Headlines
Report finds for-profit colleges serve shareholders over students
MI: Editorial: Privatizing prison health care must include stronger state oversight
WI: Privatized emissions testing off to bumpy start
IN: Indiana looks to outsourcing Hoosier Lottery
CA: The thin green line
NY: Park privatization elsewhere – opinion
TX: State Parks and Wildlife Department turns to corporate sponsorships to raise money
Report finds for-profit colleges serve shareholders over students
A Senate committee that successfully pressed for tighter regulation of the for-profit higher-education sector published a report Sunday that said the business had put shareholders before students. It said the schools excelled at recruiting students, but not necessarily at retaining them: More than half of students at for-profit schools who enrolled in the 2008-09 academic year left without a degree, the report found. Half of all non-finishers ended their studies within four months. The findings are in line with concerns voiced last year when the Education Department imposed stricter rules on for-profit schools that benefit from federal student loans. The new report is titled “For Profit Higher Education: The Failure to Safeguard the Federal Investment and Ensure Student Success.” It concludes a two-year investigation by Sen. Tom Harkin (D-Iowa), chairman of the Senate Committee on Health, Education, Labor and Pensions. Including appendixes, the document totals about 800 pages. “We uncovered two very big problems in for-profit higher education,” Harkin said in a statement. “One, billions of taxpayer dollars are being squandered. And two, many for-profit schools are doing real, lasting harm to the students they enroll.” Washington Post
MI: Editorial: Privatizing prison health care must include stronger state oversight
Despite the evidence, the administration of Gov. Rick Snyder continues to regard privatizing government services as a panacea for controlling state spending. The latest, and largest, example is a call for bids on providing medical services — physical and mental — to all 43,000 state prisoners. It could be the largest privatization of state government services in Michigan history. The contract, depending on how the bidding goes, could replace the work of 1,300 state employees. Privatizing health care inside prisons, hidden from the public, contains enormous risks — all the more so because prisoners have no political constituency. To minimize the risks, Corrections must prepare now to do a far better job of oversight. Keeping vendors accountable will inevitably mean more state employees. Will complaints be resolved? Detroit Free Press
WI: Privatized emissions testing off to bumpy start
Just two weeks into the shift of Wisconsin emissions testing to 198 repair shops and dealerships, the number of failing vehicles is already higher than normal. For the past two years, an average of 6% to 7% of vehicles failed their tests at the nine centralized stations in southeastern Wisconsin, according to state data. But the average fail rate has increased to 9% since the test sites shifted to private businesses on July 2, according to a Journal Sentinel analysis of the 18,600 tests conducted through July 18. Eight of the new testing locations had a fail rate of 20% or more…Meanwhile, some drivers are complaining that the new test facilities are trying to sell them overpriced repairs they don’t need. They say unlike the old facilities – which only conducted emissions tests and did not offer other services – the newly designated facilities have an incentive to sell drivers other services to make up for the mere $2 they make from the state for conducting each test. Journal Sentinel
IN: Indiana looks to outsourcing Hoosier Lottery
The $791 million Hoosier Lottery wants to be among the fastest-growing in the country, and it’s looking to the gambling industry to help it reach that goal. The lottery threw open bidding July 11 for a 10-year contract on marketing, sales and distribution services. The response from the private sector is likely to be enthusiastic, as Indiana will be one of the first states to enter a major outsourcing deal since the U.S. Department of Justice said states could engage in non-sports gambling online. Indianapolis Business Journal
CA: The thin green line
…More than one park district superintendent has told me that while motivating people during these circumstances, the department was at the same time, promoting the privatization of park resources and undermining the basic intent of public-trust lands. Examples of this include the recent issuing by the department of requests-for-proposals to concession out the management of up to 20 parks and encouraging corporations to sponsor and fund the high-profile, glitzy aspects of a park operation. Less visible or less marketable aspects do not receive the same attention. Cumulatively, this leads to commercialization, the degradation of public lands and public trust and disparity throughout the system The core principles of the state’s public-trust resources are at stake. The actions by executives in the department give the appearance that money was concealed to create a false financial emergency while encouraging the privatization effort. Santa Cruz Sentinel
NY: Park privatization elsewhere – opinion
Despite City Hall’s disastrous track record with outsourcing contracts to large corporations, like CityTime to SAIC and the 911 emergency-call system to HP, Mayor Bloomberg apparently continues to believe in the myth that private companies always do a better job than the public workers already on the payroll. Perhaps in an attempt to repair his bad record of farming out multibillion-dollar technology projects, the mayor is aggressively moving forward with what may prove to be the largest such project in New York’s history: privatizing the operations and maintenance of the city’s nearly 90,000 total parking spaces. If his plan proceeds, a private company would soon be servicing our Muni-Meters and collecting the money. Preliminary proposals are due tomorrow, Tuesday, so New Yorkers need to know the facts today. As the mayor’s proposal notes, in a city such as New York, where space is limited, parking is the lifeblood of our neighborhoods and businesses — enabling people to work, shop, eat at restaurants, visit doctors, see family and run errands of all kinds. In fact, when you look at the financials of our parking system, it becomes clear that our curbs and parking spots are not only a scarce and shared resource but also a municipal treasure. New York Daily News
TX: State Parks and Wildlife Department turns to corporate sponsorships to raise money
Are you a bank willing to chip in $500,000 toward the upkeep of Texas state parks? In return, you could put the Texas Parks and Wildlife Department logo on your credit card and get your company name on trail maps. Desperate to shore up its finances following budget cuts, the state parks department recently announced it is turning to corporate partnerships for at least a modest boost to its coffers. The Legislature cut the agency’s budget by 17.6 percent, or $114 million, for the 2012-13 biennium. As a result, the department eliminated 169 full-time positions, 111 of which were occupied. It closed two regional offices and reduced the budget for minor repairs and park support. The agency also slashed much of the money it put toward a program that doles out matching grants to cities, counties and other local entities to develop their parks. The parks department is soliciting partnerships through an official request for proposals, which includes a menu of partnership options ranging from “$100,000-$149,999” to “$500,000 or more.” Statesman