Private contractors may handle food stamps

[JoFerret]

http://story.news.yahoo.com/news?tmpl=story&cid=542&e=19&u=/ap/food_stamps

WASHINGTON - The Agriculture Department says it would consider letting a state hire private contractors to sign up people for food stamps, even though federal law says government workers should handle the job.

Eric Bost, undersecretary for food nutrition and consumers, raised the prospect Wednesday after the issue came up at a hearing before the House appropriations subcommittee on agriculture.

If a state has a better way to provide services and save money, "it would be foolhardy on our part not to at least consider it," Bost told reporters.

Florida Gov. Jeb Bush has directed his state Department of Children and Families to see if nongovernment workers could handle applications for food stamps, as well as Medicaid and other welfare benefits.

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[Gman]

1. There's a lot of money being passed under the table these days

I'd love to know how much crossed palms on this deal.

[prolesunited]

2. There is a LONG history

of fraud when we pass these tasks off to private contractors. Why does everyone seem to believe this canard that it will be better and more efficient out of the government's hands?

[GOPisEvil]

3. Private contractors are already processing CHIP applications in Texas.

We are also under directive from state law (HB 2292) to look at privatizing all eligibility services. This was tried before during Clinton's 2nd term, but his labor department shot it down partly due to union pressure.

Figures Mr. Bost was Commissioner of the agency I worked for (until I was reorganized.) He's also on the short list of African-American Republicans.

Edit - I should add that the private contractors doing CHIP applications are non-profit organizations.

[54anickel]

4. Uh, wasn't there a recent article about a state outsourcing this to India?

[izzie]

5. Oh Good we are sure it will be the Brown and Root of Maine here.

Some one else getting to be very rich on the food stamp program. May be it will be the people who run the prisons?

[terisel]

6. Pay the executive contractors in surpus foods

We already pay big taxes to support the the corporate farms.

My belief is that the contracting being done now results in dupication of overhead and in low paying jobs without benefits.

I think the states keep their program administrators to oversee the private contractors who, in turn, keep much of the contract dollars as administrative costs (profit) and then contract out the actual work at low hourly wages to people who are between jobs, or seeking part-time temporary employment for their own good reasons. (Better to have lots of private industry not reliant on government contracts to hire part timers by choice.

Dead-end jobs paid by tax dollars, as a long-term strategy, won't help us re-develop a vibrant middle class. I think we end up paying as much for the work to be done, but more of the dollars go into fewer pockets and support fewer families.

Watch this program explode in costs as the private contractors "market" it.

Incidental reminder: Newt Gingrich and the Republican Revolution got into power in the House of Representatives in the 1990s. Part of their platform was to do away with food stamps.

However once they were in power the corporate farms, grocery chains, and food manufacturers told them to forget about it. These industries are the real beneficiaries of the food stamp program. Poor people are an afterthought--they get the stamps in order for the companies to sell more product.

[Lisa0825]

7. Private contractors already took over many services....

State employment offices are mostly run by private contractors (I work for one), and at least in Texas, we also do some of the duties associated with Food Stamps, Temp Aid to Needy Families, and other support programs. They sign up for support through DHS, but then are required to go through us to be on the program. The RIO program (Re-Integration of offenders) is another one that has been shifted to private contractors. The Texas Legislature voted to basically dismantle the Texas Workforce Commission, so pretty much everything they did has been gradually integrated into the system of private contractors who work at the Workforce offices. I wouldn't doubt it if they started doing the same thing with DHS duties.

To an extent, they could be right. Sometimes business can be much more efficient than the government, and get the same work done for less expense. But then, I think business has less incentive to be honest too. I work for a non-profit agency. I wonder if restricting the contracts to nonprofits is an option. That (in my opinion) could cut down the temptation for fraud on the part of the contractor, since $$$ is one of the biggest motivators for crime.

[GOPisEvil]

8. Lookie here...what timing...

http://www.hhsc.state.tx.us/Consolidation/Projects/IE/IE.html

[Beetwasher]

9. Just Inserting A Middleman To Skim Off The Top

and make the whole program more expensive so they can eventually kill it...

Privatization of gov't services is the biggest scam going. It's never worked, it always ends up being more expensive. How could it not?

[patcox2]

10. You watch, it will be churches.

Oh yes, they have a grand plan to buy the black vote and the holy rollers at the same time. They already buy black preachers, its the Christy Whitman Ed Rollins strategy, give huge contracts to black churches to provide privatized state services. Here in New Jersey, one prominent black minister, Buster Soaries, a Whitman acolyte, his church received over $2 million in state contracts to recruit and train foster families. They have been pushing this for over 10 years. The other side of the "faith based" initiative is that you also buy the southern holy rollers. Then you go for school vouchers and buy the southern racist and northern catholic vote in one fell swoop. You have to admire them for thinking strategically.