Governor's privatization plans attract controversy

Aug 7, 2007

Tom Walker / WTHR Eyewitness News [Indianapolis, Indiana]

Washington - Indiana Governor Mitch Daniels wants to privatize part of the state welfare system, but his opponents are vowing to go all the way to the top to stop him.

Whether toll roads, prisons, or lotteries, going private to serve the public has made the governor a hero with some. It's made him a target with others.

"It's pawn-shop mentality. Let's see if we can shove this through in other states," said Todd Spencer, Independent Drivers Association.

Some ideas, like leasing the Indiana Toll Road, ran into outright hostility on Capitol Hill where Democrats have warned states not to go down the same road.

One advocate for such deals says history explains part of it.

"There is an inherent tendency within the American public to not trust the private sector," said Richard Norment, Public-Private Partnerships Council.

Now a bill in Congress may force Indiana to back out of a $1 billion contract to screen Hoosiers seeking welfare. One of the largest public employee unions says that only shows what a bad deal it is.

"If in fact that's true that it's gonna cost the state of Indiana $60 to $125 million to get out of a contract that's not working, then that seems to me a prime example of a government getting fleeced by a private contractor," said Kerry Korpi, AFSCME.

Those who see promise in Daniels' public-private deals see an upside to the controversy.

"The more of that that occurs, the more people begin to realize that this is a viable option to answer some problems, not all, but some," said Norment.

In the meantime, state officials say Indiana's become a political football in a national debate over privatization, and they're not happy about it. State officials insist the welfare privatization plan is innovative and they are asking Indiana's two senators to help save it.