Daniels Trapped by Spinning Agency Fix As Both Flop, Solution

Summary

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INDIANAPOLIS - The dueling lawsuits between Indiana's human services agency and IBM Corp., the company it hired to revamp the state's welfare system, have placed Republican Gov. Mitch Daniels in a precarious position.

More than six months after Daniels canceled the 10-year, $1.37 billion contract between the Family and Social Services Administration and IBM, the state wants back the more than $400 million it paid. IBM wants to keep that money and says the state owes it $50 million more.

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Extract

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Daniels Trapped by Spinning Agency Fix As Both Flop, Solution

Even though the modernization project was scrapped, the state is keeping the new computers, document processing systems and phones and is using th...

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