July 12, 2012

Headlines
TX: Texas lawmakers consider privatizing state programs
TX: Trinity Toll Road Doesn’t Add Up – column
NJ: State aims to improve higher education with privatization, bonds
NH: Private prison consultant hired
VA: Deadline for Va. port operation privatization proposals extended
PA: School District, blue-collar union reach tentative deal
Army privatizing base hotels
Wake Forest Law Review to host education privatization symposium

TX: Texas lawmakers consider privatizing state programs
Expecting another budget shortfall in the next session — perhaps as much as $15 billion — for most of this year, Texas Legislature committees have considered various cost-cutting measures. The latest possibility two House panels discussed Wednesday is privatizing some state services. But if the state decides to turn some services to the private sector, don’t expect it to happen right away,” said Rep. John Frullo, R-Lubbock. “I think the main thing we need to look at is kind of open our eyes to all the pluses and minuses not just of the items we are looking at implementing but of the process of privatizing,” said Frullo, a member of both committees holding the joint hearing: State Affairs and Government Efficiency & Reform. Amarillo.com

TX: Trinity Toll Road Doesn’t Add Up – column
From the beginning of the Trinity River toll road debate 14 years ago, one of the biggest hurdles faced by critics of the road has been the unwillingness of urban planners and other so-called experts to publicly speak ill of a project with so much money and power behind it. Apparently moral courage is not a part of anybody’s urban-planning curriculum. But that may not be all bad. It leaves it up to us. We ordinary citizens can tell whether the emperor is naked, can we not? Maybe the silence of the lambs in the urban planning community has tricked us into thinking we have to be lambs. Dallas Observer

NJ: State aims to improve higher education with privatization, bonds
Overshadowed by fights over the state budget and the merger of state colleges late last month were two bills that could have their own broad effects on New Jersey’s higher education system. Both seek to spur new construction on college campuses: one uses a privatization arrangement to encourage private organizations to pay for construction at public colleges; the other authorizes $750 million in bonds to pay for new buildings. The privatization bill, which the Legislature passed June 28 but the governor has not yet signed, seeks to encourage private entities – including for-profit companies – to pay for new construction on public college campuses. In exchange for financing the construction, the firms could lease existing dormitories or other revenue-producing buildings at the colleges. The companies would have to pay for the dorms’ management and maintenance but would receive the buildings’ revenue and could make a profit until their leases with the colleges expire. NorthJersey.com

NH: Private prison consultant hired
The Executive Council voted unanimously yesterday to pay a Florida company $171,350 to help state officials evaluate the eight proposals four companies have submitted to privatize the state’s prisons. Linda Hodgdon, commissioner of the state Department of Administrative Services, told councilors the contract with MGT of America Inc. does not commit the state to handing its prisons off to a private company. Instead, Hodgdon said, it will give policymakers more expertise when they decide whether to privatize. “We have put in thousands and thousands of additional hours in staff time already (reviewing the bids),” Hodgdon said. “I am actually comforted by another set of eyes coming in, a fresh set of eyes coming in, especially (a set) that has expertise in other states looking at this. I think you’re going to get better information when you try to make your public policy decisions.” Concord Monitor

VA: Deadline for Va. port operation privatization proposals extended
The state Department of Transportation issued a request for alternative proposals following an unsolicited one by APM Terminals Inc., a division of global shipping company Maersk. Ryan Pedraza, program manager for the Office of Transportation Public-Private Partnerships, said the deadline was extended because several groups said they needed more time to complete their submissions. So far, no other companies have submitted proposals. The APM Terminals proposal calls for a 48-year agreement to operate state ports in the Hampton Roads region as well as the Virginia Inland Port in Warren County. The proposal is valued between $3.2 billion and $3.9 billion.The Port of Virginia is currently the third-largest port on the East Coast, but state officials have been frustrated that it hasn’t rebounded from the recession as quickly as its competitors in New York and Savannah, Ga. have. Republican Gov. Bob McDonnell replaced 10 of the port authority’s 11 commissioners last year in an effort to spur growth. The Republic

PA: School District, blue-collar union reach tentative deal
A tentative deal has been struck between the Philadelphia School District and its blue-collar workers’ union, officials said late Wednesday. The deal – which must be ratified – appears to avert layoffs and the privatization of 2,700 jobs of members of SEIU 32BJ Local 1201: bus aides, mechanics, cleaners, building engineers, and other workers. Union officials confirmed the deal, but said they would release no specifics – including the number of layoffs averted – until members saw the terms. The potential agreement comes after months of negotiations and protests over the possible layoffs. About 500 employees were to have lost their jobs Sunday, with the rest laid off by the end of the year. Philly.com

Army privatizing base hotels
The Army is privatizing its hotels, turning their renovation, development and operations over to the private sector in an effort to improve their quality and consistency. The move — which began with a 2009 lease agreement and is to be ongoing for many years — is part of a broader Army effort to seek new ways to make use of its existing land and assets. The service has also privatized most of its U.S. housing and has allowed builders to construct commercial office space on some bases. Washington Post

Wake Forest Law Review to host education privatization symposium
The Wake Forest Law Review will host the symposium, “Privatizing the Public Good:  Emerging Trends in K-16 Education,” on Friday, Oct. 26. The symposium assembles a range of perspectives and topics in order to explore privatization trends in education policy at both the K-12 and higher education levels.  These privatization trends challenge the traditional view of education as a public good and raise interesting questions concerning the role and shape of education reform. For more information, click here.

July 11, 2012

Headlines
States Face Tough Choices Even as Downturn Ends
CO: Fracking: Aurora votes to “lease” water to Anadarko Petroleum
NJ: Trenton Lawmakers Plan Review of Halfway Houses
IN: Hoosier Lottery seeks bids for privatizing some of agency’s work
VA: Slow down plans to privatize port
NC: The privatization scam
MO: Input on roads favors taxes over tolls
FL: Two political insiders to survey Florida’s big landowners about toll road routes
NY: Madison County considers privatization to combat growing budget pressures
ID: Supporters of liquor privatization look forward to 2013 legislative session

States Face Tough Choices Even as Downturn Ends
As state governments begin to emerge from the long downturn, many are grappling with a difficult choice: should they restore some of the services and jobs they were forced to eliminate in the recession or cut taxes in the hopes of bolstering their local economies? The debate over the proper balance between taxing and spending has been raging in Congress, on the presidential campaign trail and in statehouses around the country, and no two states have settled it more differently this year than Maryland and Kansas, whose fiscal years began July 1.  New York Times

CO: Fracking: Aurora votes to “lease” water to Anadarko Petroleum
Gaylord Entertainment dumped its plans for a giant hotel/convention center/resort in Aurora, and GE has postponed its big new plant in Aurora — if not ditched it entirely. But at least Aurora had control over one business deal: It had no problem selling its water to an oil and gas company.  Despite recent rains, much of Colorado has been declared a drought disaster area, and parched Weld County farmers just to the north are begging for water. Still, last night the Aurora City Council voted to “lease” water to Houston-based Anadarko Petroleum Corp., which will use it for hydraulic fracturing…possibly the only practice less controversial than opening the city tap to give a hotel a $300 million subsidy, as Aurora was willing to do for Gaylord.  Denver Westward

NJ: Trenton Lawmakers Plan Review of Halfway Houses
New Jersey lawmakers stepped up their calls for more scrutiny of the state’s troubled halfway house system on Tuesday, announcing plans for hearings and demanding that the Corrections Department explain its “disturbing history of mismanagement and neglect.” State Senate leaders said they would conduct a hearing on July 26 to examine oversight of the sprawling network of large, privately run halfway houses, which contract with the state to hold inmates who are finishing their sentences and parolees who are re-entering society. Senate officials said they would invite halfway house executives to testify, along with corrections officials, independent experts and others with insight into the system, which houses about 3,500 inmates and parolees, and has been plagued by escapes, gang activity, sexual attacks and rampant drug use.  New York Times

IN: Hoosier Lottery seeks bids for privatizing some of agency’s work
Its eyes on privatizing some of its functions in hopes of boosting revenue, the Hoosier Lottery is asking companies to lay their ideas out in binding bids that are due by the end of August. The move comes after 10 companies responded to the lottery’s initial inquiry to see whether there were ways to tweak its functions to make more money. The final round of bids allows companies to make proposals along two lines — their base bid, which just deals with the lottery’s current structure, and enhanced bids, which can involve new games, platforms, delivery mechanisms and more. Evansville Courier & Press

VA: Slow down plans to privatize port
Perhaps the most puzzling aspect of the state’s renewed interest in privatizing port operations in Hampton Roads is also the most arbitrary: A 50-day, state-imposed window for companies to submit proposals that compete with the unsolicited bid earlier this year from APM Terminals Inc.  That period is set to expire Thursday. Fortunately, several prospective bidders have complained that they need more time, and state officials are weighing whether to extend the deadline another 30 days. They should. The Virginian-Pilot

NC: The privatization scam
We’ve written a lot on this website about the ways in which corporate overlords are gradually buying up our core public structures and converting them into private assets that can be squeezed and otherwise manipulated to maximize profits. Still, it’s always powerful to learn of new, brazen examples of this process in action. Take for example this story on Blue NC this morning documenting the relationship between a leading candidate for Governor and a private “infrastructure” company with a less-than-stellar record in a neighboring state. The formula is startlingly simple and works well with politicians of both parties:Establish a company that performs some kind of service(s) that government ordinarily provides (e.g. road maintenance, mental health care or even running a school or a prison).  The Progressive Pulse

MO: Input on roads favors taxes over tolls
Several who spoke before a citizens committee on transportation yesterday in Columbia expressed support for tax increases as a way to generate new money for Missouri’s roads, but few defended the idea of charging a toll on state highways. The feedback was given during a meeting of the Blue Ribbon Citizens Committee, formed by Missouri House of Representatives Speaker Steve Tilley, R-Perryville, to gather input on transportation. The panel visited Columbia yesterday to hear from Mid-Missourians about how they benefit from the state’s roadways and how the Missouri Department of Transportation might be better funded….State Rep. Bart Korman, R-High Hill, testified that toll roads could have negative economic effects on residents in his district, which encompasses Interstate 70 between Fulton and Wentzville. “They would take a tax over a toll road,” Korman said of his constituents. Columbia Daily Tribune

FL: Two political insiders to survey Florida’s big landowners about toll road routes
Two developers who played a role in dismantling growth management laws in Florida are getting paid by the Department of Transportation to consult on what could be the largest state road project in history. The project is Future Corridors, a series of at least four toll roads that would crisscross the state’s rural areas to spur economic growth, create jobs and birth another generation of suburban communities. Billy Buzzett and Chris Corr were hired in March to conduct up to 20 interviews with major landowners who own large tracts where the roads could go. After interviewing the landowners, the two would come up with a strategic memo based on the discussions. The contract is worth $106,000; potential land deals could be worth much more. Both Buzzett and Corr have close ties to Gov. Rick Scott’s administration. Miami Herald

NY: Madison County considers privatization to combat growing budget pressures
With an eye on the growing pressure of state mandates, Madison County officials and other Central New York lawmakers are looking to the private sector to take over traditional county programs. County officials issued a request for proposals last month for their Alcohol and Drug Abuse Prevention and Treatment program, known as ADAPT, which provides psychiatric evaluation and treatment for individuals and families. The inquiry comes on the heels of last year’s sale of the county’s 44-employee certified home health agency to Home Care of Rochester Inc. – a transition that will save county taxpayers $750,000 in next year’s budget, said Madison County Administrator Mark Scimone. Syracuse Post Standard

ID: Supporters of liquor privatization look forward to 2013 legislative session
An initiative that would have privatized the distribution and sale of liquor in Idaho failed to gather enough signatures to be placed on the November ballot, but supporters of the effort are already planning to work with the 2013 legislature in the hope of achieving the same goal.. The Northwest Grocers Association (NWGA) met with Idaho officials in late December to determine the steps they would need to take in completing a privatization initiative, before deciding to wait. Ultimately, the Idaho Federation of Reagan Republicans (IFRR), a group based in north Idaho, came forward a month later to announce their own initiative effort, but that too was abandoned after the Idaho attorney general’s office released its report on the text of the measure, expressing legal concern regarding some of its provisions. IdahoReporter.com

July 2, 2012

Headlines
Trans-Pacific Partnership: Under Cover of Darkness, a Corporate Coup Is Underway
Legislation would end mail delivery on Saturdays
SC: South Carolina clamps down on municipal Wi-Fi menace
TX: Charter School Chain Uses Taxpayer Money to Proselytize Students?
FL: Privatizing prison healthcare remains stalled amid court fight
FL: Work-release centers quietly going private
NY: At Fireworks, Not All Seats Are Created Equal
NH:  N.H. towns privatize some services to save cash
CA: OC toll roads to stop taking cash, cut toll-booth jobs
CA: Oakdale weighs privatizing Public Works

Trans-Pacific Partnership: Under Cover of Darkness, a Corporate Coup Is Underway
The highly secretive pact, dubbed “NAFTA on steroids,” is so invasive it would even limit how governments can spend tax dollars…With the direct participation of 600 corporations and shocking levels of secrecy, the Office of the U.S. Trade Representative (USTR) is rushing to complete the Trans-Pacific Partnership (TPP). Branded as a trade agreement (yawn) by its corporate proponents, TPP largely has evaded public and congressional scrutiny since negotiations were launched in 2008 by the George W. Bush administration. But trade is the least of it. Only two of TPP’s 26 chapters actually have to do with trade. The rest is about new enforceable corporate rights and privileges and constraints on government regulation. This includes new extensions of price-raising drug patent monopolies, corporate rights to attack government drug formulary pricing plans, safeguards to facilitate job offshoring and new corporate controls over natural resources. Also included are severe limits on government regulation of financial services, zoning and land use, product and food safety, energy and other essential services, tobacco, and more. The copyright chapter poses many of the threats to Internet freedom of the Stop Online Piracy Act (SOPA), which was stalled in Congress under intense public pressure. The proposed pact is so invasive of domestic policy space that it would even limit how governments can spend tax dollars. Buy America and other Buy Local procurement preferences used to reinvest our tax dollars in the American economy would be banned and sweat-free, human rights or environmental conditions on government contracts would be subject to challenge in closed-door foreign tribunals. AlterNet

Legislation would end mail delivery on Saturdays
Unionized postal workers are not happy about federal legislation that would reduce mail delivery from six to five days a week. Paul Nyman, secretary-treasurer of Branch 50, National Association of Letter Carriers, said the bill, if passed by Congress, could hurt senior citizens and disabled veterans who depend on home mail service. He and other postal workers are getting the word out to local businesses and groups, urging them to speak out against the legislation, which would, in effect, end Saturday mail delivery. Sun Gazette

SC: South Carolina clamps down on municipal Wi-Fi menace
Ars Technica has a steller report on the South Carolina state legislature’s recent passage of a bill that “effectively makes it difficult, if not impossible” for town and city governments to create their own municipal Wi-Fi networks — networks that are aimed at giving citizens taxpayer-funded, free-to-use Internet service. The two big powers behind the legislation, Ars reports, were AT&T and the American Legislative Exchange Council (ALEC), a group that creates corporate-friendly model legislation for state legislators to pass. ALEC’s primary objection to municipal Wi-Fi, it seems, is that it might compete with private Wi-Fi services and put the squeeze on incumbent carriers’ profitability. YahooNews

TX: Charter School Chain Uses Taxpayer Money to Proselytize Students?
An investigation by Americans United for Separation of Church and State suggests that Shekinah Radiance Academy schools, using public money, operate as religious institutions….Evidence gathered as of press time indicated that the school promoted weekly chapel services, offered weekly Bible study classes and used a religious name and logo, all of which could be violations of the Constitution’s First Amendment. Alternet

FL: Privatizing prison healthcare remains stalled amid court fight
It has been more than a year since the Legislature ordered the agency to privatize inmate healthcare to save money, the largest project of its kind ever attempted in the U.S. It still hasn’t happened, leaving unfulfilled Gov. Rick Scott’s campaign promise to “competitively bid healthcare contracts” to cut costs. In the past year, Scott ousted the corrections secretary who initiated the project, and two unions filed suit to derail the outsourcing. Miami Herald

FL: Work-release centers quietly going private
When Gov. Rick Scott and legislators tried to privatize South Florida prisons, the state Senate rejected it. When the state sought to privatize health care for inmates, two unions filed suit, stalling it. Undeterred, the Department of Corrections is pursuing privatization on a new front. The agency will seek bids to privatize all 20 of its work-release centers, including three each in Pinellas County and South Florida, even though the Legislature didn’t mandate it. The state has not made the privatization plan public. The prison system says it has the authority under state law, but the Teamsters union that represents state correctional officers is threatening a lawsuit. Ken Wood, acting president of Teamsters Local 2011 in Tampa, calls the latest venture “highly suspect” and says: “We’re reviewing our legal options.” Miami Herald

NY: At Fireworks, Not All Seats Are Created Equal
They are an expression of democracy, liberty and equality, a pyrotechnic celebration of the ideals on which the United States was founded. But this year’s Fourth of July fireworks on the Hudson River will offer a new tier of premier viewing — a V.I.P. section in Hudson River Park where spaces will go for $200 a pop. But the elite viewing platform has struck some parks observers as, well, elitist. “Any time you section off or privatize or limit access to the general public, it’s against the grain of what a public park is supposed to be,” said Melissa Mark-Viverito, a member of the City Council who is chairwoman of the parks and recreation committee. “It’s symbolic of what we’re seeing at the city and state level, where we’re not allocating enough resources to keep our parks in a state of good repair.”  New York Times

NH:  N.H. towns privatize some services to save cash
With municipal budgets squeezed to a maximum, Southern New Hampshire towns are trying to get the most out of taxpayers’ dollars. That’s why some are turning to more privatization of town services…Salem recently eliminated its four-member information technology department and hired a private contractor to do the work…Derry hires a company to process tax bills. Londonderry contracts out welfare services, saving thousands of dollars each year…Privatization of community services isn’t a new concept, but it’s becoming more popular, local officials said…Towns are cutting costs in any way they can, even if it means laying off longtime employees…Like privatization, sharing community resources also isn’t a new concept. It’s just becoming more popular during tight times, according to Christopher Porter of the New Hampshire Local Government Center in Concord. The municipal organization’s 2011 survey showed at least 60 percent of New Hampshire communities rely on surrounding towns for services, he said. O’Neil said towns should also consider sharing police and fire services, like in other parts of the country. The Eagle-Tribune

CA: OC toll roads to stop taking cash, cut toll-booth jobs
The county is looking to save money by eliminating toll booth operators and phasing out cash payments, in addition to raising toll rates. Los Angeles Times

CA: Oakdale weighs privatizing Public Works
The Oakdale City Council could decide Monday night on a proposal that would lead to eliminating its Public Works Department and outsourcing its functions to the private sector. Modesto Bee