Commonwealth of Massachusetts
The Governor's Budget Recommendation
Executive Office for Administration and Finance
- Line Item Information
- Executive Office for Administration and Finance
- Fiscal Policy Division
- Information Technologies Division
- Human Resources Division
- Operational Services Division
- Division of Hearings and Dispute Resolution
- Department of Revenue
- Department of Licensing and Regulation
- Board of Library Commissioners
- George Fingold State Library
Executive Office for Administration and Finance
The newly structured Executive Office for Administration and Finance will manage the fiscal affairs of the Commonwealth; provide administrative services to state agencies; oversee the collection of tax revenues; coordinate the state's relationships with local governments; and administer the licensing and regulating activities of state government.
The Executive Office will contain three principal functional areas: the Office of the Secretary with its administrative services divisions, the Department of Revenue, and the Department of Licensing and Regulation. Also within the Secretariat will be the Board of Library Commissioners and the George Fingold State Library.
In Fiscal Year 1997, the Executive Office for Administration and Finance will have the following objectives:
- delivering central services to state agencies in a more efficient manner so that state agencies can focus more of their resources on providing services and less on administration; and
- making state government more responsive and accessible by creating a single entity for many state licensing and permitting functions and an entity for tax collection and business payments, so that citizens and businesses no longer have to navigate through many state agencies to comply with government requirements.
Through its four administrative services divisions, the Human Resources Division, the Operational Services Division, the Information Technologies Division, and the Fiscal Policy Division, the Office of the Secretary will provide line agencies with centralized expertise and processing in the non-program areas of information technology, fiscal policy, procurement, and human resources. These administrative services divisions will free line agencies to focus their energy on program development and delivering quality services to the Commonwealth by streamlining regulations; relinquishing traditional micro-management of agency actions; merging like agencies and functions; maximizing use of information technology; and establishing measurable performance outcomes.
Also included in the Office of the Secretary will be the Division of Hearings and Dispute Resolution, which is comprised of the Commonwealth's administrative law appeal agencies. The new Division will foster the timely and cost-effective disposition of administrative disputes. In addition, the administrative functions within the Office of the Secretary will be consolidated into a central business office to streamline those functions.
The Department of Revenue will continue to enforce the Commonwealth's tax, child support enforcement, and municipal finance laws. The Department will also administer the Commonwealth's employment security function through the new Division of Unemployment Compensation, which is currently the Department of Employment and Training. By bringing together the Commonwealth's tax administration and employment security functions, the Department of Revenue will be able to achieve administrative and operational efficiencies in the collection of revenue and related information. In addition, the Department will merge the Division of Local Services with the community development programs, currently administered by the Executive Office of Communities and Development, to form the Division of Municipal Services. This new division will serve as a single point of contact for local governments doing business with the Commonwealth and acknowledge the important relationship between community development and the financial health of local governments.
The new Department of Licensing and Regulation will consolidate activities from the 21 agencies that currently promulgate and enforce state regulations; issue licenses and registrations; and adjudicate appeals. Under the direction of a Chief Regulatory Officer, the Department will oversee the dismantling of the current excess of unproductive state rules and regulations, and will review all newly proposed regulations for agencies within the Department before they are enacted. Consolidation of existing agencies will create a customer friendly organization where individuals and organizations can get most of their licensing needs addressed at one time. Finally, this Department will complete the introduction of the non-commercial lifetime driver's license and automobile registration.
The Executive Office of Administration and Finance, in coordination with the Office of the Governor, will assume responsibility for the Commonwealth's economic strategy and policy development programs currently administered by the Executive Office of Economic Affairs. The Secretary of Administration and Finance will ensure that the Massachusetts Office of Business Development, as part of the newly formed quasi-public Economic Development Bank, continues to offer assistance to companies within or who may relocate to the Commonwealth. International trade promotion as well as all domestic and international tourism services, including film promotion, currently delivered by the Executive Office of Economic Affairs, will be performed by the Massachusetts Port Authority.
Finally, many of the housing and community finance programs currently administered by the Executive Office of Communities and Development will be delivered by the Department of Revenue's Division of Municipal Services and the Massachusetts Housing Finance Agency (with funding at the Executive Office). The Division of Municipal Services will administer state and federally-funded programs that promote economic growth and urban revitalization. These programs will mesh well with the Division's expertise in managing local economic affairs. The Massachusetts Housing Finance Agency will continue to develop and maintain affordable housing through tax-credits and other financial incentives for developers and support local housing authorities with subsidies.
The Executive Office for Administration and Finance will employ 5,095 full-time equivalents (FTEs) of which 2,448 will work at the Department of Revenue, 1,620 at the Department of Licensing and Regulation, and 1,027 in the administrative services agencies.
Budget Recommendations
The Fiscal Year 1997 recommendation will enable the agencies within the reorganized Secretariat to deliver the same or improved levels of service in a more cost-effective manner.
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Fiscal Policy Division
The new Fiscal Policy Division will be responsible for providing financial planning and financial management services to state government. The Division will ensure that the Commonwealth maintains overall fiscal balance, recommend the prioritization of spending to the Weld/Cellucci Administration, and ensure that state agencies use the resources appropriated to them in a manner consistent with the goals of the Administration and legislative requirements.
The Division's primary customers are the Administration and the citizens of the Commonwealth who benefit from government's ability to provide a wide array of services, while maintaining the State's ongoing good fiscal health.
The Division will achieve its mission by:
- managing the Commonwealth's finances to ensure fiscal balance;
- developing the Governor's annual budget recommendations and other fiscal legislation;
- managing overall capital budgeting and debt management/capital financing; and
- overseeing the Commonwealth's relationship with Wall Street.
In Fiscal Year 1997, the Fiscal Policy Division will:
- streamline the processing of the limited number of MMARS transactions for which it is responsible, and delegate certain approvals to the secretariat or agency level;
- integrate, more fully into Division operations, the oversight and analysis of federal and capital spending and revenue; and
- coordinate Executive Branch budget staff to ensure cooperation and adherence to policies and procedures.
These changes are intended to improve the quality of the information on which decisions are based, and to emphasize that the Commonwealth is one homogeneous organization rather than a constellation of smaller organizations. In addition, these changes will enable agencies to conduct business more efficiently, while providing the Division with the tools to make improvements at the agency-level as required.
Budget Recommendations
The Fiscal Year 1997 funding recommendation for the Fiscal Policy Division represents a small decrease from Fiscal Year 1996 levels. Funded within the Division is a capital budgeting unit, and reserve accounts for: the State Revolving Fund program; the operating subsidy and contract assistance for the Massachusetts Convention Center Authority; the transfer of housing programs to the Massachusetts Housing Finance Agency; the transfers of economic affairs programs to the Massachusetts Port Authority and the Government Land Bank; the revenue optimization bonus programs; and the universal health insurance costs attributable to cities and towns.
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Information Technologies Division
The new Information Technologies Division, with its two primary units, the Office of Central Systems Operations and the Systems Planning Bureau, will provide centralized computing as well as network resources and services to state agencies. Through its central management of computing resources, the Division will allow state agencies to better focus on their programmatic missions.
The Office of Central Systems Operations will manage much of the Commonwealth's mainframe computer capacity, the Data Warehouse, the wide-area data communications network, and the Commonwealth's mailing operation. The Office will also be responsible for applications development and local-area network management services to state agencies.
The Systems Planning Bureau will coordinate and oversee systems investment activities for all state agencies. The Bureau will set technical standards, assist with procurement, and develop strategic plans for future systems development.
In Fiscal Year 1997 the Information Technologies Division will achieve its mission by pursuing the following objectives:
- leveraging economies of scale in the purchase and management of technological resources, for example, providing agencies with an improved centrex (departmental phone system) contract, to achieve the most competitive pricing for both services and equipment;
- increasing the ability of major state entities to exchange data through the Massachusetts Access to Government Network (MAGNet) project to improve state operations and save money; and
- providing technical services, coordination, and oversight to maximize the beneficial impact to state agencies of the Information Technology Bond Bill II currently before the Legislature.
Through its coordination of systems plans and standards, the Division will enable state agencies to improve how they work together; exchange data; and deliver services. By centrally managing computing resources and services, the Division will allow state agencies to focus on their programmatic missions, and leverage economies of scale in purchasing and resource management.
Budget Recommendations
The amount recommended for Fiscal Year 1997 will enable the Information Technologies Division to achieve its mission and objectives. This recommendation also includes $994,090 of funding for the Data Warehouse.
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Human Resources Division
The new Division will provide human resource services to state agencies and local governmental entities. The Division will also provide services to the Commonwealth's veterans, and will be responsible for auditing the public pension systems in the Commonwealth.
The Division will pursue its mission by:
- providing technical assistance to state agencies for position classification, compensation, and job performance evaluation;
- managing public employee health insurance benefits;
- developing and conducting training programs for state and municipal employees;
- negotiating contracts with the state employees' collective bargaining units; and
- developing and reviewing affirmative action policies within the Executive Branch.
In Fiscal Year 1997, the Division will have the following objectives:
- create a comprehensive, modern human resource system which promotes flexibility, accountability, and control in a streamlined and efficient manner;
- provide effective, 'customer friendly' service to state and municipal entities; and
- continue the process of changing the primary mission of the Commonwealth's personnel function from administering civil service tests to providing human resource services (classification, compensation, performance evaluation, and training).
The newly integrated Division will create a more uniform and cost effective approach to managing human resources in the Commonwealth. The Human Resources Division represents a consolidation of the Department of Personnel Administration, the State Office of Affirmative Action, the Office of Employee Relations, the Workers' Compensation Litigation Unit, the Group Insurance Commission, and the Division of Public Employee Retirement Administration. The new Human Resources Division will act as a single point of contact for state agencies and employees, and coordinate the management and delivery of all human resources services.
The Office of Veterans' Services, which will be a separate entity within the Human Resources Division, administers the Commonwealth's veterans' benefits program; manages transitional housing units, homeless shelters, and outreach services for veterans; and disperses annuity payments to disabled veterans.
Budget Recommendations
The amount recommended for Fiscal Year 1997 will enable the Division to achieve its missions and the objectives outlined above.
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Operational Services
The new Operational Services Division will manage, facilitate, and audit the processes by which state agencies acquire goods and services. The Operational Services Division will serve state agencies through two areas: procurement management and central services. The procurement management unit will procure goods and services, including, purchased services; real property leasing; tax exempt leased purchases (TELP); and lease/purchase of personal property. The central services unit will oversee fleet management; printing and graphic operations; and surplus personal property disposition.
The focus of this new division is results-oriented customer service. The customers include all state agencies, citizens, and businesses of the Commonwealth.
In Fiscal Year 1997, the Operational Services Division will achieve its mission by pursuing the following objectives:
- providing electronic access to Commonwealth contracts, specifications, and other documents to other state agencies, local and quasi-public entities, vendors, and the public;
- establishing a new commodity code classification structure to reduce the number of contracts that are managed and provide flexibility to accommodate changes to agencies' procurement needs;
- streamlining the procurement processes through the elimination of regulations and unnecessary Executive Orders and Administrative Bulletins, and the utilization of technology;
- consolidating printing operations throughout the Commonwealth; and
- providing for the timely occupancy of leased office space through a competitive procurement process.
The Division will provide education and training to department staff on the policies, procedures, procurement planning, and management functions that govern the procurement process. Other state agencies will have the opportunity to utilize specific expertise in the Division's central office for training, support services, and technical consultation.
The Division will assume the responsibility of overseeing the tax exempt lease purchases for the state agencies, currently served by the Office of Management Information Systems. The Division will also assume the responsibility for leasing office space, currently done by the Division of Capital Planning and Operations. These services are closely related to the Operational Services Division's purchasing functions and, therefore, are consolidated within the Division.
The consolidation of printing and graphic services will result in savings by requiring less operational staff and more efficiently utilizing expensive equipment.
Budget Recommendations
The amount recommended for the Division includes $450,000 to fund the real property leasing functions.
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Division of Hearings and Dispute Resolution
The new Division of Hearings and Dispute Resolution will provide fair and timely resolution of administrative disputes. The division will resolve disputes that involve state employees, municipalities, labor organizations, private companies, state agencies, and private citizens.
The new Division will consist of four distinct, but related, hearings units and a self-supporting Office of Conciliation and Dispute Resolution. The Division, while part of the Executive Office for Administration and Finance for administrative reasons, will function as an independent entity and will not report to the Secretary of Administration and Finance.
The four hearing units will be the:
- Office of Hearings, a consolidation of the current Appellate Tax Board and the Division of Administrative Law Appeals, which will hear disputes regarding state and local taxes, and provide independent review of certain proposed state actions;
- Massachusetts Commission Against Discrimination, which will investigate civil rights violations;
- Office of Industrial Accidents, which will adjudicate workers' compensation cases; and
- Labor Relations Commission, which will administer and enforce the Commonwealth's collective bargaining laws.
The Office of Conciliation and Dispute Resolution will incorporate the Massachusetts Office of Dispute Resolution, the Joint Labor Management Committee, and the Board of Conciliation and Arbitration. The Office, whose functions are currently funded by state appropriations, will operate as an enterprise fund from fees generated through charges made to those receiving their services.
In Fiscal Year 1997, the Division of Hearings and Dispute Resolution will pursue the following objectives:
- promote the sharing of best practices among state hearing units;
- make recommendations for administrative and procedural improvements that will result in the more timely resolution of disputes; and
- provide easier access to the system, including community outreach and education, to interested parties.
Budget Recommendations
The amount recommended will enable the Division of Hearings and Dispute Resolution to reduce current backlogs, purchase technology, and explore less costly methods of dispute resolution.
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Department of Revenue
The Department of Revenue will enforce the tax, child support enforcement, and municipal finance laws of the Commonwealth. The Department will also collect employment taxes, perform unemployment security functions, and administer state and federally-funded programs that promote economic growth and urban revitalization.
The Department will serve both individual and corporate taxpayers, custodial and non-custodial parents and their children, employers and their current and former employees, and cities and towns.
In Fiscal Year 1997, the Department will consist of four divisions: Tax Administration, Unemployment Compensation, Child Support Enforcement, and Municipal Services. The Department will continue to expand the automation of business processes to increase productivity and the cost effectiveness of its services, and to further downsize the Department's workforce. The Department will also integrate the employment security and community development functions currently performed by the Department of Employment and Training and the Executive Office of Communities and Development into existing departmental operations.
The Tax Administration Division administers the Commonwealth's tax system, collecting over $12 billion a year. The Division emphasizes tax compliance and recently has invested heavily in technology to automate tax return processing and detect fraud and non-compliance. Fiscal Year 1997 objectives include:
- achieving an average processing time per tax return of less than 20 days;
- issuing refund checks within four days for returns received via the telefile program; and
- receiving 50,000 tax returns from tax practitioners via the electronic filing method.
The new Division of Unemployment Compensation, whose functions are currently performed by the Department of Employment and Training in the Executive Office of Economic Affairs, will be the Commonwealth's employment security entity. By merging the functions performed by the Department of Employment and Training into the Department of Revenue, the Commonwealth will create a single entity that will collect the Commonwealth's tax and employment information and revenue. This consolidation will create significant opportunities to achieve procedural, administrative, and technological efficiencies. In addition, by establishing a single point of contact, businesses will be able to pay their taxes and economic security payments without having to deal with multiple state agencies.
The Child Support Enforcement Division manages the Commonwealth's child support enforcement program. For custodial and non-custodial parents and their children, the Division is committed to decreasing welfare dependency; enforcing new, tougher child support enforcement laws enacted by the Legislature; and improving customer service. The Department has developed a child support enforcement program which has become a national model. In Fiscal Year 1997, the Child Support Enforcement Division's objectives will include:
- establishing 15,000 child support orders for non-custodial parents;
- achieving total child support collections of $277 million; and
- securing legal paternity for 22,000 children born out of wedlock.
The new Division of Municipal Services consolidates the Department of Revenue's Division of Local Services and the Executive Office of Communities and Development's community development programs. The Division will streamline similar and complementary functions of the two agencies and provide those services in a unified and more cost-effective manner. This merger recognizes the importance of local governments in delivering services to citizens of the Commonwealth and maximizes the Commonwealth's ability to positively impact service delivery. In addition, this unification recognizes the intrinsic relationship between community development and the fiscal health of local government.
The new Division of Municipal Services will deliver effective regulatory oversight of local government financial activities; provide a wide range of technical assistance and other services to municipal officials; and administer state and federally-funded programs that promote economic growth and urban revitalization. In Fiscal Year 1997, the Division of Municipal Services will:
- provide 'one-stop' services to cities and towns, including the assignment of a 'community coordinator' to each region of the state to coordinate service delivery and act as a liaison to other state agencies;
- provide technical and financial assistance to 315 communities for infrastructure improvements, public facility improvements, abandoned buildings demolitions, and septic system replacements; and
- move from a three year to a five year certification of property values.
Budget Recommendations
The amount recommended for Fiscal Year 1997 will enable the Department to achieve its mission and the objectives outlined above.
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Department of Licensing and Regulation
The new Department of Licensing and Regulation will promulgate and enforce state regulations, issue most state licenses and registrations, and adjudicate licensee and registrant appeals. Currently, 21 state agencies administer these functions. The Weld/Cellucci Administration believes that when correctly imposed, licensure requirements protect the public safety and ensure quality professional services for consumers. Thus, under the direction of a Chief Regulatory Officer, this new Department will streamline and reduce state regulations based on recommendations from professional boards, special commissions, and consumers. The Department will be organized into six units: the Office of the Commissioner (Chief Regulatory Officer), Division of Licensing, Division of Banking and Loan Agencies, Division of Insurance, Public Utilities Commission, and Community Antenna Television Commission.
The Chief Regulatory Officer (Commissioner) will, acting on the advice of a policy and standards unit within the Commissioner's Office, review proposed regulations before they are enacted, and develop recommendations to simplify and streamline state procedures. In addition to a policy unit, the Office of Commissioner will house a legal unit, information technology planning, and general administration services for the new Department. During Fiscal Year 1997, the Commissioner will continue to review recommendations to eliminate regulations, a process that will begin this fiscal year.
The Division of Licensing will issue all personal licenses; register and title all motor vehicles, trailers, boats, and all-terrain vehicles; and perform necessary permitting and inspections of certain facilities, service providers, and vehicles. Consolidation of existing licensing and regulatory agencies will allow the Division of Licensing to offer multiple services at a single point, reduced fees, and faster service. For example, during Fiscal Year 1997, the Division of Licensing will modify systems to enable a person replacing a lost driver's license by phone or at a branch office also to inquire about the status of his or her professional license application. Full implementation of this 15 agency consolidation will create a truly customer responsive one-stop licensing organization.
The Division of Licensing will continue to implement the lifetime driver's license and automobile registration as non-commercial licenses and registrations expire. Personal automobile registrations and licenses will be renewed automatically, contingent upon a safe driver record and payment of outstanding tickets and excise taxes. These initiatives will save taxpayers about 2.5 million transactions and about $100 million annually without reducing the Commonwealth's ability to revoke a driver's license for motor vehicle violations.
Finally, during Fiscal Year 1997, the Division of Licensing will seek to re-deploy state police troopers now conducting driver road tests by revamping the state's outdated process for issuing non-commercial licenses. A small unit of state police will, however, remain assigned to the Department of Licensing and Regulation to assist with enforcement of license exam standards, alcohol consumption laws, and other important enforcement functions of the Department.
The Division of Banks and Loan Agencies will charter, license, and supervise banks, credit unions, mortgage lenders, sales finance organizations, small loan companies, collection agencies, and other related financial organizations. The Division of Insurance will propose insurance rates for private passenger motor vehicles, homeowners, commercial vehicles, MEDEX, workers' compensation, and medical malpractice. The Chief Regulatory Officer will work during Fiscal Year 1997 to achieve as much administrative consolidation and programmatic coordination between these divisions as possible.
The Public Utilities Commission will oversee the following industries: electric, gas, water and telecommunications. This responsibility will include establishing policies, proposing rates and regulations, and adjudicating disputes. The Community Antenna Television Commission will regulate cable television rates in approximately 300 communities and monitor cable operators to ensure compliance with consumer protection laws as well as other state and federal regulations. During Fiscal Year 1997, the Chief Regulatory Officer will work to coordinate the priorities of the Public Utilities and Community Antenna Television Commissions in recognition of the common ground they share.
By the end of Fiscal Year 1998, the Department will aim to fully integrate its information systems, co-locate former agencies, and eliminate or modify all outdated and non-essential regulations.
The new Department of Licensing and Regulation will employ, directly or though contract, 1,934 people, 98 fewer than would have been necessary under the current 21 agency structure. Functions now performed by Consumer Affairs, the Registry of Motor Vehicles, Merit Rating Board, Department of Public Safety, along with many commissions and boards will be transferred to this new Department.
Budget Recommendations
The amount recommended for Fiscal Year 1997 is $103.6 million, about $5.9 million less than would have been needed to provide these services without this reorganization.
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Board of Library Commissioners
The Board of Library Commissioners will encourage the maintenance and development of library services within the Commonwealth, and strive to provide every resident with full and equal access to library information resources. The Board of Library Commissioners will provide technical assistance and financial support to the Commonwealth's 2,500 libraries.
The Board will achieve its mission by:
- maintaining the Commonwealth's free public library system;
- promoting resource sharing among libraries and the utilization of electronic information technologies; and
- providing specialized library services to the Commonwealth's blind and physically handicapped residents.
In Fiscal Year 1997, The Board of Library Commissioners will pursue the following objectives:
- continue implementation of the 'Strategic Plan for the Future of Library Services in Massachusetts,' which strengthens library services by increasing resource sharing; and
- support the use of electronic information technologies by completing a three-year initiative of providing every public library with access to the Internet, and a statewide electronic catalog of library materials.
In Fiscal Year 1997, provisional capital grant awards will be made for public library construction projects throughout the Commonwealth. To date, 84 projects have been initiated.
Budget Recommendations
The amount recommended for Fiscal Year 1997 will enable the Board of Library Commissioners to achieve its mission and the objectives outlined above.
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George Fingold State Library
The George Fingold State Library is a government and public affairs research library located in the State House. It was established to meet the information and research needs of the Executive and Legislative Branches of state government and the general public. As the official depository for Massachusetts agency publications, it is required to collect, maintain, and make available all state agency publications.
In Fiscal Year 1997, the Library will pursue the following objectives:
- improve accessibility to information through automation of the card catalog; and
- make available all state agency publications to the citizens of the Commonwealth.
Budget Recommendations
The amount recommended for the Library will provide the funding necessary for continuing the process of automating the card catalog, purchasing and maintaining library resources, and making information available to state agencies through the wide-area network.
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