INDIANAPOLIS (AP) — IBM Corp. and Indiana’s human services agency are going to court over how much the company is owed for work it did to automate the state’s welfare application system before being fired.

Both sides announced that they filed lawsuits Thursday in Marion Superior Court. That comes a day after Family and Social Services Administration Secretary Anne Murphy said the state had rejected some invoices submitted by IBM Corp. and had asked for some money back.

Gov. Mitch Daniels canceled IBM’s 10-year, $1.34 billion contract to run welfare intake last October.

IBM says it is owed nearly $53 million in fees and equipment expenses under the 2006 contract. T

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INDIANAPOLIS (AP) — Privatization critics now can say “we told you so” with the state’s decision to sue IBM Corp. over the botched outsourcing of welfare applications, but it gave them little satisfaction Friday.

One day after the state and IBM sued each other over the technology giant’s canceled $1.37 billion deal to automate intake for Medicaid, food stamps and other benefits, critics of one of the costliest contracts in state history — along with clients who struggled to keep their benefits — said Gov. Mitch Daniels ignored warnings that outsourcing such a critical government function was fraught with risks.

“So much for saving money,” said Susan Humphrey of Evansville, who blames the system that IBM put together for repeatedly losing documents needed to confirm the Medicaid eligibility for her brother, who has Down syndrome.

“I think that this was not very well thought out by the administration before they decided to make the switch into privatization, and they’re paying the price for it,” Humphrey said. “Dani

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