____ TSEU won a major victory in our long-running fight against the privatization and elimination of state human services programs. HHSC and the state legislature have backtracked on plans to eliminate face-to-face eligibility and the state employees who do the work, convert eligibility to call centers, and shutter hundreds of local human services offices.
____ Under pressure from a TSEU-generated campaign, HHSC has cancelled the $899 million contract with Accenture, the private company hired in 2005 to privatize eligiibilityservices. TSEU called for cancellation of the contract after more than a year of poor performance, and the state is now attempting trying to get some of the $120 million paid to Accenture refunded.
____ In addition, the legislature has authorized at least 1000 additional HHSC eligibility staff, which would restore staffing to 2003 levels if fully implemented. The 2,900 pink slips delivered in September of 2005 have been revoked and local offices will stay open to serve clients.
____ HB 3565 mandates oversight: TSEU helped fight for and pass House Bill 3565 by State Rep. Patrick Rose (D – Dripping Springs) which calls for close legislative oversight for the Integrated Eligibility project. The bill requires that legislators and the State Auditor are part of the decision whether or not to move forward with TIERS, privatization or call centers. Public hearings will be held in September or October.
____ The State Auditor’s Office (SAO) is currently performing an audit of the TIERS program. The State Auditor delivered a preliminary report critical of TIERS program integrity earlier this year, and SAO staff have met with TSEU members and are currently collecting data Getting an outside audit to the TIERS and integrated eligibility project is a major victory.

Call center pushers trying to revive plan
____ While we have made significant gains, the fight is not over. Despite the catastrophic and costly failings of the call center privatization scheme, and a clear consensus among legislators that the plan should be cancelled, HHSC is still moving forward to resuscitate call center and privatization plans. In June, HHSC met with potential vendors to replace Accenture. Their plan is essentially the same: get a private contractor to run call centers to run significant parts of eligibility services.
____ While HB 3565 increases oversight, the legislature did not act decisively to end the disastrous experiment in human services privatization. Temporary workers are still waiting for permanent positions and new temps are hired every day. It will take months and years to fully rebuild the regional staffing levels and re-establish the program integrity for which DHSregularly received enhanced federal funding. TSEU members, organizing in our offices and communities, continue the historic fight to rebuild and to defend state human services from privatization and destruction.

• Accenture contract cancelled
• 1000 or more new staff approved
• Legislative oversight increased
• TIERS audited by State Auditor