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.