News summaries
At Homeland Security, contractors outnumber federal workers
The Department of Homeland Security said this week that it employs more
private contractors than federal employees, an admission that officials
blamed on the department's quick establishment seven years ago and the
federal government's burdensome hiring process. DHS officials informed
Senate staffers this month that it employs roughly 200,000 contractors
and about 188,000 federal employees...."That raises a question of
whether it's the most efficient use of taxpayer money, but also the
question of who's making critical decisions at the department," Sen.
Joseph I. Lieberman (I-Conn.) said Wednesday during a hearing of the
homeland security committee on the department's annual budget requests.
"Is it private contractors, or is it full-time federal employees?" He
called the figures "shocking and unacceptable." Homeland Security
Secretary Janet Napolitano called the estimates "a high number" but
would not say, when asked by Lieberman, whether she thought the figure
was too high. "I think the number illustrates a problem, or an issue we
have to work on," Napolitano told senators...Paul Light, a Brookings
Institution scholar on the federal government, disputed the DHS
estimates, and said the number of contractors is likely to be much
higher...Federal labor unions that have long fought DHS's use of
contractors applauded congressional attention on the issue.
The Washington Post
Senators vow to fight NASA outsource plan
Members of a Senate science subcommittee vowed to fight the Obama
administration's plan to outsource transportation of NASA astronauts to
private firms. Calling the plans a "radical" departure from past NASA
budgets, lawmakers expressed bipartisan opposition to the White House
initiative. They also complained that NASA and the White House failed
to lay out clear-cut goals for the agency and that the U.S. was in
danger of losing its leadership in space exploration...Sen. Bill
Nelson, the Florida Democrat who chairs the Commerce Committee panel
with responsibility over NASA, said that by eliminating the agency's
current program to build a heavy-lift booster, "the U.S. is going to be
on the sidelines" on space exploration in future decades. The budget
envisions long-term competition among private firms to develop such
technology... In a hearing marked by sharp exchanges with the NASA
chief, members of the subcommittee vowed to work with other lawmakers
to fundamentally redraw NASA's proposed budget. "I've never seen the
appropriators and the authorizers" who sit on different congressional
committees as unified as they are today about NASA's future course,
Sen. Nelson said.
The Wall Street Journal
IN: Lawmakers consider PP3 for bridges
The House could pass legislation Thursday to authorize the use of a public
-private partnership with tolls to build and finance the Ohio River
Bridges project. The legislation, which also would need Senate
approval, would not require funding the project using tolls or a
private partner. But its sponsor, Rep. Steve Stemler, D-Jeffersonville,
said the measure will make it easier for a new bi-state authority with
Kentucky to investigate the idea and move forward with a deal if that’s
determined to be the best way to finance the bridges. The legislation
would give the Indiana Finance Authority, the Indiana Department of
Transportation and the bi-state group more power to begin negotiating
with the bond market and private companies that might want to be
involved in the project...The $4.1 billion project includes two bridges
– one downtown and one on Louisville’s east end. Originally, Kentucky
and Indiana leaders had planned to fund the bridges using state and
federal tax revenue. But delays and escalating costs have forced the
states to consider other alternatives. This week, U.S. Transportation
Secretary Ray LaHood, in a visit to Jeffersonville, told area leaders
that the project may be eligible for a new $600 million round of
federal transportation grants. LaHood said the project also could
qualify for a $4 billion national infrastructure fund proposed by
President Barack Obama and receive money in a new federal
transportation bill.
Courier Journal
CO: Privatization of state's insurer stalls
A group of lawmakers that heard six days of testimony about the
practices of Pinnacol Assurance before this legislative session began
oppose privatization of the workers' compensation insurer. A letter
to Gov. Bill Ritter from members of the joint committee obtained
Tuesday by The Pueblo Chieftain cites testimony that spotlighted the
company's executive spending habits, reluctance to pay claimants and
"lack of accountability and oversight" as reasons to abandon ongoing
discussions about privatizing the quasi-governmental insurer, presently
under auspices of the state....Pinnacol has offered $200 million to
break its link with the state.. Pace, who chaired the interim
committee, said the $200 million figure is absurdly low, given the
company's assets of $2 billion. Pinnacol's proposal to privatize
seeks to terminate pending bills in the Legislature that, among other
things, would limit circumstances under which it could conduct
surveillance on claimants. "I don't know if this falls under the
bribery laws, but it definitely stinks," Pace said. "I think the bills
aimed at keeping Pinnacol in line, including my surveillance bill,
become even more important to pass if it's privatized." Moreover, Pace
said less oversight of the company would be a misstep, given what he
characterized as Pinnacol's less than stellar track record. "Under
state supervision Pinnacol's overcharging customers and underpaying
injured workers," Pace said. "How's that going to change if they
privatize? Investment banking firm Morgan Stanley is reviewing the
possible switch for the state.
The Pueblo Chieftain
IL: Gov: Privatizing McCormick Place 'premature'
Illinois Governor Pat Quinn says Chicago Mayor Richard Daley's
suggestion of privatizing McCormick Place "should be reviewed." But he
calls the idea of privatizing operations at the convention center
"premature." Quinn says he'll soon announce the appointment of three
members to an interim board to study the city's trade show industry.
Daley will also appoint three board members and a chairman to oversee
operations for the convention center run jointly by the city and
state...McCormick Place has lost several big conventions in the last
few months. Quinn says the state has to be careful not to make the
situation worse. He says Daley has not yet come to him with the idea
the mayor mentioned in a speech Monday night.
Chicago Public Radio
MI: Drastic cuts looming for Troy
After Troy voters shot down on Tuesday a proposal to raise taxes, city
officials said the City Council may direct city administrators at its
meeting Monday to begin building a balanced budget that includes
eliminating departments and closing facilities...City Manager John
Szerlag said officials also have looked at other cost-cutting measures,
including privatizing departments and negotiating with unions for
payroll reductions.
Detroit Free Press
AL: Vote delayed on making state get permission to privatize hospital
A House committee is considering a bill that would require the Alabama
Department of Mental Health to get permission from three-fifths of the
House and Senate before privatizing care for mental health patients.
The House Government Appropriations Committee delayed action Wednesday
on the bill by Democratic Rep. Alan Harper of Aliceville. Committee
chairman Democratic Rep. John Knight asked Harper and other supporters
to meet with Gov. Bob Riley and Department of Mental Health officials
to work out a compromise. The state mental health board recently
approved the sale of historic Bryce Hospital in Tuscaloosa to the
University of Alabama for $60 million. Harper and the mayors of
Tuscaloosa and Northport said they are concerned the state will decide
to turn over care of the mental health patients to a private company.
WHNT
