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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

www.post-gazette.com

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