This week, the American Correctional Association (ACA) will hold its annual conference in Indianapolis, where thousands of government corrections officials, including wardens, jail administrators and sheriffs, will attend workshops and connect with their peers from across the country. Workshops include best practices for successful reentry programs for released inmates and working in corrections across generations.
But many workshops and events will feature a Who’s Who of private corrections companies, including Corrections Corporation of America (CCA), GEO Group, Aramark, Corizon and Telmate.
Those companies should be familiar—many have been prominent in reports we’ve released over the past few years detailing the suffering of inmates in private hands, such as thousands of medical malpractice claims and stories about maggots appearing in prison food.
On the eve of the ACA conference, we have released a new report revealing how such conferences allow corrections companies to influence government officials in ways outside the public’s oversight.
» Read more about: Politically Correctional: How Businesses Game Prison Conferences »
I don’t know about you, but I love public parks. City parks for hiking, little league, and summer concerts. State parks for camping. National parks like the Grand Canyon to experience the awe of nature. Parks are some of our most precious public assets.
But only if they remain public. This week, candidates in Kentucky’s gubernatorial election suggested that the state could privatize parks to raise revenue. That’s a misguided solution to the wrong problem: the state’s failure to invest enough in essential public assets. Advocates of privatization say the private sector will attract more tourists. But that would jeopardize the central mission of public parks to provide affordable access to nature and recreation. Parks managed by companies, like other private assets, will need to generate profit—funds that should be spent on maintaining and improving them.
The citizens of Kentucky aren’t alone. To manage the 14 million acres of state park lands in the U.S.,
As lobbyists and state legislators gathered at San Diego’s Grand Hyatt resort last week for the three-day annual meeting of the American Legislative Exchange Council (ALEC), the delegates seemed to barely glance at the several dozen exhibitor tables that made up a sort of carnival sideshow of right-wing groups outside the hotel’s second-floor warren of meeting rooms.
Convention attendees had more pressing concerns. Namely, turning this year’s corporate wish list into the infamous boilerplate bills known as “model laws” that would aspire to undermine things like health and environmental standards, worker rights, campaign-spending limits and implementation of the Affordable Care Act (ACA) across the 50 states.
See more of our coverage of the ALEC Annual Meeting
Many of the exhibitor booths were occupied by familiar ALEC friends, such as the collection of extreme-right think tanks known as the State Policy Network,
Earlier this month, in yet another win for local control, leaders in one central Florida county rejected a proposal from a for-profit library management company to take over their public library. The company, Library Systems & Services (LSSI), operates at least 80 public libraries across the country, but Marion County joins a growing list of municipalities that realized that LSSI’s claim to do more with less while still making a profit was a greater fiction than even Stephen King’s best stories.
In 2010, the chief executive of LSSI admitted to the New York Times that the company saves money by cutting overhead and replacing unionized employees. “Cutting overhead” can mean fewer services and reduced hours. Privatized libraries make up for less professional staff by depending on unpaid volunteers and automation. Of course, when outsourcing relies on cutbacks in wages and benefits to realize savings,
» Read more about: Calabasas and Other Towns Reject Privatized Libraries »
The town of Coatesville, Pennsylvania, outside of Philadelphia, is a former steel mill town full of struggling residents. With a per capita income of $14,079, Coatesville is situated in wealthy Chester County, but it has struggled amid a declining population and lack of job opportunities. Missoula, Montana, on the other hand, was once a thriving lumber town. Its per capita income of $17,166 means it’s slightly wealthier than Coatesville, and the University of Montana and two hospitals are major employers for the city.
Two thousand, three hundred miles separate Coatesville from Missoula, but the two towns have more in common than you might think. One important similarity? Their ongoing struggles with private, for-profit water companies, like too many cities around the U.S.
Coatesville officials sold the public water utility in 2001, hoping to use the one-time cash infusion to spark an urban renaissance while the privately-run PAWC promised to invest in desperately needed modernization and maintenance.
By now, you have probably heard about the riot at the for-profit Kingman Prison in Arizona. Days of unrest at the prison, run by the privately-held Management Training Corporation, left 15 wounded and forced nearly 1,000 incarcerated people to be transferred to other facilities. The same facility also suffered from a major riot in 2010. Similarly, people detained at an MTC-run camp in Texas names Willacy rioted earlier this year, forcing that facility to close completely.
The Kingman riots are focusing renewed attention on the Arizona legislature’s long, cozy relationship with the private prison industry. The repeated failings of for-profit prison operators have led Arizonans and the editorial board for the state’s largest paper to ask some big questions:
» Read more about: Questions Surround Private Prisons After AZ Riot »
The problems are well documented. Northrop Grumman botched the upgrade to New York City’s 911 systems while billing the city $300,000 to $430,000 annually for each of their 137 consultants. A $132 million dollar contract to upgrade phones and Internet services for municipal agencies in Orange County, California is already $13 million over budget while municipal employees report repeated outages and failed solutions from the contractor, Xerox. And who can forget all those failed Obamacare exchange websites brought to us by mega-information technology contractors such as CGI and Oracle?
For too long, local and state governments have turned over control of their critical digital infrastructure to companies claiming they could do the work cheaper and faster than public employees. But after the last few years of failures, cost overruns, and plain old shoddy work, local leaders are finally realizing that in this digital age,
» Read more about: Insourcing Taxpayer Savings and Efficiency »
Massachusetts’s Taxpayer Protection Act is the gold standard when it comes to ensuring government contracts are awarded fairly and will result in cost savings that don’t simply rely on slashing wages and benefits for workers. Also known as the Pacheco Law, the legislation was passed in 1993 after years of wanton government outsourcing led to drastic failures and outrageous corruption by contractors. The reckless privatization of critical services such as mental health care for Massachusetts’ most vulnerable citizens led to the creation of important standards and protections for public workers, service recipients and taxpayers.
Businesses that want to win a contract with the Commonwealth must prove they can lower costs to do the same service at the same level of quality, while providing their employees with the same wages and benefits as the public agency. A uniform process for evaluating and awarding contracts ensures conflicts of interest are rooted out while the state auditor oversees everything.
» Read more about: Taxpayer Act Threatened in Massachusetts »
From boiling the soon-to-be-mashed potatoes to rinsing the fruits and vegetables, clean water is an essential ingredient in every household that will be preparing Thanksgiving dinner.
And yet, the absence of adequate federal support means our public water systems are under threat. Over the next 20 years, U.S. water systems will likely require a staggering $2.8 to $4.8 trillion investment, and for-profit corporations such as Veolia and Suez are jumping at the opportunity to privatize America’s water supply so they can pocket a portion of those trillions we’ll need to spend.
A new report released by Corporate Accountability International with Public Services International Research Unit (PSIRU), shows that promises made by private water corporations fail to materialize or come at the expense of deferred infrastructure maintenance, skyrocketing water rates and risks to public health.
The good news, however, is that cities across the country and all over the world are increasingly rejecting water privatization and are taking back public control of their water systems.
California voters passed a groundbreaking ballot measure this month that reduces penalties and sentences for nonviolent, “nonserious” crimes. Now, the private industry is responding to these changes in public attitudes and declining prison populations by opening up new lines of business.
A new report released by American Friends Service Committee (AFSC), Grassroots Leadership and the Southern Center for Human Rights, highlights the expansion of the private prison industry into other profitable and growing areas in the criminal justice system: prison and jail subcontracted medical care; forensic mental hospitals and civil commitment centers, as well as “community corrections” programs such as probation and halfway houses.
The report authors have named this new expanded private corrections industry the “treatment industrial complex” via the report.
As other states follow California’s lead and pass laws reducing mandatory minimum sentences, the report urges policy makers, advocates and others to ensure that private corporations can’t profit from any part of the criminal justice system.
Halloween is the time of year dedicated to scary stories, and in In the Public Interest report, “Out of Control,” there are 26 frightening and factual tales of how the push for government outsourcing is hurting taxpayers around the country.
You will be horrified by the real-life examples of Americans tricked by privatization, from a nun fighting cancer who was wrongly dumped from food stamps and Medicaid to foster children placed in severely abusive homes. Privatization is something to be feared when our elected officials aren’t carefully protecting the public’s interest.
We work every day to prevent future privatization horror stories from creeping and crawling their way into our democracy. Because just like Chicago, which leased its parking meters for 75 years to a Morgan Stanley-led private consortium, a bad privatization deal can haunt a community for generations.
Show off your Halloween spirit and share this terrifying report on twitter using the hashtag #PrivatizationHorror.
» Read more about: Privatization’s Trick-or-Trick Halloween »
I was inspired by the videos and photos of the more than 300,000 people at the People’s Climate March this past weekend in New York. The word is out, climate change is real, but what people might not know is the privatization of American infrastructure is contributing to the problem.
In a joint article with Professor Stephanie Farmer, I detail how poorly structured “public-private partnerships” (P3s) hinder efforts by cities and states to address climate change.
The city of Chicago is learning this the hard way. Not only has the decision to lease the city’s parking meters to a Morgan Stanley-led consortium been a costly mistake for taxpayers (the meters were sold $1 billion dollars under their value), Dr. Farmer’s research has also found that the deal is tying the hands of transportation planners in their efforts to construct environmentally sustainable transportation modes—such as bike lanes,
» Read more about: How Privatization Contributes to Climate Change »
Whenever I hear something that sounds a little fishy, I always follow my mom’s advice to consider the source. So when two professors from Temple University touted a study praising the quality and cost effectiveness of private prisons, advocates wanted to know who funded it. Not surprisingly, it turned out that the private prison industry paid for the study, a fact conveniently missing from the professors’ early draft and media appearances.
In the Public Interest’s friend and colleague Alex Friedmann, managing editor of the monthly Prison Legal News and associate director of the Human Rights Defense Center, filed an ethics complaint with Temple University. In addition, ITPI and 15 other organizations demanded that Temple conduct an ethics review.
In response, Temple University has disassociated itself from the study. In addition, the methodology behind the study has also been called out for being misleading and its conclusions for being inaccurate.
“In states and cities across the country, lawmakers are expressing new skepticism about privatization, imposing new conditions on government contracting, and demanding more oversight.”
— The Atlantic, 4/23/14
“Is privatization a magic wand? Is it always going to come in and save you money? No. You have to do this well. You have to do your due diligence. You have to do a good contract and then you have to monitor and enforce that contract.”
— Leonard Gilroy, Reason Foundation Director of Government Reform
“The ideological fervor for privatization has ebbed.”
— John D. Donahue, privatization expert, Harvard’s Kennedy School of Government
Statements like these would have been unthinkable just a few years ago. For decades, runaway outsourcing of public services and assets enjoyed nearly nonstop momentum at the state and local levels. But when even the Reason Foundation is agreeing with us about responsible contracting,
We already know that reckless outsourcing has negative impacts on the local community. But did you know it can also contribute to climate change? In a new op-ed I just published in Next City, Roosevelt University Professor Stephanie Farmer and I explore how poorly structured public-private partnership (P3) deals threaten long-term environmental sustainability.
To do it, we return to an old standby: Chicago’s parking meter debacle. Plans to build rapid bus lines and bike lanes have been put on hold in the Windy City because these projects would “compete” with the Morgan Stanley-backed corporate consortium that now runs the city’s 36,000 parking meters. And like so many other long-term outsourcing contracts, competition is a big no-no.
Chicago taxpayers would have to reimburse the consortium for lost revenue if they build projects that reduce traffic and carbon emissions – like bike lanes and bus rapid transit lines.
Large corporate lobbies have, in recent years, accelerated their push to expand private charter schools. America spends nearly three quarters of a trillion dollars on public education annually and companies such as “cyber-charter” giant, K12 Inc., Rupert Murdoch’s Amplify and Rocketship, a darling of the venture capital industry, see a pot of gold.
A new report by In the Public Interest Scholar Network member Gordon Lafer, for the Economic Policy Institute, examines recent proposals by Wisconsin state legislators to privatize schools, particularly in Milwaukee, and finds that the proposals won’t help poor kids.
How? The proposals call for public schools in the largest and poorest school district to be replaced with private charter schools that substitute online apps for teachers for a significant part of the day. This “blended learning” model primarily focuses on math, literacy and test preparation, while paying minimal attention to other subjects. Also, money earmarked for Milwaukee students is diverted to fund the company’s ambitious growth plans in other cities.
» Read more about: Privatized Education’s Smoke and Mirrors »
We’re excited to announce the creation of In The Public Interest’s ITPI Scholars Network as the next step in our growth and expanding influence on the issues of privatization and outsourcing of public services and assets across the country.
The ITPI Scholars Network brings together academics who are experts in diverse fields that relate to government privatization and outsourcing as well as responsible contracting.
Three members of the ITPI Scholars Network have recently released or are close to releasing studies that have found that careless outsourcing can harm communities, taxpayers and vulnerable residents:
• Dr. Daphne Greenwood of the University of Colorado released her new study The Decision to Contract Out: Understanding the Full Economic and Social Impacts. She found that reductions in contracted wages and benefits leads to a host of negative effects for the community at large; these harms include declining retail sales,
» Read more about: Scholars Network to Analyze Outsourcing and Privatization »
What if we had no government services and everything we used to get from government was run by private corporations? McDonald’s could be running the welfare system, Target the public schools and Walmart our mass transportation networks. What would be wrong with that?
According to Donald Cohen, director of the nonprofit research and action group In the Public Interest, there’s a long list of problems we face when private companies take over government services. For one, it’s hard to find out how much money is being paid to the company’s employees and corporate heads. And, once a formerly public system is taken over by a private company, there’s often no way that voters can set standards for those salaries, the quality of the work done or the cost of services to the public. Right now if you don’t like McDonald’s corporate policies, you can pick another restaurant. But when private companies take over government services,
As the saying goes, it takes a village. And when corporations spend vast resources to gain control of public services, it takes a village of smart, savvy and nimble people and organizations to beat them back. That’s exactly what happened in Arizona this week.
Last Friday, Arizona House Appropriations Chairman John Kavanagh snuck $900,000 into the state budget earmarked for GEO Group, the nation’s second largest private prison company. That amount was above and beyond the $45 million GEO already rakes in from Arizona taxpayers. Interestingly, the Arizona Department of Corrections did not request the increase. According to the Arizona Republic, GEO’s lobbyists worked directly with Kavanagh, who, when asked to justify the earmark, said simply that GEO “wants to get more money.”
Private prison critics quickly sprang into action. The American Friends Service Committee and Human Rights Center helped lead a strong coalition that included the American Civil Liberties Union,
The nomination of Californian Ted Mitchell to the number two position at the U.S. Department of Education is the latest indication that proponents of school privatization are continuing to gain influence over the Obama administration’s education policy.
“He represents the quintessence of the privatization movement,” Diane Ravitch, an education historian and former Assistant Secretary of Education under President George H.W. Bush, tells Capital & Main. “This is a signal the Obama administration is committed to moving forward aggressively with transferring public funds to private hands.”
In education “privatization” refers to the contracting out of traditional public education services to for-profit companies or to charter schools that are set up as nonprofit organizations. In many ways, the Mitchell nomination reflects the ongoing battle being fought in Washington and in school districts across the country. It’s a battle that pits the views of teachers, their unions and community groups against a movement that is backed by wealthy philanthropists and corporations.