January 4, 2012

Headlines
IL: Chicago, ugly urban parable of privatization
IN:A gathering storm over ‘right to work’ in Indiana
LA: School voucher expansion expected to be part of Gov’s agenda
NE: Child welfare will dominate Neb. legislature
NY: Lewis County mental health privatization to move ahead
FL: GOP puts bulls-eye on education

News summaries
IL: Chicago, ugly urban parable of privatization

..Leasing plans in New Haven and Los Angeles are now gathering dust. Behind these decisions are surely no small amount of political calculus. But there’s also, quite likely, a healthy dose of economic skepticism, driven by turns to the Chicago example. When a parking meter lease was shoved upon the bankrupt Harrisbug, David Johnson, an analyst with ACM Partners in Chicago, told the Huffington Post:
“There’s a reason that there’s been so much enthusiasm in the finance community for privatization deals. You are dealing with a less savvy partner,” Johnson said. “The bigger sucker is always the government.” And that’s how a Morgan Stanley can rope in billions more than a city expects. That line supports the theory that local governments are largely financial inept—with the Keystone capital perhaps the sad poster child. (For her recent proposal of the city’s bruised budget, Harrisburg’s Mayor reportedly removed a parking meter lease.) There’s also a convincing case, made at length by Ellen Dannin, a legal scholar and privatization bird-dog, that asset sales inherently shift risk to the public sector and bury oversight. Much of what’s sour about Daley’s parking deal was its false nod to competitiveness—ostensibly led by an open bidding process, it was cut behind doors over a weekend. Forbes

IN:A gathering storm over ‘right to work’ in Indiana
Nearly a year after legislatures in Wisconsin and several other Republican-dominated states curbed the power of public sector unions, lawmakers are now turning their sights toward private sector unions, setting up what is sure to be another political storm. The thunderclouds are gathering first here in Indiana. The leaders of the Republican-controlled Legislature say that when the legislative session opens on Wednesday, their No. 1 priority will be to push through a business-friendly piece of legislation known as a right-to-work law. If Indiana enacts such a law — and its sponsors say they have the votes — it will give new momentum to those who have previously pushed such legislation in Maine, Michigan, Missouri and other states. New Hampshire’s Republican-controlled Legislature was the last to pass a right-to-work bill in 2011, but it narrowly failed to muster the two-thirds majority needed to override a veto by the Democratic governor; an Indiana law would re-energize that effort. The New York Times

LA: School voucher expansion expected to be part of Gov’s agenda
Gov. Bobby Jindal and his allies on education reform are considering an unprecedented, statewide expansion of private school vouchers and steps to more closely link teachers’ job security with performance, according to two officials who have consulted with the governor’s office on proposals for this year’s session at the Louisiana Legislature. The Times-Picayune

NE: Child welfare will dominate Neb. legislature
The debate will include whether to pull back on the Nebraska Department of Health and Human Services’ controversial experiment in privatizing child welfare..Starting in November 2009, the state turned over to private contractors the bulk of duties for ensuring the safety and well-being of abused and neglected children in the state…A legislative committee concluded last month that the contracts had been “ill-advised” from the beginning and had produced “neither the outcomes nor the cost savings for which the state contracted.”..The recommendation to return management of child welfare cases to the state appears to have strong initial appeal among senators. Sen. Tom Hansen of North Platte argued that state workers should take back case management duties because the care of children in the system is a state responsibility. “These are wards of the state, not wards of a corporation,” he said. Lexington Clipper Herald

NY: Lewis County mental health privatization to move ahead
Lewis County legislators on Tuesday gave the proverbial green light for privatization of county mental health services to proceed.  Lawmakers voted 10-0 to endorse the move of most county mental health services to Transitional Living Services of Northern New York, Watertown, with three programs to be overseen by the Northern Regional Center for Independent Living…While the NRCIL transfer is to take place right away, the Transitional Living portion, which requires an extensive application process through the state Office of Mental Health Services, is expected to take at least four to six months. Watertown Daily Times.

FL: GOP puts bulls-eye on education
Later this month, Florida Republicans will have an opportunity to register their feelings on federal education policy — and whether there should even be a national policy…At least four major Republican contenders — Mitt Romney, Michele Bachmann, Rick Perry and Ron Paul — have called for abolition of the DOE. Rick Santorum, Newt Gingrich and Jon Huntsman have put more emphasis on vouchers, emphasizing math and science curriculum, revamping union rules to make it easier to fire incompetent teachers and always driving decision-making authority as far down as possible. That’s in tune with much of what Florida has done. Last year’s Legislature approved a law tying teacher salaries to performance and eliminating tenure for new hires. Both Gov. Rick Scott and the legislative leadership are emphasizing STEM — science, technology, engineering and math — in this year’s session, nudging schools away from anything that doesn’t show quick job-finding results. Florida Today