Press Release - Savings & Efficiency Report
OFFICE OF GOV. BILL RITTER, JR.
FOR IMMEDIATE RELEASE
WEDNESDAY, JUNE 25, 2008
CONTACT
Evan Dreyer, 720.350.8370, evan.dreyer@state.co.us
GOV. RITTER PRESENTS SAVINGS & EFFICIENCY REPORT
Yearlong G.E.M. review identifies $200M in cost savings and other benefits
Gov. Bill Ritter today presented a Year 1 report from his Government Efficiency and Management (GEM) Performance Review that contains 90 recommendations to improve customer service and reap $205 million in savings and benefits over the next five years.
"During my campaign and over the past 18 months, I pledged to provide a smarter and more accountable state government," Gov. Ritter said. "I committed to undertake a performance review that would find savings, enhance revenues and deliver more effective services, because Colorado taxpayers deserve nothing less than the very best value for every tax dollar."
"This report is filled with recommendations that will allow us to manage Colorado state government more efficiently and effectively," Gov. Ritter added, joined by state Reps. Bernie Buescher and Al White, who serve on the legislature's Joint Budget Committee, and members of the state employee team that guided the GEM Review.
Recommendations include big dollar "home runs" and common sense "base hits" that will:
- Transform inefficient operations & stretch state dollars further;
- Break down "silos" so departments can work together to improve services and reduce costs;
- Apply "best practices" from other states and the private sector;
- Leverage new and additional federal dollars; and
- Apply technology to improve customer service.
Many of the "home run" recommendations will yield significant five-year savings:
- Detect, deter and reduce Medicaid fraud by using sophisticated fraud detection technology -- $47.5 million in savings.
- Improve Colorado's procurement system to reduce the cost of goods and services -- $12.4 million in savings.
- Increase energy efficiency of state buildings with new equipment, operations and a systematic application of energy performance contracting -- $19.7 million in savings.
- Reduce the size of the state vehicle fleet -- $2.2 million in savings.
Other recommendations will result in additional revenue collections:
- Enhance the Department of Revenue's capacity to audit out-of-state businesses -- $36.9 million in additional collections.
And many of the recommendations are practical, common-sense proposals:
- Eliminate five extra header/footer pages for mainframe reports printed at the Department of Revenue, saving 148 cartons of paper every year -- $20,800 in savings.
- Reduce printing and postage costs by automating documents for board meetings and using electronic communications rather than mailing paper documents -- $1 million in savings.
- Add second and third shifts to some state maintenance garages to reduce the need for more costly outsourced repairs -- $1.2 million.
The GEM Review kicked off a year ago with a statewide employee survey. Nearly 12,000 employees responded, and many of those ideas are included in the final recommendations. A team from Public Works Inc. led the review.
"This was a common sense, pragmatic and specific performance review," Gov. Ritter said. "It addresses issues, process and challenges unique to Colorado, and provides pragmatic solutions that don't cost a fortune to implement. These recommendations represent a significant step forward for state government, for our employees, and for our customers -- the taxpaying public."
Gov. Ritter also noted that the GEM Review is just one way his administration is doing things differently. Dozens of other customer-service improvements and money-saving ideas have already been implemented, including: greater transparency by posting all department budgets online and providing an annual State Taxpayer Accountability Report; centralizing Information Technology services; addressing the state's high rate of prison recidivism; and replacing hundreds of state vehicles with higher efficiency hybrid or flex-fuel cars and trucks.
"Improving the way we operate state government will be an ongoing priority," Gov. Ritter said. "My budget office is working on a new plan to provide incentives to state agencies to save money and find efficiencies. Agencies would be allowed to keep part of the savings they identify and, with approval from me and the legislature, propose ways to invest those savings if they can show their ideas will result in additional savings or improved public service."
Click here to view roughly 50 cost-saving and other efficiency proposals identified through the yearlong GEM Review, within which are 91 specific recommendations.