News

PA: Should Philly’s public gas company be in private hands? Mayor Michael Nutter has announced a proposed agreement to privatize Philadelphia Gas Works. The deal, which would sell PGW to Connecticut-based UIL Holdings Corp. for $1.86 billion, is enormous. And it is the most important local issue that you haven’t thought about at all.  . .Utility Workers Union of America Local 686, consumer advocates and City Controller Alan Butkovitz have already criticized the sale. A skeptical City Council — which, along with the Pennsylvania Public Utility Commission, must give its approval for the deal to go through — has retained consultants to analyze the sale, and whether PGW could expand and improve as a city-owned utility. Philadelphia City Paper

IL: Rahm Made the Meter Deal Worse, and That Shows No Signs of Changing. Mayor Rahm Emanuel still hasn’t let any aldermen reinstate metered parking on Sundays, despite promises last summer to do so after he announced a renegotiated parking meter deal. A new study released today shows why it may never happen. Navigant Consulting’s report for the mayor’s office [PDF] says that “parkers” are paying less than Navigant had estimated last summer. It also shows that the city is paying less to Chicago Parking Meters, LLC, because it no longer has to pay for road closures (including street festivals and construction) that happen on Sundays. Combined, CPM is collecting $8.7 million less from Sunday parkers and the city annually. (The report doesn’t specify how much of that total is attributable to each source.) This result suggests why Emanuel has been dragging his feet on letting aldermen opt out of free Sunday parking, because then the numbers for the “savings” wouldn’t look as good. The study supports 32nd Ward Alderman Scott Waguespack’s assertion that allowing metered Sundays would “hurt the deal they cut,” as he told DNAinfo. Streetsblog Chicago (blog)

GA: House begins debate on privatizing foster care. . .They see the privatization bill as a way to free up DFCS workers to focus on child abuse investigations and permanency plans for children in the state’s care. But other private organizations told reporter Rebecca Lindstrom, FaithBridge is in the minority of those who feel Senate Bill 350 is a good idea. . . Mead and other opponents say the effort to mirror Georgia’s foster care system after Florida’s is short sighted. “There’s evidence that Georgia is doing better than Florida in many of these important outcomes,” said Mead.  WXIA-TV

TN: State reviews privatizing lodges, restaurants in parks. Resources at about a dozen state parks may no longer be in Tennessee’s hands. The state is currently reviewing a proposal that would privatize lodges and restaurants at 11 state parks, including Cumberland Mountain State park in Crossville. . . Skeptics say privatizing these parts of the park would result in layoffs and impact 50 jobs in Crossville. WBIR-TV

Bernie Sanders: There’s No Need to End Saturday Mail Delivery. . . Whether you are a low-income elderly woman living at the end of a dirt road in Vermont or a wealthy CEO living on Park Avenue, you get your mail six days a week. And you pay for this service at a cost far less than anywhere else in the industrialized world.  Yet the Postal Service is under constant and vicious attack. Why? The answer is simple. There are very powerful and wealthy special interests who want to privatize or dismember virtually every function that government now performs, whether it is Social Security, Medicare, public education or the Postal Service. They see an opportunity for Wall Street and corporate America to make billions in profits out of these services, and couldn’t care less how privatization or a degradation of services affects ordinary Americans. What They Think

 

News

Anti-tolls group formed by trucking companies, truck stops, other sectors. Several trucking companies and trucking trade groups have joined a band of other business and consumer organizations to form an anti-tolling group who says its mission is to keep existing interstates toll-free. The Alliance for Toll-Free Interstates includes trucking industry members FedEx, UPS, Old Dominion, the American Trucking Associations, all 50 state trucking associations, the Truckload Carriers Association, Quality Transport, H&J Trucking, NATSO and others. . .The group formed in response to three states implementing pilot programs to allow tolls on existing interstate lanes, even though federal law prohibits tolling on existing Interstates. Moreover, ATFI says, “the tolling industry is pressuring lawmakers” to change the law and allow tolling on existing lanes. Also, as the next highway bill looms and Congress searches for a solution to preventing the Highway Trust Fund going broke, ATFI says it hopes to show tolls as “unreliable, expensive and inefficient” as a mechanism for generating infrastructure funding.  Overdrive

Ravitch calls for congressional hearings on standardized testing gets unexpected support. . . The subject of congressional hearings on testing abuse came up Tuesday at a SXSWedu panel on accountability. On the panel were Education Secretary Arne Duncan’s former communications director, Peter Cunningham, and American Federation of Teachers President Randi Weingarten. (I was the moderator.) During the Q & A, one of the founders of NPE, veteran educator Anthony Cody, asked if the panelists would support the call for Congress to hold hearings on how standardized tests are being used in public schools. Weingarten quickly said she would. Then, Cunningham said he would support it, as well.Weingarten has been a vocal critical of excessive testing for some time. But it was a surprising moment for people who expected a different response from Cunningham, whose job it used to be to defend the Education Department’s policies which have resulted in a rise in testing. Washington Post (blog)

NY: Mayor De Blasio and Operator of Charter School Empire Do Battle. . . In his campaign last year, Mr. de Blasio took aim at charter schools, saying they had a “destructive impact” on traditional schools. He has promised to charge rent to well-financed charter schools, which are privately run but publicly financed, for using public school buildings, and he has placed a moratorium on future requests for classroom space inside traditional district schools.  New York Times

PA: Critics see loopholes in PGW-sale deal. The ink is barely dry on the city’s agreement to sell Philadelphia Gas Works for $1.86 billion to a Connecticut energy company, and critics are already seeing loopholes in promised customer protections. Under the purchase agreement announced Monday, UIL Holdings Corp. is required to maintain a three-year rate freeze and continue PGW’s low-income subsidies. But advocates who have read the 87-page agreement say it appears to contain provisions that would allow the new owners to hedge those commitments. Critics also say that UIL is taking over municipal liens that PGW placed on properties of nonpaying customers, triggering fears that the utility could foreclose on homeowners to extract long-standing debts. Philly.com

MA: At meeting on proposed waste transfer station, City Council expresses dismay at push for privatization. A presentation by Republic Services for a proposed transfer station after the Fall River Industrial Park landfill closes turned into a protest when it became apparent to city councilors that Mayor Will Flanagan is talking with vendors about privatizing the city’s trash hauling. “I’ll be the first one to come forward and say I will never — never — be in favor of privatization of the city. No way, not on my watch,” said City Councilor Daniel Rego to thunderous applause from department of public works staff that packed City Council Chambers. Wicked Local Fall River

News

Virtual Schools Continue to Proliferate. Full-time virtual schools continue to have serious problems with respect to education quality, diversity, accountability, and funding, according to a new national study published today by the National Education Policy Center. . . “Full-time K-12 online learning is growing exponentially. Many policymakers praise it, and taxpayer money supports it,” says the report’s editor, Professor Alex Molnar of the University of Colorado Boulder, where the NEPC is housed at the CU Boulder School of Education. “And yet, there has been little high-quality research to support the claims that justify its rapid expansion.” National Education Policy Center

PA: PGW sale means higher gas bills, says advocacy group. Philadelphians are in for a big hike in their gas bills after the sale of Philadelphia Gas Works to UIL Holdings Corp. for $1.86 billion, an advocacy group is warning. Food & Water Watch warns that if gas utility privatization is anything like water privatization, then customers will pay the price with rate increases. Philadelphia Business Journal

PA: Pa. Gov. Tom Corbett: Liquor privatization not dead yet. Corbett fought for liquor privatization and pension changes during last year’s budget negotiations but wasn’t able to get them through the Legislature. Delaware County Daily Times

ID: House passes measure allowing for partial privatization of services at state universities. House Bill 549, which now goes to the Senate, would not require the schools to shift to private services, but would extend the opportunity to do so where it currently does not exist. The bill passed on a 53 to 14 vote.  IdahoReporter.com

TX: Toll troubles: URS set for hefty layoffs in Austin. URS Corp., one of the Austin area’s largest engineering companies, is set to lay off 79 employees in April — nearly 9 percent of its local staff — because its contract to operate the Central Texas Turnpike has not been renewed, the company disclosed in a notice sent to the Texas Workforce Commission. . . URS is the contractor that launched the Central Texas Turnpike in 2006. The turnpike, 65 miles long, includes portions of State Highway 45, State Highway 140 and Loop 1, also known as MoPac Expressway. URS Corp., based in San Francisco, is one of the largest private Austin-area employers, with more than 950 workers. Austin Business Journal

WI: Editorial: Toll roads aren’t the answer for Wisconsin. . . Instead of a two-tax system, Wisconsin would be better off taking the current road and using the gas tax as the primary source for highway funding. Critics will say the state’s gas taxes are already among the highest in the country — and it’s true that Wisconsin ranks 14th among all states. But at 51.3 cents per gallon for federal and state gas taxes, Wisconsin is less than 2 cents per gallon morethan the national average of 49.5 cents. We don’t need a new and inefficient tax like toll roads in southeastern Wisconsin.  Journal Times

NJ: Wanna buy a bridge? Neighboring state turns to private sector to fix crumbling spans. As New Jersey wrestles with how it will pay for its crumbling roads and bridges once the Transportation Trust Fund runs out of money in two years, Pennsylvania is looking to enter into a public-private partnership to reconstruct its spans. Color New Jersey’s transportation commissioner intrigued.  The Star-Ledger

NJ: Franklin schools nix plan to outsource paraprofessionals, substitutes still at  risk. The school board has decided not to outsource paraprofessionals, including teachers’ aides, but will have to find other cuts to meet a $1.75 million budget gap, the interim superintendent said. . . Despite the strong support for the move indicated by a loud burst of applause when the outsourcing announcement was made, many of the more than a dozen attendees who still came up to the microphone to comment chided the board for considering the move in the first place, and for not including the substitute teachers. The Star-Ledger

KS: Wichita council weighing change to no-bid policy for public-private projects. . . Bidding would no longer be required for construction work jointly financed by city and private money – if general contractors agree to select their subcontractors through a competitive process approved by city staff. The city also plans to engage a third-party expert in these instances to verify construction estimates and contracts. Projects entirely financed by taxpayers would still require competitive bidding.  Kansas.com

 

News

PA: Pennsylvania will have private companies rebuild and maintain more than 500 bridges. Pennsylvania is moving closer to awarding a contract for private companies to repair and maintain at least 500 structurally deficient bridges. The plan will work like this, according to PennDOT Secretary Barry Schoch. The state’s Public-Private Transportation Partnership Board will select a firm to replace as many as 650 structurally deficient bridges. The contracts will call for those firms to then maintain the bridges for the next 30 years, Schoch said. After that, the state would resume maintenance. Patriot-News

TN: State Takes First Steps Towards Privatizing Parks. NewsChannel 5 has learned the Haslam administration has taken the first steps that could lead to the privatizing of almost a dozen state parks. Now, some fear that move could end up costing hundreds of state employees their jobs.  NewsChannel5.com

IN: Gary Airport Consultants Set To Score $2 Million From Privatization Deal. There are always the usual suspects who cash in big time from the consulting work that occasions the execution of a privatization agreement. The magical number for the pay day to the consultants for the 40-year privatization deal with Aviation Facilities for the Gary Airport is $2 million, which is about the same amount Indianapolis spent on consultants for its corrupt parking meter privatization deal with ACS. Advance Indiana

CA: OC toll road CEO put on leave after spending questioned. The chief executive officer for Orange County’s toll road agency has been put on leave after less than one year on the job, a spokeswoman for the agency confirmed Friday. Neil Peterson had been under fire for spending thousands of dollars without public  scrutiny, using a provision that gave him and the agency’s chairwoman authority to sign smaller contracts without the authorization of the Transportation Corridor Agencies’ board of directors.  Los Angeles Times

FL: Privatizing government work reaps lavish profits for some. The idea behind privatizing Florida government services is that it’s supposed to be not only cheaper, but better — to save money for the taxpayers and, just as important, to do the job better than state employees. . . A lot of state employees and their elected representatives, who were Democrats, warned that there was another purpose behind privatization. It makes a lot of money for companies taking over state contracts, and officers of those companies make a lot of contributions to politicians. We’ll let you take a wild guess at which party grabs most of the gelt. Tallahassee.com

FL: Grand jury investigates 3 toll-road board members. An Orange County grand jury is looking into an allegation that three board members of the Orlando-Orange County Expressway Authority violated the state’s open-records law. Orlando Sentinel

OR: National liquor group gives $100,000 to Oregon privatization effort. The Distilled Spirits Council, a national group that advocates for liquor manufacturers, has donated $100,000 to the effort to privatize Oregon liquor sales, state records show. The money could help jump-start a signature-gathering drive when the campaign pushing for the law change gets an approved ballot title, said Pat McCormick, spokesman for Oregonians for Competition. That’s the group, backed by Northwest grocery chains, that’s trying to put a measure on the November ballot that would end Oregon’s monopoly on liquor sales, and allow big retailers to stock booze on their shelves. The Oregonian

GA: Privatized college buildings bill clears Georgia House. After several fits and starts, legislation making it easier for the University System of Georgia to privatize student dormitories and parking decks is moving in the General Assembly. . . The university system Board of Regents wants to step up its privatization efforts in order to reduce the system’s debt load from campus construction projects, a total that is approaching $4 billion. Atlanta Business Chronicle (blog)

GA: Children at risk – Opinion. Senate Bill 350 proposes to fully privatize the foster care system in Georgia. Private companies or non-profits would take over all services related to adoption, foster care, family reunification, and case management. . .The problem with Senate Bill 350 and its full privatization of the foster care system is that it would do nothing to address the failure of DFCS to identify and respond to children at risk of abuse and neglect. . . Full privatization of foster care does not ensure better outcomes for children. Florida, from which this legislation was taken, does not appear to offer any advantage over Georgia’s public agency approach. There is no evidence whatsoever that full privatization is more effective at keeping children safe or finding permanent homes faster than Georgia’s current system.  Columbus Ledger-Enquirer

Fighting Schemes to Privatize the USPS. In an effort to protect good jobs and community service against privatization schemes on Capitol Hill and the marketplace, Postal Workers this month called for a boycott of Staples office-supply stores. Specifically accusing Republicans of trying to privatize mail processing and delivery to enhance profits for their campaign contributors by destabilizing the U.S. Postal Service (USPS), the American Postal Workers Union (APWU) is demanding that Staples stop operating postal retail units staffed by non-postal employees. Tri States Public Radio

Chomsky: How America’s Great University System Is Getting Destroyed. When universities become corporatized, as has been happening quite systematically over the last generation as part of the general neoliberal assault on the population, their business model means that what matters is the bottom line. The effective owners are the trustees (or the legislature, in the case of state universities), and they want to keep costs down and make sure that labor is docile and obedient. The way to do that is, essentially, temps. Just as the hiring of temps has gone way up in the neoliberal period, you’re getting the same phenomenon in the universities. The idea is to divide society into two groups.  AlterNet

 

News

US Open To New Ideas on Air Traffic Control Privatization, DOT’s Foxx Says. U.S. Transportation Secretary Anthony Foxx said the government is open to ideas on privatizing the nation’s ATC system, as long as aviation industry “stakeholders” agree on making that transformation. Foxx remarked on privatization after delivering the kZSeynote speech at an Aero Club of Washington luncheon on February 25, his first major address to an aviation audience. Aviation International News

FL: Toll road opponents want Pasco commissioners to halt project. Toll road opponents filled the Pasco Commission chambers Tuesday and two dozen spoke against the proposed elevated highway in what was the first real show of force by the grassroots “Pasco Fiasco” movement.“We are just a small sampling of this community who oppose this road – and we would appreciate more opportunities to be heard,” DeShon Hodge said. The group is hoping to persuade a majority of commissioners to put a halt to the $2 billion project. The Florida Department of Transportation is negotiating with a consortium headed by the Spanish firm OHL to build and operate the four-lane toll road. Tbo.com

NJ: Parkway, turnpike toll takers fight to keep jobs…. The controversial proposal was debated Tuesday, when toll collectors, union representatives and two New Jersey lawmakers urged the Turnpike Authority’s board of commissioners to back away from the plan. The board may vote on the proposal at its April 29 meeting.  Press of Atlantic City

NJ: Aging utility systems prompt privatization talks. The Borough Council has proposed borrowing $2.2 million to upgrade sewer and water infrastructure throughout town, prompting a debate among some members about selling the Red Bank water and sewer utility.  Red Bank Hub

FL: Toll road opponents want Pasco commissioners to halt project. Toll road opponents filled the Pasco Commission chambers Tuesday and two dozen spoke against the proposed elevated highway in what was the first real show of force by the grassroots “Pasco Fiasco” movement. Tbo.com

WI: Idea of Wisconsin toll roads starting to gain support. Talk of toll roads in Wisconsin is resurfacing amid the high price of new construction and the bumper crop of potholes. WISN Milwaukee

IN: Pelath criticizes Ind. House GOP over passing up privatization review…By a party-line vote, the House majority rejected Pelath’s proposal to conduct a cost-savings review of all state contracts that involved privatization of services over the past decade and make sure that a similar study is a part of all deals made in the future….The state’s most notorious efforts at privatization have been the 75-year lease of the Indiana Toll Road to a foreign investor and the ill-fated decision to have IBM Corp. handle the lion’s share of the state’s welfare services.“We all know how the IBM affair ended: with a system so broken that even a champion of privatization like former Gov. Mitch Daniels had to concede it didn’t work,” Pelath said. …”While the toll road lease has many more years to run, the chunk of cash the state received in the deal already has run out, and the list of state and local infrastructure improvements needing to be funded remains lengthy.  Chesterton Tribune

NY: Mayor Bill De Blasio: Advertising Campaign Won’t Impact Stand On Charter Schools…The mayor, who wants to charge rent to charter schools housed in public school buildings, held firm Tuesday, saying he needs to concentrate resources on the 95 percent of city students in public schools. He took issue with the Bloomberg administration’s coddling of charter schools.  CBS Local

TN: Outsourcing proposal upsets Oak Ridge parents, teaching assistants… “To ask them to be rehired with no job security, forced to be ‘retrained’ (what better training could they possibly have than to be working beside these amazing teachers — for some nearly 20 years), fingerprinted, have a background check and with a pay cut is too sad to think about. It is degrading and insulting, and, I’m sure, makes them feel that their many years of services is at best unappreciated, but even worse that their time was not considered to be valued. Oak Ridger

NC: Editorial – If we’re going to outsource, let’s get it right first. State Rep. Susi Hamilton supports the concept of enlisting private enterprise to help recruit businesses to North Carolina, but she objects to approving sending the taxpayers’ money to a “public-private” organization without a better plan for raising the “private” dollars that are supposed to be part of the package. Her questions at a recent legislative committee meeting were on the money – state officials need to nail down more specifics before committing any more taxpayer dollars…. But the reality may be different, especially if the Honorables fail to establish adequate oversight of the new partnership’s spending and operations. That’s why it is important to slow down and get it right. North Carolina’s current economic development process has room for improvement, but it is not so “broken,” as McCrory is wont to characterize the state of state government, that it necessarily requires a total overhaul.  StarNewsOnline.com

CA: City won’t outsource parks work. Carlsbad has given up – at least for now – on its dream of saving millions by outsourcing all of the city’s parks maintenance work. … It was an uncharacteristic retreat for a city that’s been on the cutting edge of pension reform and other efforts to cut labor costs and save taxpayers money. But city officials said a potential $4 million in savings predicted two years ago by a consultant never materialized, partly because of a new state law requiring city contractors to pay workers union-negotiated rates known as prevailing wages.  U-T San Diego

IL: Glen Ellyn opts to stay in ambulance business. After debating whether to get out of the ambulance business, Glen Ellyn officials have decided to continue owning and maintaining its own vehicles while outsourcing staffing and billing services….A staff analysis of Kurtz’s proposal showed the village can save approximately $153,500 a year if it continues to own and maintain the emergency vehicles, as opposed to having the firm take over ownership along with the staffing and billing services. Chicago Tribune

News

Are private prisons better or worse than public prisons?….Somewhat surprisingly, for all the ink spilled on private prisons over the last thirty years, we have precious little good information on what are surely some of the most important questions: when it comes to cost or quality, are private prisons better or worse than public prisons?It’s safe to say that, so far at least, the political process hasn’t encouraged rigorous comparative evaluations of public and private prisons. Some states allow privatization without requiring cost and quality evaluations at all. The nineteen states that don’t privatize might, for all I know, be right to do so, but of course their stance doesn’t promote comparative evaluation.  Washington Post

The Private Prison Racket…. But while privatizing prisons may appear at first glance like yet another example of how the free market beats the public sector, one need only look at CCA’s record in Idaho—which recently cancelled its contract with CCA—to wonder whether outsourcing this particular government function is such a good idea.  Politico

Why spectrum auctions still matter….. Here’s the thing – pretty much by definition, wireless spectrum belongs to everyone, not just the people and companies actually using it at any given time. If the spectrum belongs to everyone, then companies hoping to make money off it should pay for the privilege of using a public resource. It doesn’t necessarily have to be obtained via auction, but there has to be some mechanism where still-scarce public resources are not just given away to corporate or other interests. Network World

CO: Detractors form road block to US 36 toll road proposal….The state is likely to enter into a 50-year contract with Plenary Roads Denver that would hand over operation and maintenance of U.S. 36 along the Boulder Turnpike — between Denver and Boulder — to the private consortium….Leading the concerns for citizens is Ken Beitel, spokesman for the Boulder-based Drive SunShine Institute, an alternative energy advocacy organization. He has started a petition calling for a timeout and review of the contract that already has 18,000 signatures, he said. “When you see 500 very concerned citizens in Louisville, they are concerned because you as elected officials have not read that contract, and we’re counting on you to ensure that the public interest is guarded here,” Beitel told lawmakers. The Colorado Statesman

IL: Illiana tollway’s impact discussed. Responding to complaints by local farmers, first responders and highway commissioners, an Illinois Department of Transportation representative said at a recent media briefing that a proposed bi-state tollway, once built, would affect less than one-third of existing local roads….Private investment is expected to cover the cost, estimated at $1.5 billion, of the 47-mile tollway connecting Interstate 55 southwest of Joliet with Interstate 65 near Lowell, Ind. Chicago Tribune

FL: Fla. Bill Would Protect Info In Public-Private Proposals. Building on steps Florida lawmakers took last year to expand the use of public-private partnerships in the state, a bill filed Friday in the state House of Representatives aims to address concerns about protecting sensitive corporate information in the proposal process.  H.B. 1051, filed by Rep. Ken Roberson, R-Port Charlotte, would add a limited public records exemption to state law for unsolicited proposals that private companies make to the government for collaborative projects, in which private entities finance and construct public facilities, then run and collect revenue from them for a specific period of time. Law360

WI: New Docs Suggest Scott Walker Misled Press….In the months to come, the story would blossom, with prosecutors soon uncovering reams of evidence that Walker’s County Executive staff were conducting campaign work on the taxpayer dime…. However, a Milwaukee Journal Sentinel review of records shows that Walker had personally instructed staff to post comments to news articles, just weeks before Wink was caught for doing just that during the work day. For example, on the afternoon of Friday, May 4, 2010, just one week before Wink was ousted for her online commenting — which Walker would later describe as an unauthorized and isolated incident — Walker urged his county staff and campaign to leave comments on a Milwaukee Journal Sentinel story about his plan to privatize the airport.  PR Watch

PA: The paradox that has paralyzed any change in Pa.’s liquor system, at least for now….The legislators who want to keep Pennsylvania in the liquor business want the Liquor Control Board to be more responsive to consumers and make more money for the state. The LCB says it can be more profitable if it opens more stores on Sunday, expands hours and offers more variable price points. The General Assembly would need to change the law in order for the LCB to do that. But the legislators who most want the state to get out of the liquor business don’t see any reason to expand a system they are trying to close. So — at the moment — no one has enough votes to do anything.  PennLive

PA: Letting colleges and universities authorize charter schools doesn’t necessarily mean better results: Kate Shaw ….Smucker’s proposal would bring new players into this mix by allowing nearly 100 Pennsylvania institutions of higher education to approve charter schools without review or approval of these local school boards. More specifically, major research universities could approve a charter school anywhere in the commonwealth….What is different about Smucker’s bill? The sheer number of colleges and universities that could approve new charters…. This is not an optimal policy direction for a number of reasons. The Patriot-News

VA: Dan Casey: Privatize teachers? It could happen….It won’t happen this year or next, nor is it likely to happen in the next five years, at least in the Roanoke Valley. But sooner or later the day will come when the question is likely to be on the public agenda. Mike Stovall, a 19-year veteran of the Roanoke County School Board, says the notion is ridiculous… So I asked him: When he started on the school board in 1995, did he ever imagine he’d be faced with the question of outsourcing nurses, cafeteria workers and bus drivers? His answer was no. Yet here we are.  Roanoke Times (blog)

NY: Charter School Advocacy Group Launches Multimillion-Dollar Ad Campaign. A charter school advocacy group launched a multimillion dollar ad campaign on Tuesday, Feb. 25, to publicize the advantages of charters and defend against Mayor Bill de Blasio’s plan to stem their growth. The mayor plans to begin charging charter schools rent and has put a hold on all charter school co-locations. A co-location involves moving a school into an existing building where another school already operates. The Department of Education has already diverted $310 million from a charter school construction fund in January.  The Epoch Times

TN: For-profit charter school operators watch TN. Out-of-state companies that bring in millions in revenue by managing charter schools have their eyes set on Tennessee, an epicenter of education reform. The Tennessean

NC: Hamilton, Catlin question Commerce privatization plans. At least two local lawmakers are urging caution as the N.C. Department of Commerce looks to privatize its job recruitment functions.  Hamilton first raised her concerns at a recent meeting of the Joint Legislative Economic Development and Global Engagement Oversight Committee ….Hamilton said that it’s the legislature’s job to “appropriate and govern and manage the expenditures of public dollars.” She said “we (lawmakers) just can’t be expected to turn over that responsibility.” Star News

 

News

Federal Lawsuit Accuses For-Profit Schools of Fraud. “I saw students who never should have been there, students with whopping gaps in learning abilities and major psychiatric problems who were just not capable of doing the work,” said Ms. Amaya, an administrator at Harris’s Linwood campus, and then at its Wilmington, Del., campus, from 2009 to 2011. “The bosses were always like, ‘Stop asking why they’re enrolled, just get them to graduation however you can.’ ”  New York Times

In some states, gaming industry consultants double as gambling regulators. States hoping to make money quickly from legalizing gambling have few options as speedy as outside contractors, which allow them to get casinos up and running without having to hire and train a cadre of staff regulators. But letting consulting companies with deep ties to the gambling industry decide how casinos are run — and who runs them — is a significant departure from how established gambling states, including Nevada and New Jersey, do things. Regulators in states that maintain control over their own rules say the move toward privatization is unnerving. “How do you vet your consultants? If a lot of these consultants at one time or another have worked for the people that you’re in charge of regulating, at some point, you’re going to have issues with the purity of the investigation,” Illinois Gaming Board spokesman Gene O’Shea said. At least 16 states rely on private companies for major portions of casino oversight, according to interviews with regulators across the country.  Las Vegas Review-Journal

The Myth Behind Public School Failure. To truly understand how we came to believe our educational system is broken, we need a history lesson. Rewind to 1980—when Milton Friedman, the high priest of laissez-faire economics, partnered with PBS to produce a ten-part television series called Free to Choose. He devoted one episode to the idea of school vouchers, a plan to allow families what amounted to publicly funded scholarships so their children could leave the public schools and attend private ones. You could make a strong argument that the current campaign against public schools started with that single TV episode. To make the case for vouchers, free-market conservatives, corporate strategists, and opportunistic politicians looked for any way to build a myth that public schools were failing, that teachers (and of course their unions) were at fault, and that the cure was vouchers and privatization. Jonathan Kozol, the author and tireless advocate for public schools, called vouchers the “single worst, most dangerous idea to have entered education discourse in my adult life.” Yes!

Return to Lender: Postal Banking Can Bring Equity to Communities. Conservatives have increasingly dismissed the United States Postal Service as a clunky relic of old-fashioned America, with right-wing lawmakers seeking to phase it out through service cuts and privatization. Now, some progressives are trying to save the USPS by rebranding it as a financial vehicle: a place for you to pick up your mail and deposit a paycheck in one stop.  Huffington Post

The Logic of Public Services. Many a local government has learned the hard way that even water is a commodity from which to squeeze a profit once privatized, with human need an afterthought. Decades of ideology have attempted to instill the idea that the private sector is always superior to government; that government can only mismanage what is in its hands. Although attempting to flip this discredited, self-serving phantasmagoria by arguing the complete opposite would not stand up to scrutiny, either, the realm of facts and data firmly contradict the standard corporate ideology. Government after government has found that privatization was a mistake in what has become a wave of “re-municipalization” — the return of public services to public management.  CounterPunch

CA: Long Beach city workers criticize proposal to privatize street-sweeping services. Municipal workers attended the Council Chamber on Feb. 18 to voice opposition to a plan that would allow private contractor Athens Services to take over street sweeping for the City of Long Beach. The plan acknowledges that 19 full-time employees may be displaced from their jobs but does offer alternatives for the city workers affected by the change. The Council removed the item from Tuesday’s agenda and plans to discuss the matter during a meeting in March. Signal Tribune

IL: Chicago charter school’s religious affiliation raises questions. The school’s deep partnership with the faith-based group raises questions about how a publicly financed charter school can comply with the constitutionally mandated separation of church and state, especially when both groups share some leaders. Chicago Sun-Times

IL: City Violated Open Meetings Act. A Sangamon County judge has ruled that the Springfield City Council violated the Illinois Open Meetings Act late last year with its closed-door discussion of Oak Ridge Cemetery. The council went into executive session Nov. 5 to discuss a plan to solicit proposals for private management of the city-owned cemetery, citing exemptions that allow discussion of personnel and collective bargaining issues out of the public eye. Illinois Times reporter Bruce Rushton filed a lawsuit alleging that the council’s discussion violated the law. The State Journal Register

WA: Gov. Scott Walker urged employees, aides to promote him online, emails show. The Journal Sentinel reported Sunday of one instance in May 2010, in response to a Journal Sentinel story, Walker sent an email to county aides and campaign staffers saying someone should respond to critics of his plan to privatize the Mitchell International Airport. “Someone should comment on the fact that the only way for the county to benefit from that success is to contract out operations,” Walker wrote. “Having a well performing airport increases the value that the county could receive.” Brian Pierick, boyfriend of Walker aide Timothy D. Russell, soon after posted a comment anonymously that included Walker’s language nearly verbatim, according to the Journal Sentinel.  Madison.com

WA: Booze prices. Booze prices at bars and restaurants in Washington may go up this year as multiple interests fight over rules following the voter-approved privatization of the state’s liquor system.  The Seattle Times

 

 

News

Privatized Government Services Lead to Millions for Corporate CEOs. Yesterday, the latest round of evidence was published by the Center for Media and Democracy (CMD), a nonprofit organization. Its report, EXPOSED: America’s Highest Paid Government Workers, documents the not-so-pretty reality of outsourcing our public services to for-profit companies. It focuses on the salaries of corporate CEOs “Given these astronomical salaries, and evidence of higher prices, poor service, and at times outright malfeasance, taxpayers have every right to be concerned about how their outsourced dollars are spent,” said Lisa Graves, executive director of CMD, in a written statement.  Center for Effective Government

FL: Elevated road brings community together … to protest. Some members of the newly formed Pasco Fiasco group made their first public appearance during a Pasco Metropolitan Planning Organization meeting last week in New Port Richey. They included Land O’ Lakes native Sharon Ogborn, who feels the elevated road is more about accommodating commuters from other areas than it is her Odessa community. “We moved to our present home in Odessa for the country feeling and the rural setting,” Ogborn said. “It’s going to help Pinellas and Hillsborough counties.”  The Laker/Lutz News

CO: Colorado Transportation Commission gives final approval on US 36 contract. The Colorado Transportation Commission on Thursday approved a public-private partnership to extend toll lanes on U.S. Highway 36 — despite receiving 20,000 public signatures urging lawmakers to strip CDOT of the power to sign such partnerships. All that’s left is for state officials to ink the contract authorizing a private consortium, Plenary Roads Denver, to operate the toll roads and maintenance on the Denver-to-Boulder highway for 50 years. CDOT officials say the contract could be signed next week.  The Denver Channel

UT: Bill giving preference to grandkids of charter school founders heads to Senate. A bill to allow the grandchildren of charter school founders to bypass enrollment lotteries sailed quickly through a Senate committee Thursday on its way to final passage. Deseret News

OR: Liquor privatization in Washington bad for youths, new study says. A new study suggests Washington’s move to private liquor sales has had a bad effect on young people, from looser attitudes about drinking to more alcohol-related emergency room visits. The study, which is ongoing and paid for by a private foundation, could be read as a cautionary tale for efforts to expand or privatize liquor sales in Oregon. The Oregonian

ME: Maine eyes virtual charter school moratorium. A bill moving forward in the Maine Legislature would place a moratorium on virtual charter schools in the state until next year. WCSH-TV

PA: PA liquor stores still in limbo as privatization debate swirls. State Sen. Jim Ferlo doesn’t want to spend any more time or money talking about privatizing Pennsylvania’s state-controlled liquor stores. “Let’s put this B.S. privatization to bed and bury it,” the Allegheny County Democrat said, calling it “baloney” to think there’d be a better selection of wines in a private system. Though Gov. Tom Corbett isn’t counting on money from privatizing the state-controlled liquor stores to balance his next budget, the issue of privatization hung heavy over Wednesday’s state Senate Appropriations Committee meeting with the Pennsylvania Liquor Control Board.  Pennsylvania Independent

IN: Less Money For Roads This Year In Indiana. Mike Pence wanted but collections from the state’s gas tax are down and most of $3.8 billion from privatizing the Indiana Toll Road has been spent. WIBQ

 

 

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CO: Privatization opponents plan lawsuit, picket against Colorado Department of Transportation. Opponents of privatizing a part of US 36 plan a two-pronged attack on Wednesday: in the court of law and in the court of public opinion. As the board in charge of the privatization plan meets to finalize an agreement with a company called Plenary Roads Denver, an opposition group called The DriveSunshine Institute plans to both picket the Wednesday meeting and announce a lawsuit against the Colorado Department of Transportation.  9NEWS.com

VA: Australian Tolling Firm Defends US Toll Road Failure. An Australian toll road company is getting defensive about its investment in an underperforming toll road in Virginia. Located just outside Washington, DC, the state and federal authorities poured hundreds of millions in taxpayer funds on what was supposed to be a showcase for public-private partnership innovation. Transurban charges up to $10 for a short 13-mile trip high occupancy toll (HOT) lanes on the Capital Beltway, a proposition that far fewer motorists than expected have found worthwhile. Though the firm collects an average of $64,000 per day from drivers, this amount is well below projections. Transurban CEO Scott Charlton defended the plan with investors in a conference call last week.  TheNewspaper.com

FL: Broward school district may pay $1.5 million tab for charter schools’ errors. A state of Florida audit that uncovered sloppy paperwork at some Broward schools could force the district to absorb a $1.7 million budget penalty – even though it was charter schools that had the most serious audit findings. Miami Herald

NJ: NJ Legislators Plan Hearings into Christie Plan to Privatize Newark Public Schools. “Let me assure you I will be calling for an investigation into the operation of the Newark district,” Rice said at the close of a two-hour hearing in Newark City Hall about the so-called “One Newark” plan that would close, transfer to charters, redesign or otherwise “repurpose” more than a third of the schools in the state’s largest city. dianeravitch.net

UT: Bill: Study privatizing Utah State Park golf courses. The way Utah State Parks director Fred Hayes sees it, Rep. Kay Christofferson is asking for a mulligan. Christofferson, R-Lehi, this week introduced HB145, which would require the state to hire a golf course consultant to help determine whether Utah State Parks should privatize its four courses. “We did this study two years ago and the report showed that private can’t operate any better than we can,” Hayes said. “We feel like we are doing a good job. This is a little frustrating.” Salt Lake Tribune

IN: More gripes, worries about Illiana Expressway. More than 300 people showed up Wednesday night in Wilmington for the eighth public meeting on the proposed Illiana Expressway, a toll road that would connect Interstate 57 near Wilmington with Interstate 65 near Lowell, Ind. Opponents far outnumbered supporters at the hearing. Those whose property lies in the path of the tollway talked with staff from the Illinois Department of Transportation, while others perused detailed maps of the preferred route, interchanges and closed roads. Many questioned the need for the 47-mile highway. SouthtownStar

IN: Senate panel votes to stop annuity privatization plan. A House-approved measure halting the privatization of a state annuity program for retired government employees, including teachers, cleared a Senate committee Wednesday 9-0 and advances to the full Senate. nwitimes.com

 

 

News

ID: Idaho gov orders police to investigate CCA prison. Idaho Gov. C.L. “Butch” Otter has ordered the state police to conduct a criminal investigation of understaffing and falsified documents at a private prison operated by Corrections Corporation of America (CCA). The governor made the decision — a reversal of his previous stance — on Tuesday after meeting with Idaho Attorney General Lawrence Wasden. Otter wrote in a letter to Idaho State Police Col. Ralph Powell that after reviewing the available information, including an audit completed by the forensic auditing firm KPMG, he now believed the public would benefit from a formal criminal investigation. Businessweek

GA: Senate passes bill to privatize foster care, adoption. Georgia senators Tuesday voted to approve a bill that would privatize the bulk of the state’s child welfare services, including foster care and adoption…. Critics said the bill does not address the real flaws in Georgia’s system that led to recent high-profile child deaths.The changes are contingent on the state receiving a funding waiver from the U.S. government, which currently restricts how federal money can be used to care for foster children.   Atlanta Journal Constitution

CO: Boulder Turnpike privatization plan rips off Colorado, says advocate behind lawsuit. “The privatization of U.S. 36 will present a large financial cost to Colorado taxpayers,” maintains Ken Beitel, clean energy analyst and DSI spokesman. “Hundreds of millions of dollars in toll revenues on U.S. 36 will be drained out of Colorado to provide profits for Goldman Sachs and the Australian toll road developer the Plenary Group.” Westword (blog)

IL: How to avoid another bad parking meter deal – opinion. In a joint investigation with Fox 32 Chicago, we learned that Edison Park has been besieged with parking tickets written by the company that manages Chicago’s more than 36,000 meters. Customers visiting neighborhood businesses have been slapped with tickets minutes after their meters have expired, or when they briefly gambled with unpaid meters during quick dashes in and out of stores. But they have nowhere to turn because the city bargained away their right to exert any influence over meter management, maintenance and enforcement…. Emanuel, as we’ve said before, can take a big step by giving the Privatization Transparency and Accountability Ordinance a full hearing before the City Council and the public. The PTAO, as it’s sometimes called, might not be a perfect ordinance, but its intent is good — to ensure that every privatization proposal is studied carefully and deliberately, and taxpayers get ample opportunity to weigh in at public hearings. Chicago Sun-Times

VA: County school bus outsourcing a non-starter. “There’s really not a reason to outsource.” For months the Roanoke County School Board has heard from parents, bus drivers and even students begging them not to outsource. The board announced last year intentions to explore privatizing as a potential ay to cut costs and put out a request for proposals in the fall. Roanoke Times

AZ: Bills would expand state program that funds some students’ private education with public money. A House committee on Monday approved one of two small expansions of a voucher-like program that allows students to use public funds for a private education.  Greenfield Daily Reporter

MI: Michigan prisoners leave cells in protest over meals. About 200 prisoners at Kinross Correctional Facility in Kincheloe left their cells and demonstrated Monday over their food — two months after the Department of Corrections eliminated 370 state jobs and privatized its food service.  Detroit Free Press

NJ: New Jersey taps rest areas in bid for more revenue from toll roads….A bill making its way through the Statehouse directs the toll roads to develop plans for more commercial, business or retail ventures at the rest areas. They have 12 months to submit their ideas to the governor and Legislature once the bill becomes final. Lawmakers see the rest stops as a potentially lucrative source of transportation funding – one that would allow them to raise cash without imposing a tax increase or jacking up tolls. Press of Atlantic City

The American Public School Under Siege. A feature of the Obama presidency has been his campaign against the American public school system, eating way at the foundations of elementary education. That means the erosion of an institution that has been one of the keystones of the Republic.  Huffington Post