Privatization of Social Services – Indiana

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…”