1 Unnatural Acts: Managing for Results… Even If No One Cares Indiana Governor Mitch Daniels...
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Transcript of 1 Unnatural Acts: Managing for Results… Even If No One Cares Indiana Governor Mitch Daniels...
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Unnatural Acts:Unnatural Acts:Managing for Results…Managing for Results…Even If No One CaresEven If No One Cares
Indiana Governor Mitch DanielsIndiana Governor Mitch Daniels
October 12, 2007October 12, 2007
22
Major InitiativesMajor Initiatives
Balanced BudgetBalanced Budget Funded Infrastructure ShortfallFunded Infrastructure Shortfall
Major MovesMajor Moves Indiana’s Economic RevitalizationIndiana’s Economic Revitalization Hoosier Homegrown EnergyHoosier Homegrown Energy Telecommunications DeregulationTelecommunications Deregulation Health Coverage for the UninsuredHealth Coverage for the Uninsured
33
Controlling Annual Controlling Annual Expenditure GrowthExpenditure Growth
2.81%
1.90%2.67%
5.88%
0%
1%
2%
3%
4%
5%
6%
7%
1996-2004 2005 2006 2007
Fiscal Year
44
From Deficits…From Deficits…
-$1,500.0
-$1,000.0
-$500.0
$0.0
$500.0
$1,000.0
FY 1996 FY 1997 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007
Fiscal Year
Re
ven
ue
- E
xpen
dit
ure
s (
in m
illio
ns)
55
……to Surplusesto Surpluses
-$1,500.0
-$1,000.0
-$500.0
$0.0
$500.0
$1,000.0
FY 1996 FY 1997 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007
Fiscal Year
Re
ven
ue
- E
xpen
dit
ure
s (i
n m
illio
ns)
66
Growing Cash SurplusGrowing Cash Surplus(Cash Balance – Liabilities)(Cash Balance – Liabilities)
-$400.0
-$200.0
$0.0
$200.0
$400.0
$600.0
$800.0
$1,000.0
$1,200.0
2001 2002 2003 2004 2005 2006 2007
Fiscal Year
Ne
t S
urp
lus
(in
mil
lio
ns
)
77
Major Moves: Fully funded, 10-year Major Moves: Fully funded, 10-year transportation infrastructure plantransportation infrastructure plan
88
Indiana’s Economic RevitalizationIndiana’s Economic Revitalization
Indiana ranks #1 in Indiana ranks #1 in foreign direct foreign direct investmentinvestment
Personal earnings Personal earnings outpaced the nation outpaced the nation the past 2 quartersthe past 2 quarters
Unemployment Unemployment lowest in region lowest in region and down full point and down full point since 2005since 2005
99
Unemployment – NationUnemployment – Nation(July 2007)(July 2007)
1100
Indiana Biofuel: 2005Indiana Biofuel: 2005
Operating/ Under Construction Capacity
(MM Gallons)
100
0
200
400
600
800
1000
1200
2005
Ethanol Biodiesel
1111
Indiana Biofuel: 2007Indiana Biofuel: 2007
Total Capacity (MM Gallons)
100
1518
0108
-50150350550750950
115013501550
2005 2007
Ethanol Biodiesel
2008Production Goal
of 1 Billion Gallons
Already Achieved!
Clean Coal
1122
Telecommunications DeregulationTelecommunications Deregulation
One-step, statewide franchisingOne-step, statewide franchising Expanded broadband access to 102 new Expanded broadband access to 102 new
rural communitiesrural communitiesInvestmentInvestment New JobsNew Jobs
AT&TAT&T $250 million$250 million 1,5001,500 VerizonVerizon $100 million$100 million 300300 ComcastComcast 225225 EmbarqEmbarq $18 million$18 million Small telcosSmall telcos $65 million$65 million
TotalTotal $433 million$433 million 2,0252,025
1133
Health Coverage for the UninsuredHealth Coverage for the Uninsured
Market-based program that will cover Market-based program that will cover 130,000 of Indiana’s chronically uninsured130,000 of Indiana’s chronically uninsured
Not an entitlementNot an entitlement No employer mandatesNo employer mandates Individual accounts and preventive careIndividual accounts and preventive care Dedicated funding from cigarette taxDedicated funding from cigarette tax
1144
Managing for ResultsManaging for Results
CentralizationCentralization Competitive SourcingCompetitive Sourcing Everyday ManagementEveryday Management
1155
CentralizationCentralization
IT ConsolidationIT Consolidation ProcurementProcurement
One IndianaOne Indiana Buy IndianaBuy Indiana
Asset ManagementAsset Management
1166
IT ConsolidationIT Consolidation
Savings of $14 million annuallySavings of $14 million annually IT operations staffing reduced from 360 statewide IT operations staffing reduced from 360 statewide
to 190 within new Office of Technologyto 190 within new Office of Technology
1177
One IndianaOne Indiana
Estimated annual savings exceed $50 million Estimated annual savings exceed $50 million with total savings projected to exceed $200 with total savings projected to exceed $200 million to state and local governmentsmillion to state and local governments
BeforeBefore AfterAfter Hearing AidsHearing Aids $1,800$1,800 $900$900 Desktop PC’sDesktop PC’s $977$977 $690$690 Public Safety RadiosPublic Safety Radios $3,828$3,828 $2,250$2,250 Cell Phones (per mo.)Cell Phones (per mo.) $52$52 $32$32 AA BatteriesAA Batteries $1.61$1.61 $0.89$0.89 StaplersStaplers $6.02$6.02 $0.96$0.96
1188
Buy IndianaBuy Indiana
60%
73%
76%
81% 81%
84% 84%
55%
60%
65%
70%
75%
80%
85%
2004(estimated)
Q1 06 Q2 06 Q3 06 Q4 06 Q1 07 Q2 07
1199
Asset ManagementAsset Management
VehiclesVehicles Identified and sold over 2,000 unneeded cars & trucksIdentified and sold over 2,000 unneeded cars & trucks
AircraftAircraft Reduced the state’s under-utilized aircraft fleet from Reduced the state’s under-utilized aircraft fleet from
20 to 12 20 to 12 Leases for State OfficesLeases for State Offices
Saving 20% on new leases compared to previous Saving 20% on new leases compared to previous ratesrates
Surplus Real EstateSurplus Real Estate Sales to date: 33 properties, $6 millionSales to date: 33 properties, $6 million
2200
Competitive SourcingCompetitive Sourcing
SavingsSavings
PrisonPrison Food ServicesFood Services $11 million / year$11 million / year
Printing & MailingPrinting & Mailing $8 million / year$8 million / year
Prison ManagementPrison Management $3 million / year$3 million / year
Janitorial ServicesJanitorial Services $500,000 / year$500,000 / year
Welfare AdministrationWelfare Administration $1 billion over 10 $1 billion over 10 yearsyears
2211
Competition Works Both WaysCompetition Works Both Ways
Competitive Contracts Awarded to State Competitive Contracts Awarded to State EmployeesEmployees Logansport Hospital: Food ServicesLogansport Hospital: Food Services Department of Correction: CommunityDepartment of Correction: Community
Re-Entry CentersRe-Entry Centers
2222
Increased Employment in Critical AreasIncreased Employment in Critical Areas
Child Welfare Child Welfare CaseworkersCaseworkers Goal to reduce Goal to reduce
caseloadscaseloads
State PoliceState Police Excise PoliceExcise Police
Number of Case Managers
0
200
400
600
800
1000
1200
1400
Q2 05 Q3 05 Q4 05 Q1 06 Q2 06 Q3 06 Q4 06 Q1 07 Q2 07 Q3 07
2233
Everyday ManagementEveryday Management
2244
Bureau of Motor VehiclesBureau of Motor Vehicles
Average visit time Average visit time down from over 40 down from over 40 minutes to 10 minutesminutes to 10 minutes
Customer Satisfaction Customer Satisfaction survey rating up from survey rating up from under 80% to 95%under 80% to 95%
2255
BMV WebsiteBMV Website
2266
Department of Child ServicesDepartment of Child Services
Percentage of Current Percentage of Current Child Support CollectionsChild Support Collections
50.0%
51.0%
52.0%
53.0%
54.0%
55.0%
56.0%
FFY 04 FFY 05 FFY 06 FFY 07
2277
Public Employees Retirement FundPublic Employees Retirement Fund
Percent of Retirements without Payment Percent of Retirements without Payment Interruption (first check within 30 days)Interruption (first check within 30 days)
NotMeasured
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2004-05 Q1 06 Q2 06 Q3 06 Q4 06 Q1 07 Q2 07
2288
Department of RevenueDepartment of Revenue
Percentage of Personal Tax Refunds Percentage of Personal Tax Refunds processed within 15 daysprocessed within 15 days
55%
60%
65%
70%
75%
80%
2004 2005 2006 2007
2299
Department of Environmental Department of Environmental ManagementManagement
Total Water Permit Backlog Total Water Permit Backlog (in Permit-Days)(in Permit-Days)
3300
Meth-Free Indiana InitiativeMeth-Free Indiana Initiative
Drug Lab Seizures & ArrestsDrug Lab Seizures & Arrests
0
200
400
600
800
1000
1200
Jul 04 - Jun 05 Jul 05 - Jun 06 Jul 06 - Jun 07
Seizures
Arrests
3311
Traffic SafetyTraffic Safety
Increased enforcement has led to a Increased enforcement has led to a decrease in traffic fatalitiesdecrease in traffic fatalities
200,000
220,000
240,000
260,000
280,000
300,000
320,000
340,000
360,000
2004 2005 2006
820
840
860
880
900
920
940
960
Traffic ArrestsWarningsTraffic Fatalities
3322
Program Performance EvaluationProgram Performance Evaluation
P.R.O.B.E. process – Program Results: P.R.O.B.E. process – Program Results: Outcome-Based EvaluationOutcome-Based Evaluation OMB evaluated 420 government programsOMB evaluated 420 government programs
Made more than 200 recommendations on Made more than 200 recommendations on how government could improve performancehow government could improve performance
3333
Pay-for-PerformancePay-for-Performance
Annual Salary AdjustmentsAnnual Salary Adjustments
10%
4%
0%0% 0%
2% 2% 2%
4.2%
0%
2%
4%
6%
8%
10%
12%
2002 2003 2004 2005 2006 2007
Exceeds Expectations
Meets Expectations
Does Not Meet Expectations
Average
3344
What We’ve LearnedWhat We’ve Learned
Progress starts with dataProgress starts with data What gets measured, gets doneWhat gets measured, gets done
Set the bar highSet the bar high Align incentivesAlign incentives
Reward employees financially for their Reward employees financially for their performanceperformance
Recognition by leadership, and make it visible Recognition by leadership, and make it visible to other state employeesto other state employees
Move fastMove fast Ask for forgiveness, not permissionAsk for forgiveness, not permission