Have a good Memorial Day weekend from Mr. Bass

To all:
As we enter this holiday weekend, let me first say "thank you" to everyone for all the hard work you continue to put into the Operational Reviews, which is in addition to your normal jobs and just plain conducting your life. Your commitment to coming up with innovative ideas to improve performance/efficiency relating to Energy, Fleet, Travel, Print, Receivables, Real Estate, Water, Solid Waste, Return-to-Work, Communications (data/voice) and Receivables is very much appreciated by the Executive and Legislative leaders.
As you already know, we are coming into the final stage of report generation. You, your team coordinators and the legislative leadership will soon be providing reports to the OpR Oversight team -- Delegate Saxman, Senator Stosch, Chief Emeritus Leighty and me. We will naturally be including Chief Turnage in this step given his new appointment. The OpR Oversight team will consider the contents and recommendations of each report, perhaps ask for some additional information or discussion with staff, then make recommendations as to what should be pursued. Given the "enterprise" nature of these reviews, implementation of any recommendation will certainly raise the bar even further in terms of collaboration and teamwork across the Commonwealth. Exciting times in Virginia!
Your participation has been such a blessing to the Commonwealth. You are experts, the topics are spot-on and the timing couldn't be better with the approach of budget season. Thank you very much for all you have done towards these reviews. I am very excited to see your final products -- as I'm sure the full OpR Oversight team is as well.
Have a good, safe weekend.
Tim

Budget Shortfall? Look here!

Accounts Receivable Operational Review
May 1, 2007

The Accounts Receivable Operational Review is a follow up to the previous Governor’s Commission on Efficiency and Effectiveness Report. That report made four recommendations to improve accounts receivables:

(1) Standardize collections management across all Commonwealth agencies;
(2) Shorten the time period for declaring accounts delinquent;
(3) Use multiple collection agencies to foster competition;
and
(4) Consider the impact of using “debt sales” to provide cash.

Virginia implemented those recommendations and enhanced its revenue flow as a result.

Now we face the challenges of new technologies and an uncertain economy. We need to stay on top of our game and offer a better value to our stakeholders. The best way to do this is to use the new technologies to speed up collections and simultaneously reduce collection costs.

To set the new direction, Delegates Chris Saxman and David Toscano, and State Senator Ken Cuccinelli have set up and oversee an Accounts Receivable Operations Review Team to look at industry best practices and Virginia’s current practices. The team is represented by representatives from the Departments of Accounts, Corrections, Social Services, Medical Assistance Services and Taxation, and Virginia Polytechnic Institute and State University. The team will make recommendations to enhance collections efficiency and reduce collection expenses.

The team has identified six areas where a small investment could have large returns:

(1) Enhance skip traces. Get current address and other contact information from new data sources such as cell phone records and cable user records.

(2) Change current setoff methods. Currently debtors are informed of their rights of due process at the time a payment or refund is intercepted. This after the fact approach costs time and money. Rather, debtors should be told up front, when claims are submitted to setoff programs, what their rights are, and place the responsibility for exercising those rights on the debtor, not the State agencies.

(3) Leverage new technology to gather debtor information from several different current repositories into one new “debtors’ database.” This would simplify security requirements and lessen chances of missed setoffs at the same time.

(4) Match State and local government permits, licenses (both business and personal), and registrations against setoff records. Why should those who owe be permitted to go?

(5) Small and medium sized State agencies have a disadvantage when it comes to collecting accounts receivable. They lack the capacity to dedicate full time staff to the business of collecting money from slow or non-payers. This can be improved by outsourcing the management of the accounts receivable that do not pay on time to a vendor that would receive debt files from the agencies, distribute the files to the several private collection agencies the State contracts with, and monitor the ongoing efficiency of the several collection agencies.

(6) Measure individual state agency performance in collecting the dollars they have billed to ensure the Virginia Debt Collection Act is being followed and adequate debtor information is gained up front to compel payment when it is due.

The Accounts Receivable Operational Review Team is finalizing its full set of recommendations. We encourage and welcome any questions, additional ideas and advice from readers of this Blog. Please send your ideas and comments to Rob.Meinhard@doa.virginia.gov. Please include “Accounts Receivable” in your Subject, so our team can readily identify your emails. We will get back to you. Thanks for helping make this effort a success.

Solid waste ORT...

Solid Waste & Recycling Operational Review Update

Solid waste management and recycling are important responsibilities for all state agencies, large and small. Solid waste and recycling management have both a fiscal and environmental impact on the Commonwealth. These issues also hold opportunities for the state to lead by example with proper waste management techniques.

The solid waste and recycling team was established to look at existing practices within state government and recommend ways the state can be more efficient and cost effective in the realm of waste management. The team is developing a set of key recommendations that will aim at reducing the amount of waste generated as well as the costs associated with waste management. Delegate John Cosgrove and Senator Creigh Deeds serve as the team’s legislative leaders. The Assistant Secretary of Natural Resources is coordinating the team’s work. Team members include representatives from the Department of Environmental Quality and the Department of General Services.

In order to make the larger issue of Solid Waste & Recycling more manageable, the team began working within seven key sub-topics:

Construction and Demolition Waste Recycling
Waste Reduction
Composting
Education/Employee Training
Cost/Contracts/Procurement
Traditional Recycling
Electronics Recycling

By dividing the issue up into these sub-topics, the group was able to put forth three initial recommendations.

1. Encourage state agencies to pursue participation in the Virginia Environmental Excellence Program.

The Virginia Environmental Excellence Program (VEEP) recognizes facilities that have demonstrated a commitment to enhanced environmental performance. The Program is open to the private sector as well as state agencies. At the end of 2006 there were 345 facilities in the program. Approximately 85 individual state facilities participate in the program. In some instances each physical location is counted as a separate facility due to the way compliance requirements are set up.

Cost savings and environmental benefits of the VEEP are demonstrated. In 2006, participating facilities (public and private) achieved the following results:
$2.5 million in cost savings;
24,000 tons non-hazardous materials eliminated or recycled;
7,450 pounds hazardous waste eliminated or recycled;
64,000 tons of waste material sold as a raw material.


2. Implement building specific or agency specific employee training regarding solid waste/recycling. Include education on the advantages of construction and demolition waste and electronics recycling.

The programs would include, at a minimum: basic solid waste recycling programs for paper, bottles and cans; a review of current procurement practices for waste reduction and green purchasing opportunities; and, employee training regarding solid waste/recycling and reduction.

Recycling of construction and demolition waste will divert significant volume of waste from landfills and reduce costs of projects. Education and information on these advantages and links to appropriate websites for education can be sent out to the Agency facility administrators. The Green Building/Sustainable Design movement that is gaining momentum is a proponent of construction and demolition waste recycling.


3. Encourage composting at facilities/agencies with the appropriate types of waste stream.

The technology of in-vessel composting has reached a point where it is functional and more easily accessible. One state agency has a program that has been in use for several years and has significantly reduced the volume of waste going into landfills. Two of this agency’s facilities worked together and composted 273,198 pounds of food waste for the year 2006.

Feedback

The Solid Waste & Recycling Operational Review Team is drafting its full set of recommendations from this review. We welcome additional advice and input from readers of the VACostCutting blog. Please share your thoughts with the team through this blog. In addition, you can send your ideas to me at missy.neff@governor.virginia.gov with the subject line “Communications Review from VACostCutting blog”.

Petersburg Schools - Are uniforms PART of the answer?

05/14/2007
People's Forum

The case for school uniforms in Petersburg

To the Editor:

In all my travels around our Commonwealth I know that the word is out – Petersburg is beginning to move clearly in the right direction. In the past 60 days alone we have seen two bold initiatives to address key problems of our city.
The first was Petersburg 2020 – an excellent strategy developed by City Council for a comprehensive restructuring of city priorities and management to position Petersburg for growth and success in this century. The second was the R/UDAT initiative by Downtown Petersburg, Incorporated, which brought what one participant called a “rainbow coalition” of city constituencies together for the transformation of our historic downtown into a vibrant and multi-dimensional urban center.
The implementation of both of these strategies will take a lot of dedication, sweat and money, but there is no reason why they can’t both be fully and successfully implemented.
With these initiatives launched, I believe the next focus must be on bold and clear actions in our schools. And just as with Petersburg 2020 and R/UDAT, we must begin by taking a cool, realistic and precise assessment of where we are today if we have hopes to reach new levels of success in the future.
The current state of our schools is not some kind of secret that we can or should hide. It is front-page news in newspapers throughout the Commonwealth.
An editorial in the Richmond Times-Dispatch on Dec. 8, 2006 said, “Solving the difficulties of Petersburg’s school system cannot be done gradually, and necessitates more than by-the-book answers . . . The children of Petersburg require boldness from those in charge of their education.”
Public education in Petersburg today is in crisis. There was no one single dramatic event that brought us to this point, but the long and constant list of headlines and news reports in our Commonwealth’s leading media outlets emphasize that there is a crisis and it must be dealt with directly and boldly.
At our school board’s April public hearing, many speakers emphasized the importance, within our city’s borders, of school uniforms. But a decision in favor of this reform would also send an important message to the Commonwealth that the students, parents and all citizens of Petersburg are serious about educational reform.
At that hearing I also listened carefully to the arguments of opponents of this idea. They made many good points, the most important being that uniforms in-and-of-themselves are not a magic pill to solve our education problem. And, should the school board members decide correctly to approve this initiative, they must roll up their sleeves the very next day to focus immediately on other priorities including:

Recruiting and retaining the best teaches possible.
Recruiting the best school superintendent possible.
Investment in school physical plant.
Investment in education resources and technology.
Funds for after-school and weekend education programs.
Funds for training program of parents of students.
Funds for youth development programs like Girl Scouts and Boy Scouts.

A decision by the Petersburg school board will send a clear signal not only to our state and federal representatives but also to private and corporate entities to support this effort for comprehensive educational reform and dynamic youth development.
This decision on school uniforms must not be seen in isolation. If agreed to, it should be used to market our education reform strategy throughout our region and the Commonwealth. If Virginians see Petersburg’s citizens pulling themselves up by their own bootstraps, they will come to help.
But they must see one thing first — and that is that we, the citizens of Petersburg, understand fully that this is a crisis situation and that we have taken the first step with confidence and determination.
We must have but one goal — for Petersburg to have the finest possible educational institutions and opportunities for our young people. To achieve that goal, the school board must make the first move and approve the school uniform initiative.

Linas Kojelis
Petersburg

Expedia Dot Com

Travel Operational Review Team
The Commonwealth spent approximately $184 million dollars in travel costs last year associated with the use of personal and state vehicles, meals, lodging and other incidentals. This represents a significant amount of resources to provide travel for state employees and others in conjunction with official state business.

Purpose:

An operational review team has been established to examine travel practices across the Commonwealth and to gain a better understanding of the costs associated with travel. The committee’s goal is to recommend best practice strategies to create a more efficient and effective travel process and to and identify opportunities to reduce costs if possible.

Delegate Scott Lingamfelter and Senator Brandon Bell, II are overseeing the committee. The committee is comprised of senior management officials across the Commonwealth from the Department of Corrections, the Department of General Services, the Department of Alcohol and Beverage Control, The Department of Correctional Education, the Senate and Virginia Tech.
Team Objectives:
The team started with identifying the Commonwealth’s existing state travel practices. Once we gained a strong understanding of our current practices we started identifying agency and industry best practices for travel. We have reached out to corporations such as American Greetings, McKesson, Capitol One, Land America and Phillip Morris, USA to gain an understanding other companies travel practices.

The team has already begun to identify best practices that have been previously implemented including the use of the Enterprise Rental Contract for vehicles, which is managed by the Department of General Services. This contract is managed by the Department of General Services.

The team is also exploring additional recommendations including:

Increase use of computer based training for state employees (one suggested topic: state travel regulations)

Increase use of statewide travel contracts (leverage Commonwealth’s bargaining power)

Improvement of the chart of accounts to distinguish between in state and out of state travel and further identify travel costs

Re-visit travel review within two years of implementation of new accounting system.

Water, water everywhere

Water Use Operational Review Update

Water use is an important responsibility for all state agencies. Water usage has both a fiscal and environmental impact on the Commonwealth. This issue also holds opportunities for the state to lead by example with proper water use and water supply planning techniques.

The water use team was established to look at existing practices within state government and recommend ways the state can be more efficient and cost effective in the realm of water use. The team is developing a set of key recommendations that will aim at reducing the amount of water used as well as the associated costs. Delegates Tom Rust and Rob Wittman and Senator Phillip Puckett serve as the team’s legislative leaders. The Assistant Secretary of Natural Resources is coordinating the team’s work. Team members include representatives from the Department of Environmental Quality, the Department of General Services, Virginia Tech and the Virginia Military Institute.

In order to make the larger issue of Water Use more manageable, the team began working within five key sub-topics:

Water Re-use
Reducing Consumption
Education
Water Supply Planning
Buildings (New construction, Retro-fits, Site management)

By dividing the issue up into these sub-topics, the group was able to put forth five initial recommendations.

1. Encourage additional state agencies, localities and private sector companies to pursue participation in the Virginia Environmental Excellence Program.

The Virginia Environmental Excellence Program (VEEP) recognizes facilities that have demonstrated a commitment to enhanced environmental performance. The Program is open to the private sector as well as state agencies. At the end of 2006 there were 345 facilities in the program. Approximately 85 individual state facilities participate in the program. In some instances each physical location is counted as a separate facility due to the way compliance requirements are set up.

Cost savings and environmental benefits of the VEEP are demonstrated. In 2006, participating facilities (public and private) achieved the following results:
$2.5 million in cost savings;
21.7 million gallons of water recycled;
46.3 million gallon reduction in water use;
55,980 square foot reduction in impervious surfaces.


2. Implement building specific or agency specific employee training regarding water conservation.

The programs would include, at a minimum: basic water conservation tips; a review of current procurement practices for water efficient purchasing opportunities; and, employee training regarding water use and consumption.


3. Finalize water re-use regulations and implement agency pilot program.

On March 9, 2007, the State Water Control Board approved the proposed Water Reclamation and Reuse Regulation. It is anticipated that the draft regulations will be finalized for public notice later this year. As part of the regulatory process, the Department of Environmental Quality will also be developing an economic impact analysis on the costs and benefits of the regulation requirements. The proposed regulation will establish requirements for the reclamation and reuse of wastewater that are protective of state waters and public health. For six reuse categories (urban – unrestricted access, irrigation - unrestricted access, irrigation – restricted access, landscape impoundments, construction, and industrial), the regulation specifies the required treatment standards and allows for the approval of other reuses and associated treatment standards commensurate with the quality of the reclaimed water and its intended reuse.

4. Require the use of Low Impact Development (LID) techniques in new construction projects.

The Department of Conservation and Recreation actively encourages the use of Low Impact Development (LID) as a means of complying with the state Stormwater Management and Chesapeake Bay Act Regulations. LID strategies strive to allow natural infiltration to occur as close as possible to the original area of rainfall. By engineering terrain, vegetation, and soil features to perform this function, costly conveyance systems can be avoided, and the landscape can retain more of its natural hydrological function. Low Impact Development practices dovetail with "green" building practices that incorporate environmental considerations into all phases of the development process. Builders can often use green building and LID to lower actual development costs.

Cost benefits to builders and developers utilizing LID strategies can be significant. According to the Center for Watershed Protection, traditional curbs, gutters, storm drain inlets, piping and detention basins can cost two to three times more than engineered grass swales and other techniques to handle roadway runoff. Case studies and pilot programs show at least a 25 to 30% reduction in costs associated with site development, stormwater fees, and maintenance on projects that use LID techniques. However, costs are very site specific and the implementation of LID practices should be determined by the site.

5. Retro-fit state-owned buildings with water efficient fixtures where cost effective. Require the use of sub-meters on large volume equipment in new construction projects.

The Department of General Services currently requires new state construction projects to use water efficient fixtures. However, there may be potential for improvement in equipment design and retro-fits. Sub-meters should be installed on large volume equipment such as chillers, boilers, cooling towers, irrigation, etc. This would allow the building operator to identify potential inefficiencies.

According to a study done by the United States Environmental Protection Agency, the average potential water savings for an existing commercial office building is 28%. 63% of the savings are achieved through domestic plumbing fixtures, specifically the use of low-volume toilets, urinals and faucets. The typical payback for these water saving strategies are generally less than 3 years. The state could achieve many of these reductions by investing in appliances with the EPA “WaterSense” logo.

Feedback

The Water Operational Review Team is drafting its full set of recommendations from this review. We welcome additional advice and input from readers of the VACostCutting blog. Please share your thoughts with the team through this blog. In addition, you can send your ideas to me at missy.neff@governor.virginia.gov with the subject line “Communications Review from VACostCutting blog”.

What we have here is a failure to communicate...

Communications (Data & Voice) Operational Review Update

Data and voice communications is significant technology cost and responsibility for all state agencies. Last fiscal year, Virginia state government spent approximately $143 million for communications services state agencies and employees and approximately $43 million for communications equipment. Communications therefore is one of the crosscutting operational reviews of state operations we are undertaking.

We set up a Communications Operations Review Team to look at best practices in private business and government and existing practices in Virginia state government, and are developing recommendations that will both reduce communications costs in state operations and improve communications between state agencies and between citizens and their government. Delegate Paula Miller and Senator John Watkins oversee the team’s work. Team members include representatives from the Library of Virginia, Virginia Information Technologies Agency, Office of Commonwealth Preparedness, Department of General Services, Department of Corrections, Virginia Department of Transportation, Department of Labor and Industry, Department of Forestry and Virginia.

The Communications Operational Review team has reached out to outside experts for information on new technologies, procedures and best practices. The team has communicated with representatives from Verizon, Virginia Interactive, Northrop-Grumman, Alltel, Nextel, COMTek, New York City, City of Virginia Beach, State of Maryland, State of West Virginia and State of California. The team also has gathered information on existing practices, strengths and weaknesses in state operations, and ideas for improvement from representatives of the Virginia Department of Transportation, Virginia Tech, Office of Telework Promotion and Broadband Assistance, Auditor of Public Accounts, Library of Virginia, Virginia Information and Technologies Agency and webmasters from agencies throughout the state.

The team found that we are using many best practices in parts of state operations. Service costs have actually been reduced over the past 5 years and new technologies have been and continue to be implemented as appropriate. Communications between citizens and state agencies have improved dramatically with increased use of the internet and agency websites to disseminate information to the public and provide a new avenue of communications, including online applications and forms, email and online chat. Tele/data/video conferencing has saved the state millions of dollars. Statewide VOIP implementation for agencies is underway.

The team has also identified areas to improve through new or expanded use of best practices, including: better coordination among agencies and between agencies, local governments, institutions of higher education, Office of Commonwealth Preparedness and the private sector; further expansion of new technologies to bring broadband, wireless and cellular access to un- and under-served areas of the state; improved state contracts to better leverage state buying power while taking advantage of new technologies, vendor competition and cost decreases; expanded use of videoconferencing; increased telework opportunities; and more and simpler ways for citizens to interact with their government.

The Communications Operational Team is drafting its full set of recommendations from this review. We welcome additional advice and input from readers of the VACostCutting blog. Please share your thoughts with the team through this blog. Or you can send your ideas to me at pcasalaspi@lva.lib.va.us. Please label your e-mails “Communications Review from VACostCutting blog” so we can know the ideas are coming from blog readers.

MAIL CALL!!!

Mail Operational Review Update

Every agency and office in the Commonwealth of Virginia has a mail operation. Over the past five fiscal years almost $300 million has been spent on mail related services. About half of this amount was for services to agencies at the seat of government in Richmond. Inefficient mail operations can result in extra spending on postage and duplicative equipment and wasteful practices.

Led by State Senator Ryan McDougle and Delegate Mark Sickles, the Mail Operational Review Team is studying the Commonwealth’s mail operations with particular focus on services at the seat of government. The team composition includes members from the Departments of Taxation, Treasury, Labor and Industry, the Senate Clerk’s Office, and the General Services’ Divisions of State Mail Services, Engineering and Building and Communications. Bobby Myers, Deputy Director at DGS serves as the Team Coordinator.

While the team is focusing its study on operations at the seat of government and will make recommendations based on this, it will look for suggestions that have state-wide benefits. This review of current performance and best practices is built upon the following four topics:
Security- What is being done to secure mail and packages as well as protect citizens, employees and facilities.
Operational/Cost Efficiencies- What processes, including volume reduction and duplicative equipment elimination would create operational efficiencies and/or cost savings.
Communication and Education- What resources and information do state employees and agencies need to realize cost savings and efficiencies.
Performance Measures- How can the Commonwealth measure/monitor the items listed above.

The first draft of the report is expected to be complete by the second week of May and will include many recommendations including the following:
Expanding the distribution of the Commonwealth Mail Security Guide and developing training opportunities that will encourage agencies to adopt the guidelines is one of many recommendations. Recent events have made mail security a high profile issue and studies have shown that the Commonwealth has many opportunities to enhance the security and well being of its employees and facilities.
Presort postage discounts are available from the US Postal Service (USPS). Capturing this saving by the purchase of a presort machine and performing this function in-house may be able to reduce costs significantly each year at the seat of government alone. New equipment will significantly increase the volume of mail that can be discounted and offer this service through a new centralized mail operation allowing for decreased fees and improved service.
Increase agency participation in the consolidated mail operation. This would provide agencies with cost saving opportunities through the decrease of duplicative equipment and offer increased security. The centralization of mail services has created a professional organization that serves as a consultant to state agencies on everything related to mail ensuring that the Commonwealth is utilizing its best practices.

The Mail Operational Review Team welcomes input from any source familiar with postal services and operations. Suggestions may be sent to bobby.myers@dgs.virginia.gov.

Tax and Spend

While we wait for the next installment from the Operational Review Teams, here are a few recent articles on taxes and spending that you might enjoy.

Don't go on a state spending spree (Jonathan Williams)

In recent years, most states have experienced surpluses. States wanting to nurture growth are applying at least part of their surpluses to lower tax rates.

Federal Transfer Payments to Low-Income Households Top $17,000 (Scott A. Hodge)

A new Tax Foundation study, "Who Pays America's Tax Burden, and Who Gets the most Government Spending?" shows that the typical low-income household pays $1,684 in total federal taxes, yet receives $17,724 in federal transfer payments alone, not to mention other federal programs such as education and public transportation.1 In other words, the typical low-income household receives $10.53 in transfer payments for every dollar it pays in federal taxes.

Staircase of Tax Plenty Steep (Diana Furchtgott-Roth)

Is our federal tax system fair? Unfair? Two new studies reach opposite conclusions, findings that may be relevant as Congress and voters debate several
pending bills.

Mail and Communications Posts coming on Monday!

Just to hold everyone in amazing suspense, I am going to wait until Monday to post the mail and communications posts. Blame the Queen! Blame the Queen!

Actually, yesterday was a very exciting event and hope you were able to watch the festivities.