SENATE APPROVES BILL TO CANCEL CONTROVERSIAL ALEXANDER GROUP CONTRACT

$1 million contract irresponsible use of taxpayer money

AUGUSTA—In a 21-14 vote, the Senate gave initial approval to a measure that would cancel the controversial Alexander Group contract. The $1 million no-bid contract was awarded to consultant Gary Alexander to study the value of healthcare expansion in Maine.  Alexander’s first report was a month late and  contained serious flaws, including a $575 million math error.

“So far these reports are riddled with errors and gravely delinquent in their delivery of services. No one in the business world would say let’s continue pouring money in to this,” said Senate Majority Leader Troy Jackson of Allagash. “Plain and simple it’s a waste of taxpayer money. Here we are again, short funding our state budget. Think about what we could do with $1 million.”

The bill, LD 1794, “An Act to Cancel the No-Bid Alexander Group Contract to Produce Savings in Fiscal Year 2014,” would prevent further waste of taxpayer dollars.  To date, the administration has paid the failed contractor $378,000 total, according to payment records from the non-partisan Legislature’s Office of Fiscal and Program Review. The contract has $547,000 in unexpended funds.

“This no-bid contract has been flawed from the start. If we keep funding this contract it will be throwing good money after bad; if we cancel this report we can cut our losses,” said Senator Margaret Craven of Lewiston, the co-sponsor of the bill. “Governor LePage likes to say he is a savvy businessman, but it’s a poor business person who doesn’t demand a quality product. It’s time to behaving like a business person and fire the Alexander Group.”

The Alexander Group contract is among a series of issues plaguing the LePage administration, including the failed MaineCare ride contract debacle for transportation services left patients stranded, missing doctor’s appointments for dialysis and critical treatments, a loss in certification and federal funding for the Riverview Psychiatric Center, a CDC document shredding scandal, and constant budget shortfall.

The contract was paid for using federal and state dollars designated to help struggling families who are forced to turn to the state’s Temporary Assistance for Needy Families program.

“This contract is taking food out of the mouths of children,” said Senator Colleen Lachowicz of Waterville, who serves on the Health and Human Services Committee. “It is irresponsible to use taxpayer money on flawed political reports. We should be focusing our efforts on helping provide opportunity for Mainers getting back on their feet, not paying for a campaign report. ”

The bill was previously approved by the House in a 80-60 vote; it faces further votes in the House.

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