Sun-Sentinel: Gov. Bush considers privatizing some welfare assistance program

December 29, 2004

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Gov. Bush considers privatizing some welfare assistance program

The Associated Press

December 26, 2004, 5:51 PM EST

TALLAHASSEE -- More than 2.3 million of the state's poorest citizens may have

decisions on their Medicaid eligibility and other welfare assistance programs

made by a company if Gov. Jeb Bush decides to award a $700 million program to

the private sector.

Documents from the Florida Department of Children & Families compare two models,

one with eligibility work done by an outside vendor and one by state employees.

Yet no difference in savings is projected between the options.

Taxpayers are expected to save $69.2 million a year under both options, although

the qualifier ``at least'' is attached to the privatization model. A DCF

timeline shows a contract could be awarded by next July.

The plans were presented to the Center for Efficient Government, the group Gov.

Jeb Bush put to work earlier this year to review whether privatization saved

the state money.

``We have no alternative but to drive toward modernization aggressively,'' DCF

Secretary Lucy Hadi has said, adding that the next decision on the project will

come from Bush.

But some lawmakers cited the documents to criticize privatization plans.

``If that's the case, and they're projecting a wash, I don't understand why'' it

would be done, said Sen. Argenziano, R-Crystal River, chair of the

Government Oversight and Productivity Committee.

She has complained that her committee hasn't been able to obtain data in the

past when evaluating privatizing government work.

Earlier this month, a key DCF administrator in charge of such contracts resigned

and warned that many of the agency's major contracts were being rushed through

too fast. The Bush administration has been plagued by problems trying to

privatize state contracts, the most recent at DCF.

Jerry Regier resigned after a rocky two year tenure as the department's

secretary after admitting ethical lapses after reports that he and top aides

socialized with several of the vendors doing business with his agency.

Deals at other agencies may have been made in violation of the state's

procurement law. Some state technology contracts are now under investigation by

the Florida Department of Law Enforcement.

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