ࡱ> '` G*bjbjLULU .>.?.?G" $$ w$/h,,,1, ,$h% :6 %G0w %@R %%&%0"3O w,,,,   d nD   n    Streamline and Prioritize Core Government Services Task Force Final Report December 15, 2011 During the First Regular Session of the 125th Legislature Public Law 2011, Chapter 380, An Act Making Unified Appropriations and Allocations for the Expenditures of State Government, General Fund and Other Funds, and Changing Certain Provisions of the Law Necessary to the Proper Operations of State Government for the Fiscal Years Ending June 30, 2011, June 30, 2012 and June 30, 2013, was enacted. Part KKK of this Public Law required the Commissioner of Administrative and Financial Services to establish the Streamline and Prioritize Core Government Services Task Force to carry out the following work: Undertake a comprehensive analysis of departments and agencies within the executive branch, offices of the constitutional officers, the Department of Audit and independent agencies statewide with the goals of prioritizing services provided by government agencies, consolidating functions and eliminating duplication and inefficiencies in programs, contracted personal services, state travel policies and advertising and public notice policies; Investigate and identify major sources of administrative excess, redundancy and inefficiency and program overlap with other state, local or federal programs; Identify any positions that should be reduced, eliminated or consolidated to deliver optimum services in the most cost-effective manner, including positions in the unclassified service and major policy-influencing positions as set out in the fb88 Revised Statutes, Title 5, chapter 71, and in contracted personal services; and Develop recommendations designed to achieve a targeted spending reduction of a minimum of $25,000,000 in fiscal year 2012-13. The law required the task force to submit monthly progress reports to the Joint Standing Committee on Appropriations and Financial Affairs and a report of its findings and recommendations and any necessary implementing legislation to the Joint Standing Committee on Appropriations and Financial Affairs by December 15, 2011. This report is intended to fulfill that charge under the provisions of Part KKK. Task Force The Commissioner of the Department of Administrative and Financial Services convened the Streamline and Prioritize Core Government Services Task Force which, in addition to the Commissioner, was comprised of two members representing fb88 for-profit businesses, appointed by the Governor; two members representing fb88 not-for-profit -2- agencies, appointed by the Governor; one member representing a higher educational institution of fb88, appointed by the Governor; four members of the Joint Standing Committee on Appropriations and Financial Affairs and two members of the public at large, appointed by the Governor. The following individuals were identified to be members of the twelve-member Task Force: George Kerr, a former Democratic lawmaker and Appropriations and Financial Affairs Committee chair; Joe Bruno, former House Republican Leader and President of Community Pharmacies; Sue Charron, Director of Social Services for the City of Lewiston; Phil Harriman, a former State Senator, Appropriation Committee member, and current business consultant; David Flanagan, former CEO of Central fb88 Power Co.; David Winslow of the fb88 Hospital Association, and former DHHS administrator; Ryan Low, Vice President for Administration at the University of fb88 at Farmington, former DAFS Commissioner, and co-Chair of the Task Force; Senator Richard Rosen, Chair, Appropriations and Financial Affairs Committee; Senator Dawn Hill, Member, Appropriations and Financial Affairs Committee; Representative Dennis Keschl, Member, Appropriations and Financial Affairs Committee; Representative John Martin, Member, Appropriations and Financial Affairs Committee; Commissioner H. Sawin Millett, Department of Administrative and Financial Services and Chair of the Task Force. The Task Force was first convened on August 11, 2011. Subsequent meetings were held on September 15th, October 6th, October 28th, November 8th and November 28th. In addition to the Task Force members listed above, several representatives from various departments within state government were called upon throughout the process to provide information. Dawna Lopatosky, State Budget Officer, provided direct staff support to the Task Force, with the assistance of Bureau of the Budget staff, throughout the four month long process. Targets On July 11, 2011, spending reduction targets were provided to Executive branch agencies receiving General Fund appropriations. Although Part KKK required savings of $25 million to balance the budget for fiscal year 2012-13, $35 million was used as the basis of the calculation. While the targets were calculated across-the-board excluding debt -3- service, and other required payments, such as payments to the retirement system, they were only intended to be used as a starting point. Because Part KKK only applied to Executive branch agencies Legislative and Judicial branch budgets were removed prior to the distribution of the $35 million target. It was also noted that the grant portion of the General Purpose Aid for Local Schools budget was removed. A listing of the agency targets is included in Appendix A. Agencies were encouraged to look at all possible options for achieving savings, including the elimination of administrative and other functions that are determined to be excessive, redundant and inefficient. They were advised to look at all positions, as well as contracted personnel services, to determine if there were opportunities to eliminate positions and consolidate functions in order to deliver services in a more cost-efficient manner and to work with others to determine if there were overlaps with other state, local or federal programs that would allow for the elimination or consolidation of services. Meetings Summaries Minutes of each of the six Task Force meetings were prepared in draft form by Kay Booker, Administrative Secretary, from the Bureau of the Budget, and presented to the Task Force for review and approval at the next meeting. Copies of these minutes, in their finally accepted form, are posted on the Bureau of the Budget website. Additional Cost Center Reviews At the August 11th meeting of the Task Force, several inter-agency cost centers were identified and reports were later prepared and presented in the following subject areas: Health Insurance, Procurement Contracts, Fleet Management, Information Technology and Energy Savings. A description of each report is contained in the minutes of the meetings, when the reports were presented. Specific savings were booked as a result of the Information Technology report. Cost Savings Proposals More than 450 citizen suggestions of cost savings ideas were received on the public website established for that purpose. Those ideas have been acknowledged, categorized by topic and cost center and referred to the appropriate agency(s) for review and analysis. Regrettably that analysis was not completed in time for Task Force consideration but will be provided to the Committee on Appropriations and Financial Affairs during the upcoming Second Regular Session. -4- Acceptance of Savings Initiatives The Task Force began its review of specific cost savings initiatives on an agency-by-agency schedule starting with their September 15th meeting and continuing right up until the final Task Force meeting on November 28th. A spreadsheet that summarizes each proposed initiative and the final actions taken are included in this report as Appendix B. The sum total of the proposals accepted by the Task Force resulted in General Fund spending reductions of $24,738,535 and additional General Fund undedicated revenue of $424,688 for a total biennial savings of $25,163,223. Conclusion The assignment given to the Task Force was both daunting and difficult given the size of the savings target and the compressed time schedule allotted, but the members conducted their work in a very thorough and professional manner and even the split votes on specific issues were arrived at through civil and courteous deliberation and reasoned decision making. By almost any criterion, the work of the Task Force was a successful effort and the members are to be commended for their contribution to this important budget-balancing exercise. A final draft of legislation to implement the recommendations of the Task Force has been delivered to the Revisor of Statutes and is included in this report as Appendix C. 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