Saturday, April 26, 1997
Stenholm impatient for privatization of state
welfare operations
By RICHARD HORN Staff Writer
Like other Texas leaders, U.S. Rep. Charles Stenholm is impatiently
waiting for the federal go-ahead to explore privatization of state
welfare operations.
"It's way overdue," he said Friday. "I made
a mistake and predicted two weeks ago we'd have an answer by the
end of that week. I will not make that mistake again."
The Texas Legislature two years ago approved a plan calling
for the state to solicit bids for private companies to control
who gets welfare benefits.
Because federal rules dictate how states should distribute
social services money, Texas needs federal approval of the project
before bids can be requested. That decision in past weeks has
moved from the Department of Health and Human Services to the
White House. It was supposed to be announced by March 31.
Texas would be the first state to privatize welfare, a move
that's drawn strong opposition from several corners, most notably
organizations representing state workers.
But Stenholm argued all Texas wants at this point is to look
at the competing bids from the private sector and the public sector.
"The Legislature has suggested that this might save $10
million a month, and that's money that could go back into nutrition
programs," he said. "If that is right, why would we
not do it? If it's wrong, then we would not even consider the
(private) bid. But let's have the proposals and then let's make
the judgment."
The Abilene Democrat said he believes President Clinton favors
approving at least a major part of the Texas project but is under
"tremendous pressure from within not to do it" and thus
is trying to work out a compromise.
He said he does not believe welfare will ever be fully privatized,
but he said if the private sector can do the job with substantial
savings then Texas should be able to find out if that is the case.
The public sector would then have the opportunity to argue it
could do a better job, he said.
"We would have that argument then and make the proper
decision," he said. "But (opponents) are wanting to
kill it before the private sector is given the chance, and that's
wrong."
Critics of the plans contend state lawmakers, wanting to save
costs, will allow privatization to harm workers and welfare beneficiaries
alike. For-profit companies, they contend, will not have the public
good foremost in mind and will trim services and jeopardize applicants'
confidentiality.
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Abilene Reporter-News / Texnews / E.W. Scripps Publications
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