If there is a silver lining to our unprecedented fiscal collapse and what will surely turn out to be the reinvention of our economy, it is that we are finally starting to pay attention to the way our governments are being run , at every level.  It feels almost like a revolution is brewing – everyday people (read – voters) are starting to question business as usual in our halls of government, and the questions multiply…

Take LA County, for example – the largest county in the state of California, millions of residents, record high unemployment, and record numbers of people needing public assistance due to a job loss, home foreclosure, medical crisis, or other calamity.  For years, LA County has operated a welfare to work program they call LA GAIN (Greater Avenues to INdependence).  Two of the seven county regions have been contracted out to the same for-profit social services provider, Maximus, Inc.  

Last year, the contract ended and went out for bid – Maximus lost, not to anyone’s surprise – they had been under-achieving and now their failure to reach performance goals set by the Feds will impact the entire State of California – we are all be looking at a $185 million penalty – that’s right, nearly two hundred million dollars – because Maximus’ low scores have drug the entire state down with them.  You see, LA County is so large it is the tipping point for success or failure for statewide Welfare-To-Work goals.

So, when faced with an under-performing contractor, a huge financial penalty, and a competitor who has a better track record, better reputation, and a substantially lower bid – what did the LA Board of Supe’s do?  Why, they extended the contract of the incumbent, even though it has cost the County millions in higher contract fees, higher public assistance payments, the lost wages for workers who cannot get the help they so desperately need.  Would it surprise you to learn that Maximus (the incumbent contractor) has donated $200,000 to Board members and their I.E.s?  No, it would not.

Fast forward to today – we are now eleven months into the contract holdover, LA County is another $27 million in the hole, and still the Board has not issued another RFP to unseat this contractor.  The question is – will the citizens of Los Angeles take a stand and insist that their Board of Supervisors rectify this mess NOW? Is everyone sufficiently tired of cronyism, pork barrels, hidden agendas, and graft to finally actually do something about it?  Stay tuned…