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Thursday, April 24, 1997

Johnson charges union interference in Texas welfare decision

By MICHELLE MITTELSTADT

Associated Press Writer

WASHINGTON (AP) - The White House's delay in deciding whether to allow Texas to turn its welfare operations over to private companies is upsetting some Texans in Congress.

Wednesday, Rep. Sam Johnson made clear his dissatisfaction.

During a House Ways and Means Committee hearing, the conservative Republican from Plano accused the White House of allowing labor unions improper influence in the decision-making process.

"I wasn't aware, and I'm positive most Americans are not aware, that the welfare reform package signed by President Clinton called for union approval of state welfare reform," Johnson charged.

"I guess since they spent millions to help President Clinton get reelected, they're finally enjoying the influence they bought during the election."

The Texas plan is intended to provide one-stop shopping for assistance ranging from food stamps and Medicaid to the Temporary Assistance for Needy Families program, which replaced Aid to Families with Dependent Children.

Without Washington's approval, Texas cannot solicit contracts pegged at $2 billion from bidders such as Lockheed Martin, IBM and Electronic Data Systems.

For months, organized labor has urged the Clinton administration to reject the plan, which would go further than any other to date in handing the administration of public programs to the private sector.

Union leaders, who discussed their opposition in a March 28 meeting with Clinton, are worried that other states may wade further into privatization if Texas secures approval.

The administration had promised Gov. George W. Bush a decision by March 31. As of Wednesday, none was forthcoming.

In an April 4 memo to Clinton, Health and Human Services Secretary Donna Shalala, Agriculture Secretary Dan Glickman and domestic policy adviser Bruce Reed said part of the Texas request should be granted.

"We believe we must give Texas an answer immediately," they wrote. "The state has engaged in good faith discussions with various agencies for more than nine months, and state officials are now publicly criticizing the administration for the delay."

That memo drew Johnson's ire, in part because it included a chart showing the viewpoints of Texas, the unions and the administration on specific parts of the plan. "Since when do the unions get to submit a proposal on Texas welfare reform?" Johnson fumed.

HHS spokesman Michael Kharfen said the administration has been listening to a wide audience. "We have certainly been willing to consider different perspectives on this proposal, whether that's the unions or whether it's other interested parties, Texas or other states," he said. "However, it still comes down to the statutory and legal authorities that we have ... in this complicated proposal."

State officials contend privatization could save some $120 million annually while improving services. Texas spends some $500 million yearly administering welfare programs. Savings could allow the state to provide health coverage for 150,000 additional children, they say.

Opponents contend thousands of good-paying public sector jobs will be lost, recipients' confidentiality may be jeopardized and services reduced. They also say it's unseemly for cost savings to go to stockholders rather than taxpayers.

Rep. Gene Green, who opposes the plan, said the state is capable of finding savings in the program and streamlining services without turning the whole system over to private contractors.

"I don't disagree with the structural system reforms they want to do, but they could do those reforms without going to the private companies," the Houston Democrat said.

Green said he has lined up congressional allies to help block attempts by Johnson and others to force the administration into making a decision. Send a Letter to the Editor about This Story | Start or Join A Discussion about This Story
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