CPPP Statement on Draft State Auditor’s Report

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Celia Cole /(512) 320-0222 x110

September 29, 2005

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Today's story in the San Antonio Express-News, “State savings don't add up," makes public the findings of a draft report by the State Auditor’s Office critical of the methodology behind the Health and Human Services Commission’s decision last year to outsource its human resource and payroll functions to a private contractor. The auditor’s report says the savings from outsourcing are not $45 million over five years as claimed by HHSC to justify the contract, but only $1.1 million. The report also determined that HHSC does not have adequate performance measures in place to monitor contactor performance and ensure people’s needs are met.