapped city government. Instead, the $156.3 million pot of parking cash went to private investors who control the meters and garages under deals cut by former Mayor Richard M. Daley and rubber-stamped by the City Council. … Chicago Parking Meters — formed by banking giant Morgan Stanley and other financial partners — paid the city $1.15 billion to manage the meter system and pocket the money fed into it for the next 75 years. The city took in $23.8 million from the meters in 2008, the last year before CPM took over the system. In the seven years since, the meter company has reported a total of $778.6 million in revenues. It’s on pace to make back what it paid the city by 2020, with more than 60 years of meter money still to come. … The garage agreement has also sent a stream of money into the coffers of private investors. … Over the nine years of the deal, the facilities have generated $292.6 million in revenue for their private operators. … Last week, the rights to the garages were sold to a group of foreign investors.

A Tale of Two P3s
Source: Yvette Shields, Bond Buyer, July 7, 2016

Chicago’s first mistake in its much-maligned parking meter lease was its choice of asset. That’s one conclusion of a report released Thursday by the Manhattan Institute for Policy Research that looks at public-private partnerships and compares the details of two deals – Chicago’s nearly $1.2 billion 75-year meter system lease and Indiana’s $3.9 billion 75-year lease of the Indiana Toll Road. The Indiana deal is held up as a model while the Chicago parking lease offers a roadmap of pitfalls to avoid. …

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