Consolidation Key to Reducing Government Spending

Plans reduce bureaucracy, costs & make government more responsive to taxpayers

March 29, 2010

Assemblymember Kevin Cahill (D-Ulster, Dutchess) is pushing for a plan to consolidate state agencies and promote shared services as a means of making government more efficient and responsible for taxpayer dollars. The proposal, included in the budget resolution passed by the Assembly last week, would reduce the state workforce, streamline management and save the state over $30 million in the 2010-2011 budget through the consolidation of 37 state agencies and offices in the coming fiscal year.

“New York State has to be able to do more with less. That means ending duplicative services and merging offices wherever possible,” said Assemblymember Cahill. “The agency consolidation plan passed by the Assembly will make for a leaner and more efficient state government, saving taxpayers millions in the process.”

The plan includes:

• merging the current Departments of Banking and Insurance to form a new Department of Financial Services – saving $6.83 million;
• sharing administrative functions between the Offices of Mental Health, Mental Retardation and Developmental Disabilities and Alcoholism and Substance Abuse Services – saving $3.45 million;
• merging the Higher Education Services Corporation into the State Education Department – saving more than $1 million;
• sharing administrative functions between the Offices of Children and Family Services and Temporary and Disability Services – saving $530,000;
• consolidating the Governor’s Office of Regulatory Reform into the Department of State – saving $325,000; and
• merging the administration of the Environmental Facilities Corporation into the Department of Environmental Conservation – saving $154,000.

“This is an important step toward modernizing government in New York State,” said Assemblymember Cahill. “But we need to do more, including passing my 21st Century Schools Act, which could save property taxpayers hundreds of millions of dollars.”

The 21st Century Schools Act addresses costs by streamlining services and ending duplication. A recent Comptroller report estimates that the state could save close to $400 million if school districts took better advantage of back-office services already offered by BOCES.

The 21st Century Schools Act builds on that by maximizing the use of BOCES, increasing cooperative participation and expanding regional approaches to bigger ticket items like transportation and special education. The bill also calls for a complete reexamination of school district lines that have not been comprehensively redrawn since the 1950s.

“We must act to take advantage of modern economies of scale and improve the delivery of services to our kids and teachers” said Assemblymember Cahill. “My legislation addresses costs while preserving the quality and local character of our schools.”

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