May 6th, 2010
From The Tribune Review:
HARRISBURG — A simple change in the way the state pays for goods and services, along with other management changes, could save taxpayers up to $1.5 billion, House Republicans said Wednesday.
From gravel to computer purchases and professional services, the state spends almost $22 billion a year, paying by check for 71 percent, or 1.1 million transactions. Debit cards are used on fewer than 1 percent of transactions, said Rep. John Bear, a Lancaster Republican and former management consultant. Automated payments and wire payments make up the remainder.
Because the state gets rebates on debit card use, making 20 percent of all transactions through debit cards would bring in about $62 million, Bear said. Using debit cards for 70 percent of purchases would save $219 million, he said.
Leave a Comment