SPRINGFIELD, ILL. – As part of an ongoing effort to streamline state government
and improve efficiency, Gov. Rod R. Blagojevich today announced a series of
moves to consolidate or transfer operations of 14 existing state agencies and
five major functions that will initially save approximately $40 million in the
next fiscal year.
“These steps will reduce duplicative and inefficient operations, while at the
same time offering better services and significant cost savings,” Blagojevich
said. “The people of this state have told us they want a change in how state
government functions, they want less government and they want more service.
We listened. Business as usual in Springfield is becoming a thing of the past.”
Through executive orders signed today, Blagojevich will:
In addition, the governor will seek legislation to merge the operations of
the Pollution Control Board (PCB)
and Environmental Protection Trust Fund Commission with the Illinois
Environmental Protection Agency (EPA), consolidate fee collections at the
Department of Revenue and merge the Comprehensive Health Insurance Plan (CHIP)
with the Department of Insurance.
And, Blagojevich will create shared service centers in Springfield and Chicago
to provide administrative services, space and equipment to smaller agencies.
These centers will allow agencies to share administrative needs, such as offices,
computers and copiers, and, more importantly, the cost.
“Many of these ideas borrow from management practices used by private business
to keep down costs and others are simple common sense approaches,” Blagojevich
said. “For example, the state has already saved $1 million by canceling Lottery’s
lease of premium Chicago office space just off North Michigan Avenue and moving
the operation to surplus state office space.”
Highlights of the governor’s actions:
Department of Revenue reorganization and fee collections
By moving the Lottery, Liquor Control Commission and Racing Board to the Department
of Revenue, shared administrative costs alone will save more than $2 million.
The governor also intends to have fee collections handled by a highly automated
system that will reduce duplicative and inefficient processing and make cash
management, debt collection and pricing more effective. Through headcount reduction,
improved cash management and collection of unpaid debt, costs savings are initially
estimated at $1.3 million in the first year and significantly greater savings
in later years when information technology and debt collection procedures are
fully implemented. Additionally, the major improvements will be in the consistent
application, compliance and collection of fees, representing increased revenues
to the state. According to reports by the state Comptroller, Illinois’ fees
(other than those collected for motor vehicles and by universities) are only
40 percent of the average in the 50 states. Agencies under the governor’s control
collect 673 fees totaling $1.6 billion a year.
Legal services, internal audits and facilities management
State agency legal functions will be combined into a central law department
at CMS to improve the quality, consistency and efficiency of the state’s legal
activities. While some agency specific policy and adjudicatory legal staff may
remain with an agency, all legal work related to personnel, procurement, bond
financing and many other issues will be moved. Initial cost savings of $5.4
million will be realized by legal work common to all agencies being accomplished
by fewer attorneys. Legal work will be of better quality since attorneys will
be able to specialize and develop expertise in critical areas such as personnel,
procurement and real estate.
Following the lead of many private and public sector organizations, combining
all state agency internal auditing functions within CMS will initially save
$5 million through reduction in headcount, administrative costs and duplicative
software licenses. Additionally, this will allow for the establishment of the
necessary independence required for auditor objectivity regarding the department
or function being audited. Recently, one state agency’s auditor was the son
of the agency director. By moving the auditing functions into a centralized
system, these types of conflicts can be avoided in the future.
Agencies under the governor’s control occupy 43 million square fee of space
and maintenance, repair, security, utilities and other facility management functions
that cost an estimated $416 million a year. Currently, CMS only manages 6 percent
of these activities, resulting in uncoordinated and fragmented facility management
practices. Consolidating facilities management at CMS will initially save $14
million through headcount reduction, combining energy contracts, better leasing
strategies and economies of scale with outside contractors. This step will eliminate
the lack of planned and coordinated physical plant management, which has resulted
in fragmented facilities management practices, particularly uneven staffing,
excessive and erratic overtime and nonstandard energy utilization management.
Nuclear Safety merged with IEMA
By transferring the functions of the Department of Nuclear Safety to IEMA,
the state will be able to better coordinate emergency response to a terrorist
threat or other potential disasters involving nuclear power facilities. Streamlining
and consolidating the functions of these agencies will enable the state to realize
better communications and shared informational resources, and provide more efficient
use of specialized expertise and facilities. Gary Wright, the director of Nuclear
Safety, will become an assistant director at IEMA in the Division of Nuclear
Safety and report to IEMA Director Bill Burke. Costs savings through headcount
reductions and other efficiencies are estimated at $700,000. The transfer is
effective July 1.
Shared Services Center
This innovative business approach will initially save the state administrative
expenditures and will provide six smaller state agencies with shared office
space, equipment and administrative staff, including accounting and payroll.
Instead of each agency having their own office, phone system, computers and
copiers, accounting and procurement services, they will share these items and,
more importantly, share the costs. These centers will be located in both Chicago
and Springfield. Some of the agencies initially affected include the Human Rights
Commission, Guardianship and Advocacy Commission, Illinois Violence Prevention
Authority, Deaf and Hard of Hearing Commission, the Property Tax Appeal Board
and the Drycleaner Environmental Response Trust Fund Council.
Consolidate state and federal funded job training programs
Scarce job training resources are fragmented and spread across multiple state
agencies and programs with similar missions, including Prairie State 2000, the
Industrial Training Program, the Current Workforce Training Grant and the Job
Training and Economic Development Grant Program. The programs will be consolidated
and aligned within DCEO along with related federal resources, including the
federal Workforce Investment Act of 1998, the federal Illinois Trade Adjustment
Assistance Program and the federal and state-funded Welfare to Work program,
to insure job-training resources are used to support economic development and
to ensure both program and fiscal efficiency. Through the consolidation and
realignment of these existing state and federal programs, the state will save
more than $10 million through administrative costs savings and better use of
federal discretionary money to support statewide training initiatives.
CHIP and Department of Insurance
The governor intends to merge the Comprehensive Health Insurance Plan, (CHIP),
which currently is a small, stand-alone agency, into the Department of Insurance
to increase efficiency. CHIP is a state insurance program for working families
who are unable to obtain private health insurance. It has provided coverage
to about 34,000 residents since 1989 and is paid for by health insurers and
health maintenance organizations that do business in Illinois. The director
of the Department of Insurance currently serves as chair of the CHIP board.
While regulatory oversight will remain independent, merging the Pollution Control
Board into EPA will allow for the sharing of administrative functions and save
$500,000. EPA already administers the Environmental Protection Trust Fund Commission
and the governor’s action simply moves the commission’s budget operations to
the agency and affords greater efficiency.
Executive Order Number 9 - 2003
Executive Order Number 10 - 2003
Executive Order Number 11 - 2003
Executive Order Number 12 - 2003