News

AZ: Arizona defeats ballot measure contesting Grand Canyon ownership

Arizona voters on Tuesday defeated a ballot measure contesting ownership of the Grand Canyon and other federal lands in the state, handing another defeat to the “sagebrush revolt” by Republicans in Western states. Proposition 120, which lost by a 2-to-1 margin, would have amended the state’s constitution to declare Arizona’s sovereignty and jurisdiction over the “air, water, public lands, minerals, wildlife and other natural resources within the state’s boundaries.”  Chicago Tribune

LA: Vote rescheduled on La. health outsourcing plan

Louisiana Gov. Bobby Jindal’s administration is returning to lawmakers this week to ask for approval to outsource a state employee health insurance plan. Jindal’s top budget adviser shelved a vote last week when it became clear the contract between the Office of Group Benefits and Blue Cross/Blue Shield didn’t have enough votes to win passage. The meeting comes after two Republican members on the House committee were ousted from the panel, a day after they sided with opponents of Jindal’s outsourcing proposal.  CBS News

IL:  To Chicago’s mayor, some jobs are worth more than others

When the state of Illinois announced it was giving a multimillion-dollar tax break to the Chicago Mercantile Exchange—one of the world’s wealthiest brokerage firms—the mayor hailed it as a boon for the local economy. The truth is that CME is cutting jobs as it moves toward electronic trading. In contrast, the mayor recently decided to pink-slip 34 city workers in a privatization deal that he says makes government more efficient. Yet the city’s only saving $100,000 by replacing these middle-class jobs—most held by black south- and west-siders—with part-timers. In short, he hails tax breaks for millionaires as economic development, and firing working-class Chicagoans as reform.  Chicago Reader

TN: TN lawmakers vying over funding for charter schools, vouchers

Tennessee lawmakers are preparing for a pitched battle over education in the upcoming session — specifically, who’s best at providing it and whether it’s right to put public education into private hands. Republicans will offer up bills that would strip local school boards of authority to approve charter schools and would grant private-school vouchers to families who couldn’t otherwise afford to pay tuition. Democrats oppose both, but the GOP heavily dominates both the state House and Senate. Democrats hope to gain allies among rural Republicans in counties where charter schools haven’t taken hold. Funneling public money to private interests could leave rural districts underfunded, they contend.   The Tennessean

CA: What’s at Stake When Billionaires Try to Buy Our Democracy

What happens if they have a free pass?  For all Californians, an open door to privatization or further underfunding of basic public services we all count on, including schools, police and fire protection, libraries, and street and other infrastructure repairs.  Huffington Post

Column: ‘Big government’ is the best way to provide necessary services

Privatizing government services doesn’t promote free-market values, because conservative politicians are creating private enterprise that is dependent on government contracts for their existence. The case of prisons in New Jersey is indicative of the growing conservative movement to privatize government and undermine necessary public services.  Public programs, if run correctly and efficiently, can provide necessary services and operate at a fraction of the cost of privately run enterprise. By maintaining necessary and basic services within the public realm and therefore removing the profit motive, you remove any possibility of cutting corners in order to maximize profits. Certain aspects of society should not be subjected to the corrosive repercussions of profit-seeking entities.  The Pitt  News

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CA: Forget Prop 32, Costa Mesa’s Measure V is the real union fight

Measure V, placed on the ballot by conservative members of the City Council, would change Costa Mesa from a general law city to a charter city governed by its own constitution.  The switch would free Costa Mesa from state laws that limit its ability to privatize jobs.  Labor unions worry that other cities would follow suit. “One of our biggest concerns is that it would spread to other cities,” said Jennifer Muir, assistant general manager of the Orange County Employees Association. The proposed charter would end a requirement to pay prevailing union wages to city workers and would require voters to approve any increase in pensions.  89.3 KPCC

CA: San Bernardino to look at outsourcing Police Department

The City Council voted Monday to ask the Sheriff’s Department how much it would cost to outsource policing services, a decision opposed by most of the more than 20 residents and officers who spoke.  Redlands Daily Facts

GA: Georgia’s Voters Will Decide on Future of Charter Schools

A ballot measure in Georgia asks voters to decide on a statewide commission that could authorize new charter schools. New York Times

FL: State cuts prison health jobs

About 1,900 state workers are getting letters that their jobs soon will end as the state Department of Corrections moves forward with privatization of its health care services. Those current state employees will instead work for a private, for-profit company starting Jan. 1 when the contracts kick in. Ongoing litigation could still block the move.  Tallahassee.com

PR: Privatization of Puerto Rico Airport Spurs Lobbying Effort

With Puerto Rico moving to privatize its largest airport, a Brazilian company that operates restaurants in Latin American airports has enlisted the lobbying help of some of Alston & Bird’s biggest names in Washington.  National Journal

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LA: La. vote shelved on Jindal health outsourcing plan

Louisiana Gov. Bobby Jindal’s top budget adviser scrapped a legislative vote Thursday on the governor’s proposal to outsource a state employee health insurance plan, when it became clear the contract didn’t have enough support to win approval. CBS News

FL: Fla. proposes charging Medically Needy monthly fee

State health officials are moving tens of thousands of Medicaid patients with serious medical conditions into managed care plans, but health care plans are worried the patients won’t be able to afford the proposed monthly premiums which could lead to lapses in care….[U]nder a new Medicaid privatization plan, the state is asking those patients to start paying roughly $120 a month to receive services. NECN

NE: Nebraska AG supports student newspaper’s request for health center bid records

… An independent, student-run newspaper, The Daily Nebraskan sought the attorney general’s help last month when the university refused to share contents of the private hospital company’s bid to build and operate the new center, according to the Lincoln Journal Star Andrew Dickinson, The Daily Nebraskan’s top editor, said the newspaper wanted to examine the bid so it could share with readers more details about what Bryan Health would do. “Potential privatization of the health center can affect students in a lot of ways, and those ways aren’t particularly clear at this point,” Dickinson said.  The Republic

IN: IU hires Goldman Sachs to advise on parking leases

Indiana University has hired investment banker Goldman Sachs to advise it on whether to seek a multimillion-dollar payout by turning over parking facailities on the Bloomington and Indianapolis campuses to a private operator. The university made the move this week after its Board of Trustees agreed last month to study the possibility of a 30- or 50-year lease. Some trustees and faculty representatives have questioned whether it would be a good move. Indianapolis Business Journal

Former Career Education CEO Under Investor Fire

The former CEO of a massive for-profit college cannot dismiss claims that he lied about job-placement rates, a federal judge ruled. Career Education Corporation (CEC), headquartered in Schaumberg, Ill., is one of the largest for-profit colleges in the nation. It runs more than 90 campuses in the United States and Europe, and serves more than 100,000 students. Since CEC derives almost all revenue from federal financial aid to students under Title IV of the Higher Education Act, accreditation with the U.S. Department of Education is essential for the school to stay in business, according to the complaint.  Courthouse  News

Sandy helps change minds about FEMA

Chris Christie, whose ambitious plan to privatize much of the services now offered by that state, including public schools, state parks, psychiatric hospitals, car emissions tests and turnpike toll booths, is often viewed as a hero by those pushing the privatization of public services. Yet, in the wake of Hurricane Sandy, he has morphed into one of the biggest supporters of FEMA.  Worcester Telegram

Scary Movie 6: Scenes From Romney’s FEMA Privatization

ROMNEY ON FUNDING FEMA: “Every time you have an occasion to take something from the federal government and send it back to the states, that’s the right direction. And if you can go even further, and send it back to the private sector, that’s even better.”  Huffington Post

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FL: FDOC Asks Fla. Legislature For Money Back From Failed Prison Privatization Plan

The Florida Department of Corrections is hoping the Florida Legislature will give them back about 11 million dollars that was taken out of its budget when lawmakers planned to privatize about 30 prisons in South Florida…. “We’re just asking for the restoration of the 7-percent savings, which was $10.8 million. When they cut our budget the previous year, and the privatization didn’t move forward, we did not get restored the seven-percent,” said Mark Tallent, the department’s Director of Budget and Finance. WFSU

IN: IU Hires Goldman Sachs To Evaluate Parking Privatization

Indiana University officials have hired investment banking firm Goldman Sachs to analyze its parking operations and determine if it makes economic sense to find a private vendor to run them.  IndyPublicMedia

PA: Hurricane Sandy may fuel public-private partnerships in rebuilding efforts

Under a “P3” law Gov. Corbett signed over the summer, Pennsylvania has convened a committee of pro-development “rock stars”.   For example, builders might propose projects to add toll lanes on I-95, a second deck on the Schuylkill Expressway, a toll bridge on Route 422 over the Schuylkill, and other projects to be funded through future tolls instead of borrowed money and taxpayer annuities.  Philadelphia Inquirer

Paul Krugman: Mitt Romney’s Proposal To Privatize FEMA Is ‘Pathological’

“There’s something pathological” about “the weird Republican obsession with killing FEMA,” or the Federal Emergency Management Agency, the New York Times columnist wrote in a blog post Wednesday. “It’s really hard to think of a public service less likely to be suitable for privatization.” Republican presidential candidate Mitt Romney said at a GOP primary debate last June that he would “absolutely” shut down FEMA and transfer its responsibilities to the states. “If you can go even further, and send it back to the private sector, that’s even better,” Romney added.  Huffington Post

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Romney Stands for Privatizing FEMA

Why is politics important right now when funding for emergency disasters is paramount to saving lives in this major storm? Candidate Romney called for cuts to funding Emergency Response programs such as FEMA during his campaign which now will be vital against the Super Storm of Hurricane Sandy.   PolitcoNews

Was Ryan’s Social Security plan inspired by Pinochet?

The VP candidate’s privatization policies are startlingly similar to those implemented by the Chilean dictator. It is also the case that Paul Ryan’s Social Security privatization ideas closely track Koch Brother schemes promoted from the Koch-funded libertarian Cato Institute since 1980, over three decades ago – before Ryan had even hit puberty.  Salon

LA: Close vote looms on privatizing OGB

Louisiana House Appropriations Committee Chairman Jim Fannin said Tuesday there won’t be any more delays in a vote on whether to privatize the administration of the only remaining Louisiana Office of Group Benefits insurance plan still managed by the by the state. The plan is expected to win easy approval in Senate Finance, but the vote remains close in the House, with both sides saying they have the votes to pass or block the deal.  Monroe News Star

OH: Indiana director supports Ohio’s study on turnpike leasing

Indiana’s toll road lease provided money for vital transportation projects and Ohio is wise for studying its own turnpike lease agreement, the Hoosier state’s transportation director told hundreds of Buckeye officials Tuesday. The Ohio Department of Transportation is conducting a $3.4 million study with Texas-based KPMG Corporate Finance LLC to examine the ways to maximize the financial benefit of the toll road for the state. Jerry Wray, ODOT director, said the study will be completed by mid-November and he hopes to have a recommendation to the state legislature by Jan. 1.  The Newark Advocate

NC: News poll: NC roads not bad enough for tolls

Highways across North Carolina rate a B- grade from state residents, which apparently is a high enough grade to avoid collecting tolls to speed maintenance and construction, according to a WRAL News poll released Tuesday. The roads are good enough that 47 percent of those polled say they oppose the idea of charging tolls to pay for construction or maintenance of highway that might otherwise be delayed or not completed at all. Forty percent said they would back tolls for new or improved highways, while 13 percent weren’t sure. WRAL

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Romney Endorsed in Primary Debate Either Eliminating or Privatizing FEMA

Emergency management is a critical federal program, if for no other reason than because of budget constraints. If states were expected to assume the full costs of emergency management, because they are bound by balanced budget rules, the money would have to come out of education or health care or some other public service. But the federal government can generate funds for natural disasters, use its ultra-low borrowing costs, and provide them to states so they don’t have to rob Peter to pay Paul. Firedoglake

Ann Romney: We Need To ‘Throw Out’ The Public Education System

Ann Romney told Good Housekeeping magazine that the campaign issue closest to her heart is taking on teachers unions and dismantling public education as we know it. In an interview, she told the publication: I’ve been a First Lady of the State. I have seen what happens to people’s lives if they don’t get a proper education. And we know the answers to that. The charter schools have provided the answers. The teachers’ unions are preventing those things from happening, from bringing real change to our educational system. We need to throw out the system.  ThinkProgress

CA: Costa Mesa outsourcing fight could have far-reaching effects

After a court ruling favorable to Costa Mesa’s employee union, labor groups could now have the power to block municipalities from privatizing basic services such as street sweeping, which many cities have done for years, experts say. OCRegister

GA: Why take MARTA private?

The MARTA privatization debate continues today. The president of the local union criticizes management and says that going private means sending public dollars overseas and contributing to sweatshop conditions. Atlanta Journal Constitution

NY: Central Park Gets More, While the City’s Poorer Parks, Well, They Just Get By

It was a munificent gift, just superb. John A. Paulson, the multibillionaire owner of a hedge fund with income taxed at a rate less than that of most New York City schoolteachers, stepped forward and showered $100 million on Central Park…. But when officials in New York’s more distant parks plead for a little bit more, city officials suggest selling off naming rights and letting corporations slap names on basketball and dog runs. (IMG Worldwide, a sports marketing company, is overseeing the sale of these naming rights, for a handsome fee.) City officials and their quasi-public hangers-on are rather clear on the rules of this game: You smile at every crumb that falls off the plutocratic table, and only a rube shares his proceeds. New York Times

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LA: Traffic Camera Company Sues Client Over Cash

The sheriff of Jefferson Parish, Louisiana petitioned a federal judge last week for more time to answer the charges leveled by a red light camera company. Redflex Traffic Systems in August had filed suit demanding Sheriff Newell Normand hand the Australian firm a check for $8 million. Redflex is irate that its photo ticketing contract was swept up in a parish government corruption scandal two years ago. A new set of government leaders intent on cleaning up the parish decided on January 27, 2010 to suspend the red light camera program.  TheNewspaper.com

NC: Asheville residents get say on water

City voters will get their say this election on the question of whether the city should sell or lease its water system. But the question of whether the results of the referendum matter may be harder to answer than that of what they will be. Defeat of the referendum would be construed as a sign that city residents do not approve of the idea of transferring the water system to the Metropolitan Sewerage District, an independent government agency. But City Councilman Jan Davis is one of many people who wonder whether the referendum’s outcome will impact the General Assembly’s consideration of whether to give control of the water system to MSD. Republicans may move ahead with the idea regardless of what city voters say if they continue to control both houses of the legislature next year, he said.  Citizen Times

CA: Rocklin Charter School Shuts Its Doors Amid Controversy

Six weeks into the school year a charter school in Rocklin is closing its doors. Four hundred kids were told Friday that their school would close, and Tuesday was their last day. But many parents say the Horizon CEO is making up false excuses for why he’s closing the doors at Horizon’s Accelerated Learning Academy campus. Fired-up families were fuming even more Tuesday over what many consider a lame excuse for the shutdown. “They get between $5,000 and $7,000 in funding (per student),” parent Shauna Borchers said. “That’s $2.4 million in funding, and he’s going to tell me we can’t stay here and can’t find a building and safety issues? Get a new building. Get some police. Stop it. That’s not the truth.”  CBS Sacramento

Burden for rebuilding infrastructure may fall to states

Washington’s failure to come up with a long-term funding plan to repair the nation’s faltering transportation system is shifting the cost of critical infrastructure repairs to state and local taxpayers, according to Standard & Poor’s Rating Services. “The burden to finance infrastructure projects will fall more heavily on local government entities or users in the form of higher rates or tolls,” the financial analysts said this past week, “and some important construction could simply be deferred.” Washington Post

Sandy and Politics

On the other side of the ledger, we do have Romney on record as saying privatize FEMA. He did not quite say that FEMA was “immoral,” as some are writing. He said the debt to future generations caused by government spending on projects such as FEMA is immoral. The Daily Beast