Indiana axes welfare contract with IBM, By Mary Beth Schneider and Bill Ruthhart, October 16, 2009, Indianapolis Star: “Calling it an endeavor that ‘just did not work,’ Gov. Mitch Daniels on Thursday canceled Indiana’s 10-year, $1.34 billion contract with IBM to deliver welfare services. In its place, Indiana will develop a hybrid structure that keeps some elements of the modernized welfare system, Daniels said, while restoring the best of the past system: personal contact. The decision marked a major setback for the governor, who has championed efforts to privatize some areas of state government, and a rare admission that — this time — his critics were right. As he announced his decision, Daniels thanked those who had raised concerns that the system resulted in too many errors and too many people waiting too long for help they desperately needed. ‘In many respects, they were right,’ he said. ‘The system wasn’t working, and it wasn’t getting better, despite best efforts.’ Critics say it was a lesson that could have been learned long before Thursday’s announcement. Texas, for instance, pulled the plug in 2007 on a similar welfare privatization effort after thousands of people lost benefits they deserved. Critics here had argued that Texas had tried to do too much too fast, and said a slower rollout in Indiana would ease in the new system. The state’s rollout, though, was never completed…”
Day: October 16, 2009
Joblessness and Unemployment Insurance – Massachusetts
Unemployment at 33-year high; insurance fund running dry, By Kay Lazar and Robert Gavin, October 16, 2009, Boston Globe: “Unemployment in Massachusetts has reached its highest level since the 1970s, officials said yesterday as they also disclosed that the state will exhaust a fund that helps laid-off workers pay for health insurance by the end of next month. State officials said they are considering a number of emergency measures, including imposing higher costs on the unemployed and raising fees on employers, to close a gap that could exceed $50 million by April. ‘Every option is on the table,’ Labor and Workforce Development Secretary Suzanne Bump said in an interview after her staff briefed an advisory board of labor and business leaders yesterday. ‘Nothing stays the same.’ The unrelenting rise in unem ployment will also trigger an automatic 40 percent increase in the tax businesses are required to contribute for unemployment benefits. In January, the tax will increase from an average of $594 per employee to $832…”
States and Budget Cuts
Report: Lawmakers to cut state budgets even deeper, By Glen Johnson (AP), October 15, 2009, Washington Post: “In Massachusetts, freefalling tax revenue will mean no more dental and hospice care for legal immigrants. Maryland is closing a mental health center. And Illinois has $2.9 billion in unpaid bills. As bad as state budget-cutting was during the past year, a report issued Thursday showed it’s bound to be even worse in the coming months. Despite signs of improvement in the national economy, many states’ finances are still dismal…”