ANNAPOLIS, MD (June 6, 2006)-Comptroller William Donald Schaefer today announced that the state of Maryland has received a $2 million rebate from U.S. Bank Corporate Payment Systems. The rebate is the result of 77 state agencies spending more than $204 million on small purchases through Maryland's corporate purchasing card program for the period of May 1, 2005, through April 30, 2006.
"It may not seem like a lot, but the $2 million rebate can go a long way to helping some of Maryland's most in-need programs," said Comptroller Schaefer. "Every dollar counts."
Under the program, re-bid at Comptroller Schaefer's insistence in January 2001 to increase the state's rebate benefit, the Comptroller's Office issues one payment each month to U.S. Bank Corporate Payment Systems for all card purchases made during the previous month. Merchants are paid directly by VISA, usually within two business days of the purchase, which is much sooner than the normal 30-day payment cycle. U.S. Bank Corporate Payment Systems pays a rebate when the state reaches pre-set purchase volumes. As a result of the new contract approved by the Board of Public Works in March 2001, the state of Maryland has earned $5.5 million more from the program than it would have if no re-bid had been pursued.
The state of Maryland first began using the VISA corporate purchasing card program in March 1997. Since then, the state has purchased $1.3 billion worth of goods and services, while earning $9.6 million in rebates.
"This program is good because it makes the buying process more efficient and accountable," said Comptroller Schaefer. "The state had $204 million in small purchase needs over the last 12 months. That's a lot of beans to count the old way. Speaking for my office, it means we can spend less time on bureaucratic paperwork and more time helping people."
The state's corporate credit cards enable agencies to make purchases of up to $2,500 per transaction, which accounts for 80 percent of the state's expenditures, but only 2 percent of dollars spent. The cards are also limited to specific merchant categories to prevent inappropriate use.
"Taxpayers should be able to expect that we're doing everything we can to save them money," said Comptroller Schaefer. "This is one of many ways our office does that."
For more news from the Comptroller's Office, visit www.marylandtaxes.com.
MEDIA CONTACTS:
Michael D. Golden, 410-260-7305
Kevin P. Kane, 410-260-7578
