STATEHOUSE (Oct. 15, 2009) - State Sen. John Waterman (R-Shelburn) today praised a decision by Gov. Mitch Daniels to cancel the state's $1.34 billion contract with an IBM-led group to privatize Indiana's welfare system.
Nearly three years after the state awarded the computer giant a multi-billion dollar contract to modernize the system, Daniels said unsatisfactory progression and poor implementation were the cause of the cancellation.

Waterman said the governor will now create a hybrid system that will combine the successful elements of the old welfare delivery model with those positive changes created by the modernized version.
 
According to Waterman, the modernization - meant to streamline the application process for food stamps, Medicaid and the Temporary Assistance to Needy Families program - had generated many complaints from constituents in his Senate district.
"This mid-course correction will help achieve lawmakers' ultimate goal to reform the welfare system and continue save the taxpayers money," Waterman said.

Waterman's Senate district - including Clay, Greene, Knox, Daviess, Owen, Sullivan and Vigo Counties - were among 59 in the state using the modernized system. State officials had halted the roll-out to the other 33 counties as reports of errors continued to mount.

Waterman said the governor showed courage in making the change and praised reform efforts that have saved the state millions of dollars. Elements of the current program which stopped fraud and abuse will now be combined with face-to-face contact in the application process.

"The personal element of this program is sorely needed, and will be a welcome change," Waterman said.

According to the governor's announcement, IBM's contract will be terminated in 60 days, but there will be a wind-down period to transition responsibilities. During the 60-day period, FSSA will develop a detailed implementation plan for the hybrid system.

In his statement, Gov. Daniels commended critics from within the legislature and elsewhere for bringing problems to his attention.

Waterman serves Senate District 39, which includes Clay, Greene, Knox, Daviess, Owen, Sullivan and Vigo Counties.

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