In a vote that fell completely along party lines, Floridas Joint Legislative Budget Commission approved on Wednesday a proposal by the Department of Corrections (DOC) to privatize health services in the states prisons.
Of the 10 members of the Commission who were present at the meeting, all six Republicans voted to support the measure, while the remaining Democrats voted against it, after about 45 minutes of hearings and debate. Sen. Nan Rich, D-Weston, and Rep. Darryl Rouson, D-St. Petersburg, led the charge against the DOCs proposals.
Immediately after the vote, which took place at approximately 1:32 p.m., communications director Ann Howard of the Department of Corrections issued a statement praising the outcome.
"The department appreciates the Legislative Budget Committee along with all lawmakers and their efforts in this matter. The governors support has been invaluable, said Howard. This is a good fiscal decision that just makes sense for Florida. We plan to proceed with the process, with the goal of having the vendors in place by January 2013."
On background, sources close to the legal team representing public-sector unions who are opposing the privatization told Sunshine State News a new lawsuit would be filed soon, but not immediately. [Were] working on it still.
Democratic lawmakers and union lobbyists have contested the legality of prison privatization efforts on several grounds.
The Fiscal Year 2011-2012 General Appropriations Act contained a proviso authorizing the DOC to contract with for-profit companies for the provision of health care services in the states prisons. The unions argued that the proviso violated the Florida Constitutions single subject rule, under which a single bill can cover only one issue or subject. Judge Kevin Carroll of the 2nd Judicial Circuit Court dismissed the case in July, finding the case moot since the proviso had already expired before the DOC submitted its proposals.
On Aug. 6 the unions asked Carroll to reverse his dismissal, after DOC Secretary Ken Tucker went forward with the contracts under what he claims is independent statutory authority for him to do so. Carroll reaffirmed the dismissal on Aug. 28, saying the unions needed to file a new lawsuit if they wished to contest the new privatization efforts.
At Tuesdays hearing, Tucker and the DOCs lead attorney both cited Section 20.315(12) of the Florida Statutes, which allows the DOC to contract for the provision of services by counties, municipalities, nonprofit corporations, and other entities capable of providing needed services, if services so provided are more cost-efficient, cost-effective, or timely than those provided by the department or available to it under existing law. The DOC maintains that the words other entities allow it to contract even with for-profit corporations.
Rouson echoed arguments made in other fora by the unions lawyers: that catch-all expressions like other entities must be interpreted only to include entities similar to those previously listed. For-profit corporations, he suggested, are fundamentally different from governmental and nonprofit providers.
Rich and Rouson both asked why the 2011 proviso was sought out in the first place if this independent statutory existed. No clear answer was forthcoming. Tucker simply stated that his office had never sought out the proviso and that he was acting under what his legal counsel assured him was proper statutory authority.
Director Tom Reimers of the DOC's Health Services Administration told Commission members that he expected about 98 percent of the health care providers presently employed by the department to be retained by the for-profit corporations, Wexford Health Services and Corizon Correctional Healthcare. The corporations are expected to bring their own management, but not their own health care professional, who will instead be recruited from within Florida.
Each professional presently employed by the state is guaranteed an interview with Wexford or Corizon.
Reimers also said he expected the impact on prison health care workers to be balanced out, as they will probably receive a higher salary, but fewer benefits. The contracts are supposed to save the state about $50 million.
Chairman Sen. JD Alexander, R-Lake Wales, rebutted criticisms from Rich and Rouson that the Commission was exceeding its authority by effectively creating a new public policy independent of the full Legislature. Alexander said the Commission was not making new policy, but reallocating available funds "from an operating category to a contract services category."
Reach Eric Giunta at egiunta@sunshinestatenews.com or at (850) 727-0859.
