Wednesday, May 2, 2007

A $57 million contract grows to $555 million!

The Governor says we are "cut to the bone". She says we need to raise taxes to support essential services.

Here is an "essential" service for you: The Department of Information Technology (DIT) entered into a ten-year contract with a well-know computer company for "hardware and software" for the Department of Management and Budget. The original contract value was $57.6 million. Over the life of the contract, that price grew to $555 million. Nobody ever stopped to ask why.

Now, the DMB has 752 full-time employees. Let's see, $555 million over ten years for 752 employees comes out to $73,138.30 per employee, per year. Those must be some special kind of computers!

This is only one of many examples of waste and mismanagement in DIT. For those of you who are interested, I can show you five contracts alone, awarded originally at $90 million, which grew to an astounding $1 BILLION! Have you heard the governor tell us there is waste in government? No, but she does want 700 more full timers in state government next year (not including state police--she wants to cut 29 state troopers.)

Question: If you did business with a company that was this inefficient, would you accept their price increase? Do you think we should raise taxes?


justinvanderark said...

Is there legislative action that can be done to eliminate these contracts?

markmckitrick said...

This is concerning. I seldom see where raising taxes is the answer, unless the CPI increased.

An example may be an hourly worker. They cannot just go out and demand their pay be increased. Rather, they work hard and hope that they will be rewarded as profits are filtered back through corporate profits. Taxation in my opinion should be tied and capped at the published CPI.

I wish we as Michiganders could know where our money goes. I am still curious as to how our schools are so lacking and where the lottery money goes that was going to change all this.

And, where are the good roads promised especially with all the increase in gas taxes from the current high gas prices.

Anyway Jack's blog seems a noble start. Thank you.

Pam said...

Why isn't their more media coverage about these budget buster contracts? The public needs to know about these things.

If conservatives like Jack Hoogendyk can pull together...maybe we can actually see some TRUE reform in Michigan's government.

Thank Mr Hoogendyk. I am deeply impressed with your efforts!

oldsalt said...

I'm very happy to see you standing up to these folks. It is a rare lesson in Michigan to tell government they can't tax themselves into prosperity. We need to reign 'em in and put 'em back to work for the people. You go, Jack!

Randy Blair said...


Can you use your position to get the Auditor General to cough up the facts and figures for you to post on your blog?

The people would really like to know.

stillearning said...

Don't forget about the use of State vehicles for personal business. I heard on talk radio the other day that our state is the only one out of the 50 that has a Surgeon General. And the Surgeon General is #1 in the personal use of a state vehicle. What exactly does this person do?

And while I am ranting, did you folks know that the Governor's husband has his own state office and state paid staff just because he is the "First Gentleman"? Guess who is paying for this???

Joe Sylvester said...

Go Jack Go!

Tim said...

"For those of you who are interested, I can show you five contracts alone, awarded originally at $90 million, which grew to an astounding $1 BILLION!"

I'd be interested in seeing those, how would I get a copy, or can you post them here? I'd also like to see a copy of the $57m to $555m one as well.