Headlines
FL: Unions sue over plan to privatize prison health care system
LA: Following the money on Jindal’s privatization of Louisiana Group Benefits
AZ: Arizona still doesn’t own its capitol
VA: ALEC in Virginia
PA: Philly mayor wants to sell city’s gas works
News summaries
FL: Unions sue over plan to privatize prison health care system
Two labor unions have filed suit against the state Department of Corrections in an effort to prevent privatizing health care for all 100,000 inmates in the Florida prison system. It’s the latest controversy in the outsourcing of inmate health that began as a campaign pledge by Gov. Rick Scott. Protests by health vendors objecting to the original bid specifications have delayed the plan by months and contributed to ousting Scott’s former prison chief. The lawsuit was filed by the American Federation of State, County and Municipal Employees (AFSCME) and the Federation of Physicians and Dentists/Alliance of Healthcare and Professional Employees. It was filed Tuesday, the same day the state Senate voted 21-19 to reject privatization of more than two dozen prisons and work camps in South Florida. Tampa Bay Times
LA: Following the money on Jindal’s privatization of Louisiana Group Benefits
Why is Governor Bobby Jindal pursuing the privatization of the Office of Group Benefits? Is that approach to reforming government in the best interest of the taxpayers?..Louisiana has the only self-administered and self-funded health insurance for state workers and retirees. The plan provides competitive rates to members and to the state. Remember, the taxpayers pick up most of the cost. And unlike some other departments OGB has for the last seven years grown in becoming a model of what other states should emulate….Experts are telling us that the private insurance company will have to ease in another increase of roughly 10 percent to meet the needs of executive compensation, marketing, stockholder dividends, profit, taxes and other expenses we don’t currently have at the not-for-profit OGB…
This privatization will be very costly to the taxpayers of Louisiana, but then we get to fire 177 rank-and-file state workers to counter the hiring of former chief of staff Teepell’s family members and all of the politically-connected, deposed elected officials over the last four weeks, most at six figure salaries. You only need to follow the dollars to understand why the Governor wants this to happen. Bayoubuzz
AZ: Arizona still doesn’t own its capitol
Jan Brewer did not get what she wanted for the state’s 100th birthday. In her State of the State speech last month, the governor pointed out that Arizona does not currently own the House, the Senate and the Executive Tower. They were essentially mortgaged off two years ago as part of $1 billion in borrowing to balance the budget. Brewer, however, sketched out a plan where the state could put the $106 million payoff into a special account and get the lenders to let go of their hold…But the birthday came and went on Tuesday. And there is not even legislation in the pipeline to do what she wants….”A lot of members want to pay down the debt,” he said. “And others want to put it into a larger rainy day fund so in 2015 if we have a major shortfall we can handle it without drastic program cuts.” Kavanagh said lawmakers will revisit the early payoff proposal next year after they have a better idea of the long-term revenue prospects. Arizona Daily Star
VA: ALEC in Virginia
Between 2001 and 2010, the Commonwealth of Virginia spent over $230,000 to send legislators to ALEC conferences in order to meet with corporate lobbyists behind closed doors. ALEC has spent over $70,000 feting Virginia legislators. Over 50 bills drawn from ALEC sources have been introduced in the Virginia General Assembly in the past few years. As Governor, Bob McDonnell has requested the introduction of at least 3 pieces of ALEC legislation. At least 115 current or former Virginia legislators have ties to ALEC. Progress VA
PA: Philly mayor wants to sell city’s gas works
It could take two years to close the deal, but Philadelphia Mayor Michael Nutter favors selling the city’s 175-year-old gas company if price and conditions are acceptable. “The time is right to consider a sale of Philadelphia Gas Works,” the mayor said in a statement…Philadelphia is among only four of the 30 largest cities in the United States that still owns its gas company, and is the largest in that group. PGW has about 500,000 customers…Officials say the city could get up to nearly $2 billion for a privatized PGW. Messages seeking comment were left with budget director Rebecca Rhynhart. According to Lazard, the city could realize a net $496 million from the sale after accounting for PGW’s liabilities, and could also collect real estate taxes from a privatized utility, though potential tax revenues could be lower than the current $18 million annual franchise fee. Bond Buyer ($)