Legislature’s oversight panel expects answers about failed contract for human resources software
The state s administrative and financial services commissioner will appear before the committee Friday to answer questions about a $22 million contract dispute with Workday, a Silicon Valley vendor.
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AUGUSTA A legislative committee will continue its inquiry Friday into the Mills administration’s effort to reclaim $22 million from a Silicon Valley software vendor in a dispute over a contract to upgrade the state’s outdated human resources management and payroll system.
Commissioner of the Maine Department of Administrative and Financial Services Kirsten Figueroa
Joe Phelan/ Kennebec Journal
Kirsten Figueroa, commissioner of the Department of Administrative and Financial Services, will appear before the Government Oversight Committee to provide information and answer questions about the contractual dispute with Workday Inc., which was hired in 2018 to do the software s
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In 2010, Michigan’s economy was reeling. The Great Recession had hit the state hard and U.S. automakers were struggling to survive. Seeking to ease the pain, state officials authorized tax credits under the Michigan Economic Growth Authority (MEGA) program as part of long-term deals with distressed automakers. But the program did not include fiscal protections to control the state’s costs. This would prove to be a damaging misstep years later when Michigan had to close a multi-million dollar budget gap with spending cuts after automakers began claiming credits in larger amounts than expected.
How did this happen? When developing the agreements, the state relied on unrealistic estimates of the number of jobs the companies would create and the salaries they would pay. The companies hired more workers at higher than anticipated salaries, qualifying for more tax credits and driving costs higher than expected. Fortunately, such situations can be avoided.
State plans to cancel multi-million dollar contract over software delays sunjournal.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from sunjournal.com Daily Mail and Mail on Sunday newspapers.
Maine may seek $21 million refund from human resources software contractor
California-based Workday walked off the job last month after a dispute with the state. Meanwhile, Maine s finance commissioner told lawmakers it may take $8 million more to get the new system up and running.
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The state is threatening to terminate a contract with a company installing a new human resources software system and demand a $21 million refund after the contractor walked off the job last month.
Separately, a lawmaker has raised unspecified allegations that the dispute between California-based Workday, Inc., and the state involves “sexual misconduct,” and is calling for an investigation into those claims.
Maine may seek $21 million refund from human resources software contractor pressherald.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from pressherald.com Daily Mail and Mail on Sunday newspapers.