INDIANAPOLIS -- Hoosiers long frustrated by the state's automated system for food stamps, Medicaid and other benefits applauded the governor's decision to terminate the contract.

Gov. Mitch Daniels announced Thursday that the state would cancel its $1.34 billion contract with IBM and other vendors, which had managed the welfare intake in 59 of Indiana's 92 counties and handle about one-third of the state's 1.2 million-person caseload.

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"Hallelujah. Honest to God, that's what I said. It's about time," said recipient Jenice Taylor. "When I tried to apply for Medicaid for me because I was on disability, there was a problem. With changing income, there was a problem. Anytime anything was done, it became a bigger mess."

Dozens of e-mails sent to 6News also outlined the same concerns.

"I just can't seem to get anywhere. It just keeps happening every 10 days," wrote Genny Hyatt.

"I have called, gone down there, begged them for messages, everything," wrote Amy Adams. "I'm depressed over this."

Clients, their legislators and advocates had complained that the new modernization system, which took away in-person caseworkers, lost documents, missed telephone appointments and had lengthy hold times.

Daniels said the Armonk, N.Y.-based company made too little progress on fixing poor service as required by a corrective action plan ordered last spring.

No one was at IBM's Indianapolis office on Friday. A spokesman told 6News Thursday that the "company has worked hard to modernize the state system and he deeply regrets the governor's decision."

Social service advocates said Friday that they want a seat at the table as the state revamps the program. They told a panel of the State Budget Committee Friday that they know their clients' needs and what problems they have faced, and that the state could benefit from their direct input.

"Get a group together. Ask them what's going to be important, and then go from there," Taylor said. "Don't just decide on your own. That's where trouble comes."

Daniels said IBM’s contract will be terminated in 60 days, but that there would be a wind-down period to transition responsibilities. During the 60-day period, FSSA will develop a detailed implementation plan for a hybrid system that will incorporate successful elements of the old welfare delivery system, including more face-to-face contact.