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Lawmaker Says State Was Overbilled By $10M

POSTED: 4:17 pm CDT September 21, 2009
UPDATED: 7:02 pm CDT September 21, 2009

A state lawmaker has said Tennessee has been loose and sloppy with its money, overpaying some contracts to the tune of $10 million. Rep. Donna Rowland said in a year when every department was supposed to present bare-bones budgets, there is no excuse for this kind of sloppiness.

Video: State Overpaid Contracts, Lawmaker Say

The numbers didn't add up: The general services contract for elevator service was written to include service for 400 elevators for four years, but that was only if counties, cities and universities joined in, which they didn't.

So the contract only provided for 170 elevators dating back to 2005.

Rowland discovered $11.5 million remaining, with anticipated expenses of only $908,000. Rowland and Fiscal Review are now asking the comptroller to amend the contract and return $9.5 million for other considerations.

"Tell me where $9.5 million went, then, if there's no waste in government," Rowland said.

Tennessee Department of Environment and Conservation was asking for $590,000 to remove household toxic waste, which is what they expect to spend this year, and $1.2 million is still available from four years of under-collecting.

"Exactly how much is this costing? If you have surplus money in the contract, why are you asking for more?" asked Rowland.

Fiscal Review only looks at single-source contracts more than $250,000, so all of the huge multi-bid contracts and single-source less than a $250,000 don't go to a review committee.

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