Assembly Speaker Sheldon Silver and Ways and Means Committee Chair Herman D. Farrell, Jr. today announced a proposal for agency consolidation and shared services that would help save taxpayers over $30 million by merging certain state agencies. The Assembly plan includes consolidations included in the Executive Budget as well as additional measures.

"Last year the Assembly passed legislation allowing for the consolidation of local government entities to help save taxpayer dollars and reduce duplicative services," said Silver (D-Manhattan). "It is common sense that we would take steps to do the same on the state level. Combining agencies and merging services could potentially save millions in taxpayer dollars."

"This initiative would streamline agencies by combining those which perform similar functions and would also authorize the use of shared administrative services between a number of state agencies," said Farrell (D-Manhattan). "The nationwide recession has made it clear that state governments need to do all that they can to reduce costs and lessen the financial burden on taxpayers."

The proposal, which would take effect on January 1, 2011, would:

• Establish a new Department of Financial Services by merging the Department of Banking and the Department of Insurance;
• Authorize the use of shared administrative services between the Office of Temporary and Disability Assistance and the Office of Children and Family Services;
• Authorize the use of shared administrative services between the Office of Mental Health, the Office of Mental Retardation and Developmental Disabilities and the Office of Alcoholism and Substance Abuse Services;
• Merge the Higher Education Services Corporation into the State Education Department;
• Merge the State University Construction Fund into the Dormitory Authority of the State of New York;
• Consolidate the Governor's Office of Regulatory Reform into the Department of State;
• Merge the Administration of the Environmental Facilities Corporation programs into the Department of Environmental Conservation;
• Authorize the use of shared administrative services between the Racing and Wagering Board and the Division of Lottery; and
• Create a task force to evaluate the consolidation of the Empire State Development Corporation (ESDC), the Job Development Authority, the Foundation for Science, Technology and Innovation and the New York State Energy Research and Development Authority into one authority.

The Assembly has also accepted the following Executive proposals, which would:

• Consolidate the Emergency Service and Homeland Security entities into a Department of Homeland Security and Emergency Services;
• Merge the Office of Real Property Services and the Department of Tax and Finance;
• Authorize the use of shared administrative services for the Office of the Medicaid Inspector General and the Office of the Welfare Inspector General;
• Merge the State Fair and the Industrial Exhibit Authority;
• Transfer the Nutritional Outreach Program and the AIDS Homeless Housing Program from the Department of Health to the Office for Temporary Disability Assistance; and
• Consolidate the Operation of the Division of Housing and Community Renewal and the Housing Finance Authority.

Other actions taken by the Assembly in response to the Executive's proposal would:

• Reject merging the Crime Victims Board (CVB), the Office for the Prevention of Domestic Violence (OPDV) and the Department of Parole and Correctional Alternatives into a single entity;
• Reject the Executive proposal to merge the Department of Economic Development and the ESDC into the new Job Development Corporation; and
• Amend the proposed merger of the Public Employees Relations Board and the State Employee Relations Board to make the merger take effect on April 1, 2011.