Source: MARTIN DeAGOSTINO, South BendTribune (IN), December 13. 2005 6:59AM
A government-employees union has asked a judge to block the state from turning over management and operations of a troubled Fort Wayne health care facility to private operators. The lawsuit, filed in Allen Superior Court, says the state failed to solicit proposals before signing the contract with Liberty of Indiana Corp., a division of Pennsylvania-based Liberty Healthcare Corp. “The law is clear,” said David Warrick, executive director of Council 62 of the American Federation of State, County and Municipal Employees. “The state has to bid this work before it can award millions of taxpayer dollars to a private company. The reason for this law is to ensure that the state is promoting competition and working to get the best deal it can for taxpayers.”
Source: MIKE DENNISON, Helena Independent Record (MT), 12/14/05
A half-dozen computer experts who lost their jobs on a state Justice Department project are taking legal action, saying the state deceived them about the length and nature of the job. …… They lost their jobs in May after the Justice Department shifted gears on its $22.5 million project to computerize motor-vehicle records, deciding to hand it over to a private company in what became a $15.9 million contract. “They gave the work they promised to us to the contractor, BearingPoint, without any explanation other than it was a business decision,” said Katherin Clemmence, the lead plaintiff in the case. …… The six workers said they left good-paying jobs, some in other states, to move to Helena and work on the Justice Department project, which is one of the largest computer projects in state government.
Source: Katie Oliveri, The Battle Creek Enquirer (MI), Dec 13, 2005
Despite a show of overwhelming opposition from community members, Lakeview’s board of education approved 5-1 outsourcing custodial services at the new high school as a cost-saving measure for the district Monday…….. The district now will enter into an 18-month custodial services agreement with Hi-Tec Building Services for $285,948, including benefits, for 10 custodians at the new high school, effective Dec. 27. …. Bill Farmer, union representative with the American Federation of State, County and Municipal Employees representing Lakeview’s custodial staff, said he was disappointed at Monday’s outcome since he estimated a potential $198,000 savings from the union’s proposal. (UB)
Source: ZACHARY GORCHOW, Detroit FREE PRESS (MI), December 13, 2005
Wayne County sheriff’s deputies are expected to take over policing Detroit’s public housing facilities, replacing a private corporation that has been providing security. Under an agreement with the U.S. Department of Housing and Urban Development, which still has to be approved by Wayne County Executive Robert Ficano and county commissioners, the sheriff’s department would be responsible for policing the city’s 19 public housing complexes. ….. If approved as expected, the sheriff’s department will replace Wackenhut Corp., a private company that now handles security for public housing. Five months ago, HUD took over the Detroit Housing Commission, which runs public housing in the city, after decades of complaints about fiscal mismanagement and dilapidated buildings. Wayne County Sheriff Warren Evans said his department could better police housing units because, unlike Wackenhut’s personnel, his deputies can make arrests and have the resources to pinpoint crime trends. When Wackenhut responds to a situation, its personnel have to contact Detroit police to make an arrest.
Source: CAROLYN NORTON, The Herald-Sun (NC), Dec 12, 2005
Faced with the $400,000 subsidy this fall, the school board asked for an independent financial review of Sodexho’s program. The review, done by the N.C. Department of Public Instruction, found that per-hour labor costs are too high. School district food service employees start at $10.14 an hour, higher than surrounding districts because of the higher cost of living in Chapel Hill and Carrboro. However, the employees also average 15 years of service, raising the average wages to $12.73. In an effort to lower labor costs, the district is making new food service workers employees of Sodexho, which starts at $8.50 an hour, instead of hiring them directly. However, officials say, the process has been slow because food services has a turnover rate of less than 10 percent a year. Since 2003, when the board decided to switch new employees to Sodexho, 19 positions have been moved to the corporation, which could save the district $100,000 this year, officials say.
Source: MATT STILES, Houston Chronicle, Dec 9, 2005
City Controller Annise Parker said today that she has launched an audit into allegations that a contractor billed the city of Houston for collection and disposal of tons of garbage collected in neighboring municipalities. A second phase of the probe will look at the city’s Solid Waste Management department to ensure that safeguards are in place to prevent fraud and to “identify ways to make the department more effective and efficient,” Parker said. ….. Officials at the company under audit, Florida-based Republic Services, Inc., could not be reached for comment this morning. Parker, who said the company has agreed to pay $150,000 to fund the audit, also plans to look at whether the company ought to pay restitution.
Source: Mary Massingale, Copley News Service (IL), Friday, December 9, 2005
As state government prepares to shift hundreds of contracted positions to union jobs by the end of the month, some contractors are warning a “brain drain” could cripple state programs serving the poor and disabled. ….. As part of an agreement with the American Federation of State, County and Municipal Employees, the state is eliminating 913 “personal-services” contract workers by Dec. 31 and replacing about 600 of them with current and newly hired union employees. Of those 913, 308 are computer contractors and 280 will be replaced. The remaining contract positions are primarily clerical jobs.
Source: James Goodwin, Springfield News-Leader (MO), December 8, 2005
State Auditor Claire McCaskill on Wednesday named a Springfield group home for mentally retarded adults as the facility where “unsatisfactory” living conditions were discovered during a routine audit last month. Among problems reported at the Sagamont facility: soiled items in a shower and the prescription drugs of a former client in an unlocked refrigerator marked “Healthy foods.” ….. Gene Barnes, president and CEO of the not-for-profit Arc of the Ozarks, which operates Sagamont, said the facility has settled all concerns.
Source: MARC CAPUTO, Miami Herald (FL), Dec 9, 2005
From people with AIDS and diabetes to children and the seriously disabled, most of Broward County’s poorest and most fragile residents will be subjects of a nationally watched experiment to reshape Medicaid, after the Florida Legislature voted Thursday to turn over some control of the program to private companies. …… The plan, starting in Broward and Duval counties in July, puts the state on a five-year course to enroll nearly all of its Medicaid recipients into HMO-like managed-care companies. The firms will have unprecedented say in defining benefits that the government now decides.
Source: Tom Wyatt, Post-Tribune (IN), Dec. 8, 2005
…… Privatization is just one of several options town leaders will ponder in an effort to get Merrillville EMS out of a $250,000 hole created after functioning in the red for a number of years. But just the idea of privatization has put Merrillville paramedics on edge. If the town outsourced its EMS, the 12 full-time paramedics, as well as office staff, would be out of jobs. Part-time paramedics would have to find work elsewhere. Town officials, though, say they don’t want that to happen. Amid all the hubbub over privatization, they insist it is a last resort.