Summary of Legislation in Operation: Streamline

(1) REMOVE EXECUTIVE AGENCIES FROM STATE PERSONNEL BOARD – For one-year only (effective from date of passage) – Opportunity to reorganize structure and find ways to reduce costs

– $25 Million targeted savings, approximately 6% reduction in salaries and wages

(2) CREATE OFFICE OF ADMINISTRATIVE SERVICES – New office will be under DFA – Executive director of DFA appoints director of office – Purpose of office is to provide business-related (payroll, purchasing, etc.) services to small agencies that don’t have adequate resources to do so. – Will provide rental space within the Capitol Complex. This will reduce the amount of square footage needed, as we utilize “common space”, such as conference rooms, that can be shared between the various agencies, boards, etc. – Creates the Office of Administrative Services Fund in the State Treasury. – New office assesses agencies, boards, etc. for services performed and for rent. Payments go into the new Fund. Legislature must appropriate funds from the Fund for the office to operate. – Bill list numerous small agencies, boards, etc. that will be required to participate in the program. The Executive Director of DFA is given the authority to exempt an agency from participating, if cause exists. Other agencies, boards, etc. are provided the opportunity to participate in the program by applying to the Executive Director of DFA. – Does not threaten autonomy of boards, commissions, etc

– $3 million in anticipated savings

(3) BUREAU OF NARCOTICS MERGED INTO DEPT OF PUBLIC SAFETY – Effective July 1, 2004, assigns all powers, responsibility, etc. to Commissioner of Public Safety – Clarifies that MBN is an “office,” but still to be known as the MBN – Commissioner can assign Hwy Patrol to MBN and MBN agents to Hwy Patrol, however either of these changes in assignment require meeting established requirements for duty (Hwy Patrol School, DEA School, DOJ)

– $1.2 Million in administrative savings to be redirected to law enforcement activities.

(4) IHL & CC COST SAVINGS
– Requires IHL Board and CC Board to do a joint study to find opportunities to cut costs (primarily through administrative measures) – Language is clear that the Legislature intends each Board to redirect those funds saved from implementing the cost saving measures into instruction and research – IHL and CC must provide a written report to Chairmen of House/Senate Appropriations Chairmen of House/Senate Universities & Colleges, and State Fiscal Officer not later than October 1, 2004 – Report will identify cost savings discovered, implemented, and redirected by the IHL Board and the CC Board

– $26 million in anticipated savings, all of which captured for use by the IHL and CC systems

(5) MENTAL HEALTH ADMINISTRATION CONSOLIDATION
– Eliminate duplication of up to 50% of administrative functions at stand alone institutions – Estimated savings of $11 .1 Million annually

– Governor recommends $5 Million of the administrative savings be redirected toward the delivery of increased services

(6) MDOT FUND 3941 EARNINGS DIRECTED TO GENERAL FUND
– Fund receives fuel taxes diversion from general fund – This legislation follows the principal that interest earnings belong to the taxpayer and not a particular agency.

– Estimated $5 million positive impact on the general fund

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