Assistant Senate Democratic Leader responds to IBM lawsuit order on failed privatization
INDIANAPOLIS-Assistant Senate Democratic Leader Tim Lanane (D-Anderson) released the following statement in reaction to today’s order released in Indiana’s lawsuit with IBM over the failed privatization of the state’s social services system:
“As Judge Dreyer conveyed in today’s order, the real losers in this case are the taxpayers of Indiana. With a $52 million judgment, at least $13 million in related legal fees to date and the prospect of a continued legal battle, taxpayers are still funding the fallout of a plan that was clearly misguided from the beginning.
“We also agree with Judge Dreyer that this was an untested theoretical experiment conducted on our most vulnerable citizens. Unfortunately, as the judge notes in his order, there is nothing to be done to ‘remedy the lost taxpayer money or personal suffering of needy Hoosiers.’ But hopefully we can learn from this.
“The lesson to be learned is that social services should be provided by someone who works for the interest of the citizens, not with the goal of profit in mind. The public sector exists, in part, to provide services that are needed but that market competitors find unprofitable.
“Perhaps if it hadn’t taken three years for the Daniels administration to admit problems in a system that was clearly failing, the damages to underserved Hoosiers and these resulting fiscal damages to the taxpayers of the state could have been mitigated. From the early days of this proposal through implementation, warning signs were ignored.
“I hope Indiana leaders – and those in other states – learn from this example of ill-advised public policy and don’t make the same mistake again.”
State Senator Tim Lanane is the Assistant Senate Democratic Leader and represents District 25 in the Indiana Senate. For more information on Lanane or other State Senate business, call 1-800-382-9467 or visit www.IN.gov/s25.
