January 31, 2012

Headlines
GOP Governors soften tone after a rocky 2011
MI: Detroit city council weighs unprecedented cuts to city services
NY: ‘Public-private’ poppycock – opinion
LA: Sen Landrieu walks tightrope on Gov’s voucher plans
CA: Costa Mesa outsourcing legal costs: $400,000 and rising

News summaries 
GOP Governors soften tone after a rocky 2011
A year after a coterie of new Republican governors swept into the statehouses and put in place aggressive agendas to cut spending and curb union powers, sparking strong backlashes in many places, many of them are adopting decidedly more moderate tones as they begin their sophomore year in office. Governing

MI: Detroit city council weighs unprecedented cuts to city services
The Detroit City Council is mulling draconian reductions today — from closing all recreation centers and privatizing ambulance services to increasing the bus and garbage fees and merging the health department with Wayne County’s department. The last-minute reductions, which include an additional 1,300 layoffs, come one week before Gov. Rick Snyder’s imposed a deadline for the city to reach landmark concessions with its 48 unions….A consent agreement would authorize the council and mayor to restructure city government, privatize services and impose a contract on unions once their contracts expire in June. Detroit Free Press

NY: ‘Public-private’ poppycock – opinion
Gov. Cuomo wants to “build a new New York” — but he doesn’t want to pay for it. To get billions for construction, he’s turning to “public-private partnerships.” Sorry. Just as there’s no free lunch, there’s no free bridge….Under a standard “PPP,” a global company would borrow money and build the bridge, then collect the tolls and pay back the debt, making a tidy profit for as long as a century. That sounds great — except for one detail. Whoever builds the Tappan Zee — the state, a big firm like Skanska or the Queen of England — the numbers don’t add up. The project still costs the same. And people will still pay only a certain toll before they stop going. In fact, the PPP finances could be worse. The state can borrow tax-exempt, meaning it has lower borrowing costs. (Investors in state bonds don’t mind getting a lower interest rate, because they get the tax break.) Private companies can’t do that. ..Wouldn’t the private sector be so efficient that it would save money building and running the bridge? Maybe not. Private companies are efficient because they have to compete; this private company wouldn’t compete with anyone. It would be a monopoly, like Con Ed. Its captive “customer” would be the state…As the state’s financial advisers said two years ago, a successful PPP requires “complex negotiations,” “high procurement costs,” “time-consuming implementation” and “continuous monitoring of service and quality standards.” Hmm. A state that can’t build stuff the easy way won’t do better the hard way. Involving the private sector doesn’t eliminate the risk that taxpayers and drivers might get stuck with the bill for politicians’ giveaways, either. New York Post

LA: Sen Landrieu walks tightrope on Gov’s voucher plans
U.S. Sen. Mary Landrieu sought to pour some cold water on one of the central proposals in Gov. Bobby Jindal’s education reform agenda Monday, using state data to show a huge gap between the number of students who would technically qualify for the governor’s proposed private school voucher program and the number of seats that may actually exist in the state’s private schools.  The Times-Picayune

CA: Costa Mesa outsourcing legal costs: $400,000 and rising
The legal battle over the City Council’s outsourcing plan has cost the city more than $400,000 – almost doubling the total legal fees so far this fiscal year – and there’s no end in sight. High-level attorney firm Jones Day has charged the city $390,701 at $495 an hour to handle a lawsuit from the Costa Mesa City Employees Association that seeks to stop the City Council’s plan to lay off more than 200 of its workers. Employees allege that the council acted illegally in its pursuit to explore the viability of outsourcing city services….Residents and union leaders have voiced concern at meetings and public forums that the seemingly limitless cost of the lawsuit could exceed the savings the council hopes to attain from outsourcing. Orange County Register

January 30, 2012

Headlines
In privatizing liquor, states hope to drink down deficits
Paul: Privatize TSA,
MI: Flint Manager: Selling city water and sewer can’t be ruled out
NH: Private prison interest strong for NH
NH: Prisons: Real costs to privatization – letter to editor
FL: Prison privatization push raises a stink
CO: Gov recommends Pinnacol privatization with tweaks

News summaries
In privatizing liquor, states hope to drink down deficits
The move is being aggressively supported in some states by big box retailers like Costco, which are hoping to get a cut of the liquor market. But opponents say the onetime cash infusion that would come from selling off liquor licenses would sacrifice the revenue generated by state monopolies on liquor sales or distribution. Ohio this week announced details of how it will transfer control of its state-owned monopoly on liquor distribution to a private non-profit. In nearby Pennsylvania, Gov. Tom Corbett (R) would like to privatize the state’s control over liquor stores. So far, opponents have managed to derail recent efforts at privatization in Virginia and North Carolina, while discussions are ongoing in Idaho, Oregon and Utah. Washington State is moving forward with a privatization plan approved by a voter initiative in November…Privatization backers like Corbett argue taxes on private sales could make up for revenues lost from state liquor stores, veritable cash cows that are among the few public enterprises capable of making a profit. Libertarians, meanwhile, say states simply shouldn’t be in the business of liquor distribution or sales. They would like to see state governments get out of the game, whether or not it means they lose money. Huffington Post

Paul: Privatize TSA,
Presidential candidate Rep. Ron Paul, R-Texas, decried the Transportation Security Administration’s (TSA) airport security procedures as ineffective security and a violation of the Fourth Amendment, as he argued that private forces should protect airports…Paul, who has called for the end of the TSA since his son — Sen. Rand Paul, R-Ky. — was prevented from passing through airport security because he refused a pat down, said that private companies could secure airports more effectively than the TSA. “You know, the people who protect very dangerous chemical plants, they’re private sources, you know . . . they do a very good job,” he observed, adding that “the assumption that the government has to do this is the wrong assumption.”  NewsOK.com

MI: Flint Manager: Selling city water and sewer can’t be ruled out
The city’s emergency manager is considering selling off Flint’s water and sewer plants to the highest bidder, potentially generating a one-time windfall of millions of dollars to help steady the city’s shaky finances. Emergency Manager Michael Brown confirmed that a sale of the plants is among the options under review by his office and said he is “nowhere near a decision on that.” Flint Journal

NH: Private prison interest strong for NH
Representatives from more than 20 national and international companies have converged on the Granite State to assess the state’s Request for Proposals for a private prison, even as local residents and some officials have voiced opposition to the idea. The Union Leader

NH: Prisons: Real costs to privatization – letter to editor
I have spent the past six months studying the privatization of medical care in prisons. I found a 40 percent increase in inmate medical negligent lawsuits nationwide and a 20 percent increase over past six years in death of inmates due to medical negligence. And this is just for starters. The quality of staff won’t give the level and quality of care we inmates currently receive. Concord Monitor

FL: Prison privatization push raises a stink
A Senate committee pushed a hotly contested plan to privatize 29 South Florida prisons one step closer last week to becoming a reality. Backers of the move — mostly Republicans — estimated the state could save up to $40 million by getting the prisons off the state’s books. Opponents — mostly law-enforcement unions — argue that safety could suffer and that the bill has been given only two committee stops, which equates to lawmakers trying to ram through the proposal…The proposal failed last year because lawmakers used fine print in the state budget to make the change instead of a stand-alone bill. Tallahassee Judge Jackie Fulford ruled that was unconstitutional, a move Attorney General Pam Bondi is appealing.  The same rationale also is at the crux of a lawsuit filed by the Florida Nurses Association last week. They charge it was unconstitutional for the state to privatize prisoner health care using the state budget. The Department of Corrections is currently seeking vendors for the job.  Florida Times-Union

CO: Gov recommends Pinnacol privatization with tweaks
Gov. John Hickenlooper is recommending the privatization of Pinnacol Assurance, the state-chartered workers’ compensation insurance fund, despite the ongoing concerns of business groups…Despite those policyholders telling Hickenlooper they support the deal, a number of business groups have been skeptical about the proposed privatization, saying it presents new risks with unclear rewards. Many say they like the present system — under which Pinnacol is a quasi-governmental entity — just fine. The Denver Post

January 27, 2012

Headlines
FL: Nurses file lawsuit over prison privatization
NE: Child services head says pullback from privatization would destabilize system
IN: Indiana panel backs looser school voucher rules
Invisible hands: The businessmen’s campaign to dismantle the Post Office

News summaries
FL: Nurses file lawsuit over prison privatization

The Florida Nurses Association has filed a lawsuit against the state corrections department over a prison health care privatization effort ordered by lawmakers in the budget last year…The suit was filed on Tuesday in the Leon County Circuit Court, where Judge Jackie Fulford scrapped the privatization of all corrections operations – affecting more than two dozen facilities and nearly 4,000 workers – in the 18-county southern portion of the state from Polk County to the Florida Keys. Lawmakers are now reviving the prison privatization plan, slated for a Senate vote on Tuesday. Read the lawsuit herePalm Beach Post

NE: Child services head says pullback from privatization would destabilize system
Adams said the effort could prompt the state’s two contractors to withdraw before their agreements expire in 2014, forcing the state to take more cases when it lacks the manpower to do so. His comments followed more than three hours of committee testimony from foster parents and child advocates who say the state’s privatization effort has resulted in high turnover, communication problems and a lack of knowledge about individual cases. Several foster parents recalled encounters with case workers who knew nothing more than their home address and a child’s first name. Others said they encountered full inboxes when they called to ask about services, and left phone messages that would go unreturned for weeks. A legislative report released late last year found that 21 percent of the foster children in Nebraska’s system had four or more case managers in the first six months of 2011. The Republic

IN: Indiana panel backs looser school voucher rules
A proposal that would make thousands of current private school students eligible for Indiana’s school voucher program has been endorsed by a state legislative committee, although cost concerns might block its chances of advancing this year.  Northwest Indiana Times

Invisible hands: The businessmen’s campaign to dismantle the Post Office
In her excellent book Invisible Hands: The Businessmen’s Crusade Against the New Deal, historian Kim Phillips-Fein paints a very revealing picture of how the corporate class operates.  Her theme is the way conservative businessmen worked behind the scenes to undo the New Deal.  As Phillips-Fein explains, one of the most common methods for the businessmen to advocate for their agenda was to bond together.  Recognizing the power in numbers, they formed associations like the American Liberty League (organized by the du Ponts) and the Foundation for Economic Education (founded with help from B. F. Goodrich), as well as giving new energy to existing organizations, like the National Association of Manufacturers and other industry trade groups. While the U.S. Postal Service is obviously not a product of the New Deal, that same conservative agenda is behind the attack on the Postal Service we’re witnessing today. In These Times

January 26, 2012

Headlines
FL: Editorial: Senate disregards perils of privatization
FL: Privatizing prisons plan faces backlash
FL: Bill to fine sports teams for not housing homeless in tax supported stadiums
NY: Public college, private dorm
GA: $1 million price tag, internal memo may doom Augusta’s privatization plan
CA: UC Davis students take over vacant campus building
Commentary: Halt the push to privatize

News summaries
FL: Editorial: Senate disregards perils of privatization

Florida Senate leaders claim their end run around a judge’s ruling in an effort to quickly privatize South Florida prisons is all about saving money. But they aren’t willing to back up their rhetoric with an economic analysis that would be shared with with taxpayers. The Republican leaders’ arrogant efforts to exempt the Legislature from most of a state law that requires rigorous public vetting of privatization deals would encourage one-sided deals at best and invite corruption at worst. Floridians deserve government in the sunshine…So far, the Florida House has not filed companion legislation, and House Speaker Dean Cannon hasn’t signaled whether he will support the measures. He should side with history and the lessons learned by former Gov. Bush and a previous Legislature. If privatization makes sense, prove it with a business case, in public, every time.  Tampa Bay Times

FL: Privatizing prisons plan faces backlash
Opponents are reviving past privatization fiascoes, including overbilling by prison operators and botched outsourcing of prison food services and inmate medical care. A state audit in 2005 found that two leading private prison firms, Geo Group and Corrections Corp. of America, overbilled the state by $13 million, and a federal grand jury is investigating construction of the state’s newest private prison, Blackwater River in Milton. Tampa Bay Times

FL: Bill to fine sports teams for not housing homeless
in tax supported stadiums
Back in 1988, Florida legislators passed a law that would allow sports stadiums to collect about $2 million per year from the government to build new shiny stadiums. Tucked into the statutes is an obscure homeless shelter provision, which has mostly been ignored for 23 years, and could be a $300 million “Oops” for stadiums.  The law states that sports teams that accept taxpayer dollars to build facilities must house the homeless on off-nights, and lawmakers have brought it back from the dead in a pair of bills gaining steam this legislative session. Senate Bill 816, which would make teams and stadium owners return millions of taxpayer dollars if they can’t prove that they’ve been operating as a haven for the homeless on non-event nights,  passed its first committee in the Senate on Monday with a unanimous vote..The teams, which include the Tampa Bay Rays and the Miami Heat, receive about $166,000 per month for a period of 30 years. Some stadium owners have already accepted more than $30 million in tax credits, and could be on the hook to refund that money if the bill passes. Based on the dozens of homeless people who sleep on the street two blocks west of AmericanAirlines Arena in downtown Miami, it doesn’t appear that a homeless shelter is functioning at the glitzy home of the Miami Heat. Miami Herald

NY: Public college, private dorm
With state budgets tight and demand for a college education at a high point, public universities across the country are increasingly turning to the private sector to build and finance on-campus dormitories.
Even before the recession, states found that companies that specialize in student housing could build residence halls more rapidly and cheaply than universities could. They can ease the burden of being a landlord. And perhaps most important, these partnerships free capital for facilities like classrooms and laboratories. But as bad economic times make these arrangements even more appealing, the new efforts raise questions about how private ownership of dorms will affect student life and costs in years to come…Although proponents of private partnerships point to lower costs for construction and operation, those savings are not necessarily passed on to students. A room at the Heights, for example, costs about $1,000 more a semester than a room in Montclair State’s other dorms. “These things are often sold as savings, but they don’t often result in savings,” said Edward P. St. John, an education professor at the University of Michigan and an editor of “Privatization and Public Universities,” published in 2006. The New York Times

GA: $1 million price tag, internal memo may doom Augusta’s privatization plan
Commissioners recently all but rubber stamped a plan to privatize Augusta’s human resources and payroll department. The vote gave the administrator the authority to put together an agreement with ADP.
We got our hands on two pages of supposed issues with ADP that were compiled by the city administrator’s office.The list makes mention of workers dropped from health care coverage. “We have had cancellation in every vendor group, without explanation; the only common denominator is ADP,” reads No. 13 on the list…ADP personnel are described as “sometimes combative,” employees supposedly “don’t trust the automation of benefits,” and there are complaints about the inability to instantly fix problems. The list was put together by the city administrator’s office…Did we mention the $1 million price tag for implementation? 12 News Augusta

CA: UC Davis students take over vacant campus building
A small group of University of California students have taken over a vacant building on the Davis campus…Graduate student Geoffrey Wildanger said they will use the building to fight Chancellor Linda Katehi’s attempts to privatize the campus by offering free classes and other services to students. Two campus student assistance-counseling programs were scheduled to move into the cottage in the next two weeks. KCRA Sacramento

Commentary: Halt the push to privatize
Will the political genius who invented privatization please step forward so those of us who know what a flop it is can haul out our rotten tomatoes and dispose of them accordingly? Thank you! Privatization is a movement now virtually overtaking cash-strapped city, county and state governments. Supporters claim that privatizing services formerly provided by government — ranging from prisons to parking meters — would save the taxpaying public money. We now have ample evidence it does exactly the opposite. So it’s time to stop privatizing more government services. It’s time to refuse to renew or even to abrogate ridiculously long contracts with private-sector companies to provide those services. Here’s one example of the counterproductive outcomes experienced by governments that have privatized services. This comes from the website Inthepublicinterest.org: A report from Wisconsin’s Legislative Audit Bureau revealed that the state’s Department of Transportation “wasted more than $1 million by outsourcing almost half of its engineering work to private contractors” over the past five year. The audit found that state workers could have done about 60 percent of these outsourced jobs at a lower cost, which would have saved the state $1.2 million….It’s possible that some privatization deals save taxpayers money. But considering all the reports of outrageous overcharges, crony contracting, decreases in the quality of services and so on, a more logical conclusion is that privatization has run its course and has got to go. — Bonnie Erbe  Newsday

January 25, 2012

News summaries
OH: Delays renew turnpike debate

The delay of big-ticket construction projects in Ohio has stoked the debate over privatizing the state turnpike…State Rep. Ronald V. Gerberry of Austintown, D-59th, said the governor will use news of the delay to tout privatization of the turnpike, something Gerberry says he and many residents in his district oppose. “I really do fear that the governor will use any and every excuse, and this could be an excuse,” Gerberry said. “I am just totally opposed to leasing or selling the turnpike. I believe you don’t sell assets like that.” Last week, the Ohio Department of Transportation said planned work on new construction projects could be postponed a decade or more because of dwindling funds. ODOT outlined its project recommendations to the Transportation Review Advisory Council, a bipartisan group that approves funding for the largest transportation projects in Ohio. Vindy.com

FL: Fla. prison privatization plan clears House panel
A House panel cleared its chamber’s version of a South Florida prison privatization plan on Tuesday with a party line vote. The Justice Appropriations Subcommittee passed the bill (PCB 12-05) by a vote of 10-5.A Senate committee approved its version on Monday…Democratic lawmakers and correctional workers still oppose the idea, saying the plan will put state employees out of work and reduce public and prisoner safety…Last year, the Legislature passed a South Florida prison-privatization plan. But the state was sued by the Florida Police Benevolent Association, the union that formerly represented corrections officers. A judge ruled the plan was unconstitutional because it was approved as part of the annual budget and not as a separate law. Attorney General Pam Bondi is appealing the judge’s decision. Miami Herald

IN: Ind. lawmakers seeking looser school voucher rules
Thousands of students could pour into the country’s broadest private school voucher program if Indiana legislators drop a requirement that children spend at least one year in public schools before becoming eligible. Northwest Indiana Times

The ugly truth about “school choice”
The Koch brothers want you to think the movement’s about racial justice and empowering parents. They’re lying. National School Choice Week, a pet project of big corporations and conservative billionaires like the Koch brothers, kicked off Monday with celebratory forums throughout the country. Billing itself as a social justice movement committed to “ensuring effective education options for every child,” “school choice” has actually become a deeply divisive wedge issue for the right. But the folks at School Choice Week would prefer that you didn’t know that…But there are a few serious problems with the school choice movement. Though it attracts mainstream conservatives like Cosby, as well as Democrats like President Barack Obama, it is not, at its core, a bipartisan endeavor. Its most important backers are rightwing organizations like the Heritage Foundation, Americans for Prosperity and other groups supported by billionaire rightwing ideologues like the Koch brothers. They want to dismantle public education altogether and run schools as businesses, judged as “successes” or “failures” based on abstract data taken from high-stakes standardized test scores. Access to opportunity is replaced with demands for universal “excellence” and “achievement,” in which teachers are punished for student “failure.” This pits parents against teachers, and it ultimately sidelines already marginalized children of immigrant families, poor children and/or children of color. Salon

January 24, 2012

Headlines
CO: Lawmaker aims to privatize Colorado lands  
OH: Ohio crafts $1.4B deal to privatize liquor sales
FL: More-expensive inmates shifted from prisons to be privatized
WI: Researcher: There are hidden costs to privatization
AK: Bill to allow state funds for private schools
NY: Reformers’ playbook on failing schools fails a fact check
ID: Republican group seeks to privatize liquor sales
State support for higher education slumps again

News summaries
CO: Lawmaker aims to privatize Colorado lands   

Rep. Jerry Sonnenberg, R-Sterling, said Monday he plans to sponsor a bill that will require the state to wrest control of most of Colorado’s fourteeners and more than 23 million acres of federal public land across the state, including most of Roosevelt National Forest west of Fort Collins and most of Colorado’s BLM and U.S. Forest Service land. The state would either sell the land off to private individuals or manage it itself. He said he envisions the bill excluding all national parks and monuments, including those on BLM land. The Coloradoan

OH: Ohio crafts $1.4B deal to privatize liquor sales
Ohio has reached an agreement to privatize its lucrative liquor distribution system for $1.4 billion through a newly created private nonprofit entity that will use the revenue for economic development. The nonprofit, JobsOhio, will issue up to $1.5 billion of bonds to finance the 25-year deal. The bond sale is expected within the first quarter. JobsOhio officials said they had already assembled a finance team to bring the bonds to market, but declined to name the firms. Ohio has a monopoly on liquor sales, one of the state’s most reliable and growing revenue sources. Many states monopolize liquor sales, but Ohio is one of the few to issue bonds backed by the profits.The deal, set to close after the bond sale later this quarter, marks a victory for Gov. John Kasich. The Republican governor created JobsOhio as one of his first actions when he took office last year. The liquor lease has the highest profile of Kasich’s several privatization proposals, and is key to balancing the current $55.5 billion, two-year general fund budget. The Bond Buyer

FL: More-expensive inmates shifted from prisons to be privatized
As the Legislature was steaming toward passage of privatization of a huge chunk of its prison system last spring, public records suggest the Florida Department of Corrections was removing its most violent prisoners from the facilities slated to be outsourced…Region IV is the collection of prisons in southern Florida counties that lawmakers tried to privatize last spring, before a judge ruled they had done so improperly by placing the directive in budget language instead of passing separate legislation. “Close management” inmates are confined away from the general population, because they pose threats to others or the institution. The transfers are significant, because they impact costs. Maximum-security prisons with solitary confinement are more expensive to operate because they require isolating and monitoring prisoners individually instead of in groups…Lawmakers are trying again to privatize all 29 prison facilities in the 18-county region of southern Florida. Orlando Sentinel

WI: Researcher: There are hidden costs to privatization
The current rush toward privatization of government services requires a reality check, says a former journalist now with a Milwaukee-area research organization…The promised savings might be offset by a reduced level of service, he said, or a loss of income in the community as government workers are replaced by lower-paid employees who spend less locally — or live elsewhere. Some privatization decisions seem aimed at payback rather than taxpayer relief, he said. Legislation last year that bars counties from sharing on road maintenance work — thus requiring they hire private road crews — even drew criticism from the Heartland Institute, which Norman described as a conservative think tank. A bill has been introduced to repeal that ban. Private entities also are not bound by open records requirements to disclose budgets, salaries or results of outside oversight, such as quality testing or financial audits, he warned. La Crosse Tribune  

AK: Bill to allow state funds for private schools
Students could attend private or religious schools with state-sponsored scholarships under a measure being considered by Alaska lawmakers. A companion measure to the bill, sponsored by Rep. Wes Keller, would amend the state constitution to allow public funds to go to religious schools. Anchorage Daily News

NY: Reformers’ playbook on failing schools fails a fact check
Education “reformers” have a common playbook. First, assert without evidence that regular public schools are “failing” and that large numbers of regular (unionized) public school teachers are incompetent. Provide no documentation for this claim other than that the test score gap between minority and white children remains large. Then propose so-called reforms to address the unproven problem – charter schools to escape teacher unionization and the mechanistic use of student scores on low-quality and corrupted tests to identify teachers who should be fired. The mantra has been endlessly repeated by Secretary of Education Arne Duncan, and by “reform” leaders like former Washington and New York schools chancellors Michelle Rhee and Joel Klein. Bill Gates’ foundation gives generous grants to school systems and private education advocates who adopt the analysis. In Chicago, Mayor Rahm Emmanuel makes the argument, and in New York, Mayor Michael Bloomberg has frequently sung the same tune. And now, New York Gov. Andrew Cuomo has joined in. On Dr. Martin Luther King Jr.’s birthday last week, the governor cast attacks on unionized teachers as a defense of minority students against the adult bureaucracy. “It’s about the children,” Mr. Cuomo said. Because of failing public schools, “the great equalizer that was supposed to be the public education system can now be the great discriminator.” EPI

ID: Republican group seeks to privatize liquor sales
An offshoot of one of Kootenai County’s numerous Republican clubs filed a statewide initiative Monday to privatize liquor sales in Idaho. The move is separate from one that had been mulled by the same grocery association that backed the successful liquor privatization drive in Washington state. Instead, the “Reagan Republicans” group said its initiative would push privatization on smaller-government grounds. The Spokesman Review

State support for higher education slumps again
An annual study of state spending on higher education finds that state appropriations for colleges and students sunk by 7.6 percent in 2011-12, the largest such decline in at least a half century. All but nine states experienced one-year declines from their 2010-11 totals. Governing

January 23, 2012

Headlines
NJ: Privatizing parts of N.J. park system stirs debate
FL: Editorial: Protect the public’s money
FL: Prison privatization plan will go to Budget panel
VA: Virginia to sell highway, bridge naming rights
PA: Former CEO of charter school pleads guilty to theft of taxpayer funds
WA: Pierce County judges suggest privatizing offender supervision
NE: Lawmakers seek better child welfare information
Consumer group opposes USDA’s privatization of poultry inspection

News summaries
NJ: Privatizing parts of N.J. park system stirs debate

A chain restaurant in Wharton State Forest. A Ferris wheel at Liberty State Park. Weddings, flea markets, and corporate events taking over New Jersey’s historic sites and scenic lands. That could be the future if the state goes forward with plans to privatize parts of its park system, some warn…The changes, made public in October, will be implemented gradually, officials said, as part of a long-term strategy to keep the parks open by making them more self-sustaining…Eventually, the state would like two-thirds of the system’s annual operation budget to come from outside sources…The problem, Tittel said, is “what happens down the road when private vendors take over park functions. They’re not professionals and don’t have the same level of caring for the parks,” he said. “Who’s screening them? Will valuables walk away? Then, there’s the loss of access,” he said. “If you can make more money on a Saturday afternoon renting out a park area, then the public doesn’t have access.” Philadelphia Inquirer

FL: Editorial: Protect the public’s money
The Florida Senate is moving forward on privatization, a plan to outsource public functions of government to save money, our money. Two bills — one a revival of a prison plan shot down in court last year on privatizing some of the state’s prisons and the other, a general plan for state government agencies — are headed to debate in at least three Senate committees this session. Both bills got the approval to move forward in the legislative process on Wednesday by the Senate Rules Committee…SB 7172 would not require a business plan or public comment before a state agency made its decision. Instead, that would come after the contract is signed. What? That’s tantamount to secrecy. And that goes against Florida’s open government laws and the citizens’ right of access in the state Constitution. While privatization may be a good idea, it is a bad idea when it is cloaked in so much secrecy that it smacks of backroom deals. To allow that is to go backwards in time to when Florida did not have a Sunshine Law requiring most meetings of governments to be open. St. Augustine Record

FL: Prison privatization plan will go to Budget panel
Senate President Mike Haridopolos said Friday he will send a controversial prison-privatization plan to another committee for review — but stopped short of fulfilling a request by Sen. Mike Fasano for greater scrutiny…”In my opinion a subject as complex as prison privatization should have been referred to the substantive committees that oversee this subject matter (i.e. Criminal Justice, Governmental Oversight and Accountability and Criminal & Civil Justice Appropriations),” wrote Fasano, chairman of the Criminal & Civil Justice Appropriations Subcommittee. “The Senate has a rich history as a deliberative body that examines and allows for full vetting of proposed policy changes both major and minor.” Haridopolos, R-Merritt Island, released a memo a short time later saying he would send the primary privatization bill (SB 2038) to the Budget Committee, which is chaired by Sen. JD Alexander, a chief proponent of privatization. The Ledger

VA: Virginia to sell highway, bridge naming rights
Gov McDonnell on Friday authorized the Commonwealth Transportation Board to sell naming rights for the state’s transportation infrastructure. That means private entities, for an annual fee, will be able to place their name on highways, interchanges, bridges and other infrastructure. The money would then go to the Highway Maintenance and Operating Fund. The General Assembly has to approve the plan.  The CTB also has to create the rules, fees and revenue projections for the plan. Think it’s a groundbreaking idea? Not really. Last year McDonnell offered up the naming rights to its 42 rest stops and welcome centers. NBC4

PA: Former CEO of charter school pleads guilty to theft of taxpayer funds
The former chief executive officer of a charter school in Northwest Philadelphia pleaded guilty Friday to stealing more than $500,000 in taxpayer funds intended for the school. Ina M. Walker, the onetime top official of New Media Technology Charter School, appeared Friday afternoon in U.S. District Court and told Judge Jan E. DuBois that she wanted to change her plea to guilty to theft and fraud charges.
In her plea agreement, Walker, 59, of West Mount Airy, admitted to all 28 counts, including conspiracy, wire fraud, theft from a federally funded program, and bank fraud…Last spring, a federal grand jury returned a 27-count indictment alleging that Clark and Walker stole $522,000 intended for the New Media charter to pay expenses at Lotus Academy, a small private school they controlled; to fund personal businesses, including the Black Olive and a nearby health-food store; and for personal expenses, including meals and credit-card bills. Philadelphia Inquirer

WA: Pierce County judges suggest privatizing offender supervision
Some Pierce County Superior Court judges say state cuts in supervision of felons the last few years have made their courts too busy with offenders who remain under the court’s review, and could increase the risk to public safety if those offenders commit new crimes. Judge Frank Cuthbertson said discussions are under way among judges and attorneys about Pierce County contracting with a private company to supervise offenders after they’re released from prison. And some state lawmakers have discussed counties taking on the state’s cost of supervising offenders after incarceration. Pierce County Council member Dick Muri says “no” to both ideas. “It’s not a county responsibility,” said Muri, a member of the council’s public safety and human services committee. “We don’t have the money to do supervision.”
Muri said he’s also concerned about cuts in community supervision. But taking on that responsibility would put the county at risk for lawsuits if felons commit new crimes, he said. The News Tribune

NE: Lawmakers seek better child welfare information
..On Thursday, the Health and Human Services Committee will hold a public hearing on a bill that would return many case management duties to state employees. The two lead agencies have opposed the bill, calling it a step backward, and Gov. Dave Heineman has hinted his opposition. The privatization move began when the state signed contracts with five lead agencies to offer and coordinate child services statewide. Three providers in northern, western and central Nebraska have since dropped out, citing financial problems, which forced the state and the remaining lead agencies to take over their cases. Heineman has said the move toward privatizing services to children who suffer from abuse or neglect, as well as behavioral and mental health problems, hasn’t gone as well as he hoped. But the governor has repeatedly opposed a return to the old system that relied more on state employees. The Republic

Consumer group opposes USDA’s privatization of poultry inspection
The Secretary of Agriculture and Undersecretary for Food Safety announced the U.S. Department of Agriculture’s (USDA) plan to proceed with a program that would privatize the inspection of poultry products in the United States. Food & Water Watch vehemently opposes this plan and any other attempts to privatize food safety functions that are the responsibility of the federal government. “This proposal is unacceptable and violates the department’s legal obligation to protect consumers by inspecting every carcass and every bird produced in USDA-inspected plants,” said Food & Water Watch executive director Wenonah Hauter. NorthcentralPa.com

January 20, 2012

Headlines
FL: Lawmaker: Sick inmates moved before privatization
FL: Privatizing made easy
FL: Privatizing wastewater a whole new spin on cash flow
MI: For-profit virtual charter schools given poor ratings
CO: Groups say Pinnacol ads touting privatization violate lobbying moratorium
AZ: Senate approves raising private-school donation tax credits
NY: A complex at Aqueduct is risk-free, Cuomo says

News summaries
FL: Lawmaker: Sick inmates moved before privatization

A Florida lawmaker says prison employees in his district told him the Department of Corrections last year had moved sicker, more-expensive inmates out of facilities the state was trying to privatize…Private prisons in other states have negotiated deals that limit which kind of inmates they will take. Those who are older or have AIDS, diabetes or other illnesses usually cost more to care for than younger and healthier inmates. The state is trying to privatize about 30 state prisons in South Florida. That plan was struck down by a judge but is under appeal. Kreegel said some of the corrections officers at Charlotte Correctional Institution are his patients; the Punta Gorda Republican is a physician. “What they tell me is that shortly after the budget was passed last year, there began a concerted effort of transferring (to north Florida) inmates who were … expensive health-wise, HIV positive, et cetera,” he said. “They were getting as replacements people who were younger and healthier, without the costly medical illnesses.”
Kreegel said the officers jokingly referred to these new transfers as “jaywalkers.” “I guess the insinuation here is that they were filling up the prisons to be privatized with people who are relatively inexpensive to take care of, and leaving the more expensive prisoners to the state,” he added. If so, any savings to the state from privatizing prisons could be just “bureaucratic sleight of hand,” Kreegel said.
Miami Herald

FL: Privatizing made easy
A bill to allow lawmakers to privatize any function of state government without justifying the move emerged this week in Tallahassee. The bill comes after last year’s plan to privatize 18 state prisons was ruled unconstitutional. To legally privatize a government function under current law, a cost-benefits analysis must be conducted. Police Benevolent Association spokesman Matt Puckett says this bill eliminates the analysis. “There is a deliberated process in place to make sure that before we privatize we have all the facts and we are making an informed decision. This guts that. There is no reason to do it. Nothing has changed. And we are adamantly opposed to that,” said Puckett. The bill was introduced alongside a renewed effort to privatize the prisons lawmakers were unsuccessful in outsourcing last year.
Capitol News Service

FL: Privatizing wastewater a whole new spin on cash flow
We seem to be in the constant state of hostile takeovers of public assets. Schools. Prisons. Roads. Apparently, we’ve been missing out on some good opportunities to introduce more cash flow into the state’s water flow. But that’s being addressed in a proposed law that would strip public control over water once it’s treated at a wastewater treatment facility. Under existing law, all of this reclaimed water is considered “waters in the state.”..House Bill 639 gives wastewater treatment facilities ownership of the water they treat…In the short run, yanking state control from reclaimed water would be a boon to city governments, who would be able to sell all the water they treat to their customers…But environmentalists worry that turning a public resource into what may end up a commodity controlled by private-for-profit businesses in the future will spell trouble in the long run for Florida. “Utilities don’t have any responsibility for the protection of the environment,” Draper said. “This is one of those situations where you have to look at the what-ifs. And if down the road, if the state needed the water, we’d have to pay through the nose to get it.”  Palm Beach Post

MI: For-profit virtual charter schools given poor ratings
The report by the National Education Policy Center says 27% of for-profit companies operating virtual schools met the adequate yearly progress standards of the federal No Child Left Behind law. That compares with 48% of traditional brick-and-mortar charter schools and about half of all public schools nationwide. Charter schools are considered public schools. The report comes as the Michigan legislature considers a bill—part of sweeping legislation that would give parents more choices for their children’s education—that would expand virtual charters in the state. State law enacted in 2010 allows only two to open and restricts enrollment to 400 in the first year. The bill—passed in the Senate late last year and now before the House—would remove those barriers. Detroit Free Press

CO: Groups say Pinnacol ads touting privatization violate lobbying moratorium
Business groups in Colorado are fuming mad over TV and print ads that ran over the weekend touting the claimed benefits of privatizing Pinnacol Assurance, the state-chartered workers’ compensation insurance fund. The organizations say Pinnacol’s ads,one of which ran on TV during the Broncos-Patriots playoff game Saturday night, while the other appeared in The Denver Post on Sunday, violated an agreement by all groups involved to not lobby on the issue while a task force is examining the merits of privatization…Under the privatization proposal, the state would retain a 40 percent ownership stake in Pinnacol, which would become a mutual assurance company owned by its policyholders and which could eventually turn into a company with publicly held stock…A number of business organizations have balked at the deal, saying Pinnacol’s present quasi-governmental status seems to work well, and it is unclear that privatization would benefit them…Some members of the task force have questioned whether the state is getting the best deal. Denver Post

AZ: Senate approves raising private-school donation tax credits
State senators have approved a bill expanding Arizona’s tax breaks for donations to private school scholarships. The bill creates a second tuition tax-credit program with the same limits, essentially doubling the amount Arizonans can deduct…Another bill approved by the Senate Thursday removes a requirement that schools accepting the donated money conduct annual tests for student improvement. The Arizona Republic

NY: A complex at Aqueduct is risk-free, Cuomo says
Gov. Andrew M. Cuomo, stung by widespread doubts about his support for the privately financed construction of the country’s largest convention center at the Aqueduct racetrack in Queens, offered a full-throated defense of the proposal on Thursday, saying the only cost to the state if the project failed would be “an empty building.”  The New York Times

January 19, 2012

News summaries
FL: Florida Senate bill would allow privatization to be secret

A Senate committee, bucking a decades-long trend of open government in Florida, formally introduced two bills today aimed at allowing the secret privatization of prisons. But the measures also would make secret the outsourcing of other state agency functions, which has raised concerns from open government advocates. The Senate rules committee introduced the first bill (PCB 7170), which essentially means that an agency would not have to report its privatization of a program or service until after the contract is signed..The bills’ opponents, which include the First Amendment Foundation, have said the bills would keep the public in the dark about the costs of outsourcing any government service, not just prisons. Tampa Bay Online

FL: Return of prison privatization sets off a furor
Rebuffed by a court, the Legislature is again pushing to privatize more than two dozen South Florida prisons, and the plan appears more controversial than ever because of a new layer of secrecy. Before a standing-room-only crowd, the Senate Rules Committee voted Wednesday to introduce bills (now numbered SB 2036 and SB 2038) directing the prison system to hire a for-profit vendor to run prisons in 18 counties by July 1. A second bill (2036) would eliminate a requirement that the prison system do a cost benefit analysis and develop a “business case” to justify privatization. The new bill does not require those steps until after a contractor is hired. But the choice is subject to approval by a panel of legislators…Current and former correctional officers testified in opposition to no avail. Reshae Cherry, 27, an officer at Charlotte Correctional on Florida’s southwest coast, pleaded for senators not to jeopardize her future. “I want to keep food on my table. I want a good doctor for my children,” she testified…Two Democratic senators voted against introducing the two bills: Sens. Chris Smith of Fort Lauderdale and Gwen Margolis of Aventura, who said the secrecy language was “very disturbing.”  Miami Herald

AZ: Trouble in Arizona’s charter school paradise?

Arizona has more charter schools than any other state in the nation, and has no charter cap.  If Arne Duncan is to be believed, Arizona – with so much charter school “innovation” and “courage” – ought to be the best possible place for your child to get an education. Let’s see how that looks in NAEP achievement and other factors:  Arizona’s class size average is second highest in the nation, with an average of 24.2 students per class, compared to a national average of 15.3. Arizona is one of only four states in the nation that have increased class sizes over the last ten years.    Oh, yes, and Every national ranking of per pupil funding consistently shows Arizona at or near the bottom of the 50 states… State officials are now taking unprecedented steps to weed out the worst of the schools. They put a third of the operators on probation and denied new contracts to four more. Two charter operators did not reapply, and one surrendered its contract. This effort marks a stark difference from the years when politicians and school-choice advocates pushed rapid growth of charter schools above all else, viewing them as game-changing innovations. Pure

January 18, 2012

Headlines
Why the US is destroying its education system – Chris Hedges
AZ: Legislation would allow public schools to end free lunches
CA: Gov’s advisory council on privatization holds first meeting
FL: Water rights shift in Florida could foreshadow debates to come
FL: Graham blasts water ‘privatization’
FL: Senate bill would allow privatization to be secret   
FL: Editorial: Our take on: Private privatizing
DE: Women’s league urges privatization of water

News summaries
Why the US is destroying its education system – Chris Hedges

A nation that destroys its systems of education, degrades its public information, guts its public libraries and turns its airwaves into vehicles for cheap, mindless amusement becomes deaf, dumb and blind. It prizes test scores above critical thinking and literacy. It celebrates rote vocational training and the singular, amoral skill of making money. It churns out stunted human products, lacking the capacity and vocabulary to challenge the assumptions and structures of the corporate state. It funnels them into a caste system of drones and systems managers. It transforms a democratic state into a feudal system of corporate masters and serfs…Passing bubble tests celebrates and rewards a peculiar form of analytical intelligence. This kind of intelligence is prized by money managers and corporations. They don’t want employees to ask uncomfortable questions or examine existing structures and assumptions. They want them to serve the system. These tests produce men and women who are just literate and numerate enough to perform basic functions and service jobs. The tests elevate those with the financial means to prepare for them. They reward those who obey the rules, memorize the formulas and pay deference to authority. Rebels, artists, independent thinkers, eccentrics and iconoclasts—those who march to the beat of their own drum—are weeded out. Truth Dig

AZ: Legislation would allow public schools to end free lunches
A Senate panel led by an East Valley lawmaker agreed Tuesday to let schools opt out of the federal program to offer free and reduced-price lunches for needy students…Crandall said some districts, particularly those with only a small percentage of eligible children, may decide to continue to offer the free or discounted meals, but on their own terms, and with local taxpayers picking up the tab. But he said that, in some cases, schools may scrap the program entirely, meaning that children who want the service will have to transfer to other schools that still offer it. The move drew fire from Jennifer Loredo, lobbyist for the Arizona Education Association. “For a lot of students that we have out here in the state, the school lunch program that they are provided is the only quality meal that they get,” she told members of the Senate Education Committee. But the panel voted to approve SB 1060 on a 6-1 vote, with only Sen. David Schapira, D-Tempe, opposed. The measure now goes to the full Senate. East Valley Tribune

CA: Gov’s advisory council on privatization holds first meeting
The Governor’s Advisory Council on Privatization and Innovation today held its first meeting, hearing presentations about successful public-private partnerships created in the state of Indiana…Council members heard presentations by Cris Johnston, deputy chief of staff to Indiana Governor Mitch Daniels, and Stephen Goldsmith, the former mayor of Indianapolis. Both have extensive experience in executing successful public-private partnerships. Sacramento Bee

FL: Water rights shift in Florida could foreshadow debates to come
Who owns recycled water? Florida environmentalists are wary about a move toward privatization of the state’s supply. As states get more creative with scarce water resources, that debate could be among the first of many across the United States. Stateline

FL: Graham blasts water ‘privatization’
Former US Sen. Bob Graham cautioned lawmakers and environmentalists this morning that “privatizing” state waters would cause “considerable damage” to the Everglades and cause Floridians to lose control of thousands of acres of wetlands…The first (HB 639) would allow utilities to have permanent ownership of water they have used and treated. The other (HB 1103) would change the definition of the “high water line” that determines where private property ends and state-owned waters begin. Critics, including Graham, say the measure would cause the state to lose hundreds of thousands of acres of wetlands after years of litigation determining what the water line means.Palm Beach Post

FL: Senate bill would allow privatization to be secret   
A Senate committee will consider a bill that would allow lawmakers to secretly privatize or outsource state agency functions. The bill essentially means that an agency would not have to report its privatization of a program or service until after the contract is signed. Open government advocates say the bill would keep the public in the dark about the costs of outsourcing government services. But proponents counter that the measure requires any privatization deal to first offer “a substantial savings” to the state. Also being considered is a related bill (PCB 7172) on the privatization of correctional facilities. Miami Herald

FL: Editorial: Our take on: Private privatizing
…[P]lans to privatize programs or outsource operations, like any other significant policy shifts, will of course be fully disclosed first and subjected to a full and open debate before they go forward — right? Not if the Legislature passes a bill up for consideration today before the Senate Rules Committee. The measure would let state agencies conceal their privatizing or outsourcing plans until — and this comes straight out of the bill — “after the contract for the privatization and outsourcing has been executed.” In other words, after it’s a done deal. This bill mocks any notion of government transparency and accountability. It’s especially offensive in Florida, where open government is both a tradition and a constitutional right. Some legislative leaders might still be feeling burned from the firestorm they created last year when they passed a plan, later blocked by a state circuit judge, to privatize 29 state prisons in South Florida. Too bad. If a plan for privatization or outsourcing can’t stand up to public scrutiny before it’s implemented, it’s probably not worth pursuing, anyway. Legislators need to kill this bill. Orlando Sentinel

DE: Women’s league urges privatization of water
The League of Women Voters of Sussex County held a public forum entitled “Who Owns Your Water and Water Services: Should You Be Concerned?” in which a panel discussed how water and sewage treatment are operated in Sussex County. The forum was the first of a four-part series held by the organization on the privatization of public services…”We’ve actually talked to a couple different communities about possibly moving in that direction,” he said. “We would definitely entertain more of the public water. It’s just a matter of whether we can be competitive with the private guys.” DelmarvaNow