With New P3, Delaware Partially Privatizes Economic Development

Source: Governing, August 16, 2017
 
Delaware’s economic development efforts are about to undergo a major transformation.  Gov. John Carney signed a bill Monday that replaces the Delaware Economic Development Office with a public-private partnership partially run by some of the state’s largest companies.  “This is a starting point,” Carney said. “The hard work starts now and that’s working together in partnership … to market our state more aggressively and think out of the box about how to develop our entrepreneurial economy.”  Tentatively called the Delaware Prosperity Partnership, the new nonprofit will be responsible for recruiting new employers to the state, supporting the state’s nascent startup community and investing in workforce development programs. …

Harris County Nixes Private Prisons

Source: Allison Lee, Houston Public Media, August 1, 2017

Private prisons usually get a bad wrap from advocates, for a lack of oversight. But, that wasn’t main reason behind Sheriff Ed Gonzalez shifting the department away from private prisons. … “Within three months, we were able to move everybody back in house,” Gonzalez said. … According to the Harris County Sheriff’s office, the department spent $4.5 million on outsourced inmates last fiscal year. This fiscal year, they’re projecting to spend just under $300,000 (for what’s been spent before the transition). … He says there are also other benefits to bringing inmates back in-house. “We have more control of what we’re doing. You know, the medical records, things like that,” Gonzalez said. Another benefit? Loved ones can visit inmates, without having to travel to other municipalities or cities.

Pennsylvania municipalities and utilities benefit from privatization, says Moody’s

Source: Paul Burton, Bond Buyer, August 15, 2017 (subscription required)
 
Pennsylvania municipalities and regulated investor-owned utilities will benefit from legislation removing hurdles for local governments to sell water and wastewater systems, Moody’s Investors Service said.  Moody’s in a report Tuesday projected more privatizations. Municipalities within the commonwealth Pennsylvania see utility sales as a way to cope with financial distress and sidestep maintenance and compliance costs.  The report examined the $195 million sale of the Scranton wastewater system and the pending $162 million sale of the McKeesport wastewater system outside Pittsburgh to the Pennsylvania-American Water Company. Regulators must still approve the latter. …

Students Who Took Private Loans Through Corinthian Colleges Eligible for Relief

Source: Melissa Korn, Wall Street Journal, August 17, 2017
 
Former Corinthian Colleges Inc. students who took out 46,000 private loans through the now-defunct school will be eligible for $192 million in loan relief, based on a settlement announced Thursday by 13 state attorneys general and the Consumer Financial Protection Bureau.  The settlement is subject to approval by a federal court in Oregon that is overseeing the receivership of the investment firm that owned the loans, Aequitas Capital Management LLC.  Roughly 41,000 students took out what Corinthian called Genesis private loans, coordinated through Aequitas’s Campus Student Funding affiliate. …

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Corinthian Colleges Loses Federal Lawsuit As Education Department Faces Reckoning
Source: Shahien Nasiripour, Huffington Post, October 28, 2015

Defunct for-profit college chain Corinthian Colleges Inc. violated federal law by using false job placement rates to deceive 115,111 former students into taking out student loans, a federal district court judge ruled on Tuesday.  In a lawsuit brought last year, the Consumer Financial Protection Bureau alleged that Corinthian duped prospective students into enrolling and taking out loans by falsely advertising future job prospects. The company, which declared bankruptcy in May, operated for-profit schools under the Everest, Heald and Wyotech brands and had previously denied wrongdoing. The ruling by Judge Gary Feinerman in Chicago could force the Department of Education to forgive the former students’ federal student debt, thanks to a provision in federal law that gives student debtors the right to apply for total debt forgiveness if schools mislead them into taking out federal student loans. Former Corinthian students have taken out nearly $4 billion in loans from the Education Department over the last five years.

Corinthian Colleges Secretly Funded D.C. Think Tanks, Dark Money Election Efforts
Source: Lee Fang, The Intercept, May 4, 2015

….The filing doesn’t list amounts, but shows that Corinthian made payments to Crossroads G.P.S., a group co-founded by Karl Rove that has raised over $300 million to elect Republican members of Congress through campaign advertising. Crossroads G.P.S., a 501(c)(4) nonprofit, does not disclose any of its donors…. APCO Worldwide, a lobbying firm, is among the Corinthian creditors, though the firm never registered to represent Corinthian under the Lobbying Disclosure Act. The listing reveals a number of payments to influential D.C. groups that have battled regulations on the for-profit college industry. The U.S. Chamber of Commerce is listed multiple times as a Corinthian creditor. The Chamber has run campaign advertisements on behalf of opponents of the Department of Education’s “gainful employment” regulation, which would measure the performance of vocational programs. The Chamber made defeating the rules a top priority. The American Legislative Exchange Council, a nonprofit that helps corporate interests draft model legislation, is listed as a creditor. As Republic Report reported, although for-profit colleges are far more expensive for programs offered by community colleges and other public institutions, ALEC drafted a resolution calling for state officials to “recognize the value of for-profit providers.” Another gainful employment regulation opponent, the American Enterprise Institute, is listed as a Corinthian creditor. AEI scholars have repeatedly attacked the rules, calling them an example of the Obama administration’s “crusade against for-profit colleges.” Last October, Andrew Kelly, AEI’s resident scholar on higher education reform, specifically defended Corinthian and criticized the “Obama administration’s bloodlust for such schools.”….

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Nuclear Negligence

Source: Center for Public Integrity, August 1, 2017

Nuclear Negligence examines safety weaknesses at U.S. nuclear weapon sites operated by corporate contractors. The Center’s probe, based on contractor and government reports and officials involved in bomb-related work, revealed unpublicized accidents at nuclear weapons facilities, including some that caused avoidable radiation exposures. It also discovered that the penalties imposed by the government for these errors were typically small, relative to the tens of millions of dollars the NNSA gives to each of the contractors annually in pure profit.

  1. A near-disaster at a federal nuclear weapons laboratory takes a hidden toll on America’s arsenal: Repeated safety lapses hobble Los Alamos National Laboratory’s work on the cores of U.S. nuclear warheads
  2. Safety problems at a Los Alamos laboratory delay U.S. nuclear warhead testing and production: A facility that handles the cores of U.S. nuclear weapons has been mostly closed since 2013 over its inability to control worker safety risks
  3. Light penalties and lax oversight encourage weak safety culture at nuclear weapons labs: Explosions, fires, and radioactive exposures are among the workplace hazards that fail to make a serious dent in private contractor profits
  4. More than 30 nuclear experts inhale uranium after radiation alarms at a weapons site are switched off: Most were not told about it until months later, and other mishaps at the Nevada nuclear test site followed
  5. Repeated radiation warnings go unheeded at sensitive Idaho nuclear plant: The inhalation of plutonium by 16 workers is preceded and followed by other contamination incidents but the private contractor in charge suffers only a light penalty
  6. Nuclear weapons contractors repeatedly violate shipping rules for dangerous materials: Los Alamos laboratory’s recent mistakes in shipping plutonium were among dozens of incidents involving mislabeled or wrongly shipped materials associated with the nuclear weapons program

Arkansas seeks bids for privatization of juvenile centers

Source: Tafi Mukunyadzi, Associated Press, August 14, 2017
 
Gov. Asa Hutchinson said Monday that the state will seek bids from the private sector to take over operations of seven juvenile detention centers in Arkansas.  Hutchinson said the Arkansas Department of Human Services recommended soliciting a private operator, and that bids were likely to go out in December. The winning bid is expected to be announced in March, and the facilities would be taken over in July, the governor said. …

Daily understaffing persists at Grand Rapids Home for Veterans

Source: Amy Biolchini, MLive, August 10, 2017

Understaffing at the Grand Rapids Home for Veterans continues to be a problem, according to an follow-up audit released by the state. That’s after the home entered into a new staffing contract in fall 2016. … However, most other major problems at the Grand Rapids Home for Veterans identified in a blistering state audit in February 2016 have largely been resolved, the report found. …

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Blame for poor care at Grand Rapids veterans home sits at the top, Dems say
Source: Amy Biolchini, MLive, July 27, 2017
 
Democratic State Representatives Winnie Brinks and Tim Greimel say Republican Attorney General Bill Schuette hasn’t gone far enough to hold officials with the Grand Rapids Home for Veterans and the state accountable for the poor conditions at the facility.  “Why did it take so long to get some action? For years, our veterans were literally calling for help, pressing the help button beside their bed, and hearing silence,” Brinks, D-Grand Rapids, said at a Thursday, July 27, press conference in front of the home.  This week Schuette announced felony charges for falsifying medical records against 11 former nursing assistants who worked for the former contractor, J2S Group Healthforce. His investigation found there wasn’t enough evidence to bring criminal charges over the five worst complaints about member treatment, in some of which veterans died. …

Did a 2011 lawsuit against Grand Rapids Home for Veterans predict the future?
Source: David Bailey, WZZM, July 25, 2017
 
The lawsuit was filed by veteran Anthony Spallone intending to stop the on-going privatization at the time.  Gov. Rick Snyder recommended taking state-employed care aides out the home and replace them with nurse aides hired by local contractor J2s.  It was a contentious environment at the time as state aides lost their jobs and were replaced by people they considered to be less-skilled, less-experienced and cheaper.  Union leaders did everything they could to stop the job losses including filing Spallone’s lawsuit.  It alleged the privatization would lead to substandard care and contended J2S had a quote “dangerous track record of care”.   Spallone’s attorney at the time was adamant veterans could be put in terrible situations with the privatization. …

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Scuba supply company pays $16 million to settle allegations it defrauded the military

Source: Aaron Greg, Washington Post, August 11, 2017

A Virginia Beach company that supplies advanced equipment for the U.S. military’s search-and-rescue operations has agreed to pay $16 million to settle allegations that it fraudulently obtained government contracts and engaged in illegal bid-rigging schemes, the Justice Department announced Thursday. … The Justice Department said the $16 million payment was one of the largest ever made in connection with small business contracting programs, enough money to put a lot of small businesses under water. But ADS isn’t so small anymore: it made about $1 billion from federal contracts last year, making it the 56th-largest defense contractor, according to Bloomberg Government. … The allegations concern a collection of federal programs meant to help small businesses learn the ropes of the complicated government procurement process and secure contracts. The Justice Department alleges the company managed to take advantage of these programs despite its size by relying on an elaborate network of smaller companies. …

Detention Center In Texas That Once Burned During Riots Reopens  

Source: ARI SHAPIRO,NPR, All Things Considered, August 2, 2018
 
The company that operated Willacy is the third-largest private detention business in the U.S. It’s called MTC or Management & Training Corporation. They deny that there was a pattern of abuse, and we’ll hear more from them in a moment. When Willacy prison shut down after the riots, Willacy County was tens of millions of dollars in debt for the cost of the center. So the county sued MTC for breach of contract, accusing the company of, quote, “abysmal management of the prison.” The county later agreed to drop the lawsuit. MTC bought the Willacy site from the county and paid off the county’s debts in the bargain – case closed, prison closed until this summer…. In early July, protesters marched in the Texas summer heat in front of Willacy County Courthouse. Commissioners met inside to approve a new contract for MTC to run a detention center on the same site where detainees burned down the old Willacy tent city…..

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Raymondville correctional center repurchased by private company
Source: Tiffany Huertas, CBS4, March 10th, 2017

More than two years after a riot shut down a private prison in Raymondville, Willacy County commissioners have approved an agreement to reopen the correctional center. Commissioners sold the correctional center back to the private company, Management and Training Corporation, Tuesday night. “The county will receive somewhere between $300,000 to $450,000 a year,” Willacy County Judge Aurelio Guerra said. The prison is expected to bring approximately 250 jobs and about $2 million in annual property tax revenue, according to Guerra. Guerra said they sold the property after bond holders demanded payment of its $68 million debt. … Last year, the county filed a lawsuit against MTC, claiming the private prison company kept inmates in deplorable conditions. …. The county has decided to drop the lawsuit and move forward with this new agreement. Guerra said the contract will be finalized Friday.

A year after the prison riot, company seeks new contract for ‘tent city’ in Willacy County
Source: Tiffany Huertas, CBS4, February 23, 2016

Originally called the Willacy County Processing Center, the Raymondville prison held people who weren’t legally present in the United States. “Nicknamed the ‘Tent City’ or “Ritmo’ (a portmanteau of ‘Gitmo’ and ‘Raymondville’), Willacy soon earned a reputation as one of the most inhumane such facilities in the country,” according to a report published by the American Civil Liberties Union of Texas. The report documented overflowing toilets, insect-infested sleeping areas and spoiled food. … Utah-based Management and Training Corp., which operated the prison, told CBS 4 News the company wants to secure a new contract for the Willacy County prison. With a new contract, the company could start hiring again and renovate the prison complex. A Willacy County official told CBS 4 News the county is waiting to hear whether or not Management and Training Corp. secures a new contract by April. …

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Higher Rates, Missed Pickups: L.A. is Hearing a Rash of Complaints About its New Waste Removal System

Source: David Zahniser, Los Angeles Times, August 7, 2017

Eight months ago, the Los Angeles City Council voted to overhaul the way trash is picked up at tens of thousands of businesses and large residential buildings, giving the work exclusively to a select group of companies. Backers of the program, championed by Mayor Eric Garcetti, said the new system would increase recycling, roll out cleaner-fuel trash trucks and improve workplace safety for sanitation workers. But the new program, known as RecycLA, is not being universally welcomed by the businesses and residents who will rely on it for their trash pickup. In recent weeks, customers have begun complaining about soaring prices, uncollected trash and calls to their new waste hauling companies going unreturned. …