Accenture Deal Dead; Local Looks to Rebuild Texas Social Services

The state of Texas ended a multimillion contract to privatize crucial social services programs, including food stamps, Medicaid and the Children's Health Insurance Program, all work done by members of the Texas State Employees Union, CWA Local 6186. 

The decision to end the contract with Accenture, a $543 million, five-year deal, is a major victory for TSEU. The statewide local has been fighting back against the privatization plan first proposed in 2003 that would have closed 99 human services offices, threatened 2,900 state worker jobs and hurt people most in need of critical social services.

TSEU waged a public campaign against the privatization plan, pointing out that communities and residents who depend on these programs were not being served. More than 12,000 cases are backlogged because Accenture employees could not do the job properly. 

"This development goes a long way toward ending a wasteful and damaging boondoggle," said local President Judy Lugo, but "it does not by itself result in a restoration of quality human services eligibility determination."

For now, state employees will run the Children's Health program and manage Accenture subcontractors until the agency decides who will handle the work. State employees will assume a greater role, though some work will still be done by private contractors.

The local is focused on ending the state's use of contractors and rebuilding social services staff, to ensure the quality services residents need. TSEU recommends adding about 1,000 new positions to restore staff to 2004 levels and creating a program to bring back skilled tenured staff that left the agency. The state also should consider ways to enhance services and work with front-line eligibility workers to do this, TSEU said.

Because of confusion as to who is eligible for CHIPS and children's Medicaid services, TSEU also proposes that the state create a one-stop system so that one worker could determine the best program in which to place applicants.

The Health and Human Services Commission should now concentrate on rebuilding the system, which worked well until the agency tried to dismantle it, TSEU said.