Reform Initiatives Proposed For Sustainable Future

Our budget shortfall of $5.1 billion and a projected 29-percent rise in state spending indicate our current budget model is unsustainable, underscoring our need for government reform.

The House recently unveiled budget targets which help point us in a better direction. I am pleased this package provides middle-class tax relief and also protects funding for classrooms, nursing homes, courts and veterans.

Reform is a huge component in this proposal because the old way of doing things must change. Our plan helps us live within our available revenue by setting priorities and improving the way government operates. The budget proposal reduces state agency funding by 15 percent, requires 15-percent reduction in state government by 2015 and freezes public employee salaries for two years.

Our reform initiatives are designed to reduce costs, acknowledge economic reality and bring sustainability to Minnesota. The focus is on providing more efficient service, reducing fraud and waste, trimming back bureaucracy and creating a smaller government.

Difficult work remains to get our fiscal house in order, but here is a quick look at some proposals we’ve issued:

Medicaid Fraud Detection (HF 233/SF 180)
Software that pulls and integrates information from various claims, benefit, eligibility and other systems to flag and prevent fraudulent Medicaid payments. Similar bills have been drafted for unemployment insurance fraud, workers compensation fraud and welfare fraud.

Tax Analytics (HF 173)
Tax analytics is the combination of hardware, software and data methodologies to identify and prioritize potential audit candidates and collection efforts. Wisconsin employed a pilot project in 2007, in which tax analytics identified $5.85 million in probable successful audits and achieved a 93 percent success rate, or $5.45 million; Wisconsin has since expanded the program.

Sunset Commission (HF 174 & HF 2/SF 146)
The Sunset Commission provides a mechanism to review and retire unnecessary or duplicative government operations. Our model – the Texas Sunset Commission – has closed 58 agencies and consolidated another 12 agencies since 1982, saving taxpayers approximately $783.7 million.

HHS Integrated Eligibility (HF 746)
One-stop websites where individuals and community partners can determine if they are eligible and apply for a range of Health and Human Services benefits, with the system automatically directing applications to the appropriate state agency and streamlining the application and eligibility process; these sites make the process easier for users and more efficient for agencies involved — reducing costs and improving results on both sides.

“15 by 15” State Workforce Restructuring (HF 4/SF 8)
Reduce the government workforce and associated costs 15 percent by 2015. This bill offers several tools, including furloughs, cuts, wage freezes, benefit restructuring and an early retirement option. Illinois’ early retirement program, implemented in 2002, is forecast to save the state $2.9 billion between fiscal years 2003-2012.

IT Consolidation (HF 191/SF 130)
Consolidate agency IT systems and services in the Office of Enterprise Technology.

Agency consolidation (HF 419)
Streamline state departments into eight agencies.

I welcome your ideas for ways we can improve the way our state operates. Please e-mail me at rep.kurt.bills@house.mn.