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Source: The IndyChannel , UPDATED: 3:51 pm EST February 4, 2006

INDIANAPOLIS -- The companies most likely to seek the state's $1 billion contract that will give them control of determining who's eligible for food stamps and other federal safety-net program are all based outside of Indiana. Gov. Mitch Daniels defended the privatization plan Friday, even though hiring one of those companies would go against his mandate that state contracts be directed toward Indiana firms. Daniels said that even though the top contract contenders are from out-of-state, he believes the deal will save taxpayers' money.

Source: By LIZ AUSTIN. Associated Press (TX), 02/02/200

The reorganization of Texas' health and human services system came under fire on Wednesday, as members of the powerful Senate Finance Committee questioned whether it has saved the state as much money as was projected. The massive overhaul approved by the Legislature in 2003 was supposed to save Texas $1.1 billion by August 2005, according to a fiscal analysis given to lawmakers three years ago. "Frankly, I just don't see the savings," committee chairman Sen. Steve Ogden, R-College Station, said Wednesday after directing Health and Human Services Commissioner Albert Hawkins to submit a detailed progress report by the end of February.

Source: STEVE SCHULTZE, Journal Sentinel (WI), Jan. 26, 2006

State officials have ordered three Wisconsin Works agencies to provide subcontracts worth nearly $500,000 to a start-up job development agency with close ties to Gov. Jim Doyle, an agency that has failed to meet its goals under a special no-bid $700,000 state contract issued last year. The firm, Milwaukee Job Development Inc., was incorporated in April with a board of directors headed by former state Commerce Secretary Cory Nettles, a Doyle ally. The company failed to meet any of its 2005 goals, which included assessing 1,500 unemployed or underemployed people and placing 540 of them in jobs.

The Arizona Department of Economic Security is in the process of considering proposals for contracting out case management services related to its TANF wwork program, known as the Jobs program. As part of the contracting process, DES has posted voluminous information on its website.

"The State of Arizona Forty-Sixth Legislature, Second Regular Session 2004 passed Senate Bill 1265 which amended Arizona Revised Statute (ARS) 46-300.01. ARS 46-300.01(as amended) requires the Arizona Department of Economic Security to issue a Request for Proposals (RFP) for the statewide privatization throughout the state for case management and employment services necessary to operate the Jobs Program."

The Welfare Law Center has prepared a checklist of questions (.pdf) for advocates to consider in addressing issues related to privatization of welfare and related services. The document is available on our website, www.welfarelaw.org. It is a work in progress and we welcome feedback from advocates working on these issues.

Source: STEVE SCHULTZE, Journal Sentinel (WI), Jan. 23, 2006

When the Milwaukee Center For Independence backed away from its $10.4 million state contract to run Wisconsin Works welfare reform programs in part of Milwaukee late last year, it set off a chaotic musical-chairs game of changes that hasn't stopped. The main contractor for W-2 job training will switch again on the city's near north and northwest sides - for the third time in three years - with the last-minute substitution of a Denver-based firm. That means that some of the 30 subcontractors that have done much of the work also will likely change, triggering layoffs and uncertainty for those workers. And although state officials insist that no clients will be shortchanged during yet another transition, advocates fear some poverty-stricken W-2 clients will get neglected.

Source: By Sara Eaton, The Journal Gazette (IN), Wed, Jan. 18, 2006

A state employees union is appealing last month’s ruling that allowed the Jan. 1 takeover at the Fort Wayne State Developmental Center, a union spokesman announced late Tuesday. An employee, Anita Stuller, and her union filed a lawsuit against Gov. Mitch Daniels, Family and Social Services Secretary Mitchel Roob and another state leader in early December. The lawsuit sought to at least temporarily stop the takeover of the center and to force the state to go through a bidding process before giving control to a private company. In May, state officials hired Pennsylvania-based Liberty Healthcare Corp. to manage the center on an 18-month contract. The company took over operations of the center at 4900 St. Joe Center Road on Jan. 1.

Source: Sara Eaton, The Journal Gazette (IN), Fri, Dec. 23, 2005

The takeover of the Fort Wayne State Developmental Center on Jan. 1 is no longer in jeopardy after an Allen Superior Court judge on Thursday refused to grant a preliminary injunction preventing it. An employee, Anita Stuller, and her union filed a lawsuit against Gov. Mitch Daniels, Family and Social Services Secretary Mitchel Roob and another state leader this month. The lawsuit sought to at least temporarily stop the takeover of the center and to force the state to go through a bidding process before giving control to a private company. In May, state officials hired Pennsylvania-based Liberty Healthcare Corp. to manage the center – a $3 million contract over 18 months. The company is slated to take over operations of the center at 4900 St. Joe Center Road on Jan. 1. …. Judge Nancy Eshcoff Boyer heard arguments from attorneys on both sides this week. She issued a ruling Thursday against Stuller and the union, American Federation of State, County and Municipal Employees Council 62.

By JOE BARNETT and CHRISTY BLACK, Houston Chronicle (TX), Dec. 20, 2005, 9:18PM

In a major step forward for welfare reform, Texas is about to roll out an ambitious program using private sector principles to streamline the process of applying for public health and welfare programs. The reform is expected to save taxpayers more than $100 million a year, while making it easier for people who qualify for social services to enroll in programs and claim benefits. Texas is the first state in the country to implement such a comprehensive, statewide reform, and it could serve as a model for other states. ..... By using both state workers and private contractors who specialize in technology, data management and administrative duties, the system will be more efficient, will cost less and will allow state employees to focus on the people they serve, not the paperwork.

(Note: Barnett is director of publications and Black is a research associate with the National Center for Policy Analysis)

Source: Jennifer L. Boen, Fort Wayne News Sentinel (IN), Wed, Dec. 21, 2005

Allen Superior Court Judge Nancy Boyer heard nearly four hours of arguments and testimony during a hearing Tuesday related to claims that the state of Indiana failed to follow a state law requiring competitive bids be sought before entering into a public-private contract. Council 62 of the American Federation of State, County and Municipal Employees, or AFSCME, which represents about 200 Fort Wayne State Developmental Center employees, plus union member and 34-year employee Anita Stuller, allege the Indiana Family and Social Services Administration entered into a $95 million contract with Liberty Healthcare Corp. of Pennsylvania without seeking requests for proposals from other vendors.