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Tom Wolf, governor of Pennsylvania, has taken the unusual step of hiring in advisors from McKinsey & Company for six weeks to figure out how a black hole in the state budget can be made smaller. For a bill of $1.8 million the global consulting firm is expected to identify cost-savings, as well as develop new revenue sources. It is thought the budget gap needs reducing by $1 billion. However, the appointment has not been without controversy. It has been revealed the contract between McKinsey and the Office of Budget was signed in an emergency basis, meaning there was not a competitive bid process. Wolf spokesman J.J. Abbott said McKinsey were appointed “after revenue collections worsened and the full extent of the structural budget deficit was becoming more clear.”

tom wolf

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