September 2, 2014

Pennsylvania Collects $1 Million In Back Taxes From State Vendors

Budget Secretary Charles B. Zogby Tuesday announced the Commonwealth has saved more than $1 million by offsetting payments to vendors and business partners with debts more than 90 days delinquent to the Commonwealth.
The Commonwealth Offset Program began in July 2013 to offset any payment to delinquent business partners by the amount they may owe the Commonwealth for license fees, assessments or delinquent loans last year.
“As budgets continue to get tighter, it is important for the commonwealth to be good stewards of public funds,” Zogby said. “Each year, the Commonwealth used to pay millions of dollars to vendors that were delinquent on debts owed back to it. With the offset program, we keep valuable funds available for Commonwealth programs and services.”
The COP uses the current Contractor Responsibility Program to identify vendors who are set to receive Commonwealth payment, yet are 90 days or more delinquent on non-tax debts. Under the COP, the debt owed to the Commonwealth is deducted from the vendor payment.
If the debt exceeds the payment, future payments would be offset by the corresponding amount.
The Commonwealth urges its business partners to pay any delinquent debts to avoid having any future payments delayed or offset.
The COP was developed as part of the Governor’s Innovation Initiative. Since its inception the Governor’s Innovation Office has worked with state agencies on efforts to reduce costs, increase efficiency and improve services. These initiatives have resulted in more than $690 million in savings and productivity gains.
For more information, visit the Commonwealth Offset Program webpage.