Governor Deval Patrick's Budget Recommendation - House 2 Fiscal Year 2013

Governor's Budget Recommendation FY 2013

Government Accountability & Transparency


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Governor Patrick    FY 2013 Budget Recommendation:
    Issues in Brief

    Deval L. Patrick, Governor
    Timothy P. Murray, Lt. Governor

 

During the past five years, the Patrick-Murray Administration has made the difficult choices needed to maintain the state’s financial health and ability to invest in its future.  As part of this effort, the Administration has looked closely at what it was doing and how it was doing it – and pursued reforms to improve the way it operates and delivers services. 

Improving performance, however, is not just a response to ongoing fiscal challenges.  It is about much more than simply dollars and cents.  Trust in government has declined.  Too many people feel that our democratic institutions are not working.  For that reason, the reforms and investments being made in improving state government are therefore aimed not only at enabling resources to be used more wisely and efficiently, but also to help rebuild trust in government by making it more accountable and transparent to the people it serves.  This Administration considers it a core responsibility to leave a more effective and open state government to future generations.  This commitment is a fundamental element of the social compact between one generation and the next.

Initial Efforts to Improve Performance, Accountability and Transparency

The Patrick-Murray Administration initiated a statewide performance management program to implement its agenda.  The MassGOALS (Massachusetts Government Outcomes to Achieve Long-Term Success) initiative proved an important tool in allowing Governor Patrick to align operations and resources around key priorities and to track the progress of executive departments in achieving these outcomes.  As part of this effort and to comply with legislative mandates, Secretariats, such as the Executive Office of Health and Human Services (EOHHS) and Massachusetts Department of Transportation, also developed their own strategic plans and performance management frameworks. 

Improved performance and coordination of state government activities has also been facilitated by the Administration’s effective management of the funds of the American Reinvestment and Recovery Act (ARRA).  The Act provided over $7 B in grant funding to state agencies.  Effective management of all Massachusetts ARRA funds required the Executive Office of Administration and Finance (ANF) to mobilize and coordinate responsibilities across government through a dedicated program management office. 

Building on these successes, Governor Patrick proposed and the legislature supported the establishment of the Office of Commonwealth, Performance, Accountability and Transparency (CPAT) in the Executive Office of Administration and Finance in the FY 2012 budget. 

The Office of Commonwealth Performance, Accountability and Transparency

CPAT was formed to execute nation-leading strategies for improving performance and transparency, maximizing federal grants, reducing fraud, waste and abuse and informing financial planning by using the latest economic and caseload forecasting tools.  Beyond the progress being made to use performance management noted below, CPAT has had some notable successes during the first six months of the fiscal year.  These include:

  • Enhanced coordination of federal grants – leveraging experience in coordinating ARRA funds to secure and maximize federal dollars and ensure compliance with federal requirements;
  • Public engagement and transparency enhancements – launching the State’s Open Checkbook website in December 2011, which details spending information, including payrolls and pensions;
  • Program Integrity – making permanent the Lt.  Governor’s Task Force on fraud, waste and abuse; creating a new unit within CPAT to support the Task Force and coordinate efforts throughout government, including with other offices such as the Auditor and Attorney General; and
  • Caseload and Economic Forecasting – establishing the legislatively-required Advisory Board; developing a standard process and reporting templates for the caseload forecast updates mandated by legislation; beginning to work with high impact service areas, such as MassHealth, to review and develop caseload forecasting methodology; implementing formal tax revenue forecasts; and applying results into a five-year financial planning model.

The Governor’s Priorities – using performance management to drive success

Alongside proposing the creation of CPAT in his FY 2012 budget recommendation, Governor Patrick set out four priorities for his Administration:

  • Job creation;
  • Closing the educational achievement gap in schools;
  • Containing health care costs; and
  • Reducing youth and urban violence. 

During the past sixth months, CPAT has established a collaborative relationship with the Collins Center at UMASS Boston and worked closely with executive departments to develop strategies to achieve these priorities.  CPAT and Secretariats have taken a cross-agency collaborative approach to developing strategic plans – bringing together stakeholders across state government to develop focused and integrated strategies to address these pressing challenges. 

For example, to support job creation, a comprehensive strategy was developed working across state agencies and with external stakeholders, such as the Economic Development Planning Council, to develop a job creation framework.  The strategy calls for a range of actions including:

  • Improving workforce skills;
  • Aiding innovative sectors of the economy;
  • Nurturing a better business climate by reducing unnecessary regulation; and
  • Building supportive infrastructure to spur regional economic development. 

To support this strategy, targeted investments were identified that could make a difference.  To support job-creating infrastructure, the state’s FY 2013 capital budget will invest more than $3.4 B in capital projects and $94.1 M will be invested in local infrastructure via the MassWorks Infrastructure Program. 

The FY 2013 budget will also support skills and innovation, including:

  • $15 M in funding for the Massachusetts Life Sciences Center; and
  • $10 M in funding to recapitalize the Workforce Competitiveness Trust Fund (WCTF) to support grants for innovation in training and re-employment programs.

Our new strategies to close the educational achievement gap across the public education system from birth through higher education will build on the progress made by the Administration in implementing the landmark Act Relative to the Achievement Gap legislation (signed by Governor Patrick in January 2010).  In addition, these strategies will complement ongoing initiatives such as the implementation of our Quality Rating and Improvement System in early education, our K-12 Race to the Top plan, and our higher education Vision Project. 

Several FY 2013 education proposals are based on one important premise: the Commonwealth cannot close the persistent achievement gap without addressing the impact of poverty and other factors on student engagement, achievement, and success.  The FY 2013 Budget recommendation dedicates an additional $9.9 M of funding for achievement gap priorities in the Commonwealth’s 24 Gateway Cities.  In addition, the Administration will continue to maintain high levels of funding for early education, Chapter 70 aid to our communities and our public institutions of higher education. 

Reducing the cost of health care and health care spending requires a similarly strategic approach so that access is maintained and quality is improved, while we reduce costs.  The Administration’s strategy calls for greater integration and patient-centered care, reform of payment methods to reward outcomes and enhancing consumer engagement.  Highlights of the Administration’s actions to implement this strategy include:

  • Building the foundation for a new payment and delivery system through, for example, payment reform demonstrations with providers like the state’s safety net hospitals and managed care organizations in the MassHealth and Connector Authority’s Commonwealth Care program;
  • Leveraging the state’s purchasing power and maximizing competition in state health care contracts;
  • Strengthening community based long-term care services for the elderly and disabled persons; and
  • Expanding efforts to address fraud, waste and abuse in state health care programs.

To reduce youth violence, the strategy brought together education, public safety, public health and municipal officials to develop a suite of interventions to prevent violence and to address its aftermath.  The strategy calls for offering positive opportunities for youth development, reducing access to firearms for young people and supporting the victims of violence.  The Administration also recognizes that investment is needed and for that reason, Governor Patrick prioritizes $35.5 M in funding for youth development and youth violence prevention programs in his FY 2013 budget recommendation.  This includes funding for the Safe and Successful Youth Initiative (SSY) grant program which supports coordinated intervention strategies for young men at risk of violence in 11 cities across the Commonwealth. 

Going forward, Governor Patrick will track progress in achieving successful outcomes in each of these priorities.  He is committed to measuring the progress toward achieving these goals and using performance management to inform further efforts. 

The Next Phase of CPAT Reforms

The early activities of CPAT have put in place the foundation necessary for success in each area of its responsibility.  The Administration proposes to invest $500,000 in the FY 2013 budget to enable CPAT to continue to drive progress in these areas.  Outcomes will include delivering greater efficiencies, enhancing public engagement, securing additional federal resources and using better evaluation of programs and spending to improve results for the people of the Commonwealth. 

Performance Management

Reforming the way state government operates by instituting performance management requires a long-term approach and leadership across state government.  Governor Patrick is therefore proposing in the FY 2013 budget recommendation the establishment of an office in each Secretariat dedicated to embedding the principles and practices of performance management. Within each Secretariat, these Offices of Performance Management will be required to produce strategic plans for their Secretariats, set goals and measure progress against those goals – working closely with CPAT to develop and execute these plans.  Taken together, the strategic program goals identified by Secretariats will constitute the collective goals of the Administration. 

A similar initiative has been proposed by Senate President Therese Murray in financial reform legislation she authored (S1900) and which the Senate passed last year.  Additionally, two Secretariats, Housing and Economic Development and Transportation, have already been required to create such offices in recent legislation.  The Administration supports these legislative initiatives and believes these innovations should be pursued in all areas of state government. 

Under these plans, CPAT’s performance management unit will have responsibility for the successful implementation of performance management initiatives throughout state government, ensuring that plans are:

  • Aligned with the Governor’s priorities;
  • Focused on results and better outcomes;
  • Based on evidence and regularly measured and evaluated;
  • Linked to resource and budget recommendations; and
  • Informed by engagement with the public. 

CPAT will work with Secretariats to ensure that actions are being undertaken to develop and deliver each plan, reporting to the Secretary of Administration and Finance and the Governor. 

Governor Patrick will sign an Executive Order further detailing the Administration’s plans on performance management later this year.

 

Federal Grants Management

In the next fiscal year, the Federal Grants Unit will:

  • Formally engage Cabinet Secretaries to develop better cross-government coordination of grant applications and rewards;
  • Utilize the outcome measurement regime required to comply with the Federal Financial Accountability and Transparency Act (FFATA) for all grants secured in state government; and
  • Establish a unified grants management technology solution that will enable cross-government coordination of grants.

These efforts will help agencies better identify grant opportunities, ensure effective up front analysis by state agencies, enhance tracking and reporting of the outcomes achieved via grant funding and increase the integration of federal grant activities into the overall administration budget and policy effort. 

 

Transparency

In the next fiscal year, the CPAT Office will:

  • Continue to make enhancements to the state’s Open Checkbook and expand the content included;
  • Complete a comprehensive state-wide plan for the full implementation of the transparency legislation; and
  • Develop plans to incorporate the work of the CPAT Office into a single web portal.

Forecasting and Analysis:

In the next fiscal year, the CPAT Office will:

  • Enhance our analysis and understanding of caseloads in MassHealth and other demand-driven programs;
  • Improve our ability to do policy related cost benefit analysis, allowing us to perform more in-depth policy impact analysis for initiatives in priority areas, such as health care and homelessness; and
  • Respond to the legislature’s demand for improved forecasting and impact analysis. 

To support these initiatives, the FY 2013 Budget recommendation proposes a $100,000 increase, from $150,000 to $250,000, for forecasting and analysis. 


Prepared by the Executive Office for Administration and Finance ·
www.mass.gov/budget/governor
For more information email: contactanf@massmail.state.ma.us (617) 727-2040



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