Scott Walker signed a contract with Michael Best & Friedrich on Feb. 7 authorizing payment to a total of $100,000. The contract was amended a few days ago to a maximum of $500,000.Scott Walker has said he runs Wisconsin like a small business.* Using his analogy, Walker's legal services contract is like a blanket purchase order.
On a construction project, for example, blanket purchase orders are often issued to suppliers where the value of the goods or services aren't precisely known from the outset, like the cost of trucking, or consumable equipment and tools like grinding discs or welding gases. Knowledgeable buyers will overestimate the value of those blanket purchase orders, because the totals go into the project manager's status report under committed costs and then the project manager keeps track of the suppliers' invoices as compared to his committed costs.
The idea is to keep your committed costs higher than the actual costs. Where the value of blanket purchase orders is increased during a project, it should be because the scope of work has increased; that is, the size of the project has grown and additions to the construction contract cover the increases to the value of the blanket purchase orders.
That's how competent managers run a business.
If a purchasing agent walked into a project manager's office and told him, 'Oh by the way, I spent $500K against a $100K blanket purchase order,' that purchasing agent would most likely be fired on the spot.
Except Wisconsin can't fire Scott Walker. Yet.
* Walker has never run any business. He's a career Republican.