But that's not what happened when the state decided to turn over the Florida Information Resource Network to a private company. FIRN provides communications and Internet service to teachers, students, school officials and colleges. It's been around for a lot of years using state workers. Last spring, the Florida Department of Education paid Hayes E-Government Resources $9 million to take it over.
But federal authorities notified the state in June that it was denying a request for more than $7.6 million to pay Hayes, saying federal regulations weren't followed in hiring the company, and that documentation showed "that price was not the primary factor in selecting this service provider's proposal."
The DOE said the private company could provide better service for teachers -- but one of the first steps it took when it assumed control of the system was to eliminate home dial-up service for teachers. School officials were told that service was costing the system about $1 million a year.
Education Commissioner Jim Horne's office was in charge of the contract, which was awarded over three other competitors. Hayes' principal lobbyist is J.M. "Mac" Stipanovich, a Republican operative who was campaign manager for Gov. Jeb Bush's unsuccessful gubernatorial run in 1994. Frances Marine, spokeswoman for Horne's office said federal officials "misunderstand how the [invitation to negotiate] process works in Florida," and Horne was "pretty confident that the appeal is going to be successful."
The odds don't look good. A spokesman for the federal agency that handles the appeals process said they are granted only about 25 percent of the time.
In May, the Florida Auditor General's Office released a report on FIRN that also expressed concerns about the DOE's use of federal money for the system: "Restrictions placed on trust fund moneys appropriated for FIRN for the 2002-2003 fiscal year may conflict with certain federal E-rate [the discounted rate that federal authorities now say they will deny] eligibility requirements. The department had not expended any of the trust fund moneys for FIRN, because it had not identified a method of using the funds without jeopardizing E-rate funding in future years."
Florida has already transferred state employees to Hayes. Now, officials may have to return to the Legislature in search of more money in an already tight budget year to keep the state's 67 school districts, 11 public universities and 28 public colleges electronically connected.
FIRN operated well under state control for nearly 20 years. The next time state officials want to privatize something else, they might remember that.
Quelle: The Ledger
