Companies looking to take control of public services are winning government contracts for a wide array of services ranging from state prisons to local water systems to public schools, and often without much public oversight.
Private contractors are circumventing open records and sunshine laws as state and local governments push to privatize public services. For example, for-profit prison contractors are escaping scrutiny about prison conditions, financial information about government services that was once public such as management salaries and employee wage rates becomes “proprietary information” exempt from disclosure and even the names of corporations bidding to take control of public services are kept from the public. In Allentown, Pennsylania, the Mayor refused to release the identities of potential contractors that responded to his proposal to privatize the water system.
A 2012 report by In the Public Interest, demonstrates the real world consequences of privatization on government transparency. Recent examples show that some states are taking steps to strengthen their open records laws, while others are failing to protect public information.
For example:
In both New Jersey and Pennsylvania, the governors’ efforts to privatize the states’ lottery systems have been rushed, top-down approaches occurring outside of the public’s view. In Pennsylvania, Governor Corbett went so far as to award the operations contract to the sole bidder, Camelot Global Services, without full input from the Pennsylvania Gaming Control Board and the General Assembly. Ultimately, the proposal was rejected by the state’s attorney general.
As companies continue to evade transparency laws, demands for transparency are increasing. Recent court rulings across the country have ruled in favor of increased transparency of government contracting.
For example:
The Tennessee Court of Appeals ruled that the for-profit prison giant, Corrections Corporation of America, must make public certain documents that they previously refused to disclose, including reports and audits in which they had been found in violation of their contracts and lawsuit settlements where the company had to pay damages.
The Florida circuit court ruled that Aramark, the company that took control of housekeeping and maintenance services at the Florida State Hospital in Chattahoochee, must divulge information regarding the number of formerly public employees that were offered positions with the company following the privatization effort.
Stronger open records laws and more transparency would render these court cases unnecessary.
Several states are taking action to protect access to information and public input in the contracting process. Virginia recently passed a bill that requires contractors engaging in public-private partnerships for transportation services to make their proposals readily available to the public. New Mexico legislators are advancing legislation that would require large government contractors to disclose their political contributions and post them on the state’s Sunshine Portal.
Federal and state-based open records and sunshine laws are essential accountability protections and help ensure that public services operate in our best interests. The more we privatize, the less we know and the less control we have over our public services. Stronger open records laws are the right step towards maintaining that control.
We’re not backing down in the face of Trump’s threats.
As Donald Trump is inaugurated a second time, independent media organizations are faced with urgent mandates: Tell the truth more loudly than ever before. Do that work even as our standard modes of distribution (such as social media platforms) are being manipulated and curtailed by forces of fascist repression and ruthless capitalism. Do that work even as journalism and journalists face targeted attacks, including from the government itself. And do that work in community, never forgetting that we’re not shouting into a faceless void – we’re reaching out to real people amid a life-threatening political climate.
Our task is formidable, and it requires us to ground ourselves in our principles, remind ourselves of our utility, dig in and commit.
As a dizzying number of corporate news organizations – either through need or greed – rush to implement new ways to further monetize their content, and others acquiesce to Trump’s wishes, now is a time for movement media-makers to double down on community-first models.
At Truthout, we are reaffirming our commitments on this front: We won’t run ads or have a paywall because we believe that everyone should have access to information, and that access should exist without barriers and free of distractions from craven corporate interests. We recognize the implications for democracy when information-seekers click a link only to find the article trapped behind a paywall or buried on a page with dozens of invasive ads. The laws of capitalism dictate an unending increase in monetization, and much of the media simply follows those laws. Truthout and many of our peers are dedicating ourselves to following other paths – a commitment which feels vital in a moment when corporations are evermore overtly embedded in government.
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