Oracle settlement makes ‘WasteWatcher’ report
Published 8:00 am Thursday, October 27, 2016
- COURTESY ORACLE - Oracle headquarters.
Oregon’s $100 million settlement with Oracle has made the Citizens Against Government Waste’s October “WasteWatcher” report, which highlights fiscal issues that affect taxpayers around the nation.
The state hired Oracle to design an online health insurance marketplace for the state under the Affordable Care Act. The lawsuit sought $6 billion in damages for the website’s failure.
Under the settlement, announced Sept. 15 by Gov. Kate Brown, Oracle agreed to make $25 million in cash payments, a six-year licensing agreement to provide products and services and a $10 million contribution to career and technical education programs.
“The settlement raises more questions than answers,” wrote Elizabeth Wright of Citizens Against Government Waste. “Presuming the state should receive and keep the money, is it being used appropriately considering the state was supposed to create a functioning marketplace exchange with a $305 million federal grant? Since this was federal money, shouldn’t everything be turned over to the federal government?”
The settlement “funds will be used for purposes entirely unrelated to what the original grant was provided for, such as software, IT services and educational funding,” Wright noted.
Wright also cited a Portland Tribune article by Nick Budnick that showed the state will likely have to spend hundreds of millions of dollars on new IT projects to take advantage of the licensing agreement with Oracle.