HOME

Privatization & Profit in Wisconsin W2
Pre-W2 Cost to Taxpayers: $548.2 Million for 299,700 people (1986)
W2 Costs to Taxpayers: $710 Million for 20,000 people (2001)

All figures are from Welfare Warriors' color poster of the Bloated Welfare Empire, which is available for $2 from Welfare Warriors, 2711 W. Michigan Ave, Milwaukee, WI 53208.

Statistics from Wisconsin Briefs 98-4 April '09 and Wisconsin Legislative Audit Bureau 4/01

1. Goodwill's W2 Agency: Employment Solutions--4030 N. 29th St., Milwaukee, WI 53216 (and 6550 N. 76, Milwaukee 53223)
2001 contract: $87.5 million plus $6.1 million in bonuses to "serve" 1,713 cash cases and 1,169 "case managements."
($54,641 per cash case)

            Goodwill admitted "misspending" nearly $500,000 of their Wisconsin welfare money for work in other states.  This is felony welfare fraud.  Goodwill regularly illegally denies money to mothers in crisis in order to generate the $9.7 million in profits they netted during their initial contract period.  Goodwill, a wealthy $1.6 billion corporation founded to help people with disabilities, exploits and abuses disabled women and children through its for-proft W2 program.
            Shortly after the Welfare Warriors' Photo Bus Tour and the Legislative Audit Bureau report, Goodwill "voluntarily" gave up their W2 contract effective December 2001 because of community dissatisfaction."  YW Works and UMOS have taken over Goodwill's W2 sites on 29th St and 76th Sts respectively.

2. OIC--2947 N. Martin Luther King Drive, Milwaukee, WI 53212 (and 6091 N. Teutonia, Milwauke 53206).  Director William Clay, (414) 908-3302.  2001 contract: $47.1 million plus $3.5 million in bonuses to "serve" 1,092 cash cases and 573 "case managements."  ($46,765 per cash case.)

         OIC, African-American owned, is Milwaukee's oldest privatized welfare program, having received a JOBS' contract well before the start of W2.  OIC's claim to fame is having co-opted formerly fiery rebels Mike McGee and Doris Green by funding McGee's daily radio show with welfare funds and hiring Green as W2 director.

3. UMOS (United Migrant Opportunity Services --928 W. Mitchell St.  Director Lupe Martinez, (414) 389-6002. 2001 Contract: $37 million plus $2.2 million in bonuses to "serve" 844 cash cases and 597 "case managements." ($46,446 per cash case.)
            Formed to work with and help Mexican migrant workers, this group morphed into just another greedy W2 agency that hurts Latina mamas instead of helping them.

4. YW Works--1915 N. Martin Luther King Drive, Milwaukee, WI 53212, Director Julia Taylor.  2001 contract: $36.5 million plus $2.6 million in bonuses to "serve" 609 cash cases and 393 "case managements." ($64,203 per cash case.)
            Milwaukee's YWCA, formerly a feminist organization, has forgotten their Christian and Women's mission.  YW started out a JOBS program that forced moms to quit college to take YW's 6-week nurses' aide training or three-month typing course.  YW graduated to a W2 contract and purchased Generation Plastics Factory to benefit from the free forced labor of women in crisis, primarily women with disabilities.

5. Maximus--1304 S. 70th St., West Allis, WI 53214.  Director Jerry Stepaniak (414) 607-7596.  2001 contract: $45.1 million and $3.2 million in bonuses to "serve" 1,068 cash cases and 524 "case managements." ($45,224 per cash case.)
         Maximus came to town to make profit off the poor.  Maximus admitted to spending $500,000 of Wisconsin welfare money in New York  to secure a welfare contract, and in Wisconsin on "disallowed meals," social activities, a fatherhood summit by Hudson Institute, a stage at a French festival, performers, and fanny packs with their company logo.  In addition to GREED, this is felony welfare FRAUD!

6. Private Industry Council (PIC)--101 W. Pleasant, Milwaukee, WI.  Director Gerard Randall Dr, (414) 225-2360.
            PIC receives $5.7 million as "oversight coordinator" of W2 contracts.  Yet PIC denies any control--both fiscal and procedural--over W2 agencies who are "self-employed contractors."  The purpose of PIC's $5.7 million contract remains a mystery.

Milwaukee County Human Services--1220 W. Vliet, Milwaukee, WI 53233; Director Ralph Hollman (414) 289-6816.
            MCHS was the welfare department before welfare was privatized.  They receive $0 in W2 funds.  Yet all of the hundreds of County welfare workers, supervisors and five CEO's retained their jobs after the cash benefit system was taken over by private agencies!  The County administers only foodstamps and MA, yet 75% of eligible families do not receive foodstamps.  What the hundreds of County employees do now is another mystery!


Statistical Reality of W2's Privatization and Profit System


W2 statistics from Wisconsin Fiscal Audit Bureau 4/01 unless otherwise noted
All figures are from Welfare Warriors' color poster of the Bloated Welfare Empire, which is available for $2 from Welfare Warriors, 2711 W. Michigan Ave, Milwaukee, WI 53208.