Using%20Program%20Evaluation%20to%20Find%20Savings

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Using Program Evaluation to Find Savings
Texas Sunset Commission www.sunset.state.tx.us Jan
uary 2009
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Times Are Hard

• The budget outlook for many states is bleak
• At least 38 project a budget shortfall in FY 2009
• Shortfalls range from 0.2 for Nebraska to 15.3
  for New Hampshire

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How Can Program Evaluation Help?

• Make a conscious decision to focus on savings
• Have a strategy for where to look for savings

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Combine or Eliminate Functions

• Look for
• Similar functions in other agencies
• Functions that can be performed centrally

Examples Annual Savings
Transfer functions of the Texas Workers Compensation Commission to the Texas Department of Insurance 900,000
Move administrative hearings of the Tx. Dept. of Health to the State Office of Administrative Hearings 39 cheaper
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Find Out-of-Date Processes

• Look for
• Processes no longer necessary
• Better ways now available for accomplishing tasks

Examples Annual Savings
Eliminate unnecessary reports comparing health plans in different systems 125,000
Eliminate requirement to advertise highway construction contracts in newspapers 1 million
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Be Aware of Best Practices

• Look for best practices that save money

Example Annual Savings
Change the criminal justice systems brick and mortar strategy to less costly diversions, treatment programs 33.5 million
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Streamline Agency Operations

• Look for
• Duplicated administrative processes
• Programs with too many steps
• Overstaffing or oversized boards

Example Annual Savings
Require Tx. Dept. of Health to integrate 37 Medicaid and non-Medicaid programs with siloed administrative processes 2.2 million
Eliminate the state-run medical benefits appeal process for injured workers, allowing direct appeal to district court 1.2 million
Reduce the size of the State Emergency Communications Board from 16 to 9 1,500
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Make the Most of All Funding Sources

• Look for
• Multiple funding streams to fund a service
• Cost-sharing possibilities
• Uncollected funds

Example Annual Savings
Require Council on Early Childhood Intervention to ensure funding from federal sources is fully used before using state funds 8 million
Require participants in the Substance Abuse Felony Punishment program to share program cost 1.4 million
Require Texas' natural resources agency to systematically collect fees, some of which were not being accounted for properly 660,000
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Use the Private Sector Wisely

• Look for
• Peaks and valleys in workload
• Services acquired without sufficient competition

Example Annual Savings
Require the Tx. Rehabilitation Commission to select providers of services competitively, rather than simply putting providers on a list Cannot Determine
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Summary and Final Thoughts

• Keep the possibility of cost savings in mind
• Use these categories, as well as others you think
  of, as a checklist
• Combining or eliminating functions
• Eliminating old, outdated processes
• Incorporating cost-saving best practices
• Streamlining operations
• Maximizing funding sources
• Using the private sector wisely
• Expect resistance
• Be fair

Contact Information Karl Spock Senior
Manager Texas Sunset Commission karl.spock_at_sunset.
state.tx.us