Kentucky's privatization laws are ineffective

[uscitizen]

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

[Cypress]

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.


This is very telling.

While private enterprise does a great job in production, manufacturing, and consumer services, there's precious little evidence that they can give the taxpayers a good deal on social services and public services; i.e., things that are not inheritanly profit-oriented.

[uscitizen]

Yep , private industry just want more of the tax dollars, and don't seem to do any better job than the bloated bueacracy of govt.

[Timshel]

This is very telling.

While private enterprise does a great job in production, manufacturing, and consumer services, there's precious little evidence that they can give the taxpayers a good deal on social services and public services; i.e., things that are not inheritanly profit-oriented.

The problem is that it depends on the government being a prudent customer and that cannot be assumed.

[TheDanold]

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.


This is very telling.

While private enterprise does a great job in production, manufacturing, and consumer services, there's precious little evidence that they can give the taxpayers a good deal on social services and public services; i.e., things that are not inheritanly profit-oriented.
Public services like roads? There is little question that public construction is slow and inefficient (we all see workers on the roads where one guy works and the rest stand around), while private construction, everybody is busy.
Profit is a great motive and often the ONLY motive to drive work to be done better/quicker/cheaper.

[TheDanold]

The only way government can be a prudent customer is if we are all vigilant in pushing our own government to select the right suppliers of services based on value, rather than trying to lyingly pretend that privatization of services doesn't work as cypriss does.
In many cities it has definetely worked and it depends on how good and non-corrupt officials are at picking contracts, which regular citizens can certainly put pressure on to help.

[uscitizen]

Oversight of the contractors are necessary. that is what is often times left out fo the Privatization efforts. And all capitalistic industry will make all the profit they can , often at the expense of quality. We as consumers to these privitization projects need to ensure that we get good quality. But since our gummit is the one doing the hiring and firing and we have no choice that oversight is required to be done by our govt.

[Cypress]

Public services like roads? There is little question that public construction is slow and inefficient (we all see workers on the roads where one guy works and the rest stand around), while private construction, everybody is busy.
Profit is a great motive and often the ONLY motive to drive work to be done better/quicker/cheaper.

Those were probably private contractors you saw.

To my knowledge, virtually all public road, bridge, and highway construction is bid out to private contractors by State and County Transportation agencies.

[uscitizen]

Same here Cypress.
Danold just does not have a clue.