Though Not Fully Implemented, Carcieri Initiative Cuts Structural Deficit; Still Waiting on Legislature to Implement Many Big Audit Initiatives
The Big Audit instituted nearly three years ago by Governor Donald L. Carcieri will save Rhode Island taxpayers over $140 million through the current fiscal year (FY 2006), which ends on June 30, 2006, according to testimony provided to the House Finance Committee today.
Officials from the Rhode Island Department of Administration (DOA) also told the committee that the Big Audit – through the Fiscal Fitness Program – is projected to save an additional $124 million in the coming fiscal year (FY 2007). All told, the Big Audit is expected to produce more than $500 million in savings through FY 2010 (or $253 million if you exclude the Governor’s pension reform initiative, which grew out of the Big Audit). “I am pleased to report that Governor Carcieri’s Big Audit has been a huge success,” DOA Executive Director Brian Stern said. “Through the Fiscal Fitness program, we expect to save Rhode Island taxpayers $267 million through the end of the next fiscal year, and over $500 million through FY 2010. Those savings have significantly reduced the state’s structural deficit. By streamlining state government, by instituting smarter purchasing practices, and by negotiating better contracts for state services, we have improved the way we deliver state services to the public while lowering the costs of those services to the taxpayers.” Stern and Dan Majcher, the Director of Fiscal Fitness Program, highlighted a number of examples of the program’s success. For instance, the General Assembly approved legislation last year that had been submitted by the Governor to enable the state to conduct “reverse auctions” as a method of purchasing goods and services. DOA recently conducted the first of those reverse auctions, and saved taxpayers approximately $86,000 in the course of purchasing 35 new vehicles.
They also thanked the General Assembly for approving legislation that was proposed by the Governor that requires Rhode Islanders to settle their tax liabilities with the state before they can receive new licenses or license renewals. In FY 2005, this Fiscal Fitness legislation saved Rhode Island taxpayers $8 million, and is projected to save another $6 million in FY 2006 and $4 million in FY 2007.
The DOA officials noted that smarter purchasing methods proposed by the Fiscal Fitness Program have saved $2.8 million on office supplies and equipment while smarter contract negotiations have saved over $15 million for health care, dental and vision services. Stern and Majcher also noted that the General Assembly has declined in the past to approve a number of Fiscal Fitness initiatives that were submitted by the Governor. In particular, the DOA officials emphasized the importance of the creation of a Secretariat of Health and Human Services, which is projected to save $4.2 million for the consolidation, and several million in related ideas. Governor Carcieri recently enacted parts of the proposed law change through an executive order creating the Executive Office of Health and Human Services (EOHHS). In April 2003, Governor Carcieri initiated the Fiscal Fitness program, which was designed to carry out a Big Audit of state government. The purpose of the Big Audit was to promote government efficiency through streamlined government operations and improved delivery of state government services for citizens. The program was also intended to produce savings for Rhode Island taxpayers.
A team of 60 state employees from across state government examined state government and developed hundreds of ideas designed to make the state operate in a more business-like fashion. The Fiscal Fitness process focused on organization, staffing, workflow, processes, management, spending and budgeting. Fiscal Fitness recommendations focused on reducing costs, capturing lost revenues, consolidating back-office and redundant functions, streamlining agencies, combining similar divisions and reducing levels of upper and mid-level managers.