Holden, McCaskill differ on assessment of minority contracts

JEFFERSON CITY, Mo. -- Gov. Bob Holden last week touted his administration's efforts to increase the share of state contracts that are awarded to minority-owned businesses.

Eight days earlier, State Auditor Claire McCaskill issued a report critical of the state for failing to achieve minority participation goals established in 1998 and cited the Office of Administration, which is under Holden, for some reporting inaccuracies.

With McCaskill challenging Holden for the Democratic nomination for governor in 2004, the divergent assessments could be an early example of the two candidates drawing contrasts in an attempt to woo racial minorities, a key party constituency.

Holden spokesman Jack Cardetti declined to comment on the apparent differences of opinion, saying only, "The governor feels we have made tremendous progress, though there is still much to be done."

An executive order signed by Gov. Mel Carnahan in 1998 called on state agencies to make efforts to award 10 percent of the value of contracts for goods and services to qualified minority-owned businesses and 5 percent to women-owned businesses.

In a news release issued Wednesday concerning an administration report on the subject, Holden said the state has made great progress, going from 3.9 percent minority participation in 2000 to 9.9 percent in 2003.

"State spending with minority businesses has increased by more than 150 percent since 2000 and is at the highest level it has ever been," Holden said. "However, there are still areas that need improvement."

Holden said the state is building momentum to reach the 10 percent goal and noted many individual state agencies have far exceeded it.

McCaskill's audit, which was released Oct. 27, looked at figures from 2002, during which minority participation was 9 percent.

However, her report said that figure was misleading. In some cases, OA's purchasing and design construction divisions counted contracts that had not been fulfilled. And some contracts were counted twice because the firms were owned both by minorities and women. The audit also said work done by firms that weren't certified as minority-owned was counted.

mpowers@semissourian.com

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