Legislature(2021 - 2022)DAVIS 106

03/01/2022 11:30 AM House WAYS & MEANS

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Audio Topic
11:32:53 AM Start
11:33:55 AM Presentation(s): New York State Spending and Government Efficiency Commission
12:16:25 PM HB223
12:17:48 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Presentation: New York State Spending and TELECONFERENCED
Government Efficiency Commission by
Paul Francis, Senior Advisor to the
Commissioner, New York State Department of
Health
+= HB 223 REPEALING FUNDS, ACCOUNTS, AND PROGRAMS TELECONFERENCED
Heard & Held
-- Invited & Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
**Streamed live on AKL.tv**
                    ALASKA STATE LEGISLATURE                                                                                  
           HOUSE SPECIAL COMMITTEE ON WAYS AND MEANS                                                                          
                         March 1, 2022                                                                                          
                           11:33 a.m.                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Ivy Spohnholz, Chair                                                                                             
Representative Andy Josephson                                                                                                   
Representative Calvin Schrage                                                                                                   
Representative Andi Story                                                                                                       
Representative Mike Prax                                                                                                        
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Adam Wool, Vice Chair                                                                                            
Representative David Eastman                                                                                                    
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
PRESENTATION(S):     NEW  YORK  STATE  SPENDING   AND  GOVERNMENT                                                               
EFFICIENCY COMMISSION                                                                                                           
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
HOUSE BILL NO. 223                                                                                                              
"An  Act   relating  to  the  curriculum   improvement  and  best                                                               
practices  fund; relating  to the  fuel emergency  fund and  fuel                                                               
emergency grants; relating to the  Railbelt energy fund; relating                                                               
to the  Alaska affordable  energy fund;  relating to  the special                                                               
Alaska Historical  Commission receipts  account; relating  to the                                                               
rural  electrification revolving  loan  fund and  loans from  the                                                               
fund; relating to  the Southeast energy fund and  grants from the                                                               
fund; and relating  to the Exxon Valdez  oil spill unincorporated                                                               
rural community grant fund and grants from the fund."                                                                           
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 223                                                                                                                  
SHORT TITLE: REPEALING FUNDS, ACCOUNTS, AND PROGRAMS                                                                            
SPONSOR(s): REPRESENTATIVE(s) KAUFMAN                                                                                           
                                                                                                                                
01/18/22       (H)       PREFILE RELEASED 1/7/22                                                                                

01/18/22 (H) READ THE FIRST TIME - REFERRALS

01/18/22 (H) W&M, FIN 02/24/22 (H) W&M AT 11:30 AM DAVIS 106 02/24/22 (H) Heard & Held 02/24/22 (H) MINUTE(W&M) 03/01/22 (H) W&M AT 11:30 AM DAVIS 106 WITNESS REGISTER PAUL FRANCIS, Senior Advisor to the Commissioner New York State Department of Health (No address provided) POSITION STATEMENT: Provided a PowerPoint, entitled "Discussion of the New York SAGE Commission Report," during the New York State Spending and Government Efficiency Commission presentation. ACTION NARRATIVE 11:32:53 AM CHAIR IVY SPOHNHOLZ called the House Special Committee on Ways and Means meeting to order at 11:33 a.m. Representatives Josephson, Schrage, Story, Prax, and Spohnholz were present at the call to order. Representatives * arrived as the meeting was in progress. ^PRESENTATION(S): New York State Spending and Government Efficiency Commission PRESENTATION(S): New York State Spending and Government Efficiency Commission 11:33:55 AM CHAIR SPOHNHOLZ announced that the first order of business would be a presentation on the New York State Spending and Government Efficiency Commission. 11:34:26 AM PAUL FRANCIS, Senior Advisor to the Commissioner, New York State Department of Health, stated that he is testifying in a personal capacity, not on behalf of Governor Hochul. He began a PowerPoint presentation, titled "Discussion of the New York SAGE Commission Report" [hard copy included in the committee packet]. He noted the commission convened from 2011 to 2013. This commission focused on state government operations as opposed to programs funded by the state government. The SAGE commission consisted of members of the legislature, local elected officials, representatives of organized labor, and business leaders. The mission of the SAGE Commission charter was to "modernize and right-size government to make it more efficient, effective, and accountable." It included four missions: reorganize state government; reduce costs; improve services; build a culture of performance and accountability; and focus on core mission and implementation. 11:38:48 AM MR. FRANCIS said that reorganizing the government involved consolidating and merging agencies and authorities while integrating agencies with a clear chain of command. There were issues with merging certain agencies with differing labor unions, for example the New York Department of Transportation and the Thruway Authority. It was important to merge horizontal functions across the state, like procurement and real estate, which created less bureaucratic resistance to change. Horizontal consolidation was more successful in consolidating the state's "footprint" and helped to shrink the facilities and workforce needed. However, a tradeoff was employment security. The centralization of Information Technology (IT) helped to avoid redundancy and achieve economies of scale. Common data centers and cloud hosting helped to increase efficiency at IT. Significant progress was made in digital delivery of government services, such as functions at the New York Department of Motor Vehicles, grant applications, and business licenses. Efforts to reduce costs and improve services involved modernizing the workforce through ongoing replacement of civil service workers with contracted services including those from the non-profit sector. 11:55:06 AM MR. FRANCIS noted that unlike the private sector, the New York State government lacked an incentive system to reward employees for better performance. Improvements in performance management metrics involved finding a balance between governmental transparency and strategic metrics. There was reluctance among political leaders to be specific about targets for metrics such as crime rates. There was also resistance from state agencies about measuring performance because employees don't always have full control over whether goals can be achieved or not. Mr. Francis urged the committee to create a similar commission to the SAGE commission by creating a team with an unbiased view and identifying options for improving efficiency and effectiveness. 11:58:49 AM MR. FRANCIS, in response to committee questions, emphasized the benefits of horizontal consolidations over merging vertical state agencies. Fiscal austerity forced innovation for systemic changes recommended by the SAGE commission. He detailed the timeline for implementation which took 12-18 months to develop recommendations and 4-5 months to develop a final report from SAGE. Mr. Francis looked to Maryland, Washington, and New York City governments for performance management system recommendations. He also recommended that performance measurement should capture the whole chain from input to outcome. MR. FRANCIS, in response to a question about tradeoffs for efficiency versus employment security, mentioned in example that one area of state government has been moved 75 percent into the private or nonprofit sector, which saves the state money; the only reason that the other 25 percent hasn't been moved out of government is for the employment security of those workers. The state offers more financial benefits to its employees than the private sector and "the governor politely believes that that is how he would like all workers to be treated, but for competitive reasons, can't impose it on the private sector, but it is willing to impose it on itself." HB 223-REPEALING FUNDS, ACCOUNTS, AND PROGRAMS 12:16:25 PM CHAIR SPOHNHOLZ announced that the final order of business would be HOUSE BILL NO. 223, "An Act relating to the curriculum improvement and best practices fund; relating to the fuel emergency fund and fuel emergency grants; relating to the Railbelt energy fund; relating to the Alaska affordable energy fund; relating to the special Alaska Historical Commission receipts account; relating to the rural electrification revolving loan fund and loans from the fund; relating to the Southeast energy fund and grants from the fund; and relating to the Exxon Valdez oil spill unincorporated rural community grant fund and grants from the fund." 12:16:49 PM CHAIR SPOHNHOLZ opened public testimony on HB 223. After ascertaining that no one wished to testify, she closed public testimony. 12:17:09 PM CHAIR SPOHNHOLZ announced that HB 223 was held over. 12:17:48 PM ADJOURNMENT There being no further business before the committee, the House Special Committee on Ways and Means meeting was adjourned at 12:17 p.m.

Document Name Date/Time Subjects
SAGE Commission Presentation, 3.1.22.pdf HW&M 3/1/2022 11:30:00 AM
HB 223 Sponsor Statement.pdf HW&M 2/24/2022 11:30:00 AM
HW&M 3/1/2022 11:30:00 AM
HB 223
HB 223 Supporting Document - Legal Memo.pdf HW&M 2/24/2022 11:30:00 AM
HW&M 3/1/2022 11:30:00 AM
HB 223
HB 223 Supporting Document - Fund Table.pdf HW&M 2/24/2022 11:30:00 AM
HW&M 3/1/2022 11:30:00 AM
HB 223
HB 223 Fiscal Note, OMB, 2.23.22.pdf HW&M 2/24/2022 11:30:00 AM
HW&M 3/1/2022 11:30:00 AM
HB 223