1. Copyright © 2008 SAS Institute Inc. All rights reserved. SAS and all other SAS Institute Inc. product or service names are registered trademarks or trademarks of SAS Institute Inc. in the USA and other countries. ® indicates USA registration. Doing More with Less! Ben Zenick VP Consulting Services, Zencos Consulting

2. Copyright © 2008, SAS Institute Inc. All rights reserved. SAS and all other SAS Institute Inc. product or service names are registered trademarks or trademarks of SAS Institute Inc. in the USA and other countries. ® indicates USA registration. “The more things change the more they stay the same” Keynote Overview

3. Copyright © 2008, SAS Institute Inc. All rights reserved. SAS and all other SAS Institute Inc. product or service names are registered trademarks or trademarks of SAS Institute Inc. in the USA and other countries. ® indicates USA registration. Agenda Keynote Overview Changing Landscape Budgets Workforce Stimulus Impact Summary

4. Copyright © 2008, SAS Institute Inc. All rights reserved. SAS and all other SAS Institute Inc. product or service names are registered trademarks or trademarks of SAS Institute Inc. in the USA and other countries. ® indicates USA registration. Keynote Overview Goal Discuss how technology can be utilized to increase the level of “customer (constituent)” satisfaction, create jobs, and manage and monitor policies while having access to fewer resources, less money, and more regulation.

5. Copyright © 2008, SAS Institute Inc. All rights reserved. SAS and all other SAS Institute Inc. product or service names are registered trademarks or trademarks of SAS Institute Inc. in the USA and other countries. ® indicates USA registration. Keynote Overview You have an opportunity to help make change! "The difference between the extraordinary and the ordinary people is their ability to not let legitimate excuses stop their success.“ – Charlie King, Former regional director for the U.S. HUD NY/NJ for Former President Clinton

6. Copyright © 2008, SAS Institute Inc. All rights reserved. SAS and all other SAS Institute Inc. product or service names are registered trademarks or trademarks of SAS Institute Inc. in the USA and other countries. ® indicates USA registration. The Less (with a slight increase) Sources: Center on Budget and Policy Priorities, INPUT, U.S. Census Bureau, San Francisco Chronicle

7. Copyright © 2008, SAS Institute Inc. All rights reserved. SAS and all other SAS Institute Inc. product or service names are registered trademarks or trademarks of SAS Institute Inc. in the USA and other countries. ® indicates USA registration. Changing Landscape – $$ – Budgets Shortfalls Source: Center on Budget and Policy Priorities

8. Copyright © 2008, SAS Institute Inc. All rights reserved. SAS and all other SAS Institute Inc. product or service names are registered trademarks or trademarks of SAS Institute Inc. in the USA and other countries. ® indicates USA registration. Changing Landscape – $$ – Budgets Shortfalls Some of the 46 states are facing fiscal stress in their FY2009 and/or FY2010 budgets. New mid-year fiscal year 2009 shortfalls of $51 billion have opened up in the budgets of at least 42 states and the District of Columbia Budget deficits are already projected in 43 states for the upcoming fiscal year. Initial estimates of these shortfalls total almost $94 billion. As the full extent of 2010 deficits become known, shortfalls are likely to equal $145 billion. Combined budget gaps for the remainder of this fiscal year and state fiscal years 2010 and 2011 are estimated to total $350 billion to $370 billion. Source STATE BUDGET TROUBLES WORSEN By Elizabeth McNichol and Iris J. LavCenter of Budget and Policy PrioritiesElizabeth McNicholIris J. Lav

9. Copyright © 2008, SAS Institute Inc. All rights reserved. SAS and all other SAS Institute Inc. product or service names are registered trademarks or trademarks of SAS Institute Inc. in the USA and other countries. ® indicates USA registration. Changing Landscape – $$ – Revenue Impact Source: Center on Budget and Policy Priorities

10. Copyright © 2008, SAS Institute Inc. All rights reserved. SAS and all other SAS Institute Inc. product or service names are registered trademarks or trademarks of SAS Institute Inc. in the USA and other countries. ® indicates USA registration. Changing Landscape – $$ - Results Reduction in services provided by States Public Health Programs Education State Workforce Increased Taxes Other Measures All removing demand thus worsening the picture

11. Copyright © 2008, SAS Institute Inc. All rights reserved. SAS and all other SAS Institute Inc. product or service names are registered trademarks or trademarks of SAS Institute Inc. in the USA and other countries. ® indicates USA registration. “The More” Cost Reduction and Revenue Opportunities Fraud, Waste, and Abuse Increase Tax Revenue Collection Increase Economic Development Efforts

12. Copyright © 2008, SAS Institute Inc. All rights reserved. SAS and all other SAS Institute Inc. product or service names are registered trademarks or trademarks of SAS Institute Inc. in the USA and other countries. ® indicates USA registration. Uncovering Fraud, Waste, and Abuse – “The More” Medicaid Opportunities Program costs to State and Federal Government −2007 – estimated $333B −Accounts for more then 20% of states expenditures Improper Payment Rates −10.5% of costs / $32.7B (FY2007) −Federal Share = $18.6B Sources: * GAO/CMS

13. Copyright © 2008, SAS Institute Inc. All rights reserved. SAS and all other SAS Institute Inc. product or service names are registered trademarks or trademarks of SAS Institute Inc. in the USA and other countries. ® indicates USA registration. Fraud, Waste, and Abuse – “The More” Identifying and reducing improper payments is a first step to improving program and “decreasing” cost Measure Performance of Programs Publicly Report Results Data Accuracy Proactive Detection −Identify suspect claims prior to paying Improve budgeting and planning accuracy through improved forecasting capabilities Sources: * CMS ISSUES IMPROPER PAYMENT RATES FOR MEDICARE, MEDICAID, AND SCHIP

14. Copyright © 2008, SAS Institute Inc. All rights reserved. SAS and all other SAS Institute Inc. product or service names are registered trademarks or trademarks of SAS Institute Inc. in the USA and other countries. ® indicates USA registration. Fraud, Waste, and Abuse – “The More” Integrate Results back to payment systems Proactive Identification Reduces cost of collection Reduces risk of non-collection Use technology to score and identify claims as “suspect” as they come into the system

15. Copyright © 2008, SAS Institute Inc. All rights reserved. SAS and all other SAS Institute Inc. product or service names are registered trademarks or trademarks of SAS Institute Inc. in the USA and other countries. ® indicates USA registration. Increase Tax Collection Rates – “The More” Total Federal Tax Revenue in Billions = $2.5T Source: Receipts from FY 2009 Historical Tables, Budget of the United States Government, Table 2.1; Outlays from FY 2009 Historical Tables, Budget of the United States Government, Table 8.1.

16. Copyright © 2008, SAS Institute Inc. All rights reserved. SAS and all other SAS Institute Inc. product or service names are registered trademarks or trademarks of SAS Institute Inc. in the USA and other countries. ® indicates USA registration. Increase Tax Collection Rates – “The More” Tax Gap Estimates (Underreported) $345B as estimated by IRS $55B recovered via Enforcement and Other Activities $290B remaining (tax year 2001) Approximately 10% of Tax Revenue goes uncollected Source: Internal Revenue Service

17. Copyright © 2008, SAS Institute Inc. All rights reserved. SAS and all other SAS Institute Inc. product or service names are registered trademarks or trademarks of SAS Institute Inc. in the USA and other countries. ® indicates USA registration. Increase Tax Collection Rates – “The More” Gain insight into your taxpayers with one single view Identification of non-filers and under reporters How? Who? What? When?

18. Copyright © 2008, SAS Institute Inc. All rights reserved. SAS and all other SAS Institute Inc. product or service names are registered trademarks or trademarks of SAS Institute Inc. in the USA and other countries. ® indicates USA registration. Increase Tax Collection Rates – “The More” Develop a investigative collection strategy based on; Integration of state-wide data sources Propensity to Pay and Cost of Collections Determine what collection methods are appropriate for which cases Available resources and current workload Forecasting future revenues

19. Copyright © 2008, SAS Institute Inc. All rights reserved. SAS and all other SAS Institute Inc. product or service names are registered trademarks or trademarks of SAS Institute Inc. in the USA and other countries. ® indicates USA registration. Economic Development – “The More” Economic Development Opportunities Maximize opportunities for projects by providing more information about a states workforce demographics and available properties. Allow economic developers to proactively recruit firms by more effectively targeting the “right fit” companies for counties and municipalities. Reduce time and resources spent collecting, compiling and searching for data and site information and shortening the timeline involved with collecting data to make decisions. Improve analytical and planning capability via web and other information based tools. Provide interested companies and consultants with real time comparisons. A tool to look at the State’s entire economic development system

20. Copyright © 2008, SAS Institute Inc. All rights reserved. SAS and all other SAS Institute Inc. product or service names are registered trademarks or trademarks of SAS Institute Inc. in the USA and other countries. ® indicates USA registration. Economic Development – “The More” 80% of all site selection is done online Reduce costs by reduce time spent on ED activities Aids in strategic economic and community development decision making Avoid duplication in the collection and maintenance of data across all government entities Job Creation

21. Copyright © 2008, SAS Institute Inc. All rights reserved. SAS and all other SAS Institute Inc. product or service names are registered trademarks or trademarks of SAS Institute Inc. in the USA and other countries. ® indicates USA registration. Changing Landscape – Workforce Workforce Outlook Workforce Issues Know your Employees Know where your Employee are Workforce Opportunities

22. Copyright © 2008, SAS Institute Inc. All rights reserved. SAS and all other SAS Institute Inc. product or service names are registered trademarks or trademarks of SAS Institute Inc. in the USA and other countries. ® indicates USA registration. Workforce – “The Less” 38 states + DC are cutting workforce 24 states + DC are instituting hiring freezes Announced and Proposed Layoffs Reduced and Proposed Wage cuts

23. Copyright © 2008, SAS Institute Inc. All rights reserved. SAS and all other SAS Institute Inc. product or service names are registered trademarks or trademarks of SAS Institute Inc. in the USA and other countries. ® indicates USA registration. Workforce – “The Less” Lack of knowledge of current workforce profile Slow to respond to changing workforce demographics, trends, aging and retiring workforce On-demand resource allocation

24. Copyright © 2008, SAS Institute Inc. All rights reserved. SAS and all other SAS Institute Inc. product or service names are registered trademarks or trademarks of SAS Institute Inc. in the USA and other countries. ® indicates USA registration. Workforce – “The More” Provide insight and actionable information about the workforce

25. Copyright © 2008, SAS Institute Inc. All rights reserved. SAS and all other SAS Institute Inc. product or service names are registered trademarks or trademarks of SAS Institute Inc. in the USA and other countries. ® indicates USA registration. Workforce – Do More With Your Resources! More Efficiently Manage Human Capital Improve overall performance by providing the capability to manage in ways that we have previously been unable to do. Responding to the changing workforce demographics, trends, aging and retiring workforce is a targeted goal. Need ability to gain insight into their workforce strengths and challenges to enhance talent solution strategies. Enhance the ability to plan their business processes, staffing and resource needs accordingly.

26. Copyright © 2008, SAS Institute Inc. All rights reserved. SAS and all other SAS Institute Inc. product or service names are registered trademarks or trademarks of SAS Institute Inc. in the USA and other countries. ® indicates USA registration. Workforce – Do More With Your Resources! Enhance Your Capabilities to Allocate and Optimize Workforce Improve Customer Service through better allocation of current and future resources Become more efficient by anticipating staffing needs, increasing employee productivity and reducing decision- making time Utilize advanced analytics to become more proactive by developing a predictive capability to address the changing needs of the community Utilize a predictive model to quantify resource allocation and productivity strategies

27. Copyright © 2008, SAS Institute Inc. All rights reserved. SAS and all other SAS Institute Inc. product or service names are registered trademarks or trademarks of SAS Institute Inc. in the USA and other countries. ® indicates USA registration. Changing Landscape – Stimulus Impact Full appropriations total: $787.2 billion $575 billion in investments ($25B from HR 1) −$205 billion in S&L technology spending “hot spots” $212 billion in tax relief ($63B from HR 1) Provides funding for technology, science and research, infrastructure improvements, education, energy, healthcare, and training Funding distributed through new and existing programs Most programs to be implemented by states with federal grant funds Source: INPUT

28. Copyright © 2008, SAS Institute Inc. All rights reserved. SAS and all other SAS Institute Inc. product or service names are registered trademarks or trademarks of SAS Institute Inc. in the USA and other countries. ® indicates USA registration. Changing Landscape – Stimulus Impact $5.7 billion in ARRA-driven IT spending FY09: $0.9 billion FY10: $3.5 billion FY11 and later: $1.3 billion ARRA drives technology spending in three ways Direct injections to… −state general education budgets −higher education tuition funding streams Direct injections to grant programs with “allowable” technology expenses A few small set asides for technology investments

29. Copyright © 2008, SAS Institute Inc. All rights reserved. SAS and all other SAS Institute Inc. product or service names are registered trademarks or trademarks of SAS Institute Inc. in the USA and other countries. ® indicates USA registration. Summary Creating Opportunities through Accountability Internal Efficiencies −Optimizing Public Safety Efforts −Retaining and Recruiting Talent Job Creation −Improve Economic Development Efforts −Improve Management and allocation of resources Creating Sustainable Practices Generating Revenue −Fraud Detection −Tax Collection

30. Copyright © 2008, SAS Institute Inc. All rights reserved. SAS and all other SAS Institute Inc. product or service names are registered trademarks or trademarks of SAS Institute Inc. in the USA and other countries. ® indicates USA registration. Summary Identify the impact of the problem Measure Impact Solution Implementation Not Reacting Act State of the art solutions creating ROI through increased analytics

31. Copyright © 2008, SAS Institute Inc. All rights reserved. SAS and all other SAS Institute Inc. product or service names are registered trademarks or trademarks of SAS Institute Inc. in the USA and other countries. ® indicates USA registration. Case Studies NC Office of State Personnel—Workforce Planning http://www.sas.com/success/ncosp.html NC Dept of Commerce—EDIS http://www.nccommerce.com/en/BusinessServices/Support YourBusiness/FindDatawithEDIS/edis_video.htmhttp://www.nccommerce.com/en/BusinessServices/Support YourBusiness/FindDatawithEDIS/edis_video.htm Court Services and Offender Supervision Agency (CSOSA) http://www.sas.com/news/preleases/051908/CSOSAwinsS ASEIAaward.htmlhttp://www.sas.com/news/preleases/051908/CSOSAwinsS ASEIAaward.html

32. Copyright © 2008, SAS Institute Inc. All rights reserved. SAS and all other SAS Institute Inc. product or service names are registered trademarks or trademarks of SAS Institute Inc. in the USA and other countries. ® indicates USA registration.