SAGE Commission Streamlined Integrated Strengthened May 19, 2011 - PowerPoint PPT Presentation

SAGE Commission Streamlined Integrated Strengthened May 19, 2011 1

Boards and Commissions May 19, 2011 2

Boards and Commissions (1/6) Background  New York State government is a complex web of over 100 agencies and state authorities, and around 300 boards, commissions and the like  While many of these boards, commissions, etc. serve a useful purpose, others result in a confusing patchwork of antiquated and unused entities  The Commission is reviewing these boards and commissions to see which should be eliminated or merged  Objective: To clear out the “underbrush” of state government 3 3

Boards and Commissions (2/6) Defining the Scope of Initial Effort ~1,000 total entities  Agencies ~100  Major State Authorities  Other State Authorities as recognized by ABO (Authorities Budget Office)  Authority Subsidiaries with independent ~300 In-Scope board or operations  Boards, Commissions, Councils with regulatory, rulemaking or other authority  Advisory Boards created by Statute or Executive Order ~600  Authority subsidiaries with no independent board or operations  Authority Financing Subsidiaries Out-of-Scope  Local IDAs  Boards and Commissions not created by Statute or Executive Order 4

Boards and Commissions (3/6) Criterion for Review • Has it ever been constituted? • Does the reason it was created still exist? • Has it completed its work? • How often does it meet? • Does it overlap or duplicate the efforts of other State entities? • Is a board, commission, or agency necessary to fulfill this function? • Does it need to function independently? • Is it mandated by federal law? 5 5 5

Boards and Commissions (4/6) Examples of Candidates for Elimination or Merger • Barbers Board Inactive 25+ • Statewide Wireless Network Advisory Council • Bottled Water Interagency Workgroup Mission Completed 5+ • Freshwater Wetlands Appeals Board Duplicative 2 • NYS Security or Fire Alarm Installer Active Dialogue 9+ Through Informal Advisory Committee • Funeral Directing Advisory Board Channels • Merge Organic Food Advisory Committee Mergers 9+ with Organic Advisory Task Force TOTAL 50+ 6

Boards and Commissions (5/6) The Authorities Budget Office (ABO) is Recommending Elimination of 166 Local Authorities  ABO has conducted a review of local authorities to identify those that are inactive  166 local authorities have been identified for elimination  ABO has asked SAGE to endorse its recommendations to eliminate these local authorities 7 7 7

Boards and Commissions (6/6) Should New York Adopt a Sunset Provision?  The Texas Sunset Commission reviews each agency and board every 12 years  The SAGE Commission could recommend:  A sunset provision in New York for boards created for a transitory purpose  A regular review process for other entities 8 8 8

Enterprise Services May 19, 2011 9

Enterprise Services (1/10) Background  A centralized shared services model for providing back-office services is the best practice in the private and public sector  Efficiencies from shared services are greatest where standardization is possible and resources are underutilized in a decentralized model Shared Services Finance / Human Capital Information Asset Management Customer Service Procurement Management Technology • Contracting • Payroll • Real Property • Data Centers and • Licensing and Management Disaster Recovery Permitting • Purchasing • Personnel Management • Leasing • Email • Call Centers • Payroll • Benefits • Property • IT Help Desk • Web Services • Accounts Payable Maintenance and and Receivable • Training • Hardware and • Communications Repair Applications • Travel & Expense • Time & • Asset Support Attendance Management 10

Enterprise Services (2/10) 11

Enterprise Services (3/10) Best practice states are using a shared services model  Virginia, Georgia, Ohio, Michigan, North Carolina, and Washington are implementing shared services  For example, Ohio has created a statewide shared services model for managing financial services for its agencies  At full implementation, Ohio expects about $26 million in average annual savings 1 1. Gartner Industry Research, Case Study: Ohio Shared-Service Project Succeeds With Internal Path to Process Efficiency and Cost Savings, August 6, 2010 12

Enterprise Services (4/10) NYS’s back office operations are inefficient  The Cuomo Administration directed the Division of the Budget to benchmark NYS’s back -office operations against best practices  Preliminary results identified great inefficiencies, so the Administration is pursuing transformation efforts in procurement, IT, real estate and customer relations  The Administration is also looking to maximize efficiencies in transaction processing from NYS’s Statewide Financial System (SFS) that is expected to go live in October 2011 13

Enterprise Services (5/10) A NYS Department of Enterprise Services (DoES) could provide all Statewide back-office functions Executive Governance Councils Chamber Department of Enterprise Services Customer Human Financial Technology Procurement Real Estate Relations Resources Operations Statewide Telecom Payroll Facility Web Portal Accounts Payable Procurement Preparation Management Networks Time & Leasing Data Center Call Centers Agency Attendance Accounts Procurement Space Planning & Statewide Receivable Position Creation Support Moves Applications E-Business and Control Management Local Procurement (Licensing, etc.) Training & Budgeting IT Architecture Vendor Fulfillment Support Learning Standards Management (Printing, etc.) Management Shared Talent Pool Design Credit/Debit Cards Vendor Benefits Construction & Quality Assurance Management Management Rehabilitation • Currently at OFT  Currently at OGS  Partially OGS/Partially Agencies • Consolidated Agency Functions  New Functions 14

Enterprise Services (6/10) SAGE and PwC analyzed a possible Business Services Center within a DoES Department of Enterprise Services Executive Chamber Office of the Chief Information Officer (CIO) Commissioner Governance Councils Business Services Center External Services Internal Services Support Support Group Group Customer Relations Project Management Procurement Client Agency Operations Resources Financial Information Technology Real Estate Office(PMO) Human Relationship Mgmt Inter-Agency Billing Level II Support Performance Admin Legal Management Service Delivery Agencies Decision Making Mission- Finance/Accounting Human Resources Procurement Approval specific o Management roles o Management roles o Management roles Functions o Liaison roles Strategy o Liaison roles o Liaison roles o Budgeting o Employee & Labor Relations o Procurement Planning Development o Grants Management o Agency-Specific Training o Requirements definition 15

Enterprise Services (7/10) A Business Services Center in a shared service model could produce large efficiency gains Operational efficiency gains were determined in each function based on a combination of industry benchmark analysis, evaluation of existing and future system capabilities, and agency interviews Savings Function Rationale % • SFS implementation and technology improvements will improve Procurement efficiency Procurement 25% • Procurement processes are less transaction-based than Finance, so the savings will be slightly less • Savings will result from process improvements and centralization Human 15% • Savings are lower than Procurement, Finance, and benchmarks due to Resources the absence of a unified HR platform and timekeeping system • SFS implementation and technology improvements will result in Finance 30% substantial savings realization, consistent with industry benchmarks 16

Enterprise Services (8/10) These efficiencies could drive significant savings Current State Future State Core Support Total Labor Cost + Fringe Core Support Total Labor Cost + Fringe Service Group FTE Staff FTE (49%) FTE Staff FTE (49%) 316 237 196 433 $ 36 million Procurement 261 577 $ 48 million 780 645 1425 $ 117 million HR 917 759 1,676 $ 137 million 465 387 852 $ 73 million Finance 665 552 1,217 $ 104 million 1,482 1,228 2,710 $ 226 million Total 1,898 1,572 3,470 $ 289 million  The State would save an estimated $178 million while reducing FTEs by 760 over a five year period.  An average salary of $83,602 (includes fringe benefits) was used to estimate savings over the 5 year plan  Savings accrue based on a phased implementation schedule  Once an agency has been moved to the Business Services Center, recurring savings are estimated for a period of 5 years until 2016. Agency FTE savings are realized over a period of two years based on the following rate: Year 1 – 65% Savings, Year 2 – 35% Savings. All numbers are rounded to the nearest whole number  Savings totals do not reflect any one-time implementation costs 17