Controversy over fund-raising firm
SACRAMENTO -- A company struggling to help the Schwarzenegger administration slash purchasing costs hired a consulting firm with close ties to the governor to prod state agencies to join the procurement program.
Virginia-based CGI-AMS hired Wilson-Miller Communications this month. The firm is co-owned by Marty Wilson, is a top political adviser to Gov. Arnold Schwarzenegger and his main fund-raiser. Last May, the administration hired CGI-AMS to help the state trim its $4.9 billion annual purchasing bill.
Wilson's partner, Beth Miller, was hired to develop a marketing and education program aimed at getting more state officials to join the "strategic sourcing" program -- a new initiative that uses the state's buying power to cut vendor prices, said a spokeswoman for CGI-AMS.
So far, the program has fallen well short of expectations -- saving less than 10 percent of the $96 million goal Schwarzenegger set for this fiscal year.
Miller's role is to design only a communications program, not to lobby, said Diane Roman Fusco, spokeswoman for CGI-AMS. Still, Roman Fusco said the education program is being developed and could involve Miller making contact with state officials.
"My understanding is that Beth had worked in state agencies before and has a lot of experience and understanding of how these people work and busy they are," said Roman Fusco. "She demonstrated strong skills and delivered some good ideas on how we could reach those people effectively."
Miller, who once worked for Republican former Gov. Pete Wilson and Secretary of State Bill Jones, said she is providing "corporate communication" services that have no connection to her partner's position as the governor's fund-raiser.
"I'm working with senior management at CGI-AMS on how they can make this project successful," Miller said. "I have broad experience in Sacramento and with the state. I'm well qualified to do this work."
She said that she is not working for the state and said it was "highly unlikely" that she would ever contact any state managers in her role with CGI-AMS.
Terms of the agreement were not disclosed.
Some critics viewed CGI-AMS' hiring of Wilson-Miller as a means to put pressure on state purchasing agents. A spokesman for the governor's office said they are not commenting on the contract.