State Capitol Week in Review

LITTLE ROCK – Consultants know how to work the system for their companies and their own personal gain—not for the taxpayers.
In a previous op-ed, I highlighted the faulty estimates Arkansas received from consultants, which ended up costing taxpayers dearly.
Now, I’m shedding light on how corporate giants like McKinsey and Deloitte hire lobbyists, former government employees, and ex-legislators to secure their interests. This practice demands scrutiny and, in my view, should be outright illegal at every level.
Currently, Arkansas legislators are voting on recommendations from McKinsey, a corporate consultant that landed a $5 million contract with the state. Governor Sanders endorsed it, and lawmakers approved it, based on McKinsey’s promise of $500 million in “savings” for that $5 million fee. Yet, those promised savings have quietly shrunk to $200–300 million, with no clear explanation for the shortfall. Even more baffling, McKinsey advised overhauling the state’s personnel pay plan—a move that will cost taxpayers an additional $100 million. So, Arkansas paid $5 million to a firm that’s now costing us an extra $100 million. Where’s the savings in that?
The strategy of hiring former legislators and government insiders seems to pay off handsomely in securing these lucrative taxpayer-funded contracts. Take McKinsey’s lobbyist, Chase Dugger, a former Republican Party director. Or consider Jamie Barker, who once worked for former Governor Asa Hutchinson and now serves as deputy director for Governor Sanders. Before his current role, Barker worked under lobbyist Chase Duggar . These connections raise serious ethical questions. McKinsey has pocketed millions in taxpayer dollars for recommendations that significantly reshape our state budget—shouldn’t there be stricter standards?

The lines get blurrier still. Many individuals tied to these massive contracts at McKinsey and Deloitte serve as “consultants” despite Arkansas’s two-year lobbying ban for former officials. The distinction between consultant and lobbyist feels conveniently vague.
Consider Deloitte, another corporate consulting giant. Before former Arkansas Governor Asa Hutchinson took office in 2014, Deloitte had no state contracts. Under his administration, they began raking in huge deals. Over the past decade, Deloitte has collected over half a billion dollars in Arkansas taxpayer money. Today, former Hutchinson staffers Jon Gilmore and JR Davis are paid lobbyists for Deloitte.
Back to McKinsey: their lobbyist Chase Dugger recently brought on former State Representative Grant Hodges as an “account manager”—not a “lobbyist,” mind you. Hodges was in the legislature when McKinsey secured the $5 million contract I mentioned earlier. Now Grant Hodges severs on the Board of Corrections appointed by Governor Sanders. This past year the Board of Correcrions approved a 1.5 billion dollar contract for prescription drugs.
This does not pass the smell test? Is it ethical to vote for multi-million-dollar contracts and then land a cushy job with the very firm you supported? What do you, the taxpayers, think? The so-called “fine line” between lobbyist, consultant, account manager, or errand boy needs to be erased. Arkansas taxpayers have shelled out over $600 million to just a handful of consulting firms. It’s time to rethink this system. The law passed by Arkansans was clear, but new job titles are muddying the waters to prop up an unethical practice.