Millions of New Yorkers recently received a surprising message on their phones, reminding them of an app they likely had forgotten about. The NYS Wallet App, which served as a vaccine passport, announced that it would be discontinued on July 28, 2023, due to a decline in demand. While this news may have pleased liberty-loving individuals, the exorbitant cost of $64 million spent on the app should enrage every taxpayer.
Introduced by former Governor Andrew Cuomo in May 2021, the Excelsior Pass was touted as a more convenient option for carrying vaccination records. It aimed to replace physical vaccine cards and grant access to venues, restaurants, and gyms under New York City’s stringent Covid regulations. However, the need for a dedicated app was questionable since people could easily carry their CDC cards or keep a photo of it on their phones. Furthermore, the process of scanning a QR code linked to a state database to access basic services had a dystopian feel, not to mention the app’s notorious glitches.
The biggest drawback of the Excelsior Pass was its astronomical cost. How did the price tag balloon to $64 million? The answer is simple: taxpayers, without any meaningful recourse, bore the burden. Initially estimated at $2.5 million, the budget inflated to $17 million within a few months due to mission creep. The state considered expanding its functionality to include driver’s licenses, proof of age, and other medical records. It is clear that Governor Hochul made the right decision in ending the Excelsior Pass debacle, but it was a grave mistake to introduce it in the first place.
Even before its cancellation, with vaccine mandates becoming less prevalent, the state was spending $200,000 per month on maintaining the database of vaccine records. This represents a staggering 25-fold increase from the original plan. So where did all this money go? Consulting, of course. IBM secured a three-year contract for the app, but Boston Consulting Group and Deloitte also had their share of the pie. The state Office of the Inspector General is currently investigating how these corporations managed to rake in such massive amounts of taxpayer money.
This pattern of exorbitant spending on consultants is not unique to New York. In Los Angeles, the cost of building apartments for the homeless skyrocketed from $350,000 per unit to a staggering $837,000, far exceeding the average home value in the United States. Much of this increase was due to exorbitant consulting fees. A subsequent audit revealed that consultant fees were disproportionately high compared to construction costs. As a result, LA’s efforts to address homelessness have been severely hindered, leaving many individuals without promised housing.
Consultants’ hold on government spending can have disastrous consequences. While the mismanagement of funds in the case of a Covid app or subway tunnel is concerning, it pales in comparison to the impact on individuals’ need for secure housing. Governor Hochul’s decision to terminate the Excelsior Pass was necessary, but the state’s initial approval and failure to rein in costs are significant missteps. To prevent a continued exodus of residents, New York must show greater respect for the hard-earned tax dollars of its citizens.
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