Finance
Senate Finance Committee Releases Excoriating Investigation of Abuse in At-Risk Youth Industry
After years of facing criticism for wrongdoing and mistreatment of patients, the at-risk youth industry was blasted in a report released on Wednesday by the U.S. Senate Finance Committee.
The report and communications from the committee chairman, Sen. Ron Wyden (D-Ore.), conclude that systemic harm and abuse are “routine” parts of the at-risk youth industry. It delves into specific incidents at facilities owned and/or operated by some of the industry’s most prominent players: Universal Health Services (NYSE: UHS), Acadia Healthcare Co. Inc. (Nasdaq: ACHC), Devereux Advanced Behavioral Health and Vivant Behavioral Healthcare.
“The harms, abuses, and indignities children in [residential treatment facilities] have experienced and continue to experience today occur inevitably and by design: they are the direct causal result of a business model that has incentive to treat children as payouts and provide less than adequate safety and behavioral health treatment in order to maximize operating and profit margin,” the report states.
The presentation of the report also enlisted the support of socialite and media personality Paris Hilton, a staunch critic and self-described survivor of the at-risk youth industry. The Senate Finance Committee also hosted a hearing on Wednesday to discuss the report’s findings.
Hilton, Wyden, the report itself and several others call on Congress to act.
“Providers will continue to operate this model because it’s good business, unless there is some bold intervention,” the report states.
Wyden’s Republican counterpart, Senate Finance Committee Ranking Member Mike Crapo, also called for reforms. In a statement, Crapo said that the report’s findings were “deeply disturbing” and that “chronic patterns of failure must not go unnoticed or unaddressed.”
The report finds that understaffing, restraints (both physical and chemical), poor care and a general lack of oversight within and of residential treatment facilities were typical for the industry.
The action contemplated by the report and the Senate Finance Committee centers on elevated scrutiny of the industry and the role of government payers supporting these operations. The report and proceedings focus on what they call residential treatment facilities, which focus on providing care to children on a long-term basis.
The Senate Finance Committee report’s recommendations are summarized into three points: ensuring safe and dignified treatment in home-like settings, government prioritization of community-based services and more effective oversight of standards of and funding for facilities. These three specific recommendations should be taken up by Congress, the report states.
It calls on state governments to use existing authority to favor community-based services, calling many states’ historic reliance on residential treatment facilities inappropriate, and to “ramp up their oversight capabilities for youth in both in-state and out-of-state facilities.”
The report also calls on the U.S. Department of Justice to enforce Title II of the Americans with Disabilities Act to ensure that violations of so-called “Olmstead” standards are addressed within the at-risk youth industry. These provisions require that people be treated for severe conditions in the least restrictive setting possible.
“After reading it (the report), I honestly have never felt so seen and heard: it validates everything that I’ve been fighting for over the past four years,” Hilton said in a video statement released Wednesday morning. “As a survivor, please do something. I am begging you to protect your constituents before it’s too late.”
The committee meeting featured subject matter experts who testified before the Senate Finance Committee. Wyden said during his prepared remarks that Marc Miller, the CEO of UHS, was invited to participate in the meeting and that UHS was invited to engage with the committee’s investigators. UHS and Miller declined to do so; Miller was listed as a witness in notices for the meeting but did not attend.
On top of the recent public pillorying, Acadia Healthcare and UHS have seen substantial financial ramifications for abuses recognized by the courts at their facilities.
In July 2023, a jury ruled against Acadia Healthcare in a civil lawsuit involving sexual abuse of a minor at a now-defunct facility that totaled $405 million. In October 2023, Acadia agreed to pay $400 million to settle three cases related to abuse at the facility.
In April, a court ruled against UHS to the tune of $535 million over an incident involving a child sexually abusing another child at a facility in Champaign, Illinois.
The report adds what some call “headline risk” to a modality of care that is replacing wilderness therapy. For example, Chandler, Arizona-based Embark Behavioral Health, a sizable care provider in the at-risk youth segment, is abandoning wilderness therapy altogether in hopes of transitioning these businesses into residential treatment facilities and investing more in outpatient offerings.
Finance
German finance minister wants to scrap spousal tax splitting
Last weekend, several thousand people took to the streets in Munich to demonstrate against abortion and assisted suicide. One speaker made an extremely dramatic plea against what he called the “culture of death” that has allegedly taken hold in Germany. One sign of this, the speaker argued, was that the government is planning to abolish a regulation known as “spousal tax splitting.”
Is tax law really relevant to deep philosophical debates on the sanctity of life? It is even a matter of life and death at all? Surely we needn’t go that far? In any case, the intense political uproar surrounding the new debate on whether to abolish spousal tax splitting is notable, even by today’s standards of populist outrage.
An advantage for couples with widely divergent incomes
The row was sparked by Germany’s vice chancellor and finance minister, Lars Klingbeil, of the center-left Social Democratic Party (SPD), who said he wanted to abolish and replace the joint taxation of spouses’ income, a system that has been in place since 1958.
How exactly does spousal tax splitting work? In Germany, married couples (and since 2013, couples in civil partnerships), can choose to have their income assessed jointly by the tax authorities.
It means that the taxable income for both spouses together is halved – as if both partners had each earned an equal half of the income. Their tax liability is then determined by simply doubling the income tax due on one half.
As people who earn more pay higher taxes in Germany, this system benefits couples where one partner (and often this is still the man) earns significantly more than the other (in practice often the woman).
Costs of up to €25 billion per year
If for example one partner earns €60,000 ($70,512) a year and the other partner earns nothing, the couple will be taxed as if they earned €30,000 each. In this example, the couple would save nearly €5,800 in taxes per year compared to the amount they would owe if both partners filed their taxes separately. According to the Finance Ministry, spousal tax splitting costs the government a total of up to €25 billion annually.
Some critics have long viewed splitting as a tool to keep women out of the labor market, because the more a woman earns, the larger her tax burden becomes. Klingbeil seems to agree, arguing on ARD television in late March that the system was “out of step with the times.” The spousal splitting system reflects “a view of women and families that is completely at odds with my own,” he said.
Chancellor Merz said to be in favor of splitting
On Monday of this week, Klingbeil got some surprising support on this from Johannes Winkel, head of the youth wing of the conservative Christian Democratic Union (CDU).
“Given the demographic reality, the government should create incentives to ensure that both partners in a relationship are employed,” Winkel told the Funke Media Group. “In the future, tax relief should primarily be granted to married couples when they are facing hardships related to raising children.”
But the chancellor is a vocal skeptic of the proposal. “I am not convinced by the claim that joint filing for married couples discourages women from working,” Friedrich Merz said at a conference organized by the Frankfurter Allgemeine Zeitung newspaper. “Marriage is a relationship based on shared income and mutual support. And in a marriage, income must be treated as a joint income for tax purposes, not separately.”
Klingbeil’s alternative plan
At around 74%, the labor force participation rate for women in Germany is one of the highest in Europe, but half of them work part-time.
Klingbeil’s idea is to replace the existing system with a more flexible approach: Both partners would be able to distribute tax-free income among themselves in such a way that it minimizes their tax liability. This would allow the couple to continue enjoying a tax advantage, albeit not to the same extent as before. And whether one partner earns more than the other would become less important.
However, it remains to be seen whether Klingbeil will be able to push through his proposal. Aside from Germany, similar regulations offering tax benefits to couples exist in Poland, Luxembourg, Portugal and France.
This article was originally written in German.
Finance
Departing inspector general targets Council Office of Financial Analysis
The $537,000-a-year office created in 2014 to advise the City Council on financial issues and avoid a repeat of the parking meter fiasco has failed to deliver on that mission, the city’s chief watchdog said Tuesday.
Days before concluding her four-year term, Inspector General Deborah Witzburg said a shortage of both adequate staff and financial information closely held by the mayor’s office prevents the Council’s Office of Financial Analysis from helping the Council be the the “co-equal branch of government” it aspires to be.
In a budget rebellion not seen since “Council Wars” in the 1980s, a majority of alderpersons led by conservative and moderate Democrats rejected Mayor Brandon Johnson’s corporate head tax and approved an alternative budget, including several revenue-generating items the mayor’s office adamantly opposed.
But Witzburg said the renegades would have been in an even better position to challenge Johnson if only their financial analysis office had been “equipped and positioned to do what it’s supposed to do” — provide the Council with “objective, independent financial analysis.”
“We are entering new territory where the City Council is asserting new, independent authority over the budget process. It can’t do that in a meaningful way without its own access to financial analysis,” Witzburg told the Chicago Sun-Times.
Chicago Inspector General Deborah Witzburg’s latest report focuses on the Chicago City Council’s Office of Financial Analysis.
Jim Vondruska/Jim Vondruska/For the Sun-Times
But the Council’s financial analysis office, she added, “has never been equipped or positioned to do what it needs to do. It needs better and more independent access to data, and it needs enough staff to do its job. It has a small number of employees and comparatively limited access to data.”
The inspector general’s farewell audit examined the period from 2015 through 2023. During that time, the financial analysis office budget authorized “either three or four” full-time employees. It now has a staff of five .
Witzburg is recommending a staffing analysis to identify how many people the financial office really needs — and also recommending that the office “get data directly” from other city departments, “ rather than having it go through the mayor’s office.”
The audit further recommends that the office develop “better procedures to meet their reporting requirements” in a timely manner. As it stands now, reports are delivered “sometimes late, sometimes not at all,” the inspector general said.
“We find that those reports have been both not timely and not complete in terms of what they are required to report on and that those reports therefore have provided limited assistance to the City Council in its responsibility to make decisions about the city’s budget,” she said.
The Council Office of Financial Analysis responded to the audit by saying it hopes to add at least three full-time staffers in the short term and has made “some progress” over the last three years in improving their access to data, but not enough.
The office was created in 2014 to provide Council members with expert advice on fiscal issues.
For nearly two years the reform was stuck in the mud over whether former 46th Ward Ald. Helen Shiller had the independence and policy expertise to lead the office.
Shiller ultimately withdrew her name, but the office was a bust nevertheless. In an attempt to breathe new life into it, sponsors pushed through a series of changes.
Instead of allowing the Budget chair alone to request a financial analysis on a proposal impacting the city budget, any alderperson was allowed to make that request.
The office was further required to produce activity reports quarterly, not just annually.
Now former-Budget Chair Pat Dowell (3rd) then chose Kenneth Williams Sr., a former analyst for the office, as director and gave him the “autonomy” the ordinance demanded.
Two years ago, a bizarre standoff developed in the office.
Budget Committee Chair Jason Ervin (28th) was empowered to dump Williams after Williams refused to leave to make way for a director of Ervin’s own choosing.
The standoff began when Williams said he was summoned to Ervin’s office and told the newly appointed Budget chair was “going in a different direction, and I’m putting you on administrative leave” with pay.
“He took all my credentials and access away. I would love to come to work. I wasn’t allowed to come to work,” Williams said then.
Williams collected a paycheck for doing nothing while serving out the final days remainder of a four-year term.
Ervin’s resolution stated the director “may be removed at any time with or without cause by a two-thirds” vote or 34 alderpersons. He chose Janice Oda-Gray, who remains chief administrator.
Finance
Reilly Barnes Returns to Little League® as Purchasing/Finance Assistant
Little League® International has announced that Reilly Barnes accepted a new role as Purchasing/Finance Assistant, effective April 6, 2026. Barnes transitions from a temporary Purchasing Assistant to this full-time position to assist in the year-round demands of purchasing for the organization, as well as the region and Little League Baseball and Softball World Series tournaments.
“We are thrilled to welcome back Reilly to our team as a full-time Purchasing/Finance Assistant. Reilly’s prior experience, time management, and attention to detail make him an invaluable asset to the purchasing team,” said Nancy Grove, Little League Materials Management Director. “We look forward to the positive contributions he will have on our organization.”
In this role, Barnes will be responsible for processing purchase requisitions, coordinating souvenir products, and tracking order fulfillment. He will also assist with evaluating suppliers, reviewing product quality, and negotiating contracts for effective operations.
After most recently working as a Logistician Analyst at Precision Air in Charleston, South Carolina, Barnes, a Williamsport native, returns after honing his skills in the fast-paced environment. Prior to his time at Precision Air, Barnes served as a Procurement Specialist at The Medical University of South Carolina, where his expertise and knowledge were instrumental in supporting both education and healthcare needs.
“I am thrilled to return to Little League in this full-time role,” said Barnes. “Coming back to my hometown and having the opportunity to work for an organization that has played such a special part of my upbringing means a lot. I can’t wait begin this new opportunity.”
Barnes graduated from the University of Pittsburgh in 2022 with a B.A. in Supply Chain Management, Finance, and Business Analytics.
-
News1 minute agoPentagon says Navy secretary is leaving, the latest departure of a top defense leader
-
New York2 hours agoGunman Who Killed Baby in Brooklyn Was Targeting Her Father, Police Say
-
Detroit, MI2 hours ago
How these Detroit farmers are fighting for neighborhood food security
-
San Francisco, CA2 hours agoS.F. hospital stabbing analysis confirms Mission Local reporting on security lapses
-
Dallas, TX2 hours agoIt’s a big week for restaurant openings and closings in Dallas
-
Miami, FL2 hours agoCain, Kushner launch South Florida JV with plans for Edgewater rental tower
-
Boston, MA3 hours agoMBTA Green Line trains out from Kenmore to Boston College on B branch through April 30
-
Denver, CO3 hours agoNuggets vs. Timberwolves | 3 keys to a Denver win in Game 3