Skip to main content
Resolutions & Amendments

33rd International Convention - Honolulu, HI (1998)

Privatizing Health and Human Services

Resolution No. 41
33rd International Convention
August 24-28, 1998
Honolulu, HI

WHEREAS:

Private companies are aggressively pursuing business opportunities created by the passage of the 1996 federal welfare reform law by seeking new contracts to administer, integrate and manage health and human services programs of state and local governments; and

WHEREAS:

These companies include Lockheed Martin IMS, Maximus, Inc., Electronic Data Systems, Unisys, Andersen Consulting, America Works, as well as numerous nonprofit organizations including Goodwill Industries and local nonprofit organizations; and

WHEREAS:

These companies have a poor track record administering health and human services programs, including lack of accountability, cost overruns, inefficiency, and failure to perform adequately; and

WHEREAS:

Currently federal, state and local government agencies spend over $200 billion annually ($21 billion for administration) on health and human services programs including welfare, child care, child support enforcement, food stamps, Social Security Disability Insurance, Supplemental Security Income and Medicaid; and

WHEREAS:

The federal Temporary Assistance for Needy Families (TANF) program eliminated the former requirement in the AFDC program that merit-based employees determine program eligibility; and

WHEREAS:

Due to welfare reform, job functions within welfare offices are shifting away from eligibility determinations and towards intensive case management and job placements; and

WHEREAS:

Wisconsin has privatized its Wisconsin Works welfare reform program in Milwaukee and several smaller counties, and other states are allowing counties to privatize their welfare programs; and

WHEREAS:

Several states, including Texas, Florida, and Arizona, have been attempting to receive waivers from federal agencies to allow private companies to determine eligibility for the Food Stamp and Medicaid programs; and

WHEREAS:

Contracts have been approved in several states which allow private employees to perform the "enrollment broker" function for Medicaid recipients who are choosing among managed care plans; and

WHEREAS:

The expansion of subsidized child care for welfare recipients and working poor families has attracted large private companies to administer this service; and

WHEREAS:

TANF requires new and more rigorous state child support enforcement services, resulting in the need for larger and more sophisticated computer and information systems; and

WHEREAS:

The State of Michigan recently unsuccessfully challenged the merit-based staffing requirement for the Employment Service; and

WHEREAS:

Several states and counties have initiated or expanded privatization of adoptions, foster care, case management, and other services within their child welfare systems, resulting in job loss in the public sector.

THEREFORE BE IT RESOLVED:

That AFSCME will oppose all attempts at any level of government to weaken or eliminate the current merit staffing requirements in health and human services programs; and

BE IT FURTHER RESOLVED:

That AFSCME will work to strengthen merit staffing requirements at all levels of government; and

BE IT FURTHER RESOLVED:

That AFSCME will publicize the past failures of private companies in administering health and human services programs; and

BE IT FURTHER RESOLVED:

That AFSCME will follow trends in health and human services and identify areas of job growth and shrinkage: and

BE IT FURTHER RESOLVED:

That AFSCME will fight against expansion of privatization in health and human services programs, even if allowed under federal, state or local laws; and

BE IT FINALLY RESOLVED:

That if we are unsuccessful in our efforts to keep health and human services work in the public sector, AFSCME will follow the work into the private sector to ensure that health and human services workers continue to receive the wages, benefits and workplace protections they deserve and clients receive the services they need.

SUBMITTED BY:

Paula Dorsey, President and Delegate 
Catherine Muir, Secretary and Delegate 
AFSCME Council 48
Wisconsin