Cost?
"The loss of the tape, which contained social security numbers and other sensitive information, is expected to cost the state about $3m."
Wow, that's one expensive tape! Was it custom-made?
Assuming full disclosure is required for those people affected, here is a VERY generous estimate. Cost of tape: $100 (estimate). Cost of time to look up individuals' information, create a mail merge, create a generic "Oops! We lost your info, sorry." letter, and merge to create letters to send to the people: $500 (5 hours * $100/hr). Cost in labor to print those letters: $21,700 (10ppm [217 hours] * $100/hr). Cost of paper and ink to print those letters: $9,100 (7 cents * 130,000 letters). Cost in labor to stuff and seal envelopes: $36,112 (10 seconds per envelope * 130,000 letters * $100/hr). Cost to mail letters: $53,300 (41 cents * 130,000 letters). OK, so totaled up, that's $120,812.
Can someone point to where the other $2,879,188 comes from? Or are they using the usual government format of "Well, it cost us $x to redesign the system properly and implement it the way it should have been." in coming up with that estimate? It was a lost tape. It's not like someone hacked into the system (where I can possibly understand large costs of having to inspect the system in minute detail to make sure it's safe again).