uscitizen
10-19-2006, 03:09 PM
Report: Kentucky's privatization laws are ineffective
SAMIRA JAFARI
Associated Press
PIKEVILLE, Ky. - Kentucky's laws on contracting out government services to private companies are ineffective and don't ensure enough oversight and accountability, according to a report released Thursday by the state auditor.
The report makes 22 recommendations on how to overhaul state privatization laws, such as subjecting contracts above $500,000 to a thorough review process and eliminating a provision that exempts contracts from oversight.
State Auditor Crit Luallen said the state requires every private company doing government work to go through a stringent evaluation and cost-benefit analysis. However, there are so many loopholes that any contract can be exempt from oversight, she said.
Only one of the state's thousands of contracts with private companies has been implemented under the law since it became effective in 1998.
The report focuses on two major privatization efforts: the Communities at Oakwood, a state-run facility for mentally retarded adults and the state prison system.
State law requires private prisons to show a 10 percent savings over state-run penitentiaries. The report found that little has been done by the state to prove that privatization in the prison system has consistently saved money.
The situation at Oakwood has stirred more statewide attention. Since January 2005, the facility has received 24 serious citations from state regulators for health and safety violations. The citations and dozens of allegations of abuse and neglect had at one point jeopardized Oakwood's federal funding.
complete story at:
http://www.kentucky.com/mld/kentucky/news/15797437.htm
SAMIRA JAFARI
Associated Press
PIKEVILLE, Ky. - Kentucky's laws on contracting out government services to private companies are ineffective and don't ensure enough oversight and accountability, according to a report released Thursday by the state auditor.
The report makes 22 recommendations on how to overhaul state privatization laws, such as subjecting contracts above $500,000 to a thorough review process and eliminating a provision that exempts contracts from oversight.
State Auditor Crit Luallen said the state requires every private company doing government work to go through a stringent evaluation and cost-benefit analysis. However, there are so many loopholes that any contract can be exempt from oversight, she said.
Only one of the state's thousands of contracts with private companies has been implemented under the law since it became effective in 1998.
The report focuses on two major privatization efforts: the Communities at Oakwood, a state-run facility for mentally retarded adults and the state prison system.
State law requires private prisons to show a 10 percent savings over state-run penitentiaries. The report found that little has been done by the state to prove that privatization in the prison system has consistently saved money.
The situation at Oakwood has stirred more statewide attention. Since January 2005, the facility has received 24 serious citations from state regulators for health and safety violations. The citations and dozens of allegations of abuse and neglect had at one point jeopardized Oakwood's federal funding.
complete story at:
http://www.kentucky.com/mld/kentucky/news/15797437.htm