State government’s spending habit has netted some savings.
Comptroller Peter V.R. Franchot (D) announced Monday that the state has received a $5.8 million rebate from U.S. Bank. That’s thanks to $284.8 million in spending on small purchases by 77 state agencies between April 2018 and April 2019.
Under Maryland’s Corporate Purchasing Card program, merchants are paid more quickly and the comptroller’s office makes one payment each month to cover all spending. The state receives rebates at certain purchasing volumes.
“Marylanders expect their government to protect their financial interests and to save money whenever possible,” Franchot said in a statement. “The Corporate Purchasing Card program allows state agencies to make small purchases in an efficient way, to provide accountability and to pay vendors in a timely manner, all while earning back a percentage of those dollars that can be put towards worthy programs.”
Since March 1997, the state has bought more than $4.3 billion through the purchasing card program, resulting in $68.4 million in rebates. The current contract with U.S. Bank was approved in 2013.