July 26, 2012

Headlines
LA:New Rules Shift Tens Of Millions Of Dollars From Public Schools
CA: Misguided call to privatize universities – opinion
FL: New county administrator says privatization fed purchasing scandal
UT: Watchdog claims Utah lawmakers are corporate lapdogs
The Semi-Private Lottery

LA: New Rules Shift Tens Of Millions Of Dollars From Public Schools
State money will continue to flow to scores of private and religious schools participating in Louisiana’s new voucher program even if their students fail basic reading and math tests, according to new guidelines released by the state on Monday. The voucher program, the most sweeping in the nation, is the linchpin of Louisiana’s bold push to reshape public education. The state plans to shift tens of millions of dollars from public schools to pay not only private schools but also private businesses and private tutors to educate children across the state. Huffington Post

CA: Misguided call to privatize universities – opinion
For a chilling look at what the University of California would look like if it were run by unprincipled economic ethos, look no further than “Public No More.” The title of this new book from business school deans Gary Fethke of the University of Iowa and Andrew Policano of UC Irvine provides an apt summary of the book’s libertarian call to privatize most of what public universities do. That is, it is a call to run these universities much like corporations, and to do so for private benefit rather than the public good. The authors’ fatally flawed assumption is that “higher education is primarily a private good, with most of its returns flowing to the recipients” rather than a public good benefiting our broader economy and society. Nothing could be further from the truth. Public universities, such as the University of California, which engage in some of the most innovative basic research in the world, generate huge spillover effects for local, state and national economies. While the fruits of such research can’t be turned easily into profits by the universities themselves, such research is a powerful magnet for business investment – and the jobs that come with it. San Francisco Chronicle

FL: New county administrator says privatization fed purchasing scandal
Signaling a major difference in philosophy from his predecessor, Sarasota County Administrator Randall Reid now blames a rush to privatize government services for last year’s purchasing scandal. Reid said that an increased reliance on contracts for goods and services — Sarasota County spends about $300 million a year on such contracts — was typical in many other governments as the Great Recession forced hard looks at spending. Compounding the poorly executed attempt to push more government services into the private sector was a reluctance to acknowledge the problems that started arising, Reid said. ..He now says Sarasota County government will reevaluate whether any services could be better accomplished in-house.  Herald Tribune

UT: Watchdog claims Utah lawmakers are corporate lapdogs
A national watchdog group says Utah legislators too often act as lapdogs for corporations that lobby with stealth through the conservative American Legislative Exchange Council — often introducing in their own names ALEC model bills without disclosing who actually wrote them…Since 2001, Utah lawmakers copied ALEC model bills word-for-word and introduced them at least 17 times, and heavily relied on model ALEC legislation numerous other times, according to a report prepared by Common Cause, the Center for Media and Democracy, People for the American Way, ProgressNow and the Alliance for a Better Utah….The report compared bills introduced in the Utah Legislature with ALEC model bills and internal documents provided by whistle blowers. Common Cause President and CEO Bob Edgar, a former Democratic congressman from Pennsylvania, said pushing ALEC model bills is a big deal because corporations can pay to be on ALEC committees that draft and vote on model legislation — and they often push privatization of government services to help corporations.  The Salt Lake Tribune

The Semi-Private Lottery
With budgets still tight, states are asking lotteries to bring in more money. In some cases, that means hiring a private operator to reinvent them. Faced with a persistently rocky economy, and budgets straining at the seams, a number of them may soon follow the Illinois example. Partial privatization of lottery services is attractive to states looking to quickly develop new games, leverage technology — and shift the risks to the private sector. “This is a way that lotteries are looking at boosting sales,” says Kilsby, “without having to expend state resources.”  “If you look at the amount of dollars that are returned to the various programs funded by Illinois, you have to say it’s a resounding success,” says Rebecca Hargrove, president and CEO of the Tennessee Education Lottery Corporation.  Stateline