Foundation greater Opportunity Through Innovative Change

165^ "Mission: The Arkansas Department of Veterans Affairs (ADVA) serves Arkansas Veterans, and their eligible dependents, through advocacy and education to access state and federal benefits, high-quality long-term nursing care and burial honors." http://www.veterans.arkansas.gov/about-us

166^ The department has developed a strategic plan but it is not posted online.

167^ The department identified 12 efficiencies in its response to a questionnaire: 1) A strategic plan to ensure "we are focusing our resources and efforts toward the needs of Veterans in alignment with our legislative mandate. We worked in collaboration with internal and external stakeholders and are currently measuring our performance against the plan and related operational goals;" 2) Reallocation "of existing agency positions to areas of greatest need, through comprehensive needs analysis, in alignment with our strategic plan;" 3) Utilization of "existing resources in innovative ways and empowering counties to contribute to the effective delivery of services to Veterans" to meet increased demand. Nine regional ADVA Veterans service offices (Fayetteville, Mountain Home, Fort Smith, Russellville, Jonesboro, Forrest City, Hope, Monticello and North Little Rock) were created. Previously, all ADVA VSOs were stationed at Ft. Roots in North Little Rock. We utilized donated funds to establish regional offices and leased a small amount of space in (primarily) DWS offices at low cost;" 4) Establishment of "a formal training program to train and accredit county Veterans’ service officers located ... in order to improve counties’ ability to address Veterans’ needs, (and) improve consistency of service delivery ... improving the quality of services provided to Arkansas Veterans;" 5) Creation of "a new agency website using donated funds to increase the effectiveness of the outreach function. http://veterans.arkansas.gov/ 6) Increased "agency financial reporting efficiency through the creation of semi-automated reports, also increasing financial transparency by publishing key financial information to staff on a daily basis with only a few keystrokes;" 7) Creation of "a semi-automated travel approval process with automated workflow, to increase oversight and ensure effective controls over travel spending;" 8) Implementation of "new fiscal processes, procedures and controls in order to mitigate risks and improve the agency’s fiscal performance;" 9) A complete fiscal turnaround at the State Veterans Home at Fayetteville. "In FY14, the home recognized a net loss of $1.06M. In FY15, the home recognized $916K net income. The home has positive cash flow averaging $80K per month; 10) Capture of key performance metrics through the Dashboard Initiative; 11) Early stage implementation of Electronic Health Record systems in FY17 to "drive significant operational efficiencies, offer better insight into resident health status, improve information quality and greatly reduce the risk of errors and omissions in care delivery;" 12) Elimination of 7 agency positions at the State Veterans Home at Fayetteville (via) public-private partnerships for delivery of maintenance, grounds keeping, housekeeping and laundry services while in-sourcing the food service - in order to improve the quality of food provided to residents in our care." Accomplished within the existing budget.

168^ http://www.dfa.arkansas.gov/offices/budget/Pages/actualExpenditures.aspx Total expenditures declined from 2014 to 2015.

169^ ADVA response to questionnaire.

170^ ADVA communication: This policy was "accomplished in part by partnering with the Department of Workforce Services and other public entities for low-priced office space; and reassigning other agency positions to this function."

171^ ADVA response to questionnaire

172^ Ibid.

173^ Reason Foundation, Annual Privatization Report 2014

174^ The National Council for Public-Private Partnerships defines a public-private partnership (P3) as "a contractual arrangement between a public agency (federal, state or local) and a private sector entity. Through this agreement, the skills and assets of each sector (public and private) are shared in delivering a service or facility for the use of the general public. In addition to the sharing of resources, each party shares in the risks and rewards potential in the delivery of the service and/or facility." The Reason Foundation has published extensively on the subject in areas including corrections and transportation infrastructure.

175^ DWS Vision: To strengthen the economic well-being of all Arkansans and their communities. Mission: To enable Arkansas' workforce to compete in the global economy by linking a comprehensive array of services for employers and job seekers.

176^ DWS identified seven efficiencies in its response to a questionnaire: 1) "(UI) The Unemployment Insurance program recently implemented the Claims Processing Hot Line. The purpose of the hot line is to better leverage UI staff in the local offices through the use of a virtual call center. Implementation of the hot line has allowed DWS to reduce UI staff in the field through attrition by approximately 30 full-time equivalent positions. Estimated savings: $1.5 million; 2) (Legal) Legal began a comprehensive effort in 2015 to review all agreements in the agency prior to Departmental approval, which involves systematic approvals by agency departments. The FIRE Unit implemented a wage response program to improve employer responses to investigations in 2016 designed to increase the response rate, as well as increase the number of investigations without increasing personnel; 3) (FMAS) In July 2016, DWS will be utilizing a new software package that will enable the agency to house data and create reports in a faster, more efficient manner; 4) (TANF) (Stewardship of Public Resources) Effective Feb. 1, 2014, Arkansas placed restrictions on Point-Of-Sale (POS) devices, prohibiting the use of EBT card cash benefit transactions at inappropriate locations such as liquor and tobacco stores, casinos, gambling establishments and establishments that provide adult entertainment. These restrictions were required per Section 4004 of the Middle Class Tax Relief and Job Creation Act of 2012. Efforts are underway to also restrict ATM transactions occurring at these locations. Cardholders who attempt EBT transactions at these restricted locations will have their transactions blocked; 5) (Drug Testing) The Arkansas Legislature enacted a law requiring suspicion-based drug testing for applicants and recipients of Temporary Assistance to Needy Families (TANF). ADWS will implement the suspicion based drug testing by April 1, 2016. Those who test positive will receive substance abuse treatment and employment skills training. By testing those who are suspected of using illegal controlled substances and providing treatment, TANF will assure cash assistance is used for basic needs to care for a child in the home, not on drug use. 6) (Fraud Prevention) During state fiscal years 2012 -2014, fraud prevention and detection program was developed for the TEA program; and 7) (EA) ADWS has been working for the last year to implement the Workforce Innovation and Opportunity Act (WIOA), which will better coordinate services to both employers and jobseekers that are provided from thirteen workforce programs operated in three state agencies in the state."

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

178^ DWS response to questionnaire

179^ DWS communication, September 12, 2016. "On 1/31/15, we had 780 full time employees, as of 9/8/15, we employee 734."

180^ Reason Foundation, Annual Privatization Report 2014, 2015

181^ The Economic Development Commission lists 'Fiscal Responsibility' as a "core value." The commission's website states, "We are stewards of our citizens’ money and time." http://www.arkansasedc.com/about-us

182^ The commission identified seven efficiencies in its response to a questionnaire: 1) The merger of the Science and Technology Authority and Rural Services with AEDC has presented the state with an opportunity to increase operational efficiency of all three agencies through integration and restructuring. AEDC is developing strategies to reach this goal that are in line with its core values of teamwork and fiscal responsibility; 2) The strategy AEDC has recently implemented is that of promoting and maintaining professional staff willing to work beyond the scope of current duties, and offering market-competitive salaries to staff who will find creative ways to exceed expectations and deliver results. Utilizing attrition and recent retirements, AEDC is opting to leave positions vacant and redistribute those job responsibilities to existing staff. This is exemplified by our agency’s consolidation of both divisions and personnel. Divisions have decreased from 19 to 13, and personnel has dropped from 112 at FY15 year-end to a staff level of 98 today while maintaining an authorized position level of 136 over that time; 3) Personnel: AEDC will request that all three salary sections in its Appropriations Act for FY17 be merged into a single section, allowing the Agency to cost share certain positions whose KSAs allow for utilization across multiple divisions. Elimination of fifteen total positions (13 budgeted, all General Revenue) identified by the Agency’s Executive Team as duplicative or no longer necessary. Type II Transfer of Rural Services and Science and Tech Authority provided positions that overlapped several already part of AEDC’s FY15 allocation. Potential Annual Salary and Match savings of $645,000; 4) (Operations) Fleet Management – The Agency now has thirty-nine vehicles in its current fleet. The Agency’s Executive Team recommends a reduction of four vehicles, providing a potential annual savings of $11,000; 5) Space Consolidation – Currently occupies space on separate floors of 900 West Capitol. With our personnel strategy, the Agency expects to be able to consolidate all staff on a single floor, providing a potential annual savings of $150,000; 6) Mining staff for more efficiency opportunities – AEDC prides itself on its professional and knowledgeable staff. The Executive Team is encouraging that staff to come up with their own ideas for efficiencies that could prove helpful state-wide. Recent examples include: Changing service schedule on vehicles from 3,000 miles to 5,000 miles, more in tune with newer oil lives; 7) Request special language to allow for Promotional Items purchase by AEDC rather than by its 3^rd party marketers exclusively, giving the Agency more control over purchases and pricing.

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

184^ AEDC response to questionnaire.

185^ AEDC communication. "Two additional positions have been identified to the Office of Personnel Management for possible elimination in FY 2018, bringing the final total to 17."

186^ AEDC response to questionnaire

187^ Ibid.

188^ Reason Foundation, Annual Privatization Report 2014, 2015

189^ “The purpose of the State Insurance Department is to serve and protect the public interest by the equitable enforcement of the state’s laws and regulations affecting the insurance industry. The primary mission of the State Insurance Department shall be consumer protection through insurer solvency and market conduct regulation, and fraud prosecution and deterrence.”

190^ The department identified seven efficiencies in response to a questionnaire:

• 
  Moving Public Employee Claims Division from neighboring building back to AID main facility (est. savings of $80K in rent);
  
• 
  Conducting internal review of all divisions to identify redundant work functions, attendance and performance issues;
  
• 
  Rewriting and upgrading procedure manual for Criminal Investigation Division; creating similar changes in other divisions;
  
• 
  Absorbing duties of vacant administrative positions and other positions with existing employees (currently approximately 20 vacant positions within AID where duties have been absorbed by active employees);
  
• 
  Creating an online venue for pre-licensing education for insurance agents and producers (will allow more potential agents to prepare for license exam);
  
• 
  Updating premium tax collection/payment system to “Opt-Ins.” This system is offered through NAIC and is more efficient than outdated software and does not cost AID to operate.
  

191^ AID 2015 Annual Report

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

193^ Under this rate review program, health insurers seeking to increase Arkansas insurance premium rates must now provide consumers with easy to understand information about the reasons for significant rate increases and post justification for those increases on the HIRRD website. The department's response to the questionnaire notes about "$8.5 million in federal grants."

194^ AID communication

195^ Reason Foundation, Annual Privatization Report 2014, 2015

196^ "To provide trained, ready professionals and units responsive to the needs of the nation, state and community."

197^ Efficiency is discussed in the Arkansas National Guard's annual report.

198^ The department identified one efficiency in response to a questionnaire. 1) "(ARNG) has developed a Strategic Energy Plan (STEP) to steer the organization toward continual improvement in our efforts to reduce consumption and minimize our environmental footprint. Specific strategies and milestones have been established to measure the progress of the plan."

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

200^ ARNG response to questionnaire

201^ ARNG response to questionnaire

202^ Reason Foundation, Annual Privatization Report 2014, 2015

203^ The department identified 53 efficiencies in response to a questionnaire, the largest of any respondent. Central Office: " During 2015, the Central Office has undergone an assessment of the staff roles in each agency and is in the process of centralizing and consolidating duplicate positions within the agencies. For FYE 2017, DAH relinquished 8 full time positions. DAH is in the process of constructing a new energy and space efficient facility to house the three resource agencies and the central office. The offices will move when the current lease expires in August, 2016. DAH is transitioning to DIS as an IT service provider and is studying various uses of technology to streamline processes such as grants management, HR and other document management, etc." Arkansas Arts Council: "AAC is transitioning its grant review process from in-person meetings to meetings by conference call and online through Go-To-Meeting or other online meeting providers. Arkansas Historic Preservation Program (edited for space): The Section 106 Program is digitizing data to make it available online. Developing a Project Identification Form that could be used to document negative finding results from cultural surveys, which would reduce review time. Digitize previously reviewed project locations to decrease time needed for staff member reviews. Travel to sites is coordinated internally to maximize route and travel times. Project reviews are completed within a week. Amended grant agreements to require more agency oversight of the initiation phase of projects to ensure they are designed and implemented in a way that produces a useful, quality product. Short, local trainings with preservation commissions instead of central sessions to ensure commissioners are trained, and resources are not being spent to train the same core group. Established online resources that are shared with local contacts and commissioners for commonly used administrative forms and instructions and reference and training materials. Using Google Forms and Survey Monkey for reporting, data gathering, and training registration purposes. Other efficiencies are noted at the end of this section.

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

205^ "Through attrition and with some departmental reorganization, DAH was able to eliminate 8 full time positions.  These positions were vacated by the employees on a voluntary basis (retirement, etc.)."  DAH estimates $362,217 in savings (salaries, FICA, APERS, insurance). DAH communication

206^ The State Archives were added to DAH on July 1, according to a department communication. Measures are: 1) Cubic feet new acquisitions; 2) Cubic feet of materials processed; 3) # of finding aids added to online search; 4) # of titles and reels filmed; 5) # of patrons served onsite; 6) # of patrons served virtually; 7) # of outreach activities in which staff engages (presentations, meetings, conferences); 8) # of public reached through agency outreach activities; 9) # of items in digital collections and site traffic.

207^ Reason Foundation, Annual Privatization Report 2014, 2015

208^ Additional efficiencies are listed at the start of this section. Natural Heritage Commission: "Establish short term goals across agency sections to improve work focus every 6 months. Periodic review of agency operating procedures to ensure efficiency. Moved the majority of our field staff to an alternative work schedule so that they can work longer days in the field, thus using the same amount of fuel and travel time to accomplish a day’s work. Permitted remote access to the network for exempt employees so that they can access email and working files while out of the office. Broadened our selection of approved land management contractors to better utilize the strengths and locations of each contractor. Created a formal volunteer program and internship program so that we can use outside labor (at no cost) to enhance our abilities to complete tasks in a timely manner while building constituent support. Increased accessibility to electronic records to improve search time. Maintain initiatives to enhance positive work place morale to increase staff productivity and retention. Establishing an “adopt-a-natural-area” program to accomplish more stewardship at natural areas and to increase our constituency. Coordinating a stronger relationship with Arkansas Master Naturalists to foster more stewardship and research work with highly trained volunteers. Creating new cooperatives with partners to share resources and enhance land management work. Ex. New Cooperative agreements being created with Arkansas Game and Fish Commission, Hot Springs Village, and local fishing clubs, to remove cedar trees from glades and prairies on 14 Natural Areas to be sunk for fish habitat in nearby lakes. Working to align management responsibilities with appropriate agency sections to improve administrative timeliness and efficiency. Requested and received an exemption from DFA-Marketing and Redistribution to administer our ecological timber harvesting bids in-house, thus streamlining the process and reducing duplication of effort.. Testing mobile tablets to allow field staff to record, access, share, and upload data, photographs and GPS locations to our central database locations." Delta Cultural Center: "To improve efficiency, we are investing in enhanced broadband connection. To improve efficiency, we are replacing outdated exhibit track-lighting with LED lighting system." Historic Arkansas Museum. "The museum has been moving toward LED lighting to improve energy efficiency, and will have most of the fixtures in the exhibit galleries installed with LED bulbs by the end of the fiscal year. The consolidating of the Business Operations Specialists in DAH has resulted in reduced expenditures, therefore generating more fiscal efficiencies, while reducing the functional efficiencies present when a full-time position is on site. Currently, volunteers, part-time education staff and non-education staff are covering the duties of the three vacant education positions. Full and part-time curatorial staff, un-paid interns and another maintenance worker are covering the duties of the vacant full-time curatorial maintenance position. Mosaic Templars Cultural Center. "In terms of energy the museum is the process of having an energy audit. The museum has also begun turning off lights in areas where lights aren’t needed during the day. We are looking into reducing our museum outreach so that we can begin to focus more on digital and technological ways to reach our audiences. Museum volunteers are being used more to help with events especially after hours that will allow us to use full-time staff less. Our education department has been encouraged to create new programs with materials that are already here at the museum but not currently in use. Old State House: "Energy efficient lighting installed in galleries, on fountain and on building exterior. Storm windows installed on the historic structure. Insulated glass installed on certain parts of the historic structure. Extra insulation added to attic of the historic structure. Energy efficient variable speed air handlers installed in historic structure. Combined trash pick-up with Trapnall (we haul OSH trash to the Trapnall dumpster). Keep lights turned off when not in use; office lighting is motion activated. HVAC filters are changed quarterly. Corrections/Prison work crew performs vital service (extra inmates just saved us $10,000 on paint job). Master Gardeners provide vital service/maintenance of landscaping. Leased parking spaces at Trapnall Hall. Maintenance contracts keep systems monitored so the run efficiently – includes cmf. Plan to install storm windows at Trapnall. Drive a 16 year-old pick up. Maintain all our lawn equipment including 15 year-old John Deer. Reduced number of printers. Reduced number of employees. We rarely attend conferences. Always tightening up heat/air, trash and elevator contracts. Reduced number of security guards for special events. Volunteers help on a routine basis and during special events."

209^ ASBD's mission statement states, “Our mission is to provide a legal and regulatory structure for Arkansas that provides the public with convenient, safe and competitive banking, which allows for economic development within this State.”

210^ ASBD communication, Sept. 16, 2016: "The ASBD does maintain a strategic plan; however, it is not posted on our website." "The strategic plan is reviewed semi-annually and updated as needed.  We will review your recommendation at our upcoming mid-year strategic planning session and make amendments as appropriate to the mission statement and the strategic plan."

211^ ASBD identified three efficiencies in its response to a questionnaire: 1) "In the past five years, we have voluntarily eliminated five positions reducing our authorized staff from 77 to 72 and we continue to closely monitor staffing needs; 2) In 2015, we implemented agency protocols to provide for more off-site examination procedures to be utilized as available. We continue to enhance these protocols and engage in additional off-site procedures as applicable; and 3) In 2016, we will implement a new uniformed and automated examination tool that will leverage technology in order to create a more efficient examination process for the banking industry." The department explained, "Our approach to regulation and supervision ensures safety and soundness, strong consumer protection and economic development for Arkansas banks. As a special revenue agency, we continually strive to provide efficient and professional guidance through our regulatory process while being cognizant of all expenditures and staffing and striving to limit expenditures to items that benefit the banking industry and the citizens of Arkansas. We have successfully met our goals and objectives of the agency and operated a strong bank regulatory environment without the need to increase assessment fees for the banking industry in more than 15 years due to the operational efficiencies within our agency."

212^ ASBD's site notes, “The State Bank Department was created by Act 113 of 1913. The Department is charged with regulating commercial banks with main offices in Arkansas. These banks hold assets of $57.6 billion. The Department also is charged with supervising the bank holding companies of Arkansas state-chartered banks; state-chartered trust companies; regional and county industrial development corporations; industrial loan institutions; and capital development companies. The Department operates to ensure the safety and soundness of, and public confidence in, these institutions and organizations.” “The Department and the State Banking Board have responsibility for the issuance of new charters, authorization of branches, and other applications relating to ownership and structure of banks and bank holding companies."

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

214^ ASBD response to questionnaire

215^ ASBD communication, June 8, 2016. The figure for 2016 is a "projection based on banks expected to convert from a national to a state charter prior to June 30, 2016." State-chartered bank assets were $56 billion in 2015. Data show "the amount of bank assets under (ASBD) supervision has more than doubled over the past ten years and (the department) has successfully managed this growth with no increase in authorized positions."

216^ ASBD's response stated, "Our agency’s accreditation was first obtained in 1988 and our consistent high ranking in the program is indicative of maintaining an efficient regulatory agency."

217^ Reason Foundation, Annual Privatization Report 2014, 2015