Senator Errington Offers Amendment to Limit Contracts with Private Vendors

INDIANAPOLIS, IN – State Senator Sue Errington (D-Muncie) offered an amendment Tuesday to the state budget bill that would have restricted state contracts with private vendors. She said she was concerned about the lack of oversight by the legislative branch for major state contracts signed by the governor. The amendment was defeated on a party line vote.

This amendment would have restored language that was written into the House version of the budget that called for an end to allotment of funds to private vendors after July 1, 2008 unless approved by the General Assembly. It became a pressing issue this session after Governor Mitch Daniels signed an agreement in December for the state to pay IBM $1.16 billion over 10 years to take over services previously provided by the Family and Social Services Administration (FSSA). No legislative input was sought before the contract was finalized.

“We’re talking about billions of Hoosier dollars signed away to private companies without review by the legislature,” said Errington. “The system of checks and balances gives the General Assembly the responsibility of maintaining oversight for taxpayer money in situations like this.

“Not only that, but privatization of state programs elsewhere has resulted in serious breakdowns in services which disproportionately harm the elderly, the disabled and other vulnerable members of society.”

Before the IBM contract could be approved, both the US Department of Health and Human Services (HHS) and the US Department of Agriculture (USDA), which run the benefit programs, had to sign off on the deal. Both did, but have expressed reservations about it and the USDA agreed to a one-year pilot program instead of the original 10-year contract requested by Governor Daniels and FSSA Secretary Mitch Roob.

“It’s very telling that the federal government has required so much oversight and has limited this to a pilot program,” said Errington.

For more information on Senator Errington, her legislative agenda or other business before the Indiana State Senate, please visit his website at www.senatedemocrats.IN.gov.

Source: Senator Sue Errington Press Release