State of California Fiscally Irresponsible

California’s Irresponsible Leadership

From the State of Jefferson Blog….

Can You Believe This?
They overspent AGAIN!

Guess what?  Yep, we overspent – again!  It didn’t take long for the cost of a technology contract in California’s unemployment office to increase twelvefold.

Two changes to the contract were made and added without bidding it out.  This caused it to swell the deal to $8 million within a year. Then, the Employment Development Department submitted a request to add another $2 million worth of work to the arrangement without soliciting new bids from other companies.

The report estimates that the state spent $44 billion on noncompetitive contracts worth $1 million or more between 2011 and 2016, a substantial sum that auditors said underscored the need for better management.  Gee, that’s a good idea!

In case you’re wondering about any other issues of overspending (although I could provide a list that would go one way too long), I have some examples here for you.

▪ A $3 million contract extension that the California High-Speed Rail Authority presented just 17 days before its existing contract was scheduled to expire. High-Speed Rail did not describe why the vendor it chose had unique services that merited a noncompetitive contract.

▪ An $835 million noncompetitive contract amendment in 2013 for the company that manages Medi-Cal dental benefits. It was the seventh amendment to the original contract.

▪ A $75.5 million noncompetitive contract extension at the Department of Motor Vehicles on top of what was a $62.8 million for work on the state’s driver’s license production system.

▪ A fourth amendment to a Cal Fire aviation contract that was worth $27.8 million.

Now here’s a good one:  One $163 million contract that was missing from databases highlighted shortcomings in the state’s accounting system. It was the eighth change to a contract from the Department of Developmental Services, and no one entered it in the program the Department of General Services uses to follow spending.

Will Sacramento ever become fiscally responsible?  Will they ever be able to govern without the heavy hammer of tyranny?  NO!

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