News

Welfare poised to go private, utilize self-service technologies

June 2, 2004

TALLAHASSEE, Fla.-State officials are moving ahead with a plan to privatize Florida's welfare system without waiting for federal approval and despite opposition from Florida's U.S. senators, according to a story in Florida Today.

The state estimates it could save an average of $25 million per year by contracting with private operators.

"The concept is to give the marketplace the framework without prescribing the solution," said Ben Harris, deputy secretary of operations and technology for the state Department of Children and Families. DCF will oversee the multi-agency mega contract.
"We don't want to act like we have the answer."

"My concern is providing essential services to people who are eligible under the law," said Sen. Bill Nelson, who along with Sen. Bob Graham questions what Florida is about to do. "What we have seen with Gov. Jeb Bush's privatization of essential services is that it ends up not working."

The concerns are based on the fact that eligibility for food stamps, Medicaid and emergency cash assistance for some 3 million Floridians a year would be decided by the private contractors. The contractors also would be charged with exposing fraud, reducing welfare caseloads by requiring the poor to find work, and even promoting marriage, draft documents show.

A draft copy of DCF's "invitation to negotiate" gives vendors the ability to decide how many welfare offices to keep open. It encourages them to replace some human workers with computerized kiosks, call centers, automated phone systems and interactive Internet sites. It also allows vendors to decide which welfare recipients to target for fraud investigations or home visits.

Contractors have 45 days to submit their proposals.