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Case Study: Social Services
Case Study: Social Services
Maximus was one of the for-profit private companies the state of Wisconsin selected to operate the welfare program in Milwaukee County. The company appeared to operate as though it had complete latitude in how it spent taxpayers’ money.
The nonpartisan Wisconsin Legislative Audit Bureau reported in the summer of 2000 that Maximus violated its contract through questionable expenditures of more than $700,000, which included charging Wisconsin for business expenses related to attempts to secure contracts in New York City, San Diego, Arizona, Pennsylvania, Michigan and Illinois. Maximus also charged the state for various expenses including employee parties, hotels, meals for top executives and thousands of dollars for doughnuts. The company also spent $1.1 million of taxpayer money on advertising that appeared more likely to promote Maximus as a company than to have any role in informing, attracting or providing support to people with low incomes.
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