Headlines
Charter schools fall short on disabled
Public workers face continued layoffs, hurting the recovery
Debit cards on campus – editorial
The U-Va. mess: Sign of the (bad) times
PA: Liquor sales privatization fails again; new effort planned in fall
IL: New venture fund to focus on education reform
FL: Anti-toll-road activists in uproar over Florida fee hikes
MI: Bus drivers and custodians temporarily stall privatization
MI: Detroit Free Press overlooks guest writer’s ties to right-wing activists
CT: Union protests Norwalk’s trash outsourcing
NC: Environmental group will likely sue to stop toll road
NC: Perdue staffers altered letters on toll road projects
DC: School voucher program supporters strike deal with White House

Charter schools fall short on disabled
A new government report shows that charter schools are not enrolling as many special-ed students as traditional public schools, despite laws mandating that charters take almost every disabled student seeking to enroll….Critics have contended that charter schools refuse to enroll special-ed students, or push them out once enrolled, to save money or boost schoolwide test scores. Charter-school operators and supporters say their enrollment numbers are lower partly because many parents of special-needs children choose to enroll in traditional schools that often are more experienced providing such services, or in private schools that can give those students individualized attention. In addition, charters in some states don’t have access to regional cooperatives, which school districts join to provide costly special-ed services. And charter schools, on average, receive 20% less funding than traditional schools under some state funding formulas. The Wall Street Journal

Public workers face continued layoffs, hurting the recovery
Companies have been slowly adding workers for more than two years. But pink slips are still going out in a crucial area: government.  In California, the governor is threatening to eliminate 15,000 state jobs. When school begins in Cleveland this fall, more than 500 teachers probably will be out of work. And in Trenton — which has already cut a third of its police force, hundreds of school district employees and at least 150 other public workers — the only way the city will forestall the loss of 60 more firefighters is if a federal grant comes through. Government payrolls grew in the early part of the recovery, largely because of federal stimulus measures. But since its postrecession peak in April 2009 (not counting temporary Census hiring), the public sector has shrunk by 657,000 jobs. The losses appeared to be tapering off earlier this year, but have accelerated for the last three months, creating the single biggest drag on the recovery in many areas.  The New York Times

Debit cards on campus – editorial
Given the history of shady dealings between banks and colleges, Congress needs to take a hard look at the increasingly common practice of schools contracting with banks to disburse financial aid dollars to students…Debit cards have received less federal oversight. And, according to a study by the United States Public Interest Research Group Education Fund, an advocacy organization, nearly 900 colleges and universities have card relationships with banks or other financial institutions, some of which manage student aid disbursements by turning student IDs into debit cards. Some schools save money by outsourcing administrative costs. Others receive payments from the banks..Senator Durbin and Representative George Miller, a Democrat of California, have asked the inspector general of the Department of Education to determine whether the arrangements hurt students or violate federal regulations. They criticized the banks for what they described as “aggressive and misleading marketing” to students and for charging hidden fees that could lead students to quickly deplete their aid accounts. The New York Times

The U-Va. mess: Sign of the (bad) times
The debacle at the University of Virginia over the secretive ousting of the school’s first female president is more than a tale about how one school’s governing board can blunder. It is a sign of these unfortunate times in public education at all levels…Many of the efforts to get state legislatures to pass reform packages that include the reduction or elimination of teacher tenure, evaluation systems that link teachers’ jobs to student test scores, and more, have been done in secret. For example, a group called the American Legislative Exchange Council, or ALEC, an organization of nearly 2,000 conservative state legislators, worked in secret for years to promote privatization and corporate interests in education and other areas of American society. At the center of the modern school reform movement is the philosophy that public schools should be treated not as civic institutions but rather as corporate entities. That the interim leader is Zeithaml, whose speciality is in the field of “strategic management” speaks volumes about the direction the board wants the school to go. Another central characteristic of school reform is the role of teachers: They don’t have one, at least when it comes to making decisions. Teachers have been scapegoated for many of the problems facing public schools, and their voice has been ignored in the education policy debate. Washington Post

PA: Liquor sales privatization fails again; new effort planned in fall
Efforts in the state House of Representatives to privatize the sale of wine and spirits in Pennsylvania have been called off for the summer, with the proposal’s main sponsor saying that he plans to try again this fall with help from the governor. House Majority Leader Mike Turzai, R-Bradford Woods, said after this morning’s closed-door budget meeting that supporters “have more work to do” before a proposal will again see debate. Pittsburgh Post Gazette

IL: New venture fund to focus on education reform
A new venture fund devoted to education reform efforts in Chicago’s public schools is being proposed by a group of civic leaders under the Chicago Council on Global Affairs…But even as the group, which includes Sonya Anderson of the Ounce of Prevention Fund, Paul Bauerschmidt of CME Group and Gillian Darlow, a principal at the Civic Consulting Alliance, announced the proposed $10 million nonprofit at a downtown event Tuesday at the InterContinental Chicago hotel, the Chicago Teachers Union passed out leaflets outside the hotel protesting the venture. Critics of reform efforts in Chicago say many of the well-funded initiatives to fix CPS involve opening more privately run charter schools and closing down the district’s traditional neighborhood schools. “Venture philanthropy is a slow road to privatization,” CTU President Karen Lewis said in a news release. “Right now, CPS is a revolving door of people peddling expensive, disruptive and ineffective privatization and so-called reform. If we are going to improve our schools it should be with educators and the CTU, not venture capitalists and those who are only out to make a profit.” Chicago Tribune

FL: Anti-toll-road activists in uproar over Florida fee hikes
That sound dinging across the state this Sunday isn’t just the litany of SunPass sensors going off on the Turnpike. It’s the fists of outraged drivers pinging off the ceiling. Tolls on all state roads will rise by 25 percent this weekend — from $1 to $1.25 — sparking road-fee fury throughout Florida. But that doesn’t mean all drivers are taking the hike sitting down. In fact, a growing insurgency is targeting the agencies raiding drivers’ wallets across the Sunshine State. Advocates such as Carlos Garcia, cofounder of the watchdog group Roll Back Tolls, argue that toll agencies discourage investment in public transit and create a de facto tax on drivers. “If we all added up the money that we paid on tolls, there’d be a lynch mob,” Garcia says. Garcia’s group focuses its ire on the Miami-Dade Expressway Authority (MDX). Although tolls on county roads such as the Snapper Creek and Dolphin expressways won’t rise this week, he says Dade’s drivers still pay almost twice as much per mile as cars traveling state-run highways. …Problem is, Garcia argues, MDX has been too successful. Fueled by billions in bonds on Wall Street, the agency’s sole focus is on building ever more toll roads in Dade. In its first year, it took only $20 million from local drivers; last year, it was $121 million. There are dozens of MDX projects, aimed at increasing the number of tollable roads. Miami New Times

MI: Bus drivers and custodians temporarily stall privatization
Bus drivers and custodians battled for their jobs at the Galesburg-Augusta Community Schools board meeting on Monday night. About 70 parents, residents, custodians and bus drivers spent six hours at a high-tension board meeting, which brought one board member to tears, discussing whether or not the district should privatize custodial and transportation staff. After picketing outside of the Galesburg-Augusta High School before the meeting, more than a dozen people stood at the podium during the board meeting to stress the importance of keeping local employees, who they said know and care for the children, in the driver’s seat of school buses. They argued that workers contracted from a privatize company would not be able to maintain the safety, relationships or trust the current staff provides. MLive.com

MI: Detroit Free Press overlooks guest writer’s ties to right-wing activists
In a June 19 Detroit Free Press opinion piece, guest writer Gary Wolfram advocated for the privatization of Michigan’s prison system. The Free Press editors provided a rather innocuous description of Wolfram’s credentials: “Gary Wolfram is the William Simon Professor of Economics and Public Policy at Hillsdale College.” An honest description of Wolfram, however, would also note that he is an adjunct scholar at the right-wing Mackinac Center for Public Policy, which is a member of the American Legislative Exchange Council (ALEC) and the “largest conservative state-level policy think-tank in the nation.” While the Free Press has in the past identified Mackinac connections to their contributors, Wolfram’s affiliation appears to have been overlooked. Media Matters

CT: Union protests Norwalk’s trash outsourcing
City garbage haulers, their union leaders and three Common Council members protested outside City Hall on Tuesday afternoon the city’s plan to outsource garbage collection….The American Federation of State, County and Municipal Employees Local 2405, which represents Norwalk DPW employees, including sanitation workers, was invited to submit a bid but did not, said Larry Dorman, spokesman for AFSCME Council 4. “Workers who have done a great job collecting refuse for the city are being told that they may bid against a private company or private companies to keep their own jobs,” Dorman said. “We find it morally unacceptable to be asked to bid on our own jobs. We’ve declined to do so and we’re here to say we’re going to keep fighting.” The Hour

NC: Environmental group will likely sue to stop toll road
The decades-long push for a toll road through Gaston County faces funding hurdles, but that might not be the biggest obstacle blocking the highway. Legal troubles appear to be waiting on deck and about to jump into the passing lane. The Southern Environmental Law Center, which has already succeeded in challenging a Union County toll project in court, is ramping up its pressure on the Garden Parkway. And state leaders have acknowledged funding for the controversial venture won’t be necessary for another year, as it is likely to be mired in legal trouble in the coming months. Gaston Gazette

NC: Perdue staffers altered letters on toll road projects
Gov. Bev Perdue’s staff drafted a pair of false letters last week in an effort to start the flow of money for two major toll road projects that transportation officials say won’t be ready for state funding until 2014, according to documents obtained by The (Raleigh) News & Observer. The documents indicate that Perdue herself was involved in the issue, which concerns a budget debate over $63 million in start-up money for the Garden Parkway, a highway project near Charlotte, and a planned bridge to the northern Outer Banks known as the Mid-Currituck Bridge. Charlotte Observer

DC: School voucher program supporters strike deal with White House
Congressional backers of the District’s private school vouchers said Monday that they had struck a deal with the Obama administration to keep money and students flowing into the controversial program. Washington Post

Headlines
PA: Liquor store privatization bill sputters in House
NJ: Christie orders stepped-up inspections by state of halfway houses
NC: Privatizing I-77 tolls could reduce drive options
FL: Connected company muscled state agency out of Internet contract
FL: Transportation secretary: Tolls are road to Florida’s future
VA: Leadership drama consumes U-Va.
When ALEC takes over your town – opinion

PA: Liquor store privatization bill sputters in House
A plan to sell off the state’s roughly 600 wine and spirits stores has the support of the governor, but it’s still stalling in the House. House Majority Leader Mike Turzai said his bill’s not dead, but he won’t say whether the votes are there to pass it. …Barry McCowin of Harrisburg said he’d like the state to sell off its wine and spirits stores, but he’s not holding his breath.Not this year. It’s going to drag out, I tell you, because if I had to bet on it, I wouldn’t think so, because that’s revenue for the state,” said McCowin.  Another Harrisburg resident, Khalif Omar, runs a barbershop near a state liquor store. Omar is no fan of privatization. “We were just talking about that in the barbershop, as far as being privately owned.  Privately owned, that means more children are going to have underage drinking. There’s not going to be state control over it no more,” said Omar. The bill comes with requirements to keep alcohol out of the hands of underage people. Critics have said privatization would result in job losses for those who work in state stores, and deny the state a source of dependable income. Essential Radio

NJ: Christie orders stepped-up inspections by state of halfway houses
Gov. Chris Christie ordered new inspections on Monday of New Jersey’s large, privately run halfway houses, saying his administration would ensure that the system operated “effectively and safely.” …The system has existed since the 1990s, and state regulation has long been lax — The Times found that the halfway houses, many of which are as large as prisons, have been plagued by violence, drugs, gangs and escapes. Mr. Christie, a Republican, has deep ties to the company that dominates the halfway-house industry in New Jersey and across the country, Community Education Centers. His close friend and political adviser William J. Palatucci is a senior executive of the company, and Mr. Christie has often visited and praised its facilities…At least 181 inmates and parolees escaped halfway-house custody in the first five months of 2012 — a 35 percent decline when compared with a similar period in 2009, before Mr. Christie took office. Roughly 5,100 people have escaped since 2005, The Times found. New York Times

NC: Privatizing I-77 tolls could reduce drive options
Funding road construction with future toll lane revenues is becoming the norm. Drivers can choose to pay the toll or deal with congestion.  But if the free lane is less of a choice, some drivers worry they could be taken for a ride. “Horrible at five o’clock, from five to seven,” said Laurin Lindley, who lives in Huntersville. For her and other residents, Interstate 77 is the lifeline when traveling north or south. …The 2011 plan called for expanding I-77 to include a toll in the middle lane traveling in both directions to Cornelius. The new 2012 proposal calls for two hot lanes in each direction and then expanding that project beyond the Catawba Avenue exit with one toll lane going all the way to Mooresville. “It will force people if they want to get home,” said Charlotte City Councilwoman Claire Fallon, “because you only have two regular lanes.” Fallon believes the fewer free lanes will be congested, pushing people to pay.  Fox Charlotte

FL: Connected company muscled state agency out of Internet contract
In 2009, with more than a quarter of all Floridians without broadband access to the Internet at home, state officials lined up to get some of the $7 billion in federal stimulus money to finance state-based programs to increase access. Enter Connected Nation, a little known but well connected Washington-based company. It won the Florida contract to use $2.5 million to map the broadband gaps for use by policy makers and telecommunications companies. A year later, when the state won a second grant for $6.3 million to extend the broadband efforts, Connected Nation, a non-profit company, believed it had signed up to be part of a public-private partnership with the state that entitled the firm to a no-bid shot at that money too….Now, the broadband mapping contract negotiations are behind schedule; the federal government has warned the state that it could lose what’s left of the grant and Florida’s broadband expansion efforts lag behind many other states. “It’s distracted and kept us from doing as much as we might have done,’’ said Bill Price, director of Broadband Services for the state. Miami Herald

FL: Transportation secretary: Tolls are road to Florida’s future
The secretary says he understands resistance, but the concept works elsewhere…Prasad said an expansion of toll facilities is a fact of life because other funding sources are drying up…Prasad has been advocating for increased tolling facilities since Gov. Rick Scott named him the state’s transportation chief last year. He is pushing ahead with plans to toll portions of Interstate 4 in Orlando, interstates 275 and 75 in Tampa and extend the existing toll facilities on Interstate 95 in Miami into Broward County. All of those tolls will be new lanes, with the existing lanes remaining free. The idea that people would willingly take a toll lane when a free one is available may not make much sense to the average Jacksonville resident.  The Florida Times Union

VA: Leadership drama consumes U-Va.
A week of chaos set off by the removal of University of Virginia President Teresa Sullivan led to a showdown Monday on the historic Grounds between the ousted leader and the governing board, which named an interim replacement.  Washington Post

When ALEC takes over your town – opinion
…The state has named a budget commission to grapple with Woonsocket’s money woes. Ultimately, though, a receiver may have to be appointed — which is to say, a person not beholden to the voters, who would nonetheless have the power to abrogate union contracts and do whatever else he or she deems necessary to erase the deficit. Incredibly, the two Woonsocket legislators have pushed for a receiver, despite the pain that it would likely bring their city. Or maybe it’s not so incredible. It turns out that one of them, Jon Brien, is also on the national board of the American Legislative Exchange Council, or ALEC. Although ALEC is probably best known for its support of the Stand Your Ground law in Florida, the conservative group has a very clear agenda for dealing with state budgets. It wants to shrink them. Although Brien has denied that he is applying the ALEC philosophy to his small city, it looks, in fact, as if that’s exactly what he is doing. It’s not pretty. New York Times

June 18, 2012

News summaries
U.S. mayors support parents seizing control of schools
Hundreds of mayors from across the United States this weekend called for new laws letting parents seize control of low-performing public schools and fire the teachers, oust the administrators or turn the schools over to private management. Reuters

Maude Barlow: Don’t award PepsiCo for privatizing water
As activists from around the globe are convening at the Rio +20 conference to protect our common resources from private interests, the Stockholm International Water Institute’s decision to award PepsiCo for its water efficiency is a cruel irony. PepsiCo has inflicted massive harm on vital community water resources around the globe. This award validates and aids that activity, further justifying PepsiCo’s PR efforts to spin itself as “green.”  Huffington Post

VA: What happens when universities are run by robber barons
In the 21st century, robber barons try to usurp control of established public universities to impose their will via comical management jargon and massive application of ego and hubris. At least that’s what’s been happening at one of the oldest public universities in the United States—Thomas Jefferson’s dream come true, the University of Virginia. On Thursday night, a hedge fund billionaire, self-styled intellectual, “radical moderate,” philanthropist, former Goldman Sachs partner, and general bon vivant named Peter Kiernan resigned abruptly from the foundation board of the Darden School of Business at the University of Virginia. He had embarrassed himself by writing an email claiming to have engineered the dismissal of the university president, Teresa Sullivan, ousted by a surprise vote a few days earlier. The events at UVA raise important questions about the future of higher education, the soul of the academic project, and the way we fund important public services. Slate

PA: Greens stand against sale of Philadelphia Gas Works (PGW)
The City Committee of the Green Party of Philadelphia (GPOP, www.gpop.org) has taken a firm stand against the sale of Philadelphia Gas Works (PGW). Green Party leaders say that Mayor Michael Nutter has failed to make his case in favor of selling PGW to the highest bidder. Green Party Watch

NJ: Willi Horton’s revenge
…Cut to 2012. A long front-page story runs in the New York Times on Sunday about a halfway house program in New Jersey from which no fewer than 5,100 inmates have escaped since 2005, including 1,300 since Republican Governor Chris Christie took office. These are not the halfway houses you think of — small, homelike places where prisoners can adjust slowly to a return to society. These are gigantic human warehouses, apparently, indistinguishable from prisons except for less security. The Times has several Willie-Horton-like stories of prisoners just walking away from these facilities, or from job-release programs connected to them, and resuming their careers of murder and mayhem. In keeping with current fashion, the halfway houses are privately managed, most by a firm called Community Education. Christie, apparently so blinded by ideology (privatization is good; state government is bad) that he can’t see the obvious, has praised Community Education as “representing the very best of the human spirit.” Christie has actually been a paid and registered lobbyist for Community Education. A close pal is a senior vice president of the company. A son-in-law of Community Education’s CEO was hired in 2010 as an “executive assistant” in the governor’s office. Bloomberg

NJ: Englewood schools’ outsourcing plan has other districts watching
Englewood’s plan to save $2 million by outsourcing school secretaries and teaching assistants has reverberated throughout North Jersey, where education leaders are closely watching the district to see how it handles strong community and union opposition. The city schools, which first privatized custodians 20 years ago, are seen as a bellwether for a rising tide of privatization as administrators grapple with ever-increasing costs for health care, pensions and special education at the same time state and federal funding is falling. The outcome in Englewood, a 3,000-student district made up largely of black and Hispanic students, could signal the fate of hundreds of school employees throughout the region in coming years. NorthJersey.com

CA: Calif seeks private fix for public parks
California is close to finalizing bids from private companies to take over day-to-day operations of six state parks, including Brannan Island here, in an unprecedented step by the state to prevent mass park closures after stiff budget cuts. On Monday, the state expects to finish its first corporate agreement, under which American Land & Leisure Co. would take over operations of three state parks for five years, the California Department of Parks and Recreation said. Three other state parks also are slated for private management, which covers running all concessions, visitor services, security and parks’ legal liabilities. Wall Street Journal ($)

NH: NH to privatize ENTIRE prison system
The state of New Hampshire may not only be moving toward privatizing its entire prison system, but it is also partially privatizing the process involved in making the decision. So far, NH has had to deal with the worst bunch of teahadists that we’ve ever seen. Legislatively we’re right up there with Arizona, Florida and Wisconsin as far as bad politics. The only saving grace is that we have a democratic (albeit a bluedog) governor to stop this extreme legislation. But now we’re going to be the first to privatize the ENTIRE prison population.  Daily Kos

Headlines
NY: Fracking research and the money that flows to it
FL: Faced with budget crunch, Hernando County will study privatizing utilities
PA: Push to privatize Pa. liquor losing steam?
PA: Audio: Privatization of public transit
WA: Audio: Privatizing parks
NH: NH seeks ‘over the shoulder’ consultant in prison privatization decision
NJ: For some E-ZPass Big Brother is already here
Public-sector issues erupt in presidential campaign

NY: Fracking research and the money that flows to it
…But some faculty members have questioned why the new research entity, the Shale Resources and Society Institute, was created this spring without consultation with the faculty senate or before putting an advisory board in place. “Our mission as a public institution is to protect the public interest,” said Martha McCluskey, a law professor and member of the faculty senate executive committee. “We should make sure that our research efforts don’t look like industry public relations efforts.” Nancy L. Zimpher, the chancellor of the SUNY system, has asked the university to respond to the criticisms of the study, which a public accountability group says includes skewed data and the reuse of previously published material without proper attribution. New York Times

FL: Faced with budget crunch, Hernando County will study privatizing utilities
..On Tuesday, Commissioner Dave Russell dropped a bombshell when he suggested that it was time for the county to analyze the marketability of one of the county’s largest services — its water and wastewater utility. “We have an asset in the Hernando County Utilities Department that is pretty significant when you look at it,” Russell said. “There are a lot of questions that need some answers.” His fellow commissioners nodded in agreement…As Russell explained after the meeting, the Utilities Department at one point last fall had $212 million in assets compared to just $63 million in debt. “That’s 3-to-1,” Russell said. “As a businessman, that makes my ears perk up.” TampaBay.com

PA: Push to privatize Pa. liquor losing steam?
The legislative pulse of a measure to privatize Pennsylvania’s state-run liquor stores went as flat Tuesday as the head on a stale beer. The House adjourned with no discussion, let alone a vote, on the much-talked-about proposal to get the state out of the wine and liquor business. This after debating the issue for more than three hours Monday, with the expectation that discussions would resume Tuesday — leaving many to question whether the measure was dying for lack of support.  The proposal’s key sponsor, House Majority Leader Mike Turzai (R., Allegheny), could not be reached for comment after the House adjourned. Earlier in the day, Turzai spokesman Steve Miskin insisted that the measure had enough votes to move forward. Philadelphia Inquirer

PA: Audio: Privatization of public transit
Is privatization exactly what we need to keep mass transit viable in Allegheny County? The conversation continues. House Bill 10 will allow for private companies to begin operating bus routes in Allegheny County. Essential Public Radio

WA: Audio: Privatizing parks
Paving Public Parks: A few decades ago, the federal government started a program aimed at helping state and local governments fund public parks. Today, one of those parks is a hotel. Developers are converting another to an upscale private resort. And yet another nearly wound up as a beachfront McDonalds. Investigative reporter Robert McClure joins us to tell the story of a promise broken. KUOW,org

NH: NH seeks ‘over the shoulder’ consultant in prison privatization decision
The state of New Hampshire may not only be moving toward privatizing its entire prison system, but it is also partially privatizing the process involved in making the decision. June 5 was the deadline for a private prison consulting firm to respond to a request for proposal for a firm that can look “over the shoulder” (in the RFP’s words) of state officials from two departments as they sift through as many as 20 binders of documents and some 900 drawings submitted by four vendors who are seeking to operate the state’s prison system. That weeding-out process should take from July 11 to Sept. 30. If a bid is approved by Gov. John Lynch and the Executive Council, New Hampshire would become the only state to turn its entire prison system over to a private company. New Hampshire Business Review

NJ: For some E-ZPass Big Brother is already here
Caught without change on the Garden State Parkway, Pat Arias thought she’d appeal to the toll collector at Bergen toll plaza, but the toll booth was closed. “They only had exact toll lanes and E-ZPass,” said the North Bergen reader who was driving her son’s car. “I don’t want to get him in trouble, so how do I get in touch with the New Jersey Turnpike Authority to pay the toll?” It’s a common source of confusion – and it could get even more confusing next July when the toll collectors’ contract expires and electronic billing may take over. Not everyone is thrilled. NJ.com

Public-sector issues erupt in presidential campaign
In the wake of organized labor’s defeat in Wisconsin last Tuesday, the role of government and the clout of public sector unions are emerging as major issues in the presidential campaign. President Obama and GOP presidential hopeful Mitt Romney both found themselves over the weekend explaining comments they made involving the public sector…Meanwhile, labor unions attacked Romney for what one called his disdainful attitude toward the middle class when the former Massachusetts governor said of the president, “He wants another stimulus, he wants to hire more government workers. He says we need more firemen, more policemen, more teachers. Did he not get the message of Wisconsin? The American people did. It’s time for us to cut back on government and help the American people.” Stateline

Headlines
LA: Out-state standardized tests firms reap millions
PA: Liquor privatization could harm state’s health record – commentary
TX: A&M privatization effort wins over skeptics
VA: The privatization of Virginia’s roads – editorial
OK: Oklahoma park bought and paid for
OH: Privatizing student newspapers
Private vs. Public Facilities, Is it cost effective and safe?
Public universities reach a tipping point

LA: Out-state standardized tests firms reap millions
The Louisiana Department of Education is spending more than $132.9 million with two out-of-state companies for standardized tests. The department has 70 current contracts worth more than $1 million each. That adds up to $282 million, more than half of which goes to contractors outside of Louisiana. The volume of contracts awarded by the DOE doesn’t sit well with the state’s treasurer, while the flow of funds to out-of-state companies concerns several past and present Board of Elementary and Secondary Education members. Treasurer John Kennedy says he believes the education department is “right at the top of the list” when it comes to departments that “abuse” contracts. But long-term efforts at education reform and accountability legislation are the driving forces behind some of the largest contracts between the DOE and at least two out-of-state firms. The News Star

PA: Liquor privatization could harm state’s health record – commentary
As Pennsylvania moves toward easing access to alcohol to raise revenue for the commonwealth and lower prices for consumers, much of the discussion has focused on the financial aspects of privatizing liquor licenses and on individual freedom of choice. Little has been said about the health effects of these proposed changes…Pennsylvania has the lowest alcohol-related mortality rate in the United States.
Using data from the National Center for Health Statistics, we calculated alcohol-related death rates for all states during the last eight years. Pennsylvania’s rate was 3.7 per 100,000 people; Alaska’s rate was the highest at 19.5 per 100,000. Many factors might contribute to the low rate of alcohol-related deaths in Pennsylvania, but one key factor is the state’s longstanding alcohol policy. Though it is seen as restrictive, it provides a societal incentive to consume moderate amounts of alcohol by decreasing its easy accessibility. Among other things, it allows for limited hours of operation and close monitoring of purchases and price structure. Studies have shown that where alcohol is more available — where there are long hours of operation, low alcohol taxes or low prices for alcoholic beverages — there are higher rates of alcohol-related fatal traffic accidents, drunken-driving offenses, cirrhosis of the liver and alcohol-related assaults. PennLive.com

TX: A&M privatization effort wins over skeptics
Members of a Texas A&M committee charged with examining the controversial plan to privatize the university’s dining services jobs were won over to the plan by promises of massive amounts of additional revenue and employee protections, interviews with the committee members indicate…The chair of the dining services committee, Rex Janne, executive director of the university’s purchasing services, said that projection did not come from the committee, and wasn’t part of its purview. Another committee member, John Stallone, the university’s Faculty Senate speaker, said that projection could be confusing or misleading to some. Both Janne and Stallone supported the committee’s recommendation to move forward with outsourcing plans…Three companies had been in the running. The current university dining operation also was allowed to submit a bid. It did not make the final cut. A&M System Chancellor John Sharp, the head of the entire 11-university system and the chief proponent of the much-criticized privatization effort, declined an interview request for this story.  The Eagle

VA: The privatization of Virginia’s roads – editorial
When it comes to solving transportation problems across the commonwealth, Gov. Bob McDonnell appears ready to abandon Virginia’s paralyzed legislature and partner exclusively with the private sector.
That is, perhaps, the best explanation behind his administration’s reliance on the state’s Public-Private Transportation Act to refurbish, expand or build much of the infrastructure critical to the free flow of goods and people in Hampton Roads. It overcomes a generation of frustration with a legislature that simply turns its back on reality. But it also requires turning Virginia’s public highway system – built by the people of this commonwealth over generations – into a private business…The big news was a proposal to transform lanes reserved for high-occupancy vehicles on Interstate 64 into high-occupancy toll lanes.
..McDonnell touted the funding arrangement in a news release, noting this “is a very exciting time for Virginia business and transportation.”  If by business he means E-ZPass and the private contractors who’ll work on those roads, and the financial consortia that will operate them and reap billions in profits, then by all means, yes, it is. But it certainly is not an exciting time to be a commuter or a small-business owner who relies on the roads. It’s not an exciting time to be a commuter or small-business owner who will be forced to pay hundreds or thousands of dollars each year because his legislators won’t raise the gas tax by a few pennies to actually pay for the roads all Virginians need.  The Virginian-Pilot

OK: Oklahoma park bought and paid for
…For the developer, Pointe Vista Development, L.L.C, it was a rich score. The company plans to build a $500-million-plus gated retreat of condos, hotels, fancy homes and golf courses. Restaurants, swimming pools, a gym and a spa are going in. The developers are getting tax incentives to do it, too. Four years later the replacement park is still not built, even as the last state park cabins are slated for demolition. The Lake Texoma case illustrates how states can disregard their legal obligations to federally protected parkland. As InvestigateWest has reported, the National Park Service, which is responsible for overseeing the conversion program, does not have adequate controls in place to ensure that parks that receive federal grants comply with the law. Investigate West

OH: Privatizing student newspapers
The Lantern, the student newspaper at Ohio State University, announced this week that Gannett will take over its business and advertising divisions under a three-year contract. Gannett’s Media Network of Central Ohio (MNCO) will pay Ohio State’s College of Arts and Sciences, which houses the student paper, about $28,000 each month (adding up to a grand total of $838,500) for unfettered access to the university’s 53,000 students — and for all the ad revenue it can muster. It’s a less dramatic entrée than Gannett’s other moves in the market, in which two of the company’s local Sunshine State papers purchased nearby student operations; in August 2006, the Tallahassee Democrat bought the FSView & Florida Flambeau at Florida State University, and six months later Florida Today bought the Central Florida Future at the University of Central Florida. Both student papers were independent from their respective universities…But David Swartzlander, president of the College Media Association, whose members are advisers to student media organizations, said the move has generated considerable discussion among newspaper advisers who are wondering whether this has implications for the future of student journalism generally. Inside Higher Ed

Private vs. Public Facilities, Is it cost effective and safe?
A study by the U.S. Bureau of Justice Statistics found that the cost-savings promised by private prisons “have simply not materialized.” Some research has concluded that for-profit prisons cost more than public prisons. Furthermore, cost estimates from privatization advocates may be misleading, because private facilities often refuse to accept inmates that cost the most to house. A 2001 study concluded that a pattern of sending less expensive inmates to privately-run facilities artificially inflated cost savings. A 2005 study found that Arizona’s public facilities were seven times more likely to house violent offenders and three times more likely to house those convicted of more serious offenses. Evidence suggests that lower staff levels and training at private facilities may lead to increases in incidences of violence and escapes. A nationwide study found that assaults on guards by inmates were 49 percent more frequent in private prisons than in government-run prisons. The same study revealed that assaults on fellow inmates were 65 percent more frequent in private prison (Austin, Conventry, 2001). After an complete analysis on private vs. public run correctional facilities, one may come to the conclusion that private run facilities are no more cost saving effective or safer than a state run facility. We must ask ourselves, is any monetary amount worth the lives of one of our own? The statistics are there, this profession is tough enough, we should take pride of it and not risk the lives of our bravest officers just to attempt to save the state a couple of dollars.  Corrections.com

Public universities reach a tipping point
…The rate of decline in most states for funding their university systems is stunning. Currently, states are spending 20 percent less in inflation-adjusted dollars on higher education than a decade ago. According to the annual Grapevine study conducted by Illinois State University and the State Higher Education Executive Officers, state appropriations for higher education declined by 7.6 percent this past year — the largest annual decline in at least half a century. A five-year drop in state support has left funding levels for higher education lower in 29 states than it was in 2006-07. ..Today, public higher education seems to have reached that tipping point. Nowhere is that more apparent than in California, which accounts for one in seven dollars spent by the states on higher education nationally. This past year, the Legislature cut appropriations for all higher education by $1.5 billion, or almost 12 percent. The situation is so bad that California State University officials announced in March that they had decided to freeze enrollment at most of the system’s 23 campuses until the results of a November referendum on raising taxes are known. In the meantime, every applicant will be wait-listed. Usually about 70,000 students apply each spring; in the fall, it is 10 times that. If the referendum is defeated, enrollment will be cut by at least 20,000 students. Governing

Headlines
Senate panel approves cap on contractor pay
Companies lobby to set up red light cameras for revenue not public safety
Across the country, public-sector workers in fiscal, political bull’s-eye
CA: UCLA faculty approves controversial changes in MBA financing
LA: Teachers file state lawsuits challenging vouchers
LA: 5 ways Louisiana’s new voucher program spells disaster for public education
MI: U-M not considering privatizing parking service
TX: Texas toll road could have 85mph speed limit
FL: Time and money – editorial

Senate panel approves cap on contractor pay
Defense contractors could charge the government no more than the vice president earns — currently $230,700 — to pay most of their employees’ salaries, under a provision in the Defense authorization bill approved Tuesday by the Senate Armed Services Committee. Federal Times

Companies lobby to set up red light cameras for revenue not public safety
…Growing evidence that many privatized traffic companies use faulty information, including right-hand turns, to assign red light tickets has only added to the anger. As legislators confront the backlash, a self-interested partnership has formed to lobby against accountability methods for these cameras: police unions and for-profit red-light camera companies. In state after state, police unions and for-profit traffic camera companies have teamed up to defeat laws proposed to ensure that traffic policies are designed for public safety rather than to collect revenue. In Connecticut, police unions and traffic light companies opposed efforts to simply expand the length of yellow lights — despite studies showing that doing so would reduce red-light violations by 90 percent — in favor of increased for-profit red light cameras. In Florida last year, American Traffic Solutions, one of the largest for-profit camera corporations, hired 17 lobbyists to defeat a similar bill. The company circulated a letter signed by police chiefs, and worked closely with officials from the Florida Sheriff’s Association, a labor group, to pressure legislators. In California, a bill by State Sen. Joseph Simitian (D-Palo Alto) to ensure that traffic cameras can only be set up to promote public safety rather than collect revenue was opposed by the California Police Chiefs, a law enforcement labor union group. OpEdNews

Across the country, public-sector workers in fiscal, political bull’s-eye
From California to Pennsylvania, workers are facing efforts to sharply curtail the job security and benefits they have enjoyed for years, perks long viewed as compensation for the sometimes lower salaries in the public sector. Now, the perks that came with being a firefighter or a teacher have become a target, not only for conservative lawmakers but for Democrats under pressure to make deep cuts in government budgets. They’re facing efforts to sharply curtail the job security and benefits they have enjoyed for years. Washington Post

CA: UCLA faculty approves controversial changes in MBA financing
UCLA faculty leaders on Thursday narrowly approved a controversial plan to wean the campus’ signature MBA program off state funding and have it survive on tuition and donations. The vote was viewed by many around UC as an important turning point in how California’s public universities should respond to years of state budget cuts. Some said the proposed change at the Anderson School of Management’s full-time MBA program may start a trend, particularly among business and law schools that are able to charge high fees and have wealthy alumni to help support them. But critics said such a move would harm the public nature of the 10-campus UC system. Los Angeles Times

LA: Teachers file state lawsuits challenging vouchers
As expected, Louisiana’s largest teachers association, some of its local chapters, and four individual public school teachers have filed two state lawsuits challenging the primary portions of the sweeping education overhaul that Gov. Bobby Jindal signed in April. The Louisiana Federation of Teachers argues on several fronts that the courts should strike down tenure and other personnel changes, along with a statewide program that will use the public school-financing formula to finance private school tuition grants…Perhaps the most significant legal question in the cases concerns the voucher program. Mirroring the argument that teachers union leaders made during the recently concluded session, the voucher suit cites the constitutional passage concerning the school financing formula known as the Minimum Foundation Program.  The Times-Picayune

LA: 5 ways Louisiana’s new voucher program spells disaster for public education
This latest pet project of popular Republican Governor Bobby Jindal, called Louisiana Believes, is now regarded as the most extensive voucher system in the United States — out-privatizing even the state of Indiana, where nearly 60 percent of the state’s students are eligible for vouchers. By eroding caps on family income levels, and thereby providing voucher assistance to both low- and middle-income families, Indiana’s plan aimed to remake public education in the state more extensively than any voucher system in US history – until now.  Like Indiana’s program, Louisiana’s new voucher plan is so wide in scope that it could eventually cut the state’s public education funding in half. But in a number of crucial ways, the Louisiana model works even harder to destroy public education than Indiana’s program does. Alternet

MI: U-M not considering privatizing parking service
Ohio State University is the first large public university to accept bids on the privatization of its entire parking enterprise for a significant length of time. University of Michigan Director of Transportation Stephen Dolen told AnnArbor.com that U-M has not seriously considered privatizing its parking services. “People are just kind of interested in seeing what’s going on with OSU,” he said. “There’s probably all kinds of things people are considering in this day and age of state appropriations.” AnnArbor.com

TX: Texas toll road could have 85mph speed limit
A new toll road, running from San Antonio to Austin, is set to soon open. While that may not be surprising, especially in Texas, the speed drivers may be allowed to travel has people talking. KYTX

FL: Time and money – editorial
…While lawmakers have been forced to cut billions of dollars from education, health care and other vital programs, they have been loath to tackle sentencing reform and community-based alternatives to incarceration for fear of being branded “soft on crime.” Gov. Scott seems to believe that privatization is the answer to Florida’s soaring correctional costs. It is not. The answer, rather, is to reserve expensive cell space for only those dangerous inmates who really need to be locked away from society. In short, too many inmates are doing needless time and costing Florida taxpayers too much money. The Gainsville Sun

Headlines
LA: State Civil Service clears way for privatization, layoffs
GA: Augusta Commission votes down outsourcing HR department
NJ: County nursing homes are an endangered species in New Jersey
PA: Contract could derail liquor store privatization
WA: Mixed feelings about privatized liquor sales in Washington
MI: Flint emergency manager plans to privatize operation of city jail
NC: Billionaire privatization activists pushing ‘neovouchers’ for North Carolina
Privatized torture

LA: State Civil Service clears way for privatization, layoffs
The State Civil Service Commission cleared the way Wednesday for three state agencies to turn over some of their job functions to private contractors that will save the state about $4.3 million in costs for the fiscal year starting July 1 and result in 110 layoffs. It also gave a fourth agency, the secretary of state’s office, provisional approval to contract out security services at the State Archive and Old State Capitol in Baton Rouge, if some of the office’s budget cuts stand. First Assistant Secretary of State Kyle Ardoin said if the nine security jobs are abolished they will be turned over to a private company, saving about $271,000. “We may not have to do it,” Ardoin said. He said he wanted the panel’s approval in case the plan has to be activated. The biggest job hit will be 79 positions at the Department of Health and Hospitals where food service functions at four facilities for the aging and developmentally disabled will be turned over to Healthcare Services Group of Bensalem, Pa. Times Picayuane

GA: Augusta Commission votes down outsourcing HR department
Augusta commissioners ended months of debate Tuesday over whether to outsource most human resources functions to the global outsourcing firm Automatic Data Processing, approving 6-3 a motion to deny ADP’s contract offer…The debate over whether to outsource to ADP pitted ADP employees against city employees, with both sides spreading information about missteps the other was making. It also prompted some commissioners to consider the firm’s impact on Augusta, as it employs some 800 at a west Augusta call center. The agenda item had reappeared on commission agendas for months, but no ADP staffers appeared at Tuesday’s meeting. Augusta Chronicle

NJ: County nursing homes are an endangered species in New Jersey
County-run nursing homes in New Jersey could be headed for extinction. Four have been sold to private operators in the last 18 months…And some within the industry suspect that the remaining 16 aren’t far behind. With local government budgets shrinking, county-run nursing homes — the government’s traditional means of caring for seniors who lack money for a private facility — are steadily being privatized. New Jersey is joining a national trend: Government nursing homes are mostly a bygone institution elsewhere and represent less then 6 percent of nursing homes in the country, said Don Redfoot, an analyst with AARP. Outside the Northeast and Midwest, county homes are virtually nonexistent. In Pennsylvania, five county homes have been sold since 2010, with 32 remaining. Philadelphia Inquirer

PA: Contract could derail liquor store privatization
A new contract for union employees in liquor stores across the state could stall or even kill current efforts to remove liquor and wine sales from the hands of the state of Pennsylvania. The new contract for 3,500 employees runs through June 2015, according to Philly.com, and the union says one provision requires any private company that would buy the state stores to hire and pay union employees the same salary until the end of the contract.  Westchester Patch

WA: Mixed feelings about privatized liquor sales in Washington
Privatized liquor sales in the State of Washington started Friday for the first time in decades. “Well I think it’s pretty handy,” said customevr Leo Profitt. Handy is exactly what area retailers want customer Leo Profitt to think about when he walks into the local grocery store to buy liquor. Spirits are now on shelves all across Washington….But not everyone is happy. Customer Tyler Biggers said he’s sad to see locally owned liquor stores go. “You don’t have to deal with a corporation,” said Biggers. “I don’t think they care about the customers as much as the locally owned stores.” DeLane said a lot of customers coming into the area are coming through to check out the prices and see how much they have fluctuated. KLEW TV

MI: Flint emergency manager plans to privatize operation of city jail
When the city jail reopens later this year, a private company will apparently be watching the inmates. Flint emergency manager Michael Brown confirmed his decision to privatize the operation of the city lockup today after Genesee County Board of Commissioners Chairman Jamie Curtis was told Sheriff Robert Pickell was no longer in the running to handle the job. MLive.com

NC: Billionaire privatization activists pushing ‘neovouchers’ for North Carolina
North Carolina lawmakers are moving ahead with plans to establish an indirect voucher system that would help low-income children attend private or religious schools with public funds — and they are doing so with the financial support of billionaire school-privatization advocates from outside the state. The North Carolina Opportunity Scholarship Program would allow corporations to donate to nonprofits that would provide scholarships of up to $4,000 per student. In turn, the corporations would receive tax credits allowing them to divert a total of up to $40 million of their state taxes next year, and even more in the future. Facing South

Privatized torture
On Friday, a federal appellate court ruled that private military contractors allegedly complicit in torture at Abu Ghraib aren’t immune from prosecution .As everyone knows, soldiers and civilian contractors at the Abu Ghraib prison committed criminal offenses, with military officials going so far as to hide prisoners from the Red Cross. In 2004, an independent panel of civilian defense experts found that Pentagon leaders helped create the conditions that led to the scandal. “The abuses were not just the failure of some individuals to follow known standards, and they are more than the failure of a few leaders to enforce proper discipline,” the report said. “There is both institutional and personal responsibility at higher levels.” Despite these findings, only low-ranking soldiers were sent to prison. New York Times

Headlines
Guess who would benefit from privatizing Medicare?
WA: Liquor privatization: prices could rise 10 to 30 percent
OH: Ohio State gets $483M bid for parking lease
OH: ODOT looking to privatize 5 state-owned rest areas
WI: Wisconsin’s pension system is doing fine – opinion
WI: Overhaul of Wisconsin welfare program criticized

Guess who would benefit from privatizing Medicare?
If you think the idea of privatizing Medicare has gone away, that the health insurance industry has thrown in the towel on one of its biggest goals, there was fresh evidence last week that you would be wrong. As I wrote more than a year ago — when Rep. Paul Ryan (R.-Wis.) unveiled his plan to replace the Medicare system with one that would essentially be run by private insurers — Democrats would be foolish to think that Ryan couldn’t get the public to support the concept. I noted then that insurers would be investing heavily in efforts to convince people that Ryan’s plan represented the only way to save the Medicare program from insolvency. Huffington Post

WA: Liquor privatization: prices could rise 10 to 30 percent
Washington state has extricated itself from decades in the liquor business, a move that is likely to give drinkers a headache when they reach for bottled spirits on local store shelves. Under a measure approved by voters in November, Washington on Friday became the first state since the repeal of Prohibition in 1933 to privatize a government-run liquor retail and distribution system dating to the 1930s. …The bad news for customers is that on average, per-bottle prices on liquor could rise between 10 percent and 30 percent, retailers say. The initiative imposed a new fee structure that raises those costs by 27 percent, which will likely be passed on to consumers, said Brian Smith, spokesman for the Washington State Liquor Control Board. Reuters

OH: Ohio State gets $483M bid for parking lease
The deal, still tentative, for a 50-year lease to run the university’s parking lots is one of several steps by Ohio State to build its financial reserves as government support dwindles. The City of Chicago made a similar deal in 2009, granting a 75-year lease of its parking meters to a private company…The university recently sold 100-year bonds, a first for a public university, raising $500 million; it made a $25 million exclusive deal with a local bank for campus A.T.M.’s and other services and is looking into privatizing its airport…Colleges and universities have increasingly looked to deals with outside businesses to raise money, turning over parking lots or campus bookstores to private operators, typically in return for a stream of revenue. But a half-century deal with a huge upfront payment is another matter…The plan has stirred controversy on a campus where, according to the school, about 100,000 students and employees park each day. Responding to concerns, the university has included in the deal limits on price increases, and flexibility to increase parking supply. Chicago’s parking meter lease raised $1.15 billion for the city, but it has been widely criticized as leading to steep price increases and a chronic problem of malfunctioning meters. New York Times

OH: ODOT looking to privatize 5 state-owned rest areas
ODOT Director Jerry Wray has said the leases could help offset the costs of maintaining the state’s 104 rest areas, which cost the state $30 million and $50 million annually to maintain. Two rest areas along U.S. Route 50 in Athens County, two along U.S. Route 33 in Hocking County and one rest stop along U.S. 23 in Pickaway County are in question. The request opens the door for bidders to potentially lease the rest areas and allow the bidders to place convenience stores, gas stations, restaurants or other commercial entities on the sites. Bids are due by July 20. 10TV.com

WI: Wisconsin’s pension system is doing fine – opinion
An op-ed published Thursday in the Journal Sentinel from the right-wing, Washington, D.C.,-based Heritage Foundation suggested that changes should be made to our state’s pension program for hundreds of thousands of educators and other public workers in Wisconsin. The implication of these proposed changes is that the Wisconsin Retirement System is in need of improvement or better management or that it is in financial peril. Nothing could be further from the truth…The reality is that the WRS is one of the best-run, best-funded and most secure retirement systems in the nation. Even during the recent economic collapse, it remained stable, when systems in other states did not fare as well. This is owed to proper management and investments – and sound financial decisions that benefit every taxpayer of Wisconsin, not just the ones whose delayed compensation is invested into their retirement through the WRS…Don’t listen to out-of-state conservative talking points from the Heritage Foundation; the real risk is in privatizing the WRS, which is what is motivating the WRS study Gov. Scott Walker included in the current state budget. This is yet another way to provide a political kickback to Walker’s out-of-state supporters. The privatization scheme has been tried in other states, to negative consequence, which included hefty fees for users and deteriorating returns. Journal Sentinel

WI: Overhaul of Wisconsin welfare program criticized
Dane County Executive Joe Parisi is leading a statewide coalition calling for an immediate suspension of the Walker administration’s plans to overhaul the way the state’s welfare-to-work program is delivered. Wisconsin Works, known as W-2, started in 1997 as part of a national welfare reform movement aimed at encouraging families to work toward self-sufficiency. It offers people monthly cash payments for participating in job training and employment programs with the goal of connecting low-income families with job opportunities and emergency assistance. W-2 is currently run by 20 individual counties, six groups of counties, and a number of private contractors, state officials said. But Parisi accused the state Department of Children and Families (DCF) of having “quietly put in motion” changes that would effectively fully privatize the program. He said the DCF’s move could result in the closing of the Dane County Job Center and other “one-stop-shop” county job centers around the state. Central Wisconsin Hub

Headlines
The unfunded liabilities you love
NY: Suburbs cut public workers
PA: State store privatizing bill revived in House
LA: Louisiana  makes bold bid to privatize schools
OH: Highway repair to go private?
OH: OSU students, faculty unsure about pending $483M parking lease
OR: O&C act fails to guard public interest in forests – opinion

The unfunded liabilities you love
Here it comes: economic Armageddon. Reckless promises to finance the future costs of health care and retirement contribute to a crushing debt burden on American families that can be relieved only by cutting back on the size of government. Mr. Romney seems to believe that government spending cuts would simply reduce unfunded liabilities — projected commitments that are not covered by projected revenues. But they are likely to simply redistribute these liabilities, shifting them from government to individuals — especially those with children to educate, or sick, disabled or frail family members to care for…If public spending on health, education and retirement declines, private spending will increase, though probably not by the same amount, because some families won’t be able to afford the services they need and will go without. Family financial instability will increase. Growing debt among college students is largely a consequence of declining public support for higher education. Many families are only one job loss or medical emergency away from bankruptcy. New York Times

NY: Suburbs cut public workers
Still reeling from the effects of the 2008 recession, suburban governments across Greater New York are closing big budget deficits with a measure of last resort: public-sector layoffs..Suffolk County on Long Island is facing its largest wave of public-sector layoffs since the early 1990s, with more than 300 non-police positions set to be slashed on July 1. Yonkers is proposing the elimination of 112 police officers, firefighters and public works employees as it tries to close an $89 million hole in its $938 million budget.And across New Jersey, cities, towns and counties have carried out or are contemplating at least 1,000 layoffs, according to the state Civil Service Commission..The series of job cuts demonstrates how suburban governments are reckoning with rising pension costs and continuing to feel the effects of an economic downturn that ravaged local tax revenues. Having exhausted their other options—raiding rainy-day funds, taking advances in state aid and grasping at other one-time revenue shots—suburban officials are increasingly turning toward cutting jobs.  Wall Street Journal‎

PA: State store privatizing bill revived in House
Though June is crunch time for the state budget — and it’s nearly summer in an election year — Pennsylvania House Republicans are making another push for action on a bill to privatize the state’s Liquor Control Board. Philadelphia Inquirer

LA: Louisiana  makes bold bid to privatize schools
Louisiana is embarking on the nation’s boldest experiment in privatizing public education, with the state preparing to shift tens of millions in tax dollars out of the public schools to pay private industry, businesses owners and church pastors to educate children. Starting this fall, thousands of poor and middle-class kids will get vouchers covering the full cost of tuition at more than 120 private schools across Louisiana, including small, Bible-based church schools. The following year, students of any income will be eligible for mini-vouchers that they can use to pay a range of private-sector vendors for classes and apprenticeships not offered in traditional public schools. The money can go to industry trade groups, businesses, online schools and tutors, among others. Every time a student receives a voucher of either type, his local public school will lose a chunk of state funding. INDOlink

OH: Highway repair to go private?
State transportation officials are considering paying private contractors to plow snow, fill potholes and take over maintenance of I-270 in central Ohio and a 100-mile stretch of I-71 between Columbus and Cincinnati. The plans are part of a stepped-up effort to cut costs and produce new income that could shorten threatened delays for dozens of highway projects statewide. The Ohio Department of Transportation says it needs $1.6 billion to keep its construction schedule on track, and it has an additional $10 billion in work being planned with no current way to pay for its completion. “We cannot wait for Washington to send more money,” Director Jerry Wray said last week in an address to department employees, contractors, legislators and local officials. “We have to focus on what we control and what we can change now in Ohio.” Jim Riley, a deputy ODOT director hired in March to run a new division that will spearhead such revenue efforts, said he has just begun studying the idea of privatizing maintenance and couldn’t project how much money it might save. Columbus Dispatch

OH: OSU students, faculty unsure about pending $483M parking lease
Ohio State officials announced the highest bid for leasing university parking assets to an outside firm as $483 million, and many students and faculty are still unsure on the possible deal…If recommended to the Board and then passed, the private company, which has yet to be named, will take over operations of all permit sales, parking lots and parking garages for a 50-year period…Another Faculty Council member, Enrico Bonello, a professor in plant pathology, was not convinced the proposal was a good deal for the university. “This is tragic for Ohio State, because it shows a complete top-down control of the financial well being of the institution, one which, in this case, is based on a huge gamble,” Bonello said. Alutto said the administration has a number of meetings and planning stages set before making its recommendation to the Board at its meeting June 21-22. The Lantern

OR: O&C act fails to guard public interest in forests – opinion
The act is a political effort to achieve the de facto privatization of 1.5 million acres of public land. Its aim is to increase logging by decreasing citizen involvement and environmental protection. The act would privatize federal forestlands in Oregon currently managed by the U.S. Bureau of Land Management. These forests are now subject to citizen comment and the scientifically astute management guidelines of the Northwest Forest Plan. Supporters try to convince us that this is the only practical way to increase and stabilize timber supplies, revenue and employment. They aren’t telling us how previous privatization schemes worked out. The Shelton Ranger District in Washington was privatized as a “sustained yield unit.” Logging, related employment and revenue boomed until the 110,000 acre district was quickly cut out. Taking the Shelton District out from under federal protection eventually resulted in denuded and eroded watersheds and lost salmon runs. Communities forfeited their future, forest and livelihood while Simpson Timber Co. made millions. The Register Guard

Headlines
Localities squeezed by reduction in state aid and property taxes
Troubled times at the State Fair
Is your state asking Congress for toll roads to close budget gaps?
WA: Washington state Supreme Court upholds liquor privatization in 5-4 decision
IN: Gov Daniels fights to keep state’s Toll Road perk
WI: Coalition calls for suspension of state efforts to privatize W-2
FL: Miami-Dade questions $1.7M in stadium expenses

Localities squeezed by reduction in state aid and property taxes
While states slowly rebound from the Great Recession, many local governments are struggling with unprecedented fiscal challenges. For the first time since 1980, state aid and property taxes, two primary sources of funding, are dropping simultaneously, according to a new report, The Local Squeeze, released today by The Pew Charitable Trusts. The decrease in revenue, alongside increased demand, is forcing many cities, counties and school districts to eliminate jobs; increase class sizes and shorten school days; reduce services such as public safety, library hours and trash collection; and privatize functions such as park maintenance and 911 dispatching, among other measures. “In many places, the impact of revenue shortfalls and increased need for services has been wide and deep,” said Robert Zahradnik, director of research for Pew’s new American Cities Project. “Going forward, local policy makers will have more tough choices to make. It is unclear whether these changes will be temporary or permanent, but the impacts of the squeeze will be felt for years to come. MarketWatch

Troubled times at the State Fair
On a rainy Monday afternoon in mid-May,  Jeff Carpenter gazed out on the grounds of the State Fair of Virginia, of which he was the sole remaining caretaker. After a life of more than 150 years, the fair had closed. The grounds were about to be auctioned off to the highest bidder. Carpenter was philosophical — and historical. “The Virginia state fair went quiet during the Civil War and during World War II,” he said, “but it always came back.” Carpenter is hopeful that even under new ownership, the fair will come back this time too. But this time is different. The non-profit agency running the fair defaulted on more than $70 million in loans and was forced into Chapter 7 liquidation after the fair was moved from its original Richmond location to The Meadow Event Park grounds just outside Fredericksburg in 2009.  The Meadow Event Park and the State Fair of Virginia, Inc., the non-profit organization responsible for bringing together the annual livestock, entertainment and fried food festival for the state, were sold at auction last week to the for-profit, Tennessee-based Universal Fairs, LLC, for $5.67 million. The sale is the latest example of a cash-strapped state fair turning to a for-profit company in an effort to continue a remnant of the fair tradition, but also to make money. Stateline

Is your state asking Congress for toll roads to close budget gaps?
States are finding it next to impossible to come up with the funding they need for these expenses and are turning to Congress to request permission for toll roads to help raise money they need. Automotive Discovery

WA: Washington state Supreme Court upholds liquor privatization in 5-4 decision
The Washington Supreme Court on Thursday upheld a voter-approved initiative privatizing liquor sales, one day before the measure takes effect. Initiative 1183 allows stores larger than 10000 square feet and some smaller stores to begin selling liquor Friday. Voters approved the plan last fall, and the state already auctioned off the rights to sell liquor at state stores…However, initiative opponents filed suit, arguing that the measure violates state rules requiring initiatives to address only one subject. The measure included a provision for public safety funding.  A judge rejected that claim, but opponents appealed to the Supreme Court. In a 5-4 decision, the court ruled that the opponents had not overcome the presumption that the initiative meets single-subject rules. Washington Post

IN: Gov Daniels fights to keep state’s Toll Road perk
Gov. Mitch Daniels wants Congress to say no to a proposal that would punish states such as Indiana that operate public-private highways…The provision would include the 75-year lease of the Indiana Toll Road to a foreign consortium, plus plans to replace bridges in East Chicago and over the Ohio River with toll spans that will be at least partly privatized…Daniels touted the Toll Road lease and the $4 billion it produced for the Indiana highway construction program known as Major Moves. “We are in a record building boom. … You can’t go 10 miles in our state right now without running into a road grader or a major project.” Fort Wayne Journal Gazette

WI: Coalition calls for suspension of state efforts to privatize W-2
Dane County Executive Joe Parisi is leading a statewide coalition calling for the immediate suspension of state plans to fully privatize the Wisconsin Works (W-2) program. W-2 is a program that helps people get back on their feet after times of trouble, such as losing a job. It connects low-income families with employment opportunities and emergency assistance…Recently the Wisconsin Department of Children and Families started taking bids, from both the private and public sectors to start running it the program. Parisi said cuts proposed by the Department of Children and Families would come at the worst possible time. He also questioned the effectiveness of a private model to run W-2. “If the state wants to say this works better in privatization, let’s compare some of the results, say from Dane County and other counties who do it themselves with some counties where it’s been privatized, and I think you could talk to some of the people in these counties where it’s been privatized and you’ll find that the results have not been great,” Parisi said. the state as to why it wants to privatize the program. “It’s also incumbent on the state, if they’re going to come in and wipe out a program in a couple months without any legislative action, just to quietly issue an RFP, it’s incumbent on the state to tell us why,” Parisi said. Channel 3000

FL: Miami-Dade questions $1.7M in stadium expenses
Miami-Dade County officials are questioning $1.7 million in expenses that baseball’s Miami Marlins say should be credited to the team for its share of the construction costs of a new ballpark, the Miami Herald reports. Under an agreement between the team and the county, the Marlins could spend up to $89.5 million on “soft costs” that would count toward their $120 million portion of the project. They wound up spending $38.5 million in soft costs, but the county says the Marlins shouldn’t have counted expenses like its cable bill, wine purchased for a party, and pillow cases used in an office as part of those soft costs. “If I were the mayor, I’d certainly hire an outside group, forensic accountants, to look into this,” said Norman Braman, the auto magnate who aggressively fought construction of the stadium. An arbiter will ultimately rule on whether those items should count. The disputed expenses are the latest controversy for the $634 million stadium and parking garage. More than 80 percent of the project’s total costs was funded by public money, according to the Miami Herald, and the team gets to keep almost all the revenue the project generates.  Governing