Weekly Column: Finding Efficiencies

May 2, 2007

Perhaps the top theme of the 123rd Legislative Session is how government can deliver services most effectively. The Brookings Institution report, Charting Maine’s Future, said, “Maine should scrutinize its state and local government system to locate savings that can be applied to other purposes.”

The Report has been described as “roadmap for change” in Maine, but some roads to change are often bumpier than others. While the Brookings Report outlines Maine’s potential, it fails to point out to policy makers where to find those savings. Lawmakers and Governor Baldacci, nonetheless, have stepped up to find efficiencies and savings throughout state government.

For example, prior to 2005, many state agencies were using a hodge-podge approach to solving their information technology needs. Some departments had their own IT staff, while others relied on support from other departments. By centralizing most IT jobs within the Office of Information Technology, taxpayers have saved over $2.1 million in the 2006 fiscal year. With a centralized approach to providing services for e-mail, printing, phones, and database services, Maine taxpayers are getting the same output from government for less money.

Another area where we are seeing improved value is from the Department of Administrative and Financial Affairs. DAFS has recently saved the state $2.3 million by centralizing accounting services and other administrative services for state government. DAFS’s mandate was to break the silo structure of state government. Policy leaders discovered that savings could be achieved on a large scale by incorporating a statewide view of management of finances, human resources, and payroll. This approach also creates greater transparency and accountability with taxpayer dollars. Under this new “service center” model of putting these services under one roof, DAFS says it has saved taxpayers more than $2.3 million.

As the Senate Chair of the Office of Program Evaluation and Government Accountability (OPEGA), my committee is searching for even more efficiencies in state government. One area we are looking at right now is the delivery of contracted services. The state contracts out millions of dollars for a variety of services. One company we are looking at receives $20 million in state contracts, but is virtually unaccountable for its actions once it cashes its check.

Just as there are standards as to how you build your home, the Legislature and Governor are looking at ways to standardize the rate system for services provided by contracted agencies for services such as child care and behavioral development. It is surprising to many in the Legislature, including myself, that rates vary so much for the same services from contractor to contractor.

The state is also rethinking how it delivers health care services to MaineCare recipients. Maine State Employees receive health care through a managed care system or HMO, while MaineCare recipients do not. Many believe implementing a managed care system could provide greater savings and maintain the quality of care needed for those recipients.

As we look for efficiencies at the state level, we are also looking for the same at the local level. Take for example the effort to reduce administrative costs in K-12 Education. The Governor, select lawmakers, the Education Committee, and even the Appropriations Committee have all come forward with plans to strip out some of administrative overhead that is taking away dollars away from the students. Developing an education consolidation plan that works is proving to be one of the top challenges given the lobbying efforts by many who do not want change. Compromise and determination, however, are part of our democratic process and the commitment remains strong to achieve a balanced plan.

Finally, I would like to add that since 2002, the number of state employees in state government has been reduced by nearly 700 positions. While state government is shrinking in size, the value and quality of the services remains high.

Libby Mitchell is the Senate Majority Leader in the Maine Senate. She represents the communities of Augusta, Vassalboro, China, Oakland, and Sidney for District 24.