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OCR Page 1 of 11January 5, 1997
MEMORANDUM FOR JOHN D. PODESTA
FROM:
KAREN A. TRAMONTANO
CC:
BRUCE REED
ELENA KAGEN
MICKEY IBARRA
GREG FRAZIER
WILLIAM CORR
LEE SATTERFIELD
SUBJECT:
PRIVATIZATION
On Tuesday, January 6 at 2:00 p.m. there will be a meeting to discuss the
Administration's response to state requests to privatize various programs. This meeting is
an effort to understand those requests and to the extent appropriate, share information
regarding the status of those requests and agency responses.
Department of Labor:
Several months ago, the Department of Labor through means other than state
notification, learned of Michigan's desire to privatize its employment services program.
Since I was not able to be involved in this matter, you are aware that the Department of
Labor within the last week communicated a number of concerns to the state. As a result,
the state informed the Department of Labor that it has withdrawn its request to privatize
its employment services program. Secretary Herman has attempted to contact the
Governor to determine whether the state will resubmit its request or whether the state has
decided to halt its actions regarding this matter. At this time, the Governor has not
returned the Secretary's calls.
Department of Agriculture:
The state of Arizona has a request pending with the Department of Agriculture to
privatize segments of their food stamp program. Just prior to the time expiring during
which the Department would have had to issue a decision, the Department requested
additional information. The matter remains pending.
The state of Wisconsin has made a similar request with the Department of
Agriculture. I understand that this request is pending also.
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