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Governor Arnold Schwarzenegger. The California Performance Review: A Prescription for Change Established by Executive Order S-5-04 To Create the First 21 st Century Government in America. Prognosis: Guarded Optimism. We can cut costs. We can improve customer service.
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Governor Arnold Schwarzenegger The California Performance Review: A Prescription for Change Established by Executive Order S-5-04 To Create the First 21st Century Government in America
Prognosis: Guarded Optimism • We can cut costs. • We can improve customer service. • We can conserve and better manage taxpayer dollars. • We can manage government more strategically. • We can take advantage of new technologies and modern ways of doing business.
2 Principal Elements of the CPR Report • Performance & Policy Reform – • Top-to-bottom review of government services. CPR developed concrete recommendations to improve performance, increase accountability and reduce costs. • Organizational Reform • Customer-service will dictate government form and structure, not the other way around. We will create an environment conducive to accountability, innovation, entrepreneurship, and strategic thinking.
Why California State Government Must Change • Human-Capital Crisis • 34% of the state workforce is eligible for retirement and will likely retire within the next five years. • River of Red Ink • The fiscal crisis is not merely a current-year dilemma. Structural deficits are projected for years to come unless we respond and innovate today. • People Demand Superior Performance • In this on-demand world, we have no patience for delay and bureaucracy. People demand superior performance, but they have low expectations of today’s government.
CPR Element 1: Performance & Policy Reform • CPR started with over 2,300 ideas to improve performance: • These ideas came from CPR, previous performance reviews, public and private research, LHC, LAO, the legislature, state agencies and the public. • Following extensive analysis, the ideas have been consolidated into over 250 issues. • These issues drive more than 1,200 recommendations for improvement and change.
CPR Performance & Policy Issue Examples • Procurement • We recommend leveraging the State’s purchasing power to get better pricing and properly planning our purchasing for efficient buying. • Education • We recommend aligning educational outcomes with the needs of the economy in order to prepare students for achieving their goals after they leave California’s education system.
CPR Performance & Policy Issue Examples • Asset Management • We recommend maximizing the utility of our real estate assets by focusing them on programs requirements. We recommend efficiently managing the state’s 200+ million square feet of buildings. • Health & Human Services • We recommend streamlining the eligibility and application process for recipients of aid.
Improve Efficiency of State Infrastructure Programs • Adopt Construction Performance and Warranty Specifications. • Adopt New Project Delivery Methods. • Reduce Builder’s Bonding and Insurance Costs. • Promote High Occupancy Toll (HOT) Lanes and Value Pricing to Reduce Congestion and Increase Revenues.
Save Taxpayer Infrastructure Dollars • Ensure Taxes Collected for Transportation are Used for Transportation Projects. • Coordinate State and Local Efforts to Receive Federal Funds Earmarked for Priority Projects.
Improve Management of State Infrastructure Programs • Link Infrastructure Planning and Programming with Performance Measures. • Adopt Life-cycle Costing for Infrastructure Projects. • A Sustainable Economy Requires a Healthy Infrastructure. • Improve the CEQA Process.
CPR Element 2: Reorganization Making Government Make Sense • Align state programs by function. • Maintain the identities of key programs. • Consolidate administrative services. • Focus on customer service. • Increase program quality and efficiency.
California’s Infrastructure is Fragmented California’s infrastructure is divided between 32 different agencies: • Infrastructure investment not treated as a unified program • Assessment and documentation of state infrastructure needs are inadequate • Programmatic goals are not clearly defined • No criteria for setting statewide priorities • No stable funding source • State/Local needs are not articulated
CPR Recommendation: Infrastructure Department Combine all infrastructure agencies • Remove administrative duplication, inefficiency, and inconsistency • State infrastructure assets will be managed to maximize their use and their capture of revenues • Resources spent on delivering and maintaining infrastructure rather than overhead • Open and accountable – to the people • Inclusive process • Customer service orientation • Improve business climate
California Infrastructure Department
Governor Schwarzenegger’s California Performance Review A window of opportunity is open for California.The time for change is now.www.cpr.ca.gov 1-877-End Waste