February 28, 2012

Headlines
NE: Legislators rip child welfare privatization prior to full debate
PA: State House, LCB talk modernization, not privatization
MI: Ann Arbor area officials say more privatization
How all of America is becoming a toll road

NE: Legislators rip child welfare privatization prior to full debate
Child welfare takes center stage in the legislature the next two days…Sen. Steve Lathrop of Omaha on Monday called privatization a miserable, unmitigated failure. It has not delivered what we thought or what was expected and we have spent tens of millions of dollars on it,” Lathrop told colleagues during legislative floor debate. Lathrop pointed out that the state spent $105 million delivering child welfare services on abused and neglected children in 2008/2009. That expenditure jumped to $139 million in 2010, with $30.5 million spent on amended contracts with private agencies. Sen. Gwen Howard of Omaha ..reminded colleagues private contractors assured the state they could deliver services for the same amount of money the state spent. “But the ink was barely, barely dry when the private agencies came back and said, ‘You know what, we really can’t do it for this amount of money,’” Howard stated…. A state audit slammed the Department of Health and Human Services for inadequate cost controls and poor record keeping. The audit reported spending on child welfare services rose by 27% over a two-year period. Nebraska Radio Network

PA: State House, LCB talk modernization, not privatization
The talk at a House budget hearing for the state Liquor Control Board today was all about modernization, and the P word — privatization — wasn’t even mentioned. ..One of the major modernization moves is creating more “prototype” liquor and wine stores, which have a larger selection of products, including higher-end wines, and larger, fancier interiors and shelves than the traditional, old-fashioned “state stores.”..One reason legislators are reluctant to sell or lease the state stores to private owners is the amount of money they bring in to state government each year — $530 million in fiscal 2010-11, $513 million the year before and $526 million the year before that. That includes money from the sales tax, a 30 percent markup on all products and the 18 percent Johnstown flood tax. Also, most of the 5,700 LCB employees are unionized and don’t want the system sold to private owners for fear of losing their jobs. Pittsburgh Post-Gazette

MI: Ann Arbor area officials say more privatization
‎As municipalities and school districts continue to face budget constraints, there will be more pressure to privatize services, a panel of local officials said Monday night. Your school secretary may be a contracted employee in the future,” said Susan Baskett, an Ann Arbor school board trustee….Fanta said the Ypsilanti school district is “under siege” concerning privatization. “They want to privatize everything they could privatize. And the rationale for that is we have to cut costs,” he said. Fanta said he prefers to instead ask: “How do we politicize the citizens of Michigan to say it is a good thing to adequately fund pubic education?” Baskett said declining funds and increasing retirement costs — which she said school districts “have nothing to do with except pay the bill” — have led to privatization talks. AnnArbor.com

How all of America is becoming a toll road
…Toll roads are becoming much more fashionable, but the trend extends beyond these physical toll booths to a more symbolic toll road as well. Americans are slowly but surely being required to pay toll after toll in order to live the American dream.  The long road of life is becoming littered with toll booths.  These toll booths are nothing more than an annoyance for the rich.  However, they are major obstacle for the middle class, and all together debilitating for the poor….Americans are now being asked to pay for services that were previously gauranteed, and if they can not pay they are no longer receiving the service.  This is the toll road philosophy. Examiner.com