Streamlining Panel: State Programs, contracts cost millions

Members of the Commission on Streamlining Government told legislators that most agencies were slow in providing information on programs and contracts that cost the state millions of dollars a year.

The streamlining commission completed its work late last year. Lawmakers are supposed to use the panel’s recommendations as an aid in dealing with a state budget shortfall that is expected to top $3 billion over the next two years.

House Speaker Pro Tem Karen Peterson, D-New Orleans, said she feels ill prepared, given the commission’s struggle to get information about contracts and programs.

Other lawmakers expressed concerns about the 238 recommendations that the commission produced.

The recommendations include:

• A 2 percent across-the-board budget cut.
• Eventually dissolving the Louisiana Citizens Property Insurance Corp., which is a state-run insurer of last resort.
• Requiring the public to pay fees to cover the full cost of providing state services.
• Tinkering with the state retirement system.

State Rep. Rosalind Jones, D-Monroe, said she is finding it difficult to identify recommendations that will help the state with its immediate budget problems.

Jones pointed to a suggestion about changing the structure of the state retirement system and asked how it would work.

Donahue said he did not know.

“I don’t have a crystal ball. I have the same question … I don’t know how it would work,” he admitted. He said the idea was to make the recommendation to encourage the state to explore the issue.

Chairman: Streamlining panel's 238 suggestions won't finish job

The chairman of a government cost-cutting panel defended the group's work Monday; even as he acknowledged that it won't provide a full solution to Louisiana's projected $1.3 billion state budget shortfall.

Sen. Jack Donahue, R-Covington, said he hopes the Legislature takes the lead in implementing key recommendations from the Commission on Streamlining Government.

The 10-member panel was created by the Legislature to suggest ways to downsize and reorganize the state's bureaucracy at a time when Louisiana faces years of anticipated budget shortfalls due to a slowing economy, tax cuts and a loss of federal health-care financing.

Among other things, the group is recommending a 2 percent, across-the-board cut to state agencies, transforming some charity hospitals into outpatient clinics, furloughing all state workers four days per year, reducing the state's workforce by 5 percent a year over the next three years and transforming the Medicaid program into a managed-care system to control costs.

Streamlining Commission Endorses Defined Contribution Plan for New Employees by Robyn Ekings

The Commission on Streamlining Government today voted to endorse a plan that would require new employees of Louisiana's four largest public employee retirement systems to enter a defined contribution retirement plan instead of the current defined benefit plan. The issue has been the subject of a study requested by House Speaker Jim Tucker. Supporters cite a multi billion dollar accrued debt for the systems as one reason to make the shift to a defined contribution plan.

"I happen to think that for all future employees, the advantages outweight the disadvantages." said State Treasurer John Kennedy, "It also eliminates the political tisk of the legislature adding benefits without funding them." Retirement system officials have pointed out that the move will not reduce the current debt of the systems, and have asked state leaders to set aside money that will pay down the debt, which has increased in large part because enough money was not set aside in the systems' early years to fund promised benefits.

The defined benefit plan provides a guaranteed lifetime payment for workers who have contributed to the system.

The Streamlining Commission approved the recommendation without comment in a 9-1 vote.

The recommendations of the panel will be used by lawmakers in the spring to craft a state budget.

Panel suggests cost cuts

Shrink the number of state-owned cars. Seek private companies to provide the food at state prisons. Reduce the number of managers at the Department of Social Services. Work with other states on joint purchase and service agreements to save money.

These are the first recommendations to be made officially by a select panel set to advise lawmakers on ways to make state government more efficient.

Some of the recommendations were small, like asking Social Services to hire a private company to do its printing, rather than doing it in-house. Others were more sweeping, like trying to privatize some of the state-run institutions for the developmentally disabled and consolidate others.

However, the Commission on Streamlining Government rejected or delayed many of the suggestions made by state Treasurer John Kennedy.

The Louisiana Legislature set up the commission to compile ways to cut costs in state government. The state is grappling with a nearly $1 billion budget shortfall in the fiscal year that starts July 1.

The commission’s recommendations — which are due at the end of the year — will go to Gov. Bobby Jindal and legislators.

Streamlining commission accepts first recommendations

The Commission on Streamlining Government accepted the first list of recommendations to make Louisiana government more efficient and less costly.

Among the suggestions are proposals to reduce the number of state employees and the number of state vehicles; plans to increase the employee-to-management ratio in the Department of Social Service; efforts to consolidate and/or outsource certain state services and operations in the areas of social services, mental health, public health units and accounts receivables across state agencies.

The next step is to allow time for the public to comment on the proposals. Citizens can view the full list of accepted recommendations at the Streamlining Government Commission Web site.

State Streamlining Commission hears from State Workers

State workers faced off with members of the Commission on Streamlining Government in a packed Alexandria City Council chamber Tuesday evening.

Many state workers predicted that privatizing state services to save money will put them in the unemployment line.

Most were forced to leave their protest signs outside the meeting room. Instead of holding signs, they vocalized their concerns, rising one by one to object to proposals to privatize more state services.

The commission is traveling around the state to get the public’s comments on efforts to trim state government expenses.

Many said that state officials are unlikely to make hard decisions, such as cutting management rather than lower paid workers.

State Sen. Jack Donahue, R-Mandeville, and the commission’s chairman, said many times during the 90-minute meeting that the state is facing a $1 billion shortfall in the budget year that starts July 1.

Panel: Put colleges under Regents board

Officials studying ways to cut costs in state government are recycling an old idea of paring the number of boards that oversee higher education.

An advisory group for the Commission on Streamlining Government recommended Monday that all public college systems be placed under the jurisdiction of the ouisiana Board of Regents.

State Treasurer John Kennedy said the state does not have too many universities but instead has too many higher education boards that perpetuate duplication of ervices.

Kennedy's suggestion for eliminating management boards was one of five prospects to be presented to the Commission on Streamlining Government to consider. If the overall group agrees, the proposals would be submitted to the Legislature.

Eliminating the management boards created in the 1974 constitution would not be easy. Roemer and former Gov. Mike Foster tried to pass constitutional amendments to do it and failed.

The panel also agreed with Kennedy's proposal to push state officials to find a way to ollect the outstanding $1.7 billion owed to the state in accounts receivable. Of that, $1.1 billion is more than 180 days overdue.

He also got approval of a plan calling for eliminating 5,000 state jobs a year for the next three years. Kennedy said it could be accomplished by not filling vacant positions and 20 percent of the savings could be put into "a pool" to compensate employees who have to take on others' jobs.