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The Legislative Gazette Article

Monday, 25 April 2011

By Veronica Lewin

Publication & Publisher: The Legislative Gazette

Many state agencies are headquartered at the
Harriman Campus in Albany, foreground, and
the Empire State Plaza, background. The SAGE
Commission will find ways to consolidate state
government and provide final recommendations
to Gov. Andrew Cuomo in 2012. Photo by AP.

Officially formed last week, the governor's new Spending and Government Efficiency Commission is already getting input from state lawmakers and advocacy organizations on how New York can consolidate state government and save New Yorkers money.

Gov. Andrew Cuomo announced the formation of a 20-member Spending and Government Efficiency (SAGE) Commission April 19 after proposing its creation in January.

"For decades, our state government has ballooned, evolving into the sprawling and inefficient bureaucracy we have today," said the governor. "It is time to consolidate the web of state agencies, authorities and commissions that have overlapping functions and missions and to make the remaining ones perform better and more efficiently."

The commission is being aided by the University at Albany's Nelson A. Rockefeller Institute of Government, which received a grant from the Rockefeller Foundation and McKinsey & Company to partner with the Cuomo administration to redesign government.

The passage of the budget started the fusion of some state agencies. The Department of Correctional Services and the Division of Parole will merge to create the Department of Corrections and Community Supervision. The state Banking and Insurance departments will join to create the Department of Financial Regulation. The state will also merge the Foundation for Science, Technology and Innovation into the Empire State Development Corp.

Now, according to the governor's office, the new commission will "conduct a comprehensive review of state government including its structures, operations and processes, with the ultimate goal of saving taxpayers' money, increasing accountability and improving the delivery of government services."

Antonio Perez, chairman and CEO of Eastman Kodak Co., will serve as co-chair of the SAGE Commission with Paul Francis, Cuomo's director of agency redesign and efficiency.

"Improving the performance of state government has been one of Gov. Cuomo's highest priorities, and I am honored to be part of the team that will make it a reality. Kodak began in New York and continues to be headquartered in Rochester. "We are transforming our company as we adapt to a new digital world. New York state government must also adapt to reflect current fiscal realities and take advantage of new technologies and ways of operating so that it can efficiently and effectively provide critical government services," said Perez.

Some lawmakers already have suggestions as to how the SAGE Commission could cut down on expenses.

Senate independent Democratic conference leader Jeffrey Klein, D-Morris Park, and members Diane Savino, D-Staten Island, David Valesky, D-Oneida and David Carlucci, D-Clarkstown, sent a letter to Francis and Perez last Wednesday offering suggestions on how the commission could consolidate government agencies.

"Since the IDC's formation, we have developed and put forward our own proposals to create lasting efficiencies and tame a state bureaucracy that has grown beyond our collective means," the letter reads.

The senators recommend the SAGE Commission create new rules regarding the use of state assets, enact tougher standards for state contracts, consolidate identical functions within agencies and give the Division of the Budget final approval over all overtime spending. The independent Democratic conference also suggests empowering the Office of General Services to create risk management plans for state agencies and consolidating the state's inspectors general system.

According to the senators, these changes would save the state at least $500 million.

Gerald Benjamin, professor of political science at the State University of New York at New Paltz, said a systematic review of state government's organization is necessary.

"It's not always the case that review and reorganization of state government reduces costs. It's likely to reduce the rate of increase and cost. But I do think that review of the organization of state government is periodically necessary. I think we can achieve a greater accountability and accessibility of government by restructuring after a period of time where we've incrementally altered the structure of government," said Benjamin, a project director of The Legislative Gazette and director of The Center for Research, Regional Education and Outreach at SUNY New Paltz.

Also, some organizations that work with state agencies have begun to offer their input to the SAGE Commission.

The Alcoholism and Substance Abuse Providers of New York State, an association that supports organizations, groups and individuals that work to "prevent and alleviate the profound personal, social and economic consequences of alcoholism and substance abuse in New York state," posted on its website last Wednesday that its staff has already met with Francis. The organization gave Francis a position paper that included input from its board and members.

"NYASAP sees a number of opportunities for the state to restructure and streamline state operations to eliminate redundancies, improve productivity and development appropriate cross-system coordination," reads the position paper. Among its recommendations are: consolidating human resources, information technology, billing and purchasing functions among mental hygiene agencies, streamlining auditing practices and privatizing the process for issuing credentials to people who want to work in the mental hygiene field.

The commission will deliver periodic progress reports before providing final recommendations to the governor by June 1, 2012.

Among the members of the commission are: Michael Balboni, former principal and senior vice president of Cardinal Point Strategies, a government solutions group. Prior to joining the company in 2009, Balboni served as Republican member of the state Legislature for 28 years, spending time in both the Assembly and Senate. In 2006, he was appointed deputy secretary of public safety, where he was responsible for emergency preparedness and response, law enforcement and homeland security affairs for New York.

Denis Hughes has served as president of the New York State AFL-CIO since 1999. Major achievements during his tenure include reforming the state workers' compensation system, enacting a minimum wage for farm workers and coordinating labor's efforts to pass the James Zadroga 9/11 Health and Compensation Act. He is also a commissioner of the New York State Insurance Fund.

Former Westchester County Executive Andrew Spano ran a government with a $2 billion budget and 5,500 employees for 12 years. During that time, Westchester County developed a reputation as a national and international model for its use of technology, the preservation of the environment and efficiency of government operations. Prior to being elected, Spano worked as a teacher, counselor and administrator in New York City and Westchester schools.

Cheryl Cohen Effron has served as vice chair of the Wildcat Service Corp., a company that provides job opportunities and resources for New Yorkers to become economically independent. Wildcat Service was the first organization in the country to design and implement a transitional work program for unemployed people with criminal backgrounds. She has been a trustee of the Brookings Institution, the New School, the Citizens Budget Commission and New York Cares.

Jim Corcoran, president and founder of James P. Corcoran LLC, served as the superintendent of insurance for the state from 1983 to 1990 during former Gov. Mario Cuomo's administration. Prior to starting his own private arbitration firm, Corcoran was a partner at Winston & Strawn LLP and executive vice president of government and industry relations at the American General Corp.

Sens. Greg Ball, R-Patterson, and Liz Krueger, D-Manhattan, and Assemblywoman Jane Corwin, R-Williamsville will serve as legislative representatives on the SAGE Commission. A representative from the Assembly's Democratic majority has yet to be named.

"I am grateful for the opportunity to serve on the SAGE Commission to stand up for Western New York taxpayers and closely examine how we can best reduce the size of government," said Corwin. "I look forward to representing the minority conference on the commission and will take a proactive role in working with my colleagues on both sides of the aisle to reduce government spending, increase transparency, and restore accountability to taxpayers."