FY09 House 2 Budget Recommendation:
Issues in Brief
Deval L. Patrick, Governor
Timothy P. Murray, Lt. Governor
Beginning in August of 2007, the Executive Office for Administration and Finance (ANF) met with its agencies on a bi-weekly basis to develop proposals to improve the efficiency of state government. Implementation of these good government initiatives will result in cost savings and improve the effectiveness of state government.
|Small Business Program Study||Operation Services Division||1775-0100||study will be conducted with existing funds||strengthening small businesses|
|Improved Information Technology Oversight||Information Technology Division||1790-0100||$1.2M Realignment||savings from improved coordination and oversight|
|Facility Maintenance Reform*||Facility Maintenance Study||1599-0026||$200,000||savings from improved coordination|
|Facility Maintenance Reform*||Maintenance Commission||Section 30||savings from improved coordination|
|Workers Compensation Collaboration||Human Resources Division||1750-0100||study will be conducted with existing funds||savings from identifying best practices|
|Facilitating Online Transactions||Online Transaction Activity||1599-0025||$1M Retained Revenue||improved customer service|
|Commonwealth Online Procurement System||Commonwealth Online Procurement System||1775-0102||$541,000||ensures that state procurements will be made online|
|Reducing Admin Costs||Office of State Comptroller||1000-0001||pilot will continue with existing funds||savings from bill consolidation|
Strengthening small businesses is vital for ensuring a healthy economy. To improve the small business environment in the state, the Governor has requested that the Operational Services Division (OSD) study and design a small business program. The purpose of the program is to provide an economic boost to the Commonwealth by increasing the value and number of state contracts awarded to small businesses. The program will help to ensure that small businesses remain competitive and continue to provide job opportunities for residents of the Commonwealth. Restructuring the state's procurement process is an efficient mechanism for supporting local small businesses. OSD will report on its research and implementation plan on September 30, 2008.
The Governor's budget proposes to better align the funding sources for the Information Technology Division (ITD). As a result of the realignment, ITDs main administrative account will increase by $1.2M. The shift will allow ITD to improve its oversight of information technology (IT) operations across the state. Greater oversight and coordination in IT purchases will lead to cost savings. ITD will closely examine telecommunications systems and software procurement since improved management of these areas will result in significant costs savings for the Commonwealth.
The Human Resources Division (HRD) in collaboration with the Health and Human Services Division, The Department of Corrections, the Department of Revenue, and the Executive Office of Transportation have convened a task force to examine workers' compensation best practices.
The purpose of the task force is to identify and implement standards that protect state employees, minimize costs of injured workers, identify areas of duplication of work, and to further leverage technology to reduce administrative costs. Cost savings generated would allow for the reinvestment in preventative measures such as a creation of a workers' compensation risk management program.
One barrier to increased utilization of the internet is transactions costs. The Governor's budget includes a $1M retained revenue account to aid agencies in paying for online processing fees. Individuals regularly make transactions over the internet and citizen demand for online payments has increased. People and businesses prefer the convenience of making payments online rather then mailing in a check or going to a department location. Moving transactions online is also beneficial for the Commonwealth as it will be able to more accurately collect and process data. The Governor's Budget continues to build the necessary infrastructure to allow people to interact with the Commonwealth online.
The Comptrollers Office (OSC) will be expanding initiatives that take advantage of existing technologies to achieve efficiencies. For example, OSC will increasing the use of its successful procurement credit card program, which saves administrative and accounting time because only one bill would be required to pay for multiple purchases.
The Governor's budget invests $540K in the Commonwealth's online procurement system (Comm-PASS). The investment ensures that businesses will continue to have the opportunity to bid for state contracts online. Comm-PASS provides public access to all interested parties at no cost . Furthermore, Comm-PASS promotes fair and open competition by providing a single point of contact for procurement in Massachusetts. Buyers can post opportunities and vendors can currently search over 2,500 contracts for free.
Prepared by the Executive Office for Administration and Finance • Rooms 373 & 272 • State House
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