Foundation greater Opportunity Through Innovative Change

96^ The department identified nine efficiencies in response to a Policy Foundation questionnaire. 1) Records Retention Policy – Through revision of and training on the ADE Records Retention Policy, ADE team members will reduce the unnecessary retention of paper documents and increase the use of electronic storage. This will reduce or eliminate the need for offsite document storage (Estimated savings – $25,000 annually); 2) ADE Unit Relocation – Over the next three years as current leases expire, relocate the offsite units of ADE to the Arch Ford and Lu Hardin buildings (Estimated savings - $200,000 annually); 3) APSCN Upgrade (in partnership with DIS) – upgrade the bandwidth capacity of the Arkansas Public School Computer Network (Potential savings – 40x increase in capacity (5 kbps per user to 200 kbps per use) using current budget level); 4) SBS Print Management Project – Optimize print utilization based on data. Reduce/remove desktop printers and move to centralized printing, scanning, and copying using multi-functional copiers (Estimated savings - $20,000 annually) (Note: This is the third time the print management system has been reviewed in approximately 2 years); 5) Upgrade State Board agenda system – Transition to Boardbook, an online system that provides for public viewing of meeting agenda and supporting documentation. (Known savings - $600 annually); 6) Discontinue old support systems (ATLAS and Teachscape) for educator mentoring and credentialing; utilize functions of BloomBoard, a system currently in use by ADE Office of Educator Effectiveness (Estimated savings - $350,000 annually); 7) Research and Technology Division - Upgrade to eFinance 5.1, which eliminate the need for a Unix server. Eliminate support of video conference technology in coops and replace with ZOOM platform (Estimated savings - $550,000 annually); 8) Public School Accountability Unit – Reduce duplication of monitoring activities, allowing the combination of the Federal and State Monitoring Unit with the Standards Assurance Unit to create the Standards Monitoring Unit (Estimated Savings - $500,000); 9) Professional Licensure and Standards Board – move from MAC to Arch Ford Building (Estimated Savings - $75,000 (rent and security costs)).

97^ http://www.dfa.arkansas.gov/offices/budget/Pages/actualExpenditures.aspx

98^ ADE communication

99^ ADE response to questionnaire. The measure states, "During the 2015-2016 school year, ADE will develop new desk auditing processes/procedures, streamline on-site monitoring processes/procedures, develop new on-site monitoring tools, and develop a consolidated on-site monitoring cycle ...  Prior to the 2016-2017 school year, ADE will provide technical assistance to districts regarding the new desk audit and on-site processes/procedures.  A consolidated four-year cycle for on-site monitoring for the 2016-2017 school year will be posted on the ADE website."

100^ (Florida, 2013) Law authorizes governmental units including school boards to use PPPs to develop a wide range of facilities, including schools. Reason Foundation, Annual Privatization Report 2014, p. 32; (Georgia, 2015) The Georgia General Assembly enacted social infrastructure legislation that allows governmental units including school boards to use PPPs to develop any infrastructure project on government-owned and leased land that serves a public purpose. Reason Foundation, Annual Privatization Report 2015, p. 37

101^ "The Arkansas Department of Emergency Management (ADEM) is Arkansas’ Homeland Security and Preparedness Agency. ADEM serves as the state’s coordination center for the capabilities necessary to prevent, protect against, mitigate the effects of, respond to, and recover from those threats that pose the greatest risk to the security of the Nation. The State’s Emergency Operations Center (SEOC) is housed at ADEM. In a disaster, the SEOC has representatives from various state agencies to ensure that assistance can be given quickly. Disasters are local. They affect us as citizens, our neighbors and our communities. ADEM works with the local governments to make sure that our communities return to normal as soon as possible.” http://www.adem.arkansas.gov/aem/

102^ ADEM identified three efficiencies in its response to a questionnaire: "In 2007 this agency moved from the City of Conway to the newly constructed facility located on Camp Robinson in North Little Rock. At the time of the move we also completed a reorganization to align like programs and functions into meaningful Divisions. Each year we look at the structure of the agency to determine functionality and delivery of services. 1) This past year we identified a change and implemented a move of the Arkansas Response and Coordination Center (a Branch in our Communications Division) to the Response and Recovery Division as the functions of that Branch were more in line with the direction of that Division; 2) We also changed the name of the Communications Division to Communications and Support Division to more clearly identify the role of the Division to our staff. With this newly named Division we created a Strategic Communications Branch that houses programs working directly with 911 centers and the Public Safety Broadband program; 3) Within the past 2 years was also created a Critical Infrastructure Branch which includes the staff from ADEM that supports the State Fusion Center. Through these changes we see a stronger coordination of like programs who also work with other Branches and Divisions to ensure our many programs are not overlapping. This coordination is also important to ensure the few dollars received by the agency are expended to the fullest extent to protect and prepare our state for any event."

103^ http://www.dfa.arkansas.gov/offices/budget/Pages/actualExpenditures.aspx.

104^ ADEM response to questionnaire.

105^ ADEM communication

106^ ADEM response to questionnaire

107^ Ibid.

108^ Reason Foundation, Annual Privatization Report 2014, 2015

109^ ADEQ "is the state's main environmental protection agency, charged with protecting, enhancing, and restoring the environment...”

110^ ADEQ identified eight efficiencies in its response to a questionnaire: 1) The Regulated Waste Program in the Office of Land Resources conducted a lean value stream mapping process evaluation to improve the RCRA Subtitle C permit application process. This pilot project yielded a 46-day reduction in the administrative process for a major RCRA Subtitle C permit renewal; 2) ADEQ reduced the average number of days required to process air permit applications. For Title V permit applications, the Office of Air Quality reduced the average number of processing days by 209 days (34.9%). For Minor Source permit applications, OAQ reduced the average number of days by 139 days (54.5%). OAQ realized these reductions through the concerted efforts of management and staff as well as the utilization of an electronic tracking system; 3) ADEQ’s Complaints application, available for iOS and Android operating systems, allows Arkansans to report environmental complaints in real time using compatible smart phones. The application enables users to specify the type of complaint and to provide a description of the potential violation. Users may also provide the location of complaint including the county. Users may also upload pictures of the subject of the complaint, which will be geo-tagged with GPS coordinates if GPS location services are enabled on the device ...The application sends the complaint information and photos to the appropriate enforcement inspector; 4) By reviewing Department cell phone use and rate plans, ADEQ generated $94,000 in savings through less expensive rate plans and more tailored usage; 5) ADEQ recently began using the online ePortal system, which allows the online submission of permit applications and other forms. The ePortal system saves ADEQ and permittees time, paper, and postage; 6) The Office of Water Quality makes electronic reporting available to facilities required to provide Discharge Monitoring Reports. NetDMR is a Web-based tool that allows National Pollutant Discharge Elimination System permittees to electronically sign and submit DMRs and attachments; 7) ADEQ is reallocating resources to ensure more efficient use of satellite offices, limited resources for sustaining those physical locations, and personnel at those locations. ADEQ is consolidating its Melbourne and Batesville field offices and closing its Jasper field office; 8) ... An ADEQ chemist worked with CLEAResult, an energy consultant ... to replace T-8 fluorescent light bulbs in the laboratory, first floor, and kitchen areas (at HQs) with more efficient light emitting diodes. Entergy reimbursed $10,000 of the $13,000 cost. The LEDs emit significantly more light than the T-8s fluorescent light bulbs; the number of lamps was cut in half. ADEQ should save $6,000 to $8,000 per year."

111^ ADEQ estimates "annual savings of approximately $698,722 which resulted from actions taken to reduce operating cost. From FY15 to end of FY16 there was an estimated payroll savings of approximately $674,000. There is an estimated future annual appropriation savings of approximately $466,953 based on the voluntarily reduction of positions that will take effect FY18."

112^ http://www.dfa.arkansas.gov/offices/budget/Pages/actualExpenditures.aspx

113^ ADEQ reports "adjustments to funding categories were made. Total Operating Expenses also increased during this period due to increased environmental cleanup efforts at contaminated sites."

114^ ADEQ response to questionnaire. ADEQ is undergoing "an extensive reorganization designed to realize numerous internal efficiencies, which include consolidating human and capital resources, increasing inter-divisional cooperation, and generating budgetary savings. The goals of this restructuring include streamlining work processes across multiple divisions and making the Department even more responsive to those it serves. ADEQ will continue to evaluate its organizational structure to seek opportunities to operate more efficiently and effectively." ADEQ communication: Beginning July 1, "ADEQ’s Office of Law and Policy developed a dedicated Efficiency Office with a motto of “What Is Measured Is Managed”. The initiative reflects the mission of the agency to be good stewards of the environment while also being good stewards of tax-payers’ dollars. Earlier this year ADEQ completed its first Satisfaction Survey, reaching out to Arkansans by posting a link to the survey on our website, utilizing Twitter, Facebook, and other media. Responses were solicited from all associations and groups interacting with ADEQ as well as visitors to our facility. A total of 423 surveys were received; 113 completed by Legislators and Constitutional Officers. We will use the feedback received – both positive and negative – to improve efficiency, effectiveness, and communications."

115^ "... Beginning in FY18, July 1, 2017." ADEQ communication

116^ ADEQ response to questionnaire

117^ ADEQ response to questionnaire

118^ Reason Foundation, Annual Privatization Report 2014, 2015

119^ DFA provided spending data that showed operational expenses increased 4% in the period under review (see Chart).

120^ DFA identified two efficiencies in its response to a questionnaire: "At any point in time, the Department of Finance and Administration has any number of projects underway whose common goal is increased organizational efficiency. These include new applications needed to improve the services provided by the agency or improve the security of data collected as a result of those services. Two recent examples include 1) the Arkansas Integrated Revenue System (AIRS) which was first introduced in September 2012 and has recently completed rollout. The intent of the project was increased efficiencies across the State and we believe this goal has been achieved. Similarly, DFA-OIS is currently working to roll out 2) the Employee Self Service system, with the goal of allowing individuals to perform routine requirements of state employment – such as entering working time or checking on pay stubs – from their phones. This will eliminate the need for additional staff and other resources which are currently necessary to meet these operational requirements."

121^ http://www.dfa.arkansas.gov/offices/budget/Pages/actualExpenditures.aspx

122^ DFA response to questionnaire.

123^ DFA Financial Management Guide, p. 6

124^ DFA communication

125^ DFA response to questionnaire

126^ DFA response to questionnaire

127^ Florida started a pilot program to privatize driver’s license renewals in two locations, with the possibility of expanding the initiative statewide. Reason Foundation, Annual Privatization Report 2014, pp. 52-53

128^ DFA's Total Operating Expenditures approached $1 billion in FY 2015, trailing only the departments of Human Services ($7,129,762,956) and Education ($3,457,588,679).

129^ A separate report commissioned by the Policy Foundation analyzed DFA's core processes, as well as opportunities for efficiency that could catalyze statewide improvements. Nine recommendations emerged from the report: "1) Develop a statewide strategic plan to align budgets and operations; 2) Develop a centralized risk management function to appropriately identify and manage risk, especially procurement risk; 3) Re-evaluate organizational alignment and functions; 4) Transform the talent of the State through a human resources strategic plan; 5) Modernize the State's compensation and benefits; 6) Conduct deep process analysis to optimize accounting and tax assessment/collection processes necessary to execute the State's mission; 7) Automate processes to allow the State and customers to use self-service options; 8) Enhance Information Systems governance and develop a centralized shared services and infrastructure architecture plan; and 9) Enhance innovation and collaboration, focused on the use of digital technology to increase efficiency."

130^ The problem predates the current administration. As of November 26, 2014, DFA estimated the net accounts receivable balance at $287.5 million. As of May 31, 2016, DFA estimated the balance at $310.4 million using the following chart:
(Gross) Total systems account receivable balance: $1,423,985,860.47

(Less) Non-filer estimated assessments: $623,038,919.86

(Adjusted) Adjusted accounts receivable balance: $800,946,940.61

(Less) Not ready for collections $123,282,811.27

(Less) Legal hearings $17,000,410.25

(Less) Inactive $350,204,847.87

(Net) Net Accounts Receivable Balance $310,458,871.22

131^ “Mission Statement-To protect and improve the health and well-being of all Arkansans.“ Vision Statement-Optimal health for all Arkansans to achieve maximum personal, economic and social impact." “What is public health? One definition -from a 1988 report by the Institute of Medicine’s ‘The Future of Public Health’ – is this: ‘Public health is the science and the art of preventing disease, prolonging life, and organizing community efforts to do the following: keep the environment clean, control communicable infections, educate individuals in personal hygiene (like hand washing for example), organize medical and nursing services for the early diagnosis and treatment of disease, and develop the social machinery to ensure everyone a healthy standard of living.’” “To say that another way, public health is everything the Arkansas Department of Health (ADH) does to protect and improve the health and well-being of all Arkansans – more than 100 services provided statewide by public health professionals to assure that your water is safe, your children have their immunizations, your restaurants are safe and your birth certificate is correct – to name just a few.”

132^ Arkansas Department of Health Strategic Map (CY 2016-2919): http://www.healthy.arkansas.gov/aboutADH/Documents/StrategicPlan2016.pdf

Tobacco: http://www.healthy.arkansas.gov/programsServices/tobaccoprevent/Documents/StratPlan/StratPlan2014-2019.pdf

Rural Health: http://www.healthy.arkansas.gov/programsServices/hometownHealth/ORHPC/Documents/RuralHealthPlan.pdf

133^ The department identified five efficiencies in response to a questionnaire. 1) "The Department operates the largest In Home Services Agency in the State and competes with the private sector. Because of sustainability concerns, the Department retained a consultant to review the operations and make recommendations. After approval from the Governor to proceed, the Department is currently completing a transition process to transfer the Agency to the private sector. After this process is complete, the Department will have 2000 fewer employees (600 regular and 1400 contract employees); 2) Collaboration with UAMS to use telemedicine for high risk pregnancies; 3) Using Video Directly Observed Therapy App on a Smart Phone for tuberculosis patients to verify compliance with medication instead of having a ADH Disease Intervention Specialist go in person to observe; 4) WIC kiosks to allow clients to verify educational requirements instead of scheduling appointments; and 5) The redesign of website to make it more citizen/user centric as opposed to replicating organizational structure." For additional information on Item No. 1 see: "In-home state-run care unit now sold: Health staff gets portion of $39M." Arkansas Democrat-Gazette, August 2, 2016, 1B

134^ http://www.dfa.arkansas.gov/offices/budget/Pages/actualExpenditures.aspx

135^ ADH response to questionnaire

136^ ADH communication

137^ ADH response to questionnaire

138^ Ibid.

139^ Reason Foundation, Annual Privatization Report 2014, 2015

140^ "The mission of the Arkansas Department of Higher Education is to advocate for higher education; to promote a coordinated system of higher education in the state; and to assist each of the publicly and locally supported institutions of higher education in the state in improving the delivery of higher education services to the citizens of Arkansas." http://www.adhe.edu/about-adhe/about-the-agency/

141^ The department's Master Plan is posted at: http://www.adhe.edu/about-adhe/master-plan/

142^ Higher Education Department grants, a separate line item, grew more than CPI in the same period, expanding from $46,071,201 (2009) to $52,719,325 (2015). The General Revenue portion increased from $34,661,199 (2009) to $40,017,466 (2015).

143^ The department identified four efficiencies in its response to a questionnaire: 1) " Over the last year, we reviewed all positions in the department. Several positions have been eliminated, some will be eliminated when retirements occur and others have been changed to match operating priorities; 2) We have eliminated one outsourced contract and will end a second contract by July 2016. Outsourced duties will be absorbed by existing employees; 3) One of three fleet vehicles is being eliminated; 4) Increasing automated processes to eliminate repetitive manual tasks. For example, data entry of student transcript information."

144^ http://www.dfa.arkansas.gov/offices/budget/Pages/actualExpenditures.aspx

145^ ADHE response to questionnaire.

146^ ADHE communication

147^ The department notes "performance and efficiency are different concepts. Efficiency: We seek to deliver these results within budgetary restraints. From actual spending in FY15 to projected spending for FY17, we expect a budget reduction of no less than 6%. We continue to add services to students and to institutions while reducing operating expenses. Several statewide initiatives have been added over the past 6-8 months without adding costs."

148^ ADHE, Closing The Gap 2020: A Master Plan For Higher Education In Arkansas, http://www.adhe.edu/institutions/master-plan/

The U.S. Department of Education reported in 2012 that Arkansas recorded a 28.6% attainment rate in 2010.

http://www.ed.gov/news/press-releases/new-state-state-college-attainment-numbers-show-progress-toward-2020-goal

149^ ADHE response to questionnaire

150^ Reason Foundation, Annual Privatization Report 2014, 2015

151^ Central Michigan was the first public university in the U.S. to authorize a charter school, and currently authorizes 62 schools. http://www.thecenterforcharters.org/

152^ Labor is among the handful of Arkansas departments that includes the word 'efficiency' in its mission statement: “The Arkansas Department of Labor was given the responsibility of enforcing the labor laws of the state in 1913. Today, the mission of the Arkansas Department of Labor is to foster, promote, and develop the health, safety and welfare of the wage earners of Arkansas by providing services and enforcing laws to improve working conditions and enhance their opportunities for safe and profitable employment. Since 1991 the Department has increased in both productivity and efficiency as we have continuously endeavored to improve processes and public services. We look forward to serving the workforce of Arkansas even more effectively in the future.”

153^ ADL identified five efficiencies in its response to a questionnaire: 1) "The agency’s finance/personnel division has been reorganized to implement best practices and a more comprehensive process for receiving, receipting and deposit of funds collected by the agency; 2) Accounts receivable procedures have been developed and implemented to provide more effective/efficient service to constituents, service providers, vendors and employees; 3) The Information and Technology team executed an initiative to purchase Laserfiche modules that will improve efficiency by using less paper and reducing costs. The implementation of this document imaging technology has increased agency-wide efficiency in the processing of field reports, filing of legal documents, processing of wage claims and employee time reports. 4) Field staff assigned outside of the Central Arkansas area now work from home allowing the agency to consolidate office space resulting in a savings of $60,000 annually for rental costs. 5) A portion of the first year of savings was used to improve technology for field staff with one-time purchases. This will result in ADL have savings each year on office space. All field staff persons have been assigned electronic devices (i.e. smart phones, and laptops) to increase efficiency in making reports and accessing administrative tools needed for daily operations."

154^ http://www.dfa.arkansas.gov/offices/budget/Pages/actualExpenditures.aspx

155^ ADL response to questionnaire

156^ ADL communication

157^ Reason Foundation, Annual Privatization Report 2014, 2015

158^ Amended to include reference after questionnaire.

159^ The department identified four efficiencies in response to a questionnaire. They are listed as follows: 1) Putting a greater emphasis on public-private partnerships to stretch taxpayer dollars. In Tourism, that means "value added" media through our Arkansas broadcast and print partners and through the deals secured through our ad agency CJRW. In Parks, that means finding private entities that could assist in building and maintaining our trails system, among other possibilities. 2) Creating a culture in which the concept of Efficiency is applied in everything we do, be it saving money on paper/printing or reconsidering some of our hiring practices. 3) Moving to consolidate our biggest vendor contracts with our advertising agency (CJRW) and our web designer (Aristotle) into one contract when both are up for renewal after the coming FY. Ultimately, this will result in one vendor handling marketing/advertising and web design, which, given the way advertising and marketing are done in 2016, simply makes sense. It will be more efficient from a work-flow standpoint and it should result in significant savings when the contract is put up for bid.

4) Taking an A-to-Z look at the possible need to restructure, especially on the Parks side, which consumes the vast majority of ADPT budget. The idea is to restructure in a way that makes better use of our resources, including employees, better serves our customers, and provides the best use of taxpayer dollars."

160^ The department identified $105,000 from "unfilled positions" but noted some of these savings have "gone to increase salaries for staff whose responsibilities have increased."

161^ The department generates revenues.

162^ http://www.dfa.arkansas.gov/offices/budget/Pages/actualExpenditures.aspx

163^ Reason Foundation, Annual Privatization Report 2015, p. 40

164^ Shedding defines the process whereby a public sector unit sells its assets or services which are then undertaken by one or more nonprofit or private sector units. Public-private partnerships are another option. The Reason Foundation, a California think tank reports budget pressures forced the Golden State to "become the first state in the modern era" to enter into public-private partnerships for five state parks in 2012.

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