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California: US Rep Thomas: (Federal )Bailout (Of California ) a mistake -
The Bakersfield Californian ^ | Saturday September 28, 2002, 10:02:07 PM | By VIC POLLARD, Californian Sacramento Bureau

Posted on 09/29/2002 10:05:47 AM PDT by Ernest_at_the_Beach

Rep. Bill Thomas is blocking legislation to reduce the cost of California's most expensive computer fiasco, already more than $600 million and climbing.

Despite the state's severe budget deficit, Bakersfield's Republican congressman is opposed to legislation that would reduce federal penalties the state is paying for its failure to develop a statewide computer system for collecting overdue child support payments from divorced parents.

Thomas contends it would worsen the federal budget deficit and reduce the pressure on the state to complete the system.

The computer system is not expected to be in operation until 2006, when the penalties could total more than $1 billion unless the state gets some relief.

The penalties were imposed because California has failed to develop a statewide computer system to help track and collect overdue child support payments from parents, mostly fathers, as first ordered by the federal government in 1988.

California officials spent $111 million trying to develop the system, but pulled the plug on it in 1997 after it failed to meet expectations in a trial in six counties.

Worse, the contractor on the system, Lockheed Martin, sued and recently won a $46.4 million judgment against the state for its handling of the contract.

The state, currently limping along on six different regional systems, is on the verge of hiring another contractor to develop a statewide system, but it will take three or four years to complete.

Meanwhile, Democratic Rep. Robert Matsui of Sacramento has introduced legislation to reduce the penalties by about half and allow them to be applied toward collecting money from deadbeat dads.

The measure is currently bottled up in the House Ways and Means Committee, chaired by Thomas.

In a letter to Democratic Gov. Gray Davis, Thomas said the state has had 14 years to meet the requirement and that reducing the penalties would worsen the federal budget deficit.

"For this and related policy reasons, not to mention the unfairness to other states that struggled to come into compliance, often at significant cost, such legislation is unlikely to be enacted," Thomas wrote.

Only one other state, South Carolina, is still out of compliance and paying penalties.

Matsui argues that the penalties, based on the state's administrative costs for child-support collection, are counterproductive, going up as the state invests more money in collection efforts.

"At first, these penalties were a necessary catalyst for change," Matsui said as he introduced the bill earlier this year. "But over time, they have become a hurdle to solving the problem."

Davis administration officials, struggling to deal with a $24 billion budget deficit, say they inherited the computer foul-up from former Republican Gov. Pete Wilson.

"I think Mr. Matsui's approach is the right one," said Curtis Childs, the head of the new state Department of Child Collection Services.

The Davis administration created the department two years ago to take over child support collections that were previously the responsibility of district attorneys in California's 58 counties.

That was opposed by most Republicans like Bakersfield Assemblyman Roy Ashburn, who also say the Davis administration has had four years to fix the system and is only now just getting started.

"Four years is a very long time on something as straightforward as automating child-support collections," Ashburn said.

In addition to the $157 million spent on the abortive first computer system and the court judgment, the penalties will total $554 million by the end of the federal fiscal year that begins Tuesday.

Penalties alone could eventually total $1.2 billion, depending on when the state gets the new system into full operation.

State officials say it is the costliest computer snafu in California's history, if not the nation's. It dwarfs the controversial $95 million contract for unneeded software from Oracle Corp. that was the subject of hearings earlier this year headed by Assemblyman Dean Florez, D-Shafter.

State officials say they are aware the failures of the child support and Oracle computer contracts cast a cloud on their ability to develop the new one.

That's one reason Ashburn said said he is not in favor of letting the state off the hook on the penalties.

"Giving this administration more money for computers is not a good idea," Ashburn said. "They would rather engage in Oracle-type deals."

Childs insisted everything possible has been done to prevent a repeat of past mistakes.

"There has been a significant effort to apply the lessons learned from previous failures," he said.


TOPICS: Extended News; Front Page News; Government; News/Current Events; US: California
KEYWORDS: budgetcrisis; calgov2002; california; davis; knife
The Democraps were counting on this money I think!
1 posted on 09/29/2002 10:05:48 AM PDT by Ernest_at_the_Beach
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To: *calgov2002; Grampa Dave; Carry_Okie; SierraWasp; Gophack; eureka!; ElkGroveDan; ...
calgov2002:

calgov2002: for old calgov2002 articles. 

calgov2002: for new calgov2002 articles. 

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2 posted on 09/29/2002 10:07:50 AM PDT by Ernest_at_the_Beach
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To: Ernest_at_the_Beach

Win one for the Gipper! God Bless You Reagan, We Will Never Forget Your Great Service and Leadership - We here on FR will carry on your great work with diligence. Thanks for the Memories and Inspiration!

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3 posted on 09/29/2002 10:14:25 AM PDT by terilyn
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To: Ernest_at_the_Beach
"Giving this administration more money for computers is not a good idea," Ashburn said. "They would rather engage in Oracle-type deals."


DUMP DAVI$



GO SIMON
4 posted on 09/29/2002 10:42:21 AM PDT by NormsRevenge
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To: Ernest_at_the_Beach
I'd sure like to know why California can't just buy a copy of a system that's already running in one of the other 48 states that have managed to develop a solution.
5 posted on 09/29/2002 12:54:30 PM PDT by John Jorsett
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To: John Jorsett
They probably reveal too much of the slush funds!
6 posted on 09/29/2002 1:15:10 PM PDT by Ernest_at_the_Beach
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