1. Ben Zenick VP Consulting Services, Zencos Consulting
Doing More with Less!
Ben Zenick
VP Consulting Services, Zencos Consulting
Copyright © 2005, SAS Institute Inc. All rights reserved.

2. Keynote Overview
“The more things change the more they stay the same”

3. Agenda Keynote Overview Changing Landscape Summary Budgets Workforce
Stimulus Impact
Summary

4. 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. 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. (with a slight increase)
The Less
(with a slight increase)
Sources: Center on Budget and Policy Priorities, INPUT, U.S. Census Bureau, San Francisco Chronicle

7. Changing Landscape – $$ – Budgets Shortfalls
Source: Center on Budget and Policy Priorities

8. 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 Priorities

9. Changing Landscape – $$ – Revenue Impact
Source: Center on Budget and Policy Priorities

10. 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. “The More” Cost Reduction and Revenue Opportunities
Fraud, Waste, and Abuse
Increase Tax Revenue Collection
Increase Economic Development Efforts

12. 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. 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. 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. 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 Historical Tables, Budget of the United States Government, Table 8.1.

16. 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. 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. 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. 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. 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. Changing Landscape – Workforce
Workforce Outlook
Workforce Issues
Know your Employees
Know where your Employee are
Workforce Opportunities

22. 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. 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. Workforce – “The More”
Provide insight and actionable information about the workforce

25. 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. 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. 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. 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. 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. Summary Identify the impact of the problem Measure Impact Act
Solution Implementation
Not Reacting
Act
State of the art solutions creating ROI through increased analytics

31. Case Studies NC Office of State Personnel—Workforce Planning
NC Dept of Commerce—EDIS
Court Services and Offender Supervision Agency (CSOSA)

32. Copyright © 2008, SAS Institute Inc. All rights reserved
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.