Daniels cancels $1.34B privatization contract

There’s breaking news late this afternoon that Governor Mitch Daniels has cancelled the state’s much-criticized contract to privative Indiana’s welfare system.

Here’s the lead of that story from the Indianapolis Star:

Gov. Mitch Daniels today canceled the state’s $1.34 billion contract with an IBM-led group to privatize Indiana’s welfare system.

The cancellation is a stunning turnaround from Daniels’ December 2006 decision to award the contract.

To read the rest of this story at IndyStar.com, click here.  


2 thoughts on “Daniels cancels $1.34B privatization contract”

  1. Good news. I don’t know how the situation could get worse. I hope we can help be part of the solution now!

  2. It was pretty telling yesterday when I asked some of our SCCAP staff about their clients who’d experienced problems with the welfare system since it was privatized. Those staff members said they have had lots and lots of clients who’ve experienced serious problems – some of them even leading to lawsuits – in trying to get benefits for which they and their children are eligible.

    The staff that I talked to were ecstatic that this privatization contract has been cancelled because it has caused huge problems for low-income parents who are trying to take care of their children and improve their lives. These staff members felt both hopeful and worried about what lies ahead.

    We’ll keep you posted on this blog with news about the new “hybrid system” that Gov. Daniels says the state will be developing and we’ll provide information about any opportunities to offer input into how that system should operate.

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