SEPTEMBER 25, 2009 | by NATHAN BENEFIELD

PA Budget Impasse Can't Stop Another Million Dollar Consulting Deal

TEXT SIZE A A A

John Micek of the Morning Call reports that the Pennsylvania state Treasurer has awarded a $928,000 consulting contract for marketing of the prepaid college tuition program - a program that is running a deficit and on shaky long-term financial footing, at best. Micek goes on to note the political connections, that might raise a few eyebrows.

I am quoted in the piece, noting that it isn't the best use of taxpayer money at this time...given the economy, the budget hole, and the instability of the fund marketing -- i.e. they are marketing to more families to buy in to reduce the fund deficit, to pay out for those already enrolled, kind of like a Ponzi scheme.

If I had been quicker on my feet, I would have commented that this is how we should debate the budget - instead of threatening to lay off state workers/police, Gov. Rendell should come out and say "Without recurring revenues [higher taxes], I'll be forced to tear up consulting deals with Neiman Group."

Now that would be an interesting, and honest, budget debate.

Related : Pennsylvania State Budget  Pork Spending 

Commonwealth Foundation Twitter Updates


Browse Commonwealth Foundation