Privatization has yet to save state money /Houston Chronicle

[Rose Siding]

Privatization of functions formerly performed by government workers has yet to achieve any of the predicted $21.7 million in savings at the Texas Health and Human Services Commission, the state auditor reported Tuesday.

And, the auditor found, it's not clear whether using private workers for payroll and human resources jobs will save the state any money at all.

The commission says it never expected to save money in the first year but concedes it has sliced its own projected cost savings in half since the private contract was awarded last year.

The auditor sharply criticized the agency for "significant errors and omissions" in its assumptions about how much it would cost a private company versus the government to perform the administrative duties.

http://www.chron.com/cs/CDA/ssistory.mpl/metropolitan/3382732

[izzybeans]

1. I think this should be the focus of the changes after Katrina and Rita

Yes there were many incompetent boobs whose heads need to roll, but the problem is more systemic then just an idiotic horse whisperer and the skeletor action figure heading up the DHS. The past few years have provided the self-exemplary proof of the inefficiencies of private enterprise when dealing with public goods and services. From energy to emergency services...from security to the delivery of aid.

I hope we start taking a closer look at this, and not let it fall down the rabbit hole. These capitalist chumps are swimming around in their little wonderland while the rest of us continue to absorb the risks of their dysfunctional enterprise.

[izzybeans]

2. sunk like a stone

[htuttle]

3. Only an idiot would think privatization saves money

(Wages + Costs + Profit for the Stockholders) > (Wages + Costs)

DUH!

Dumbasses...

[Bridget Burke]

4. People THINK there will be savings.

Since the wages for privatized jobs can be lower. And frills like insurance & pensions can be eliminated.

But profits to stockholders (& certain government decision makers) can still be worthwhile--for the stockholders & the decision makers.

[loudsue]

19. And don't forget the CEO's with HUGE salaries and parachutes...

That drives up the cost of EVERYTHING that private companies do these days.

Between the shareholders, CEO's, directors, and cutting services to cut costs, privatization SUCKS across the board.

:kick:

[indepat]

5. Surprise, surprise. Privatization is all about lower worker pay and

benefits and humongous profits for the owner, just like every contract let by FEMA et al.

[Coexist]

6. why would anyone think a corporation would be willing to make less money

that is absurd. Bottom line, bottom line, bottom line.

[pop goes the weasel]

9. but the CEO pay is always higher

Its all about taking from the poor and giving to the rich.

[indepat]

16. Bingo!

[mike_c]

7. privatization and deregulation rarely save money....

They just shift it from public hands into corporate coffers.

[redqueen]

8. I hope the auditors are going in

with a sharp eye on the lookout for Enron-style tricks.

[donkeyotay]

10. Privatizing profit, socializing costs

Instead of having a class of civil servants who made a living for providing needed public services, we have a class of private vultures who make a killing. If there was little accountability with government bureaucracy, there is even less with the corporate contractor system and the revolving door between contractor and representative.

[SoCalDem]

11. Not only does privatization NOT save money,

it shifts responsibility to the public, from organizations that should be SERVING the public good...to organizations whose sole purpose is to make money..

The goal of making money encourages short cuts and shifty bookkeeping..

It's one thing when a cable company does stuff like that, but doe a community really want their water safety or security run by people who are only in it to make a buck.. ?

[converted_democrat]

12. Privatization has been a disaster for Flordia.....

The biggest example is our DCF system. There are countless kids missing, and kids going to homes of people that are unqualified to care for them. Of course the state isn't "responsible" for the missing kids because private companies are. How convenient.

[Gregorian]

13. Privatization- just a sneaky form of cronyism.

Republicans should carry a holster for a toilet paper roll. Whenever they speak, they should be required to wipe. They say it's to save money, but words are just lies in the form of a theory.

Government was created for the people. Privatization short circuits that very government.

Hey, I'm just blabbing. If I'm wrong, forgive me.

The goal was never to save money. It was to short circuit government and to create a market where there wasn't one, because of government.

In fact, it makes me think that this is the reason republicans hate government. It fulfills functions that they could make money doing. Republicans see Americans as a market, not a public.

[texpatriot2004]

14. Privatization doesn't work for everyone, only the cronies. n/t

[MissMarple]

15. It creates conflicts of interests.

Oh, gee, a raise for the CEO or more workers to provide services?

Colorado has had bad experiences with privatizing foster care oversight. Kids have died in abusive homes.

[Scout1071]

17. The intent was always to send that money to their friends in the private

sector. It was never to save money.

[cantstandbush]

18. Privatization has yet to save the Federal government money.

It's all about giving the publics money to the corporate capitalists. nothing more.

[cosmicdot]

20. "The commission's oversight of Convergys is also inadequate"

... the report said.

~snip~

Hagert said the audit's findings should be heeded as the commission heads into a privatization project that is eight times larger.

She urged the state auditor also to review the commission's contract with Accenture, which says it will save the state $646 million over five years as it replaces 2,500 state eligibility workers with a controversial and privately operated call-center system.

The state has awarded Accenture an $899 million call-center contract to screen applicants for food stamps, health insurance and cash welfare.

~snip~

Accenture ... Bermuda-based company profiteering off our tax dollars ... one of the Federal gov't's major contractors ... offshoot of Arthur Andersen, enron accountant ... Cruella Harris's choice to replace ChoicePoint in dealing with Florida's voter base/election system.

Federal Contractor Ranking

#25 this year $541,347,374
#24 in 2004 $426,853,000
#23 in 2003 $331,010,000
#24 in 2002 $275,926,000
#59 in 2001 $81,178,000 - Illegitimate reign begins
#55 in 2000 $77,782,000
#92 in 1999
http://www.washingtontechnology.com/top-100/2004/

http://www.washingtontechnology.com/top-100-2000/top-100-2000-chart.html

http://www.washingtontechnology.com/top-100/index.html



how much will it cost (human and otherwise) to rebuild a government of and by civil servants, after all these corporate boondoggles are over?

[Greyhound]

21. Privatization has been nothing but a scam since its unholy conception

in England in the 70's. All it has produced is a flood of politicians giving away public property and facility to their buddies (both dem and repug) to siphon off incredible profit without the troublesome investment.

[Greyhound]

23. Health care corporations take about 26% of every health care

dollar to provide the services, while the government does the same for about 3%

[ninkasi]

22. Common sense

should lead to the conclusion that privatization will not save money for the government, or taxpayers. It merely delivers inferior services, pays workers far less, and hands over money to political cronies. Common sense, however, has never been greatly prized by Republicans. They value, instead, lying, cheating, and stealing from the poor to give even more to the rich.