Alabama Commission on Improving State Government

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Office of the Governor - Robert Bentley

Phase One Report

2011

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Table of Contents

Alabama Commission on Improving State Government

Phase One Report

Section Name Page

Letter from the Chairman 2

Executive Order 4 3 - 4

Press Releases 5 - 10

Alabama Commission on Improving State Government Members 11 - 18

Executive Overview 19 - 21

Summary of Meetings and Methodology 22

Phase One: Recommendations for Executive Action and Executive Orders 23 - 46

Phase One: Recommendations Reviewed but Do Not Require Further Study 47 - 52

Phase Two: Recommendations Reviewed but Require Further Study 53 - 63

Conclusion 64

Appendix A: Executive Subcommittee Report 65 - 67

Appendix B: Memorandums and Letters 68 - 77

Appendix C: Consolidation Considerations 78 - 82

Appendix D: Website Submissions by Web Category 83 - 111

Appendix E: Website Submissions by Title 112 - 123

References 124

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July 15, 2011

The Honorable Robert Bentley Governor of Alabama State Capitol Montgomery, Alabama

Dear Governor Bentley:

On behalf of the members appointed to the Commission, we are pleased to present to you this final report of the Alabama Commission on Improving State Government. The Commission was charged with the task of working with the Legislature and the Governor’s Policy Office to analyze and explore new ways to reduce government spending with minimal or no reduction to essential state services. From its inception, the focus of this Commission has been on the immediate implementation of recommendations, rather than merely establishing a set of recommendations to be placed in a report.

In December 2008, the National Bureau of Economic Research announced that the U.S. had been in a recession since December 2007. The lingering impact of this recession, regrettably, is apparent in the state’s budget. Alabama’s 2011 fiscal year budget is suffering more than a $100 million shortfall in the General Fund budget, making proration necessary for the current year and possibly for upcoming budget years. Thus it is imperative that actions be taken immediately to eliminate waste, reduce spending and improve efficiencies in state government. We have, therefore, worked diligently these past months to accomplish the mission set before us.

Utilizing the resources available to this Commission, we have compiled a report of recommendations that, when implemented, will have a positive impact on the state’s upcoming fiscal year budgets. We endorse the recommendations proposed in the document and we appreciate having had the opportunity to participate in this important project.

Very truly yours,

Kay Ivey, Chairman

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Office of the Governor

ROBERT BENTLEY

Governor STATE OF ALABAMA Press Office

January 25, 2011 Governor Bentley Signs Executive Order Creating Alabama Commission on Improving State Government

MONTGOMERY--Governor Robert Bentley today signed Executive Order Number Four creating the Alabama Commission on Improving State Government. The duty of the Commission is to analyze and explore new ways to reduce government spending with minimal or no reduction in state services.

Under the new executive order, state agencies, departments and commissions are required to conduct a comprehensive and systematic evaluation of the effectiveness and need for their current level of spending. Duplicated, outdated, unnecessary and ineffective services will be eliminated and funds used for that service will be re-directed and spent on more essential functions of state government. In addition, the Commission will examine similar commissions created across the nation and will meet with business leaders in Alabama to discuss and find new ways to make state government more effective and responsive.

“We are in challenging economic times and state government must do what every Alabama family is doing right now and that is find ways to cut back on spending,” said Governor Bentley. “The Alabama Commission on Improving State Government will take an in-depth look at the current cost structure of every state agency and look for new and effective ways to cut costs without cutting essential services.”

A preliminary report of recommendations by the Commission will be delivered to Governor Bentley by June 1, 2011.

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KAY IVEY Allison Scott Lt. Governor STATE OF ALABAMA Public Information Coordinator

FOR IMMEDIATE RELEASE

Lt. Governor Kay Ivey Accepts Governor’s Appointment as “Challenge and Opportunity”

MONTGOMERY, Alabama (February 4, 2011)—Lieutenant Governor Kay Ivey (R- Montgomery) today said she was eager to begin serving as Chair of Governor Robert Bentley’s newly-created Alabama Commission on Improving State Government. Governor Bentley announced on Friday while speaking at PARCA’s Annual Meeting that he was establishing the Commission and appointed Lt. Governor Ivey to serve as Chair.

The Alabama Commission on Improving State Government was established by Governor Bentley’s Executive Order Number 4 on January 25th to make government more efficient, effective and responsive with “minimal or no reduction in services to citizens.” The order further states the Commission will look at privatizing state services and streamlining processes to reduce spending. The preliminary report is due by June 1, 2011.

“I consider Governor Bentley’s appointment to the Commission on Improving State Government an honor and appreciate his confidence in me,” said the Lieutenant Governor upon her appointment. “I also know this assignment presents both a challenge as well as an opportunity— a challenge because we face tough economic times, but an opportunity to show that we’re serious about addressing the people’s priorities of more efficient and honest state government,” she added.

Lt. Governor Ivey said her appointment as Chair signals the partnership for moving Alabama forward she and Governor Bentley discussed during the transition is alive and well. “I’m anxious to get started. The Governor has assured me that he’s ready to implement the Commission’s recommendations efficiently and effectively. We know that spending reform is essential. Some programs are too costly and must be evaluated on an ongoing basis. Our review will be comprehensive and will not duplicate completed previous studies,” the Lieutenant Governor stated.

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KAY IVEY Allison Scott Lt. Governor STATE OF ALABAMA Public Information Coordinator

FOR IMMEDIATE RELEASE

Commission on Improving State Government to Hold First Meeting

MONTGOMERY, Alabama (March 22, 2011) – The Commission on Improving State Government, which was established by Governor Bentley’s Executive Order Number 4 on January 25th, will hold its first meeting on Wednesday, March 23, from 2-4 p.m. in Room 100 of the Bailey Building (400 South Union Street, Montgomery).

The Commission is comprised of 24 members and is chaired by Lieutenant Governor Ivey. The members are charged with examining previous studies and making recommendations to Governor Bentley on how to achieve cost savings and reduce government spending in order to maintain a government that is efficient and effective.

“Our first meeting will put a line in the sand between the old way of doing things in government and the new, streamlined way we hope to accomplish with the findings of the Commission,” Lieutenant Governor Ivey remarked. “We, as a state, face great challenges, but we’re confident that real-world solutions will grow out of the Commission’s recommendations.”

“It is vital that we find new methods of reducing government spending in order to balance our budget while still effectively providing essential state services. The members of the Commission and I are dedicated to helping Governor Bentley, and I look forward to getting the ball rolling in the right direction tomorrow,” Ms. Ivey concluded.

Information on the composition of the Commission on Improving State Government can be found at: http://governor.alabama.gov/news/news_detail.aspx?ID=4712.

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KAY IVEY Allison Scott Lt. Governor STATE OF ALABAMA Public Information Coordinator

FOR IMMEDIATE RELEASE

Commission on Improving State Government Calls Alabamians to Share Ideas

MONTGOMERY, Alabama (April 1, 2011) – Lieutenant Governor Kay Ivey announced today the launch of a new website that will give Alabamians a means to share with the Commission their ideas on how to make state government more efficient and effective. The website will serve as an important tool to allow Alabama’s citizens to directly participate in the process.

Lt. Governor Ivey, who serves as Chairman of The Alabama Commission on Improving State Government, said the site, www.improve.alabama.gov, will be operational as of today.

“We want all Alabamians to have a voice in what they think the Commission should consider as it evaluates ways to reduce costs, improve efficiencies and hopefully guide our state to better economic times,” Lt. Governor Ivey said

Governor Robert Bentley signed an executive order in January creating the 25-member Commission and charged it with reviewing previous studies and making recommendations to reduce government spending with little reduction to essential services.

Lt. Governor Ivey said the Governor has asked her group to deliver a preliminary report of recommendations by June 1 and says the website is an effective method for the Commission to receive workable ideas.

"The Governor knows I am committed to reaching our goals, and, with the input of the people of Alabama, we all can participate in reaching those goals,” Lt. Gov. Ivey said.

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ALABAMA COMMISSION ON IMPROVING STATE GOVERNMENT

Chairman Kay Ivey, Lieutenant Governor State of Alabama

Member Biographies Alabama Commission on Improving State Government Membership Information

Zelia Baugh – Mental Health Commissioner – Baugh was appointed Commissioner of the Alabama Department of Mental Health by Gov. Robert Bentley. She came to the department with more than 18 years of experience in health care. She served most recently as Administrator of Psychiatry at the University of Alabama in Birmingham Center for Psychiatric Medicine. Prior to that position, she was the Administrative Director of Psychiatry at Brookwood Medical Center in Birmingham, Alabama. Baugh holds a B.A. in Political Science and Sociology from Birmingham-Southern College and a Master of Social Work from the University of Alabama.

Judy Bonner – Governor’s Appointee – Dr. Bonner is Executive Vice President and Provost of the University of Alabama after having serving as Provost and Vice President for Academic Affairs since March 2003. Dr. Bonner holds two degrees from The University of Alabama – a B.S. in Nutrition and a M.S. in Food and Nutrition, and a Ph.D. in Human Nutrition from The Ohio State University. She served as Dean of the College of Human Environmental Studies at The University of Alabama since 1989 and, prior to that, Special Assistant to the President, Assistant Academic Vice President, and Head of the Department of Human Nutrition and Hospitality Management. She has held faculty positions at The University of Alabama in Birmingham and The Ohio State University. Dr. Bonner is an active member of civic, scientific and professional organizations and is the author of numerous books and articles.

Young Boozer – State Treasurer – Boozer was born in Birmingham and raised in Tuscaloosa. He earned a bachelor’s degree in economics from Stanford University and a master’s degree in finance from the Wharton School at the University of Pennsylvania. During the past four decades, Boozer’s career in banking, finance and investments has taken him from Citibank in New York and Crocker National Bank in Los Angeles, to Coral Petroleum in Houston and Colonial Bank in Montgomery. Boozer also served as Deputy State Finance Director for Governor Bob Riley after retiring in 2007 from his position as Executive Vice President at Colonial Bank.

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Beth Chapman – Secretary of State - Secretary of State Beth Chapman was elected Alabama's 51st Secretary of State in November of 2006 after being elected and serving four years as State Auditor. Secretary Chapman received her B.S. Degree from the University of Montevallo and her Master’s Degree, Magna Cum Laude, from the University of Alabama at Birmingham.

Gen. (Ret.) Ed Crowell – Governor’s Appointee – At retirement, Crowell served as mobilization assistant to the Air University commander. He grew up in a small community near Phoenix City, AL, and pursued his boyhood dream to serve in the military. Shortly after high school, General Crowell enlisted into the Air Force Reserve's then 908th Tactical Airlift Group at Maxwell Air Force Base. Finishing basic training and technical school in maintenance, General Crowell started a stint with the 908th that would last more than 24 years. After receiving his undergraduate degree from Alabama State University, General Crowell was selected for pilot training and commissioned as a second lieutenant in 1974. However, with the post-Vietnam aviation draw down, General Crowell was diverted to the emerging social actions career field in the 908th. In 1981, then-908th commander Col. Robert S. Martin appointed General Crowell to his first command as commander of the 908th Mobility Support Flight.

Jackie Graham – State Personnel Director – Graham has served in many roles within the Personnel Department, including: personnel analyst, manager of the Classification and Pay Division and Deputy Director. She is a 1984 graduate of Auburn University with a degree in Personnel Management, and has worked for State Personnel since 1986.

Tom Hamby – Governor’s Appointee – Hamby is a former AT&T executive. Since 1999, Hamby has directed the activities of the state's biggest telephone company, which recently had 7,500 workers in Alabama, more than 4,200 of them in the Birmingham area. He has chaired the Business Council of Alabama and the Birmingham Regional Chamber of Commerce. After earning a bachelor's degree in engineering at the University of Georgia, the Social Circle, GA native was commissioned in the Army Corps of Engineers and later served 10 years in the reserves and National Guard.

Seth Hammett – ADO Director – Hammett was recently appointed Director of the Alabama Development Office by Governor Bentley. A native of Covington County, Hammett came to ADO as Vice President of business development for PowerSouth Energy Cooperative. He holds Bachelor’s and Master’s degrees from Auburn University and has honorary Doctor of Law degrees from Troy University and the University of West Florida. Hammett is former Speaker of the Alabama House of Representatives for 16 years, past chairman of the 16-state Southern Legislative Conference and past president of the National Speakers Association.

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Kay Ivey – Lieutenant Governor - A Camden native and a 1967 graduate of Auburn University, Lieutenant Governor Kay Ivey began her career as a high school teacher before becoming an officer with the Merchants National Bank in Mobile. She also served as an assistant hospital administrator, as the Assistant Director of the Alabama Development Office, where she authored the “Prepared Cities” Program, and as the Director of Government Affairs and Communications for the Alabama Commission on Higher Education. Before becoming Alabama’s first female Republican Lieutenant Governor she served as Alabama’s Treasurer.

Johnny Johns – Governor’s Appointee – Johns became Chairman, President and Chief Executive Officer of Protective Life Corporation in January 2003, just ten years after joining the company as Chief Financial Officer. After graduating from the University of Alabama and Harvard Law School in 1978 Johns, an Alabama native, returned home to work with the law firm of Cabaniss, Johnston, Gardner, Dumas & O’Neal. In 1984 he became a founding partner in the law firm of Maynard Cooper & Gale, P.C. In 1988 he entered the corporate business environment as Vice President and General Counsel of Sonat, Inc. – staying there until he joined Protective in 1993. Johns currently serves in a leadership role with Alabama National BanCorporation, Alabama Power Company, Genuine Parts Company and John H. Harland Company, and he is currently a trustee of Birmingham-Southern College.

Fred McCallum - Governor’s Appointee - Fred McCallum was born and raised in Florence, Alabama. He earned his Bachelor of Science Degree from Auburn University, and his law degree from the University of Alabama, where he was an editor of the Alabama Law Review. He is a member of the Alabama, Florida and Georgia Bar Associations. After a clerkship with the Federal District Court in North Alabama, he worked with the law firm of Lange, Simpson, Robinson and Somerville in Birmingham before joining South Central Bell in 1987. Since then, he has held positions of increasing responsibility in the wireline and wireless business units.

He served in South Central Bell’s Alabama and Headquarters’ operations from 1987 to 1991. From 1991 to 1995 he was Vice President and General Counsel of MobileComm, a BellSouth wireless subsidiary. From 1996 to 2002, he was General Counsel for Georgia Operations, and Senior Counsel responsible for securing state and federal long distance approval in the former BellSouth southeastern states. From 2002 to 2007 he served as Vice President of Regulatory and External Affairs for BellSouth’s Headquarters’ Organization in Atlanta, where he was responsible for the development and support of BellSouth’s regulatory and legislative agenda in state and federal arenas.

After AT&T and BellSouth merged, he served as Vice President – Southern Region Legislative and Regulatory Affairs for AT&T in Atlanta, where he was responsible for strategy development and implementation of AT&T’s key legislative and regulatory goals in the Southern Region.

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He was appointed President of AT&T Alabama effective June 1, 2008. McCallum has been appointed to the board of directors for the Birmingham Business Alliance, the Greater Alabama Council-Boy Scouts of America, the Business Council of Alabama, the United Way of Central Alabama, the Birmingham Civil Rights Institute, the Birmingham Education Foundation, the Economic Development Partnership of Alabama and the Public Affairs Research Council of Alabama.

Charles McCrary – Governor’s Appointee – McCrary is President and Chief Executive Officer of Alabama Power Company, which provides electricity to 1.4 million customers in Alabama. He joined Alabama Power during the summer of 1970 following his freshman year at Auburn University and has held various positions of increasing responsibility within Southern Company. Mr. McCrary graduated from Shades Valley High School, and earned his B.S. in mechanical engineering from Auburn University. He went on to earn a Juris Doctor from Birmingham School of Law and was admitted to the Alabama State Bar in 1979. He serves as Chairman of the Economic Development Partnership of Alabama.

John McMahon – Governor’s Appointee – McMahon is Chairman and a co-founder of Ligon Industries, LLC. He has been involved in over 35 acquisitions ranging from publicly held companies to small privately held companies over the past 35 years. McMahon is a director of Protective Life Insurance Corporation, ProAssurance Corporation, National Bank of Commerce, Cooper/T. Smith Corporation and UAB Health Systems. He serves on the Board of Trustees of the University of Alabama and Birmingham-Southern College. McMahon’s educational background includes an undergraduate degree from Birmingham-Southern College and a law degree from the University of Alabama.

Leslie Meadows– Ex Officio Member Representing Certified Public Managers® – Meadows directs the nationally accredited Certified Public Manager® (CPM) training program, as well as the Governmental Accountant and Auditor Training (GAAT) program as Associate Director of the Alabama Training Institute. She holds a bachelor’s degree in Psychology and a master's degree in Counseling and Human Development from Troy University. Meadows oversees the day-to-day operations of the Alabama Training Institute where she manages and directs consulting and research projects for the Institute, and has worked with numerous municipal and state government clients including the Montgomery (Alabama) Police Department, the Virginia Department of Criminal Justice Services, the Alabama Department of Transportation, the Alabama Department of Industrial Relations, the Alabama Department of Economic and Community Affairs, the Alabama Department of Finance - Information Services Division and the Office of the Governor of the State of Alabama.

Ruffner Page – Governor’s Appointee – Page has served as President of McWane, Inc. since 1999. He joined the company in 1993 working in the area of mergers and acquisitions. Prior to

Page | 15 coming to McWane, he held management positions at National Bank of Commerce from 1989 to 1993, the Remington Fund from 1986 to 1989, and Bankers Trust Company in New York and Atlanta. In 2011, he was also appointed as a member of the Speaker's Commission on Job Creation by Mike Hubbard, Speaker of the Alabama House of Representatives. Page graduated from Vanderbilt University in Nashville, Tennessee with a B.A. in Philosophy and Psychology with a minor in Economics. He is also a 1986 graduate of the University of Virginia, Darden School of Business in Charlottesville, Virginia.

Gary Palmer – Ex Officio Member Representing Alabama Policy Institute – Palmer co-founded the Alabama Policy Institute, formerly known as the Alabama Family Alliance, in 1989. He was previously employed by Rust International in cost analysis, and prior to that with Combustion Engineering in the environmental systems division. Palmer is responsible for the leadership and direction of the Policy Institute. He identifies, maintains and promotes the vision of the Policy Institute by ensuring that the entire staff has the resources needed to fulfill the mission.

David Perry – Finance Director – Perry was appointed Finance Director by Governor Robert Bentley in January of 2011. He served as Assistant Finance Director in 2004 under then Director Drayton Nabers, Jr., and subsequently practiced law with the Birmingham-based firm, Maynard, Cooper & Gale, PC. Perry graduated from Duke University with a Bachelor of Arts Degree in Public Policy Studies, and also earned a law degree from Northwestern University.

Billy Powell – Lt. Governor’s Appointee – Powell is Executive Vice President of the Alabama Cattleman’s Association and also served as President of the association in the 1980s. He also serves as a member of the State Technical Committee of the USDA’s Natural Resources Conservation Service.

Greg Powell – Lt. Governor’s Appointee – Powell is president and CEO of fi-Plan Partners where he advises organizations, families and individuals who wish to enhance and preserve their wealth. He has more than twenty-five years of experience in the financial investment industry. He's a member of the Investment Management Consultants Association (IMCA) and is a Certified Investment Management Analyst (CIMA). In 2002 Powell was chosen as one of five financial advisors for Research Magazine's Advisor Hall of Fame. His personal success recently led the National Federation of Independent Business (NFIB) to choose him as the 2009 Small Business Champion for the state of Alabama and chose him out of 14 southern states as the South Region Small Business Champion. Powell is also the Chairman of the NFIB Alabama Board of Directors.

Alfred Seawright – Lt. Governor’s Appointee - Seawright is President and CEO of Medical Place and holds a B.S. degree in Management from Alabama State University. He has been a longtime political activist and has been organizing communities and voter groups for over a

Page | 16 decade. His company initially started as a durable medical equipment company but later expanded into the government sector, which distributes medical and laboratory equipment and supplies. It was certified as a small, minority-owned 8(a) business March 1986 under the Small Business Administration.

Will Sellers – Lt. Governor’s Appointee – Sellers is a partner with the firm of Balch & Bingham LLP whose area of practice includes economic development/incentives, estates, wealth management, tax law and public finance. He graduated magna cum laude from Hillsdale College with a bachelor’s degree in 1985. He received his law degree from the University of Alabama School of Law in 1988 and the New York University School of Law in taxation in 1989. He is a member of the Montgomery County and American Bar Associations, the Alabama State Bar and District of Columbia Bar. He serves on a number of business community and civic boards and organizations.

Sam Shaw – Alabama State Auditor – Shaw was born and raised in Homewood, AL and attended Homewood High School. She received her first degree from Auburn University in 1979, earning a B.S. degree in Family and Child Development. She is married to Alabama Supreme Court Justice Greg Shaw of Birmingham. Shaw received a second degree in business administration in 1993 from Auburn with a major in accounting.

Mike Thompson – Governor’s Appointee – Thompson is a graduate of Mountain Brook High School and the University of Alabama with a Bachelor of Science Degree in General Business. He is currently the President and Chief Executive Officer of the following organizations: Thompson Tractor Co., Inc., the Caterpillar dealer for the state of Alabama and ten counties in Northwest Florida; Fairway Investments, a real estate development company; and Thompson Investments, an investment company. He is also the Chairman of Tiger Machinery, the Caterpillar dealer for five regions in Russia and the Far East.

Bill Wallace – Lt. Governor’s Appointee – Wallace is founder and director of the architectural division of Goodwyn Mills and Cawood and is responsible for leadership and design excellence throughout the architectural division. In his nearly thirty years of practice, he has led the planning and architectural design of large-scale hospitality, mixed-use, corporate and academic related projects, where he has received regional and national acclaim. Wallace has built a reputation for his analytical approach to understanding his client’s needs and delivering complex projects with large and diverse teams. He is involved in a number of community and civic organizations in Montgomery, where he lives with his family.

Jim Williams – Ex Officio Member Representing PARCA – Jim Williams is Executive Director of the Public Affairs Research Council of Alabama. He worked to help initiate and implement the state’s “SMART Governing” initiative. He also worked with the state’s Finance Department

Page | 17 to coordinate the initiative’s implementation. He is a past president of the Governmental Research Association of the United States. A native of Mineola, Texas, holds a bachelor's degree from Baylor University and a master's degree from the University of Michigan, both in political science.

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CPM Team

The Certified Public Manager® (CPM) training program has played a crucial role in preparing Alabama’s state employees to lead their agencies since 1989. The CPM program is a nationally accredited program directed by Leslie Meadows at Auburn University at Montgomery. CPM students are comprised of employees working in state agencies across Alabama and represent some of state government’s top experts in their fields. Students spend much of the program year working on a project called Solutions Alabama where they research and propose solutions that have been identified as critical issues by state leaders. These matters focus on concerns that have the potential to impede the state’s forward movement or adversely impact citizens in Alabama.

A CPM Solutions Alabama Team was named an ex-officio member of this Commission to provide support through reviewing and analyzing studies, identifying best practices and assisting with administrative functions of the Commission to include helping to draft the preliminary report of recommendations. Their work on this Commission has allowed these managers to demonstrate their knowledge, apply their expertise in unique ways and uncover findings that have a significant impact on our State.

Certified Public Manager® Team Team Members Agency Contact Information Leslie Meadows, Director of Alabama Training Institute [email protected] Certified Public Manager® Program Auburn Montgomery

Daniel Bamberg Alabama Medicaid Agency [email protected]

Sam Cowart Examiners of Public Accounts [email protected]

Matt Davis Alabama Real Estate [email protected] Commission

Matthew Dyar Alabama Department of [email protected] Revenue Jimmy Gunn Alabama Department of [email protected] Insurance

Andrette Munnerlyn Alabama Department of [email protected] Revenue Lee Murphy Alabama Department of [email protected] Revenue

Vernita Saunders Alabama Department of Mental [email protected] Health Patricia Smith Alabama Public Service [email protected] Commission

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Debra Wallace Alabama Supercomputer [email protected] Authority

EXECUTIVE OVERVIEW On January 25, 2011, Governor Robert Bentley signed Executive Order Number Four creating the Alabama Commission on Improving State Government (“the Commission”). The duty of the Commission is to analyze and explore new ways to reduce government spending with minimal or no reduction in state services.

Under the new executive order, state agencies, departments and commissions are required to conduct a comprehensive and systematic evaluation of the effectiveness and need for their current level of spending. Duplicated, outdated, unnecessary and ineffective services will be eliminated and funds used for that service will be re-directed and spent on more essential functions of state government. In addition, the commission will examine similar commissions created across the nation and will meet with business leaders in Alabama to discuss and find new ways to make state government more effective and responsive.

On March 31, 2011, due to the $100 million deficit in the budget, the Governor declared a 15% proration of the state’s General Fund budget for the remainder of FY 2011. “We are in challenging economic times and state government must do what every Alabama family is doing right now and that is find ways to cut back on spending,” said Governor Bentley. “The members of this Commission will take an in-depth look at the current cost structure of every state agency and look for new and effective ways to cut costs without cutting essential services.” A preliminary report of recommendations by the Commission was scheduled to be delivered to Governor Bentley by June 1, 2011. However, the date was delayed due to the overwhelming destruction caused by the storms that hit the state of Alabama in April 2011.

The recommendations proposed in this Phase One Report are the compilation of recommendations from various sources. The first source is the Commission-at-Large. The Commission-at-Large is a subcommittee of the members of the Commission on Improving State Government. The Commission-at-Large individually and collectively proposed recommendations to improve areas of weaknesses in state government. Due to the varied professional experience of the members, the recommendations proposed varied greatly. The Commission-at-Large developed recommendations that are designed to yield savings and increase efficiencies without interrupting the services and products provided to the citizens of Alabama.

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Another source of recommendations was made available on April 1, 2011, when Lieutenant Governor Kay Ivey announced the launch of a new website that would give Alabamians a means to share with the Commission their ideas on how to make state government more efficient and more effective (http://improve.alabama.gov/default.aspx). On this website, citizens of Alabama are asked to play an active part in helping to make Alabama honest, efficient and free of fraud, waste and abuse. Citizens are asked to click on the Citizens Suggestion Form to access the form and provide suggestions. As a result of this website, the Commission-at-Large received numerous recommendations. Each recommendation from the website was reviewed and determined to be either “feasible” or “not feasible”. After this determination, the members of the Commission-at-Large initiated additional research and studies for all recommendations identified as feasible.

After considerable research and review, the Commission-at-Large agreed to categorize the recommendations for Phase One as 1) Recommendations for Executive Action and 2) Recommendations Reviewed but Do Not Require Further Studies. Also, this report will identify some plausible recommendations for Phase Two, which are categorized as Recommendations Reviewed but Require Further Study. The Subcommittee on Executive Management will focus on these recommendations, in addition to other enterprise functions of state government and the potential of consolidating similar function agencies.

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Commission-at-Large Kay Ivey Lieutenant Governor & Committee Chair Zelia Baugh Commissioner, Mental Health Dr. Judy Bonner Executive VP and Provost, UA Young Boozer State Treasurer Beth Chapman Secretary of State Jackie Graham State Personnel Director Seth Hammett Director, Alabama Development Office * Leslie Meadows Associate Director, Alabama Training Institute David Perry Director of Finance Billy Powell Executive VP, Cattlemen’s Association Greg Powell CEO, fi-Plan Partners Alfred Seawright CEO, Medical Place Will Sellers Partner, Balch & Bingham, LLP Samantha Shaw State Auditor Bill Wallace Director, Division of Goodwyn, Mills, and Cawood

Subcommittee on Executive Management David Perry Director of Finance & Committee Chair Zelia Baugh Commissioner, Mental Health Michael Ciamarra Policy Director Dr. Judy Bonner Executive VP and Provost, UA General Ed Crowell Brigadier General (Ret.) Tom Hamby President, BellSouth Corporation Seth Hammett Director, Alabama Development Office Johnny Johns CEO, Protective Life Corporation Charles McCrary CEO, Alabama Power Company John McMahon Chairman & Co Founder, Lion Industries G. Ruffner Page President, McWane, Inc. * Gary Palmer President, Alabama Policy Institute Mike Thompson CEO, Thompson Tractor * Jim Williams Executive Director, PARCA * Ex-Officio Member Italics indicates a member of both the Commission-at-Large and Subcommittee

Subcommittee for Each Phase Phase One Phase Two Sam Shaw, Vice Chairman Will Sellers, Vice Chairman

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Seth Hammett, ADO Director Dr. Judy Bonner Mr. Charles McCrary Mr. Bill Wallace

SUMMARY OF MEETINGS AND METHODOLOGY The initial meeting of the Commission was a call meeting held on Friday, March 4, 2011. The Commission was informed by Lieutenant Governor Kay Ivey of the duties that were charged by the Governor. At the request of Governor Bentley, the Subcommittee on Executive Management was created within the Alabama Commission on Improving State Government to develop a separate working group to evaluate enterprise functions of government, performance management, agency/program consolidations and privatization and other service delivery issues. The Subcommittee works independently and meets separately from the full Commission. The Subcommittee divided issues between the Commission-at-Large and the Subcommittee on Executive Management, including prior recommendations from previous commission reports and task forces. In addition, the Subcommittee is evaluating recommendations from State agencies submitted to Governor Bentley. The Subcommittee continues to meet and review proposals, produce White Papers summarizing issues, receive presentations regarding cost/benefit analysis and develop recommendations. The Subcommittee did not provide any final recommendations for this report. A summary is included from the Subcommittee that outlines the mission, efforts and current status of the Subcommittee, along with a timeline when they may submit a final report to the full Commission and can be found in Appendix A.

The first official meeting of the Commission-at-Large was held on Wednesday, March 23, 2011, at Auburn University at Montgomery’s Alabama Training Institute in the Bailey Building in Montgomery, Alabama. The objective of the meeting was to evaluate previous case studies and determine the best practices for a more efficient and effective government. It was determined that this would be accomplished in two phases. A subcommittee was established for each phase and headed by a Vice Chairman. Phase One would provide recommendations that can be implemented in the short-term by executive order or change in policy affecting the Executive Branch only. Phase Two would provide recommendations that affect the Executive, Legislative and Judicial branches of government. Phase Two will begin after this Phase One report has been presented to the Governor. Previous reports were presented from the 2009 and 2010 Certified Public Manager® (CPM) II Program Solutions Alabama projects; Governor’s Commission on Efficiency, Consolidation and Funding (January 2004); Business Council of Alabama Task Force on Governmental Change and Management Reform (December 2003); and Education Spending Commission (July 2003). These reports included 192 recommendations which were reviewed thoroughly by the subcommittee and CPM team to determine which items fell under the purview of the Executive Branch.

The Finance Director solicited suggestions from all of the General Fund agency heads. The website www.improve.alabama.gov was created to solicit suggestions from department heads, public employees and the general public. Twelve categories were created for the placement of suggestions. An automatic response to suggestions was sent to substantiate the receipt by the Commission. There was no identifying information associated with the suggestions unless the

Page | 23 individual wanted to be contacted. Twelve committees within the Commission-at-Large were established to process the categorized suggestions based on each members’ top four categories of interest. All the members of a particular committee were able to share, view and approve suggestions. The CPM team reviewed and summarized the approved suggestions for the committees. The CPM team conducted additional research for clarification, feasibility and/or potential savings of some suggestions. The second full meeting of the Commission occurred on Wednesday, May 18, 2011, in the Old Archives Room at the State Capitol Building. The objective of the meeting was to vote on the recommendations for the Phase One final report. The CPM team committee reports, recommendations from previous studies which included current research, other subcommittee reports, and oral presentations were brought before the Commission. There were website suggestions obtained after the meeting that did not require the full Commission to meet; but, are acknowledged in this report.

Phase One: Recommendations for Executive Action & Executive Orders

Overview The recommendations in this first category are the results of brainstorming meetings held by the CPM team members. During these meetings, the CPM team reviewed previous reports by governor-appointed Commissions and studies from prior CPM Solutions Alabama teams. In addition, the CPM team reviewed web submissions from citizens of Alabama.

These recommendations are those that can be implemented immediately. For this first category of recommendations, the Commission-at-Large focused on “Low Hanging Fruit.” The Low Hanging Fruit are those recommendations that can be initiated with the release of an approved Executive Order, drafted herein, from our Governor or by a change in policy affecting the Executive Branch of government only. Once the Executive Order is approved and signed by the Governor, each state government agency involved must comply with the Order within the designated time period.

The next seven recommendations, as identified by the Commission-at-Large, are those that can be implemented during the short-term to be effective either immediately after the signing of the Executive Order or the beginning of the upcoming FY12.

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Recommendation 1: Require All State Agencies to Purchase Furniture from the Alabama Correctional Industries.

Executive Summary In 1976, Act 14-7-13 was signed which required all state agencies of Alabama to purchase furniture and all products manufactured by Alabama Correctional Industries (ACI). Unfortunately, this Act is not being enforced and as a result the majority of state agencies are bypassing this requirement and using other suppliers. Because of this, ACI was forced to close several of their manufacturing plants ultimately decreasing their workforce by half. Currently, only 500-600 inmates work across all divisions of ACI from a previous high of approximately 1200 inmates. Although not a major source of revenue for the Department of Corrections (DOC), the ACI division does contribute its net profit of 10% towards the DOC coffers. ACI officials have asked that this Act be enforced in order to not only assist in the rehabilitation of inmates, but to also allow them to contribute as much as possible to the DOC, especially during this time of proration. Since agencies have been allowed to purchase furniture from private vendors, it is difficult to anticipate how much additional volume enforcing this code would produce.

Since it is difficult to anticipate the additional volume, ACI will determine if that they cannot fulfill an agency’s order in a timely manner, they are be willing to sign a waiver allowing the requesting state agency to purchase from an approved vendor on state contract. ACI has stated that they have sufficient capacity in both labor and manufacturing space and they feel that if given the opportunity they could utilize their resources to serve the State of Alabama while helping out the DOC.

Further, House Bill number 262 and Senate Bill number 302 were introduced in the latest 2011 legislative session in support of Prison Industry Enhancement (PIE), which would allow for prison-private partnerships. This would allow the Department of Corrections to take deductions of up to 80% of the inmate’s labor for room and board (directly impacting the agency’s expenses), allocations for child support, and victim restitution. Another advantage to PIE is that vocational skills learned by the inmates result in 15-20% lower recidivism rate among these inmates as compared to those in non-vocational prisons. Neither of these bills passed.

ACI has identified other opportunities that would save state agencies money, such as opening a new manufacturing division for laser jet and toner cartridge recycling. Initial set up would cost less than $50,000 and there is a prison area available for this division to be located unless an offsite location is preferred. Requiring all agencies to recycle and purchase their ink supplies from ACI would be beneficial and a cost savings for all involved. A list of available products manufactured by ACI may be found on their web site www.aci.alabama.gov. It is recommended

Page | 25 that ALL state agencies purchase available products from ACI effective FY2012, October 1, 2011.

EXECUTIVE ORDER NUMBER ______

WHEREAS, on January 25, 2011, I, Robert Bentley, Governor of the State of Alabama, signed Executive Order Four creating the Alabama Commission on Improving State Government (the “Commission”);

WHEREAS, the duty of the Commission is to analyze and explore new ways to reduce government spending with minimal or no reduction in state services;

WHEREAS, the Commission considered numerous ways to reduce government spending along with increasing funding for state agencies;

WHEREAS, in 1976, Act 14-7-13 was signed requiring all state agencies of Alabama to purchase furniture and all products manufactured by Alabama Correctional Industries (ACI);

WHEREAS, this act is not being enforced and as a result the majority of state agencies are bypassing this act and using other suppliers resulting in a decrease in ACI’s manufacturing program which contributes its net profit of 10% towards the Department of Corrections (DOC) coffers;

WHEREAS, ACI officials have asked that this act be enforced in order to not only assist in the rehabilitation of inmates, but to also allow them to contribute as much as possible to the DOC’s coffers especially during this time of proration;

WHEREAS, if ACI determines that they cannot fulfill an agency’s order in a timely manner, they would be willing to sign a waiver allowing the requesting state agency to purchase from an approved vendor on state contract;

WHEREAS, ACI has stated that they have sufficient capacity in both labor and manufacturing space and they feel that if given the opportunity they could utilize their resources to serve the State of Alabama while helping out the DOC;

DONE AND ORDERED this _____ day of ______, 2011.

Page | 26

STATE OF ALABAMA

By:______

Robert Bentley, Governor

[Great Seal of the State of Alabama Affixed Hereto]

ATTEST:

______

Beth Chapman, Secretary of State

Page | 27

Recommendation 2: Require State Agencies to Utilize Electronic Signatures.

Executive Summary Our recommendation is to fully utilize the benefits offered under Uniform Electronic Transactions Act of 1999 (UETA) and Electronic Signatures for Global and National Commerce Act of 2000 (ESIGN) in conjunction with changes in Alabama law to reduce paper costs, time spent tracking signatures, notarizing and postal fees. A continued application of this would be for the Alabama Legislature to actively pursue additional avenues to “go paperless,” following the example of at least seventeen other states that have implemented a paperless initiative. Hawaii has seen an 80% reduction in paper usage, the Ohio Legislature has reduced paper costs by $1.5 million and New York is pushing for similar legislation with an estimated savings of $26 million. Another application is to transition to a statewide electronic employee appraisal system with up to 85% reduction in the time and money spent conducting, managing and tracking employee appraisals.

The initial CPM project also provided a case study on travel reimbursement. Over 700 travel voucher requests are processed daily which require multiple signatures, notarized forms and mailing costs. Through UETA and ESIGN, these costs could be significantly reduced or eliminated, in addition to decreased processing time. The passage of SB556 in 2009 sets the framework for applying electronic signature to various aspects of state government to save time, money and improve efficiency.

The Commission-at-Large recommends any software developed or selected for the transmittal of e-signatures shall be evaluated to ensure the highest level of security protocol.

Page | 28

EXECUTIVE ORDER NUMBER ______

WHEREAS, on January 25, 2011, I, Robert Bentley, Governor of the State of Alabama, signed Executive Order Four creating the Alabama Commission on Improving State Government (the “Commission”);

WHEREAS, the duty of the Commission is to analyze and explore new ways to reduce government spending with minimal or no reduction in state services;

WHEREAS, the Commission has received numerous suggestions and proposals for consideration;

WHEREAS, the State and its various agencies use significant resources printing, signing, delivering, and storing documents;

WHEREAS, for example, there are approximately 700 travel-related vouchers processed by the Department of Finance daily that require signed and notarized forms and original receipts which are reviewed by the employee’s department and the Department of Finance for accuracy and approval;

WHEREAS, the federal government passed the “Uniform Electronic Transactions Act” of 1999 (UETA) and the “Electronic Signatures in Global and National Commerce Act” of 2000 (ESIGN) which give electronic signatures and records the same validity and enforceability as manual signatures and paper-based transactions;

WHEREAS, the State of Alabama enacted UETA in 2001 through the Code of Alabama 1975 §8-1A-1, and amended the Alabama Uniform Commercial Code (Title 7 Article 1) to conform with ESIGN, as well as passed SB556 in 2009, Act 2009-763, which sets the framework for applying electronic signatures to various aspects of State government to save time, money and improve efficiency;

NOW, THEREFORE, based upon those considerations and for the other good and valid reasons which relate thereto, I, Robert Bentley, Governor of the State of Alabama, by virtue of the authority vested in me by the Constitution and the laws of the State of Alabama, hereby order each agency and government entity to examine their processes and determine which are amenable for electronic signing and processing and to make the changes provided that security is put in place for any software application used to facilitate e-signatures.

DONE AND ORDERED this _____ day of ______, 2011.

STATE OF ALABAMA

By:______

Page | 29

Robert Bentley, Governor

[Great Seal of the State of Alabama Affixed Hereto]

ATTEST:

______Beth Chapman, Secretary of State

Page | 30

Recommendation 3: Revamp In-State Travel Policies and Procedures.

Executive Summary The current policy of paying per diem for in-state travel could lead to abuse of the system. Employees automatically receive $75.00 per day, no justification necessary, whether they incur costs or not. Potentially the state could be paying out millions of dollars for in-state travel claims even though the employee may not have incurred an expense because they were able to stay with friends or relatives. The $75.00 per day in-state travel reimbursement should require receipts for actual expenses incurred, similar to the policy for out-of-state travel. As a result of the implementation of this recommendation, employees would then be reimbursed based on actual receipts up to a maximum of $75.00 per day.

Another option would be to place accountability upon the agency authorizing the travel and require agency leaders to review hotel receipts of those employees who travel, thus ensuring that costs were incurred for the overnight travel.

Another recommendation made but was dismissed due to the House bill not being approved by the legislature was to eliminate paying per diem to employees for daily travel that does not require an overnight stay. Currently, employees are provided a daily per diem of $11.25 for travel over six (6) hours but less than twelve (12) hours; and $30.00 for travel over twelve (12) hours. In FY09, the State spent $3.81 million on non-overnight travel per diem and $3.24 million in FY10. Alabama should consider eliminating the $11.25 per diem for daily travel less than 12 hours, just as the Federal government has done, and eliminate the $30.00 per diem for daily travel over twelve (12) hours. According to the Federal Travel Regulation (FTR), travelers are entitled to 75% of the prescribed meals and incidental expenses for one day travel away from their duty location if it is longer than 12 hours. Please see FTR Section 301-11.101.

Also recommended but was dismissed after further research was to set a standard mileage minimum for the number of miles away from home base that justified an overnight stay. Currently, there is no consistency across state agencies. After further research it was determined that there are no standard guidelines for a recommended minimum mileage from home base needed to justify overnight travel, as individual circumstances can determine what is reasonable. Generally, it is recommended that a trip of less than 100 miles one-way does not require an overnight stay. Exceptions to the policy may be approved by the department director. The Finance Director has included this issue under the purview of the subcommittee on Executive Management.

Page | 31

EXECUTIVE ORDER NUMBER ______

WHEREAS, on January 25, 2011, I, Robert Bentley, Governor of the State of Alabama, signed Executive Order Four creating the Alabama Commission on Improving State Government (the “Commission”);

WHEREAS, the duty of the Commission is to analyze and explore new ways to reduce government spending with minimal or no reduction in state services;

WHEREAS, the Commission has received numerous suggestions and proposals for consideration;

WHEREAS, each year, thousands of employees submit in-state travel claims;

WHEREAS, in-state travel claims are paid using a per diem rate;

WHEREAS, the employees submitting claims are not required to have documentation such as receipts;

WHEREAS, the Commission has received and taken into consideration a proposal whereby employees will be reimbursed actual expenses up to $75 per night for in-state travel claims in order to save money on in-state travel expenses that cost the state millions of dollars each year;

NOW, THEREFORE, based upon those considerations and for the other good and valid reasons which relate thereto, I, Robert Bentley, Governor of the State of Alabama, by virtue of the authority vested in me by the Constitution and the laws of the State of Alabama, hereby order in-state travel claims to be paid based on actual expenses evidenced through documented receipts up to a maximum of $75 per night

DONE AND ORDERED this _____ day of ______, 2011.

STATE OF ALABAMA

By:______

Robert Bentley, Governor

Page | 32

[Great Seal of the State of Alabama Affixed Hereto]

ATTEST:

______

Beth Chapman, Secretary of State

Page | 33

Recommendation 4: Require All State Agency Heads to Re-evaluate the Assignment of Vehicles.

Executive Summary Alabama law states that agency heads can have a state-assigned vehicle, as well as assign vehicles to additional personnel with approval from the state Finance Director. According to a report from Risk Management, there are currently over 8,255 vehicles assigned to state agencies and the state is spending $4.73 million this year on insurance alone. The property records held by the State Auditor’s Office indicate the state’s vehicle inventory is valued at $120.5 million.

It is recommended that the Governor require all agency heads to evaluate the use of the vehicle(s) assigned to their agency by completing an assessment/accountability form and agreeing to the conditions of use for assigned vehicles. All forms must be evaluated and approved by the Finance Director per state law. All vehicles that agencies elect to surrender or that the Finance Director denies authorization for shall be promulgated to the Surplus Property Division and insurance coverage discontinued.

Page | 34

EXECUTIVE ORDER NUMBER ______

WHEREAS, on January 25, 2011, I, Robert Bentley, Governor of the State of Alabama, signed Executive Order Four creating the Alabama Commission on Improving State Government (the “Commission”);

WHEREAS, the duty of the Commission is to analyze and explore new ways to reduce government spending with minimal or no reduction in state services;

WHEREAS, the Commission considered numerous ways to reduce government spending along with increasing funding for state agencies;

WHEREAS, The Code of Alabama, Section 41-17-1 establishes that no passenger automobiles shall be purchased for or assigned to any officer or employee of any state agency (which term as used in this chapter shall include state boards, commissions, committees, corporations, departments and offices) except the head or chief executive officer of the agency and such employees of the agency whose duties require the assignment of an automobile, as determined by the head or chief executive officer of the agency and approved by the state Finance Director; provided, that no such redetermination and approval shall be required for any officer or employee;

WHEREAS, there are over 8,255 vehicles assigned to state agencies;

WHEREAS, insurance costs were approximately $4.7 million dollars in fiscal year 2011;

WHEREAS, the Department of Finance will evaluate the current State of Alabama automobile fleet by agency as applicable in Code of Alabama 41-17-1:

WHEREAS, requests for new vehicle purchases as applicable to 41-17-1 will be submitted and justified in writing to the Finance Director;

WHEREAS, the Department of Finance will require each agency to evaluate current fleet management practices;

WHEREAS, the Department of Finance will require each agency to submit proof that automobiles are being used to conduct business on a necessary and regular basis in service of the State of Alabama;

WHEREAS, the Department of Finance will require agencies to surrender vehicles not in strict compliance with Code of Alabama 41-17-1 to the Surplus Property Division and insurance coverage discontinued;

NOW, THEREFORE, based upon those considerations and for the other good and valid reasons which relate thereto, I, Robert Bentley, Governor of the State of Alabama, by virtue of

Page | 35 the authority vested in me by the Constitution and the laws of the State of Alabama, hereby order effective October 1, 2011, the Finance Director will implement new fleet management guidelines.

DONE AND ORDERED this _____ day of ______, 2011.

STATE OF ALABAMA

By:______

Robert Bentley, Governor

[Great Seal of the State of Alabama Affixed Hereto]

ATTEST:

______

Beth Chapman, Secretary of State

Page | 36

Recommendation 5: Discontinue the Use of Paper Checks.

Executive Summary The Department of Revenue issued 690,805 refund warrants (printed checks) in FY10 and the cost was $371,825.79, which included the cost of $0.506 each for postage. More than half of the refund warrants are issued for amounts in the range of $0.01 to $250.00. The department receives a significant number of requests for replacement warrants each year due to theft, damage and expiration dates over one year.

Table 5A – Department of Revenue Processing Means Cost per Item Number Items Processed Total Cost Refund Warrants $0.538 690,805 $371,653 Electronic* $0.02 690,805 $13,816 Savings $357,837 *Note: Data from DIR figures

The Department of Industrial Relations (DIR) discontinued issuing unemployment benefit warrants in 2007. Payments are made by direct deposit or by MasterCard debit card. For February 2011, of the 380,000 payments, 41% were made through debit card process and 59% paid through direct deposit to personal bank accounts. It was estimated the cost of paper checks were about $1.00 per check. Effective January 2011, DIR began paying $0.02 per Automated Clearing House (ACH) transaction. The compensating balance was used to cover any banking fees prior January 2011.

Table 5B – Department of Industrial Relations Processing Means Cost per Item Number Items Processed Total Cost Paper $1.00 380,000 $380,000 Electronic $0.02 380,000 $7,600 Savings $372,400

The Department of Human Resources (DHR) uses the Electronic Benefits Transfer (EBT) debit card instead of issuing paper food stamps. Their estimated paper cost was $1.65 - $2.05. The Federal government pays the fees for the EBT card except for pay phone calls which average $2,000/month. In addition, DHR has a new RFP (Request for Proposal) contract which is open to all State agencies at no cost. The agency can choose the EBT card or the MasterCard program in addition to any existing direct deposit program.

Table 5C – Department of Human Resources Processing Means Cost per Item Number Items Processed Total Cost Paper $1.65 380,000 $627,000 Electronic & Calls $0.005 380,000 $1,900

Page | 37

Savings $625,100 The Internal Revenue Service is testing the issuance of debit cards instead of paper checks while continuing to offer electronic direct deposit to personal bank accounts. The elimination of paper checks will decrease the number of thefts and expiration of funds that occur each year. Additionally, the U.S. Social Security Administration discontinued issuing paper checks effective May 2011.

It is recommended that the State of Alabama utilize the electronic transmittal of funds for all payees, including the state employee payroll for which paper costs equal $31,000 per year plus postage to mail checks and/or stubs, not to mention the costs of distributing the checks within each department. In addition, reimbursement of travel expenses for state employees should be changed from the current method of paper checks to electronic transfer. Since the same level of effort and costs are incurred currently to print paystubs for employees who receive their payroll via direct deposit, an electronic portal similar to the Retirement Systems of Alabama would allow the Department of Finance to stop printing paystubs for the estimated 34,000 of the approximate 40,000 state employees who are currently on direct deposit. An electronic platform would provide secure, password-protected login that would allow state employees to view their gross pay, net pay, deductions, leave balances and other relevant information and announcements.

According to the Hackett 2009 Finance Benchmark Database, the all-in per item cost for processing paper disbursements is about $13.50. To determine the cost to the State, the Treasurer’s Office and the Comptroller’s Office would need to work together to obtain all of the associated costs. The most difficult cost factor to determine would be time and salaries associated with each paper check. The Hackett Group is a global strategic business advisory, operations consulting and finance strategy firm. Hackett utilizes business best practices and implementation insights from more than 5,000 business benchmarking engagements.

In fiscal year 2010, the State issued approximately 3.7 million warrants. Based on the Hackett study, the cost on written warrants for FY10 for the State of Alabama would have been $49,950,000. To process a warrant through the ACH system, we estimate it to cost approximately $0.25 - $0.35 cents per entry, depending on returns.

If all warrants were processed through ACH, (using the higher estimate of $0.35/transaction) the cost incurred for FY10 would be $1,295,000, which would leave a net savings of $48,655,000. (Table 5D) Payments made by ACH will result in substantial savings.

Table 5D Processing Means Cost per Item Number Items Processed Total Cost Cost of written warrants $13.50 3,700,000 $49,950,000 (FY10) Processed through $0.35 3,700,000 $1,295,000 ACH Net Savings $48,655,000 Note: Data based on Hackett 2009 Finance Benchmark Database

Page | 38

Additionally, vendors are now requiring payments by ACH, or if not by ACH by wire transfer. Wire transfer costs are greater than a paper check at $15.00 - $20.00 per item and are not a practical process to make payment.

EXECUTIVE ORDER NUMBER ______

WHEREAS, on January 25, 2011, I, Robert Bentley, Governor of the State of Alabama, signed Executive Order Four creating the Alabama Commission on Improving State Government (the “Commission”);

WHEREAS, the duty of the Commission is to analyze and explore new ways to reduce government spending with minimal or no reduction in state services;

WHEREAS, the Commission has received numerous suggestions and proposals for consideration;

WHEREAS, employees of the State of Alabama are paid by direct deposit or mailed a paper check, but all employees are mailed a pay stub every pay period along with all travel reimbursement is paid by paper check without the option of direct deposit;

WHEREAS, the Department of Finance will discontinue the issuance of paper checks for payroll, travel reimbursement, or pay stub to state employees allowing all payment to be direct deposit, in turn establishing an secure electronic portal to allow employees to view gross pay, deductions, net pay, leave balances, travel reimbursement details, and other pertinent information;

WHEREAS, the Department of Revenue issued 690,805 refund checks for FY10 with more than half of the checks issued were for amounts in the range of $0.01 to $250.00;

WHEREAS, the Department of Industrial Relations discontinued issuing unemployment benefits by paper checks in 2007, optioning for direct deposit or MasterCard debit card

WHEREAS, the Hackett 2009 Finance Benchmark Database determined the average for all-in per item cost for processing paper disbursements to be $13.50 and the State of Alabama issued approximately 3.7 million paper checks in FY10 resulting in a cost of $49,950,000 based on the Hackett data;

WHEREAS, the Department of Revenue and other agencies issuing refunds/credits will require payment to be made by direct deposit or debit card;

Page | 39 payments to state employees and taxpayers and issue payment by direct deposit or debit card instrument.

DONE AND ORDERED this _____ day of ______, 2011.

STATE OF ALABAMA

By:______

Robert Bentley, Governor

[Great Seal of the State of Alabama Affixed Hereto]

ATTEST:

______

Beth Chapman, Secretary of State

Page | 40

Recommendation 6: Establish a Statewide Searchable Database of Surplus Property.

Executive Summary State agencies rely on Surplus Property to collect their unused property and attempt to resell it. When an agency decides to send items to Surplus Property, the property could possibly sit in storage for months before an auction is conducted or before other agencies are made aware of the items for sale. A list from Surplus is distributed prior to the auction. This is the only communication from Surplus to inform potential buyers of what they have available. If a buyer decides to purchase property at any other time, the buyer must physically go to Surplus Property in Montgomery to see what is in inventory, taking the chance that the items they need are still available at that time.

In order to make this process more efficient for agencies that need items, the State Auditor’s Office will act as the transfer agent between agencies who are discarding property and those who are in need of property. Discarded property could be repurposed via inter-agency transfers rather than being sent to Surplus Property for resale. The State Auditor’s Office can coordinate the transfer without charging a transfer fee. They can also store property temporarily while it is in transit.

The State Auditor’s Office will issue a policy statement requiring every agency to notify them of available items before sending them to Surplus Property. After five business days if no other agency requests the items they will then be forwarded to Surplus Property. It is recommended that Surplus Property establish a searchable database with up-to-date property inventory that will allow potential buyers to determine what is available at all times. The staff at Surplus Property would be responsible for maintaining the database. Buyers would be granted read-only access to the database. Training state employees to utilize the new database will result in saving agency personnel time and unnecessary trips to Surplus Property.

Page | 41

EXECUTIVE ORDER NUMBER ______

WHEREAS, on January 25, 2011, I, Robert Bentley, Governor of the State of Alabama, signed Executive Order Four creating the Alabama Commission on Improving State Government (the “Commission”);

WHEREAS, the duty of the Commission is to analyze and explore new ways to reduce government spending with minimal or no reduction in state services;

WHEREAS, the Commission has received numerous suggestions and proposals for consideration;

WHEREAS, agencies must wait for a list of items scheduled to be auctioned by Surplus Property or physically visit the warehouse in order to know what items are available for purchase;

WHEREAS, valuable items that may be needed by other state agencies are held in storage or remain unsold due to lack of communication;

WHEREAS, the State Auditor’s Office is available to serve as a transfer agent to help coordinate inter-agency transfers of property and their assistance will help save money for agencies that acquire property before it is transferred to Surplus Property.

WHEREAS, the Commission has received and taken into consideration a proposal whereby the Surplus Property Division establish a searchable database to enable potential buyers to have access to all items available for sale at any point in time.

WHEREAS, the State Auditor’s Office would be authorized to act as a transfer agent to help assist Agencies with transfers of property;

NOW, THEREFORE, based upon those considerations and for the other good and valid reasons which relate thereto, I, Robert Bentley, Governor of the State of Alabama, by virtue of the authority vested in me by the Constitution and the laws of the State of Alabama, hereby order the Division Director to engage one or more agents to develop, implement and undertake the development of a searchable database that will allow potential buyers to see what is available for purchase prior to and/or after auctions so that purchase transactions can be made throughout the fiscal year.

DONE AND ORDERED this _____ day of ______, 2011.

STATE OF ALABAMA

Page | 42

By:______

Robert Bentley, Governor

[Great Seal of the State of Alabama Affixed Hereto]

ATTEST:

______

Beth Chapman, Secretary of State

Page | 43

Recommendation 7: Maximize the Recovery of Uncollected Ad Valorem Taxes.

Executive Summary

Each year thousands of properties in Alabama are offered for sale at county tax sales. Some of these properties are sold to private buyers. The titles to the remaining unsold properties (the "Delinquent Properties") are transferred to the State of Alabama (to be managed by the State Land Commissioner, who is the Revenue Commissioner of the Alabama Department of Revenue). Subsequently, there are approximately 12,309 properties that have been on the State delinquent list for more than five years. The Delinquent Properties represent the loss of millions of dollars of property taxes annually. The Delinquent Properties represent at least three (3) negative factors: (a) as long as the Delinquent Properties are owned by the State, no property taxes are paid on the properties; (b) the Delinquent Properties most often represent properties that are a significant contributor to neighborhood blight, which leads to decreasing property values, and increasing crime; and (c) in many instances, the tax lien on the title prevents any possible development of the property.

The Alabama Code empowers the State Land Commissioner with the supervision and control over the Delinquent Properties, including but not limited to the authority to appoint agents to fulfill various acts and responsibilities with respect to the Delinquent Properties. It is, therefore, recommended that the Governor mandate that the Land Commissioner (Revenue Commissioner) establish a Program to obtain the maximum recovery of uncollected ad valorem taxes attributable to the Delinquent Properties. Furthermore, the proposal would authorize the State Land Commissioner to contract with one or more agents to assist the State with the design, implementation and operation of the Program. In order to minimize (or eliminate) any out-of- pocket costs related to the Program, the financial compensation on the contract with the agent(s) may take the form of a contingency fee arrangement.

Page | 44

EXECUTIVE ORDER NUMBER ______

WHEREAS, on January 25, 2011, I, Robert Bentley, Governor of the State of Alabama, signed Executive Order Four creating the Alabama Commission on Improving State Government (the “Commission”);

WHEREAS, the duty of the Commission is to analyze and explore new ways to reduce government spending with minimal or no reduction in state services;

WHEREAS, the Commission has received numerous suggestions and proposals for consideration;

WHEREAS, each year, thousands of properties in Alabama are offered for sale at county tax sales. Some of these properties are sold to private buyers. Title to the remaining unsold properties (the "Delinquent Properties") is transferred to the State of Alabama (to be managed by the Land Commissioner, who is the Revenue Commissioner of the Alabama Department of Revenue );

WHEREAS, for example, there are approximately 12,309 Delinquent Properties that have been on the State delinquent list for more than five years. The Delinquent Properties represent the loss of millions of dollars of property taxes annually;

WHEREAS, the Delinquent Properties represent at least three (3) negative factors: (a) as long as the Delinquent Properties are owned by the State, no property taxes are paid on the properties; (b) the Delinquent Properties most often represent properties that are a significant contributor to neighborhood blight, which leads to decreasing property values, and increasing crime; and (c) in many instances, the tax lien on the title prevents any possible development of the property;

WHEREAS, the Alabama Code empowers the Land Commissioner with the supervision and control over the Delinquent Properties, including but not limited to the authority to appoint agents to fulfill various acts and responsibilities with respect to the Delinquent Properties;

WHEREAS, the Commission has received and taken into consideration a proposal whereby the Land Commissioner (Revenue Commissioner) will be mandated to establish a program ("Program") to obtain the maximum recovery of uncollected ad valorem taxes attributable to the Delinquent Properties;

WHEREAS, under the Program, the Land Commissioner would be authorized to contract with an agent to assist the State with the design, implementation and operation of the Program; in order to minimize (or eliminate) any out-of-pocket costs related to the Program, the financial compensation on the contract with the agent may be made on a contingency fee basis;

Page | 45

1. Seeks the maximum recovery of uncollected taxes under a system that complies with applicable Alabama law and federal due process requirements.

2. Through intentional and focused noticing procedures, encourages owner redemptions so that there can be 100% recovery of the uncollected property tax relating to the Delinquent Properties and promotes the public good of restoring title to owners.

3. Establishes an improved strategy for selling Delinquent Properties that are not redeemed following the steps taken to encourage owner redemptions.

4. Identifies and promotes opportunities for the redevelopment of Delinquent Properties that are either redeemed or sold.

5. To the extent practicable, contract with one or more agents, on a contingency basis, to develop, implement and operate the Program.

DONE AND ORDERED this _____ day of ______, 2011.

STATE OF ALABAMA

By:______

Robert Bentley, Governor

[Great Seal of the State of Alabama Affixed Hereto]

Page | 46

ATTEST:

______

Beth Chapman, Secretary of State

Page | 47

PHASE ONE: RECOMMENDATIONS REVIEWED BUT DO NOT REQUIRE FURTHER STUDY

Overview The recommendations in this second category of Phase One are the results of meetings held by the Commission-at-Large. During these meetings, the Commission-at-Large presented reviews of previous reports by governor-appointed Commissions. In addition, the Commission-at-Large reviewed web submissions from citizens of Alabama. Also, suggestions from the Commission- at-Large were discussed.

These recommendations are those that the Commission-at-Large identified as not feasible and do not require additional research and study. Even though every web submission was given adequate consideration, some of these recommendations had already been initiated by state agencies. Some recommendations were proposed bills that were rejected during the 2011 Regular Session of the Alabama Legislature. Also, the savings proposed in some of the recommendations were not accurate. Some of the recommendations would require a substantial initial cash outlay which is not in the budget and the savings were confirmed, through research, as being only minimal and not worth the initial cost.

Recommendations eight (8) through twelve (12), as agreed upon by the Commission-at-Large, are those that are not feasible for reasons identified above.

Page | 48

Recommendation 8: Revise Procedures for Computer Purchases.

Executive Summary The Technology Committee received a suggestion that all state agencies should buy everyday computers from big box stores for half the price paid through the state’s computer purchasing process. Research revealed that the contract with Dell and HP are based upon competitive bidding and for computers that meet the state’s system requirements.

Recommendation: The recommendation was that the Committee will contact the Department of Finance, Purchasing Division and request that the Division evaluate their internal process when determining the need for purchasing certain types of computers. No additional research or study is required. See Appendix B for the memorandum that was submitted to the Commission on Improving State Government after discussion with the Department of Finance, Purchasing Department regarding this recommendation.

Page | 49

Recommendation 9: Combine Similar Function Agencies to Establish a Department of Energy.

Executive Summary The Statewide Policy Committee received a suggestion to create a Department of Energy which will encompass existing agencies and prevent further loss of multi-million dollar grants. Further research by Auditor Shaw revealed Alabama has filed for every grant applicable to energy, biofuels and other environmental areas and no money was received. There is a Permanent Joint Legislative Committee on Energy already established for Alabama. Research indicated that the Alabama Department of Agriculture and Industries and the Alabama Department of Economic and Community Affairs are working together on energy issues. There are Bio workshops in Florence and Mobile.

Recommendation: This recommendation does not require additional study or research at this time.

Page | 50

Recommendation 10: Close Corporate Tax Loopholes.

Executive Summary The Statewide Policy Committee received a suggestion to close corporate tax loopholes; therefore, put an end to deficit problems. On March 30, 2011, Governor Bentley issued a press release regarding this recommendation. The press release stated:

“Governor Robert Bentley today announced that he had begun the administrative process of closing business income tax loopholes. The Department of Revenue has submitted for publication a proposed rule known as the Gross Income Tax Regulation, which will address a loophole in our current tax law that allows multi-state businesses to avoid paying taxes on income earned in Alabama. The Department of Revenue expects that this administrative change will generate approximately $30 million for the 2012 Education Trust Fund budget, and approximately $17 million per year thereafter. “This is an issue of tax fairness,” Governor Bentley said. “The loophole that we are closing is only available to certain types of multi-state companies, and these companies ought to pay their fair share of taxes just like everyone else in Alabama. The revenues generated by closing these loopholes will allow the Legislature to increase funds to local school systems to help replace some of the lost federal stimulus dollars.”

The loophole in the tax structure allows multi-state businesses to take advantage of the federal income tax deduction in Alabama by deducting taxes paid on 100% of the company’s income, regardless of how much of that income they report as being taxable in Alabama. As a result of the loophole, companies are deducting federal income taxes paid on income, which in many cases, should be taxable in Alabama, but is not. Alabama is the only state in the country that allows multi-state businesses to do this.

The Department of Revenue’s proposed regulation would equalize the reporting of income and deductions and eliminate the distortion caused by the current unequal treatment. Public notice of the proposed changes is being published this week. A public comment period was scheduled to run through May 6, 2011. The Alabama Revenue Department was scheduled to hold a public Rule-Making Hearing on Thursday May 5, 2011 to consider comments and suggestions to the proposed regulation.

Recommendation: This recommendation will not require additional study or research at this time. The 2011 Regular Session of the Alabama Legislature introduced and reviewed several bills regarding corporate taxes.

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Recommendation 11: Establish Gas Filling Stations for State Vehicles.

Executive Summary The Statewide Policy Committee received a suggestion that state vehicles should use gas at certain locations such as State Trooper stations for cost savings.

Additional research identified that the Alabama Department of Transportation (ALDOT) would need additional employees to handle the higher volume of users, billing, and demand. They currently have ample fuel tanks statewide to meet ALDOT’s needs; however, they would need additional fuel tanks to meet the needs of all state agencies.

Security issues would need to be addressed. Fuel keys cost around $5.00 each and would need to be provided to each person using the stations. Ninety-nine percent of their fueling stations are located behind a locked gate that is locked from 5:00 p.m. until 7:00 a.m. each day of the week and all weekends. Each state employee would be required to have their own personal Employee Identification Number in order to purchase fuel. ALDOT is not set up to provide paper receipts for each fuel purchase. They are set up where they can only provide one invoice to another state agency each month.

In emergency situations, which they cannot always plan in advance (for example, the tornado outbreak on April 27, 2011), they are designated as First Responders and must have fuel whether other agencies need it or not. Fuel cost is based on fuel price and overhead for each location. Each state agency would be required to have an SWA (Special Work Authorization) account and keep a balance in it for fuel charges. In order to provide fuel to all state agencies, this would require a large amount of investment up front to increase ALDOT’s infrastructure so that it could handle this addition.

Recommendation: This Committee recommends that each state agency check with Wright Express and make sure that they are receiving the Alabama discounted rate when using their Wright Express card. This will result in significant savings on their fuel cost. No additional research is necessary at this time.

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Recommendation 12: Tax Roadway Advertisements

Executive Summary The Statewide Policy Committee received a suggestion to tax roadway advertisements larger than 4 x 6 to generate revenue. However, the ability to apply the tax on signage located on private property is questionable.

Recommendation: It was determined that this recommendation would not be studied further.

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PHASE TWO: RECOMMENDATIONS REVIEWED BUT REQUIRE FURTHER STUDY

Overview The recommendations in this final category for Phase two are the results of meetings held by the Commission-at-Large. During these meetings, the Commission-at-Large reviewed reports by previous governor-appointed Commissions. In addition, the Commission-at-Large reviewed web submissions from citizens of Alabama. Also, suggestions from the Commission-at-Large were discussed.

These recommendations are those that the Commission-at-Large identified as feasible, but require more extensive research and studies. These recommendations have the potential of providing significant savings and increasing efficiencies in state government. Additional research and studies will include review of implementation strategies in other states, detailed cost/benefit analysis, and communications with the private sector.

Recommendations thirteen (13) through twenty-one (21), as agreed upon by the Commission-at- Large, are those that are feasible, but require additional research and studies. These recommendations, along with recommendations regarding enterprise functions of state government and the consolidation of agencies, will be considered during Phase Two by the Subcommittee on Executive Management. During Phase Two, the Subcommittee will look at privatizing some state services and streamlining processes to reduce spending.

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Recommendation 13: Change to a Ten-Hour, 4-Day Work Week.

Executive Summary Consideration should be given to a 10-hour day, four-day work week for all state agencies as a way to reduce government costs. There are a number of advantages including cost savings to the state on building maintenance, utilities, gasoline, decreased overtime costs, reduction in absenteeism and increased productivity. Environmental impacts include a reduction in greenhouse gas emissions and other air pollutants, less traffic congestion, reduced road wear, and fewer auto accidents. Further, states who have shifted to this model report higher employee morale and positive citizen feedback due to the extended service hours for citizens who work full time jobs.

Research shows that other states that have made this change have realized a significant cost savings. For example the State of Utah’s Initiative Performance Report Final which captures the results of a one-year study on the State of Utah’s implementation to this model in December 2009 shows savings of:

• $203,000 reduction in custodial service contracts • $502,000 or 10.50% savings in overall energy consumption • $582,137 rate reduction charges for fleet-leased vehicles • $289,630 estimated savings in mileage reduction of vehicles outside the fleet variable rate charges • $575,000 reduction in mileage reimbursement for personal-owned vehicles • 160,926 hours of cumulative overtime across Executive Branch agencies ($4.1 million) • Estimated 5,494 metric tons of CO2 reduction equivalent to 999 cars off the road for one year • Estimated 523,980 gallons of fuel conserved by employees (savings of $1.37 million @ $2.62 per gal)

It was noted that it took several months to get all buildings operating efficiently and future reports should report even greater savings.

The report noted some other items Alabama would want to consider include making adjustments to the current time/leave databases, leave slips, time cards, and payroll system – including training for all timekeepers. Shift workers will need special handling at agencies that require someone on duty 24 hours per day 7 days per week. Some employees face a difficult time adjusting to the schedule and/or may have challenges finding daycare options, possibly

Page | 55 increasing leave usage. Finally, states implementing this model may face some complaints from the public due to the fact that government offices will be closed as mandated by the Governor and they cannot receive services on the day they wish to come.

Recommendation: This recommendation requires agencies to utilize the State Personnel Checklist to determine feasibility within 120 days of issuance of an Executive Order. The State Personnel Department will work with the Finance Department to communicate this policy recommendation to state agencies. However, it should be noted that after providing our recommendation, the State of Utah has decided to revert back to the five day work week. Ten-hour day, four-day work weeks are not a broad solution for every organization; however, it is worthwhile for agencies to evaluate the benefits.

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Recommendation 14: Require State Agency Heads to Re-evaluate and Limit the Assignment of Cell Phones to State Employees.

Executive Summary There are thousands of different types of cell phones and service plans available. Agencies should perform an analysis on what phones and plans they currently have and how it relates to what they actually need. Agencies will be able to reduce costs by instituting stricter provisions for the assignment of cell phones. Each agency must be required to keep an inventory of the phones that are assigned to its employees.

There are three provisions that should be mandated to help agencies control their cell phone inventory. The first provision for a state employee to receive an agency-issued cell phone is to ensure that the employee meets the criteria as established in the agency’s policies. The agency’s policy must specify the employee classifications and duties deemed qualified to be issued a cell phone. The policy must also specify limitations for use of the cell phone and require employees to sign for receipt and responsibility of the phones.

The second provision is that state agencies routinely monitor cell phone usage for cost effectiveness and efficiency. This would require reviewing the cell phone bill for unauthorized usage, over the limit usage or of non-work related usage. Agency heads would need to enforce this new procedure and communicate the consequences of violating the usage agreement to the appropriate staff. Another alternative is to maintain a limited pool of phones that could be interchanged between staff as needed. Logs would be used to track the issuance of the phones.

The final provision is that state agencies ensure that the cell phone users are on the proper service plan. The duties of each employee should be considered when choosing the appropriate service plan. For instance, an employee whose only use of the cell phone is to call in to make routine reports may only need a basic phone with a basic service plan. This employee may not need Internet access, nor will they need a more expensive phone such as a Blackberry or Smart Phone.

Recommendation: This recommendation was deemed feasible; however, it was sent back to the Statewide Policy Committee for further research. The Committee will perform additional studies regarding the possibility of reimbursement or shared cost for using personal phones instead of handling two phones. Also, the Committee will look at the level of employees for compensation purposes when on call 24 hours to ensure compliance with the Department of Labor standards.

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Recommendation 15: Require Meetings by Teleconferencing or Satellite in lieu of travel.

Executive Summary The Statewide Policy Committee received a suggestion to offer teleconferencing or satellite options instead of traveling for meetings. This is meant to reduce travel costs for state agencies.

Recommendation: This recommendation was determined to require additional research to distinguish the teleconferencing gathering and satellite gathering as separate entities. Also, extensive cost- benefit analysis is required.

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Recommendation 16: Re-vamp Collection of Corporate Taxes.

Executive Summary Steve Pelham, Lt. Governor’s Chief of Staff presented a proposal received from JM Family Enterprises, Inc. to revamp the collection of corporate taxes. The company is a distributor of all Toyotas in the Southeast states. The Company reports that it costs the company more to operate in Alabama than anywhere else. The company believes the change will create investment opportunities.

Recommendation: This recommendation requires additional studies and research. The 2011 Regular Session of the Alabama Legislature introduced and reviewed several bills regarding corporate taxes. However, these bills did not pass legislature. A memorandum was sent to the Commissioner of the Alabama Department of Revenue asking the agency to review this recommendation and provide the Commission with an update at the conclusion of their examination. See Appendix B for the memorandum that was submitted to the Commissioner.

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Recommendation 17: Proposed Agency Consolidations.

Executive Summary The Commission recommended that a comprehensive study be conducted to determine the feasibility/cost of consolidating agencies with similar missions, responsibilities and citizenry. It was noted from other states that consolidating licensing and regulating boards and commissions decreased responsiveness and client satisfaction, and increased inefficient production. Therefore, it is recommended not to consolidate boards and commissions into a single agency.

See Appendix C for the full list of proposed agency consolidations.

Recommendation: This recommendation was deemed feasible, but requires further study and careful analysis. It is recommended that meetings with agency leaders be facilitated to explore the potential opportunities for consolidations. The facilitated meetings should garner critical discussion around planning and cost projection. Any decision to consolidate agencies should have a clear cost savings and efficiency gain.

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Recommendation 18: Health and Human Services Consolidation.

Executive Summary The Health, Human Services, and Medicaid Committee received two suggestions to consolidate certain agencies with similar services. The two recommendations are as follows:

1. To combine Unemployment and Food Assistance payments. 2. To combine Social Security and Food Assistance services.

Recommendation: The Committee supports the idea of combining services through shared applications or websites. Additional study and research is required and should be explored.

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Recommendation 19: Use Gross Income of Social Security Recipients with IRA Distributions.

Executive Summary

The Health, Human Services and Medicaid Committee received a suggestion to increase Medicaid savings by using the adjusted gross income of Social Security recipients with IRA annual distributions.

Recommendation: The Committee determined that additional study and research is required and should be explored.

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Recommendation 20: Reduce Recidivism.

Executive Summary

The Health, Human Services and Medicaid Committee received a suggestion to save millions annually by reducing recidivism through a company called First Stop-Second Chance.

Recommendation: The Committee supports the idea of minimizing recidivism within Corrections (100% General Fund agency). However, the committee does not wish to promote First Stop-Second Chance as the only answer. A review of programs referenced by the Certified Public Manager® team identified a number of successful programs already in place in Alabama that reduce recidivism such as Pre-trial Diversion programs which divert non-violent offenders from incarceration. The Pre-trial Diversion program utilized by the Montgomery County District Attorney has been highly successful and has a 1.8% recidivism rate. Another successful program is the Department of Corrections Institutional Pre-release/Re-entry Program and Transitional Services. A closer look at expanding existing programs is recommended. In addition, a Citizen Hearing committee was to be held on June 9, 2011, to begin addressing this issue.

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Recommendation 21: Change Medicaid to 100% Managed Care.

Executive Summary

The Health, Human Services and Medicaid Committee received a suggestion to change Medicaid into a 100% Managed Care service.

Recommendation: The Committee reported behavioral health services account for 30 - 40% of Medicaid costs. A pilot program is underway to address behavioral health as managed care.

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CONCLUSION

The Executive Orders represent immediate action. We must ask the Commission working in Phase Two to establish a follow-up mechanism to ensure the orders were implemented by all agencies, as this will be the true indicator of cost savings with minimal reduction in state services.

A tremendous amount of work has been undertaken over a six-month period. Many of the proposals were not presented for Executive Order, but will not and should not be dismissed. Many proposals will be pursued in Phase Two for further consideration and/or research.

We would like to thank the citizens of Alabama, the dedicated government employees who work every day to serve our state and businesses of Alabama for their participation in this endeavor. Your voice was heard. All the website submissions are presented by category and/or title in Appendices D and E of this report.

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Appendix A: Executive Subcommittee Report Submitted by Anne Elizabeth McGowin

ALABAMA COMMISSION ON IMPROVING STATE GOVERNMENT SUBCOMMITTEE ON EXECUTIVE MANAGEMENT

MISSION: Analyze current and prospective executive functions to identify best practices and appropriate application of proven private-sector principles to government operations.

HIGH-PRIORITY TARGETS: 1. The enterprise functions of state government. These are the business activities that underlie all government agencies and programs – accounting, human resource management, information technology, purchasing and so on. Enterprise functions are particularly attractive targets for achieving efficiency gains and cost reductions in Alabama state government because:

• Most enterprise functions are highly decentralized, with little oversight that is focused on reducing costs and achieving efficiencies. • The authority to create central oversight already exists in many cases, and is concentrated in the Finance Department and a few other agencies. • State agencies are likely to support the adoption of reforms in these enterprise functions, because they have been burdened for so long with the inefficient business systems through which they must work.

What this suggests is that there is very large potential for creating savings and improving efficiency by focusing on better management of enterprise functions located in and around the Finance Department. These would include:

FUNCTIONS RESPONSIBLE AGENCIES Accounting Finance Department Asset Management Fleet Management Finance Department Property Audits State Auditor Public Lands Management Department of Conservation & Natural Resources Space Management Finance Department Debt Management Finance Department Employee Travel Management Governor’s Office Finance Department Human Resources State Personnel Department Information Technology Finance Department Alabama Supercomputer Authority Purchasing Finance Department Risk Management Finance Department

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Each function should be looked at separately by a small team consisting of at least one Subcommittee member plus loaned executives with subject-matter expertise from Alabama companies, managers from state government and research staff. This will give each team access to expertise on best practices in business and state government, as well as knowledge of the Alabama situation.

The functions should be examined in priority order, so that we are not trying to focus on everything at once, and so that the use of the valuable time of loaned executives can be limited to short periods (four weekly meetings within a 30 day period). The study team will be responsible for coming back to the Subcommittee with a proposed plan for improving the management of the enterprise function being studied. In some cases all or much of the plan may be implementable in the short run, while in others the plan may be a roadmap to guide future actions. The Subcommittee should approve, modify or send back the report for further work. An integral component of each study will be whether the function being studied can be automated and included in the creation of an enterprise management system that will utilize technology to save labor cost and increase efficiency in the business systems of Alabama government. Some functions will fit, while others will be too costly or complex for inclusion in an automated enterprise management system.

The enterprise functions are listed in priority order for study on page 1 of the Executive Management report. The proposal is to form teams and address the functions in this order, staging the work so that at least one plan is brought back to the Subcommittee for approval at each monthly meeting beginning in April. Pages 4-5 of the Executive Management report contain the recommendations of recent study commissions on consolidation of enterprise functions in Alabama government. What they show is that the need for improving the management of the state’s enterprise functions is well recognized. However, there has been very little implementation of improvements in these areas. A problem with many study commissions in Alabama history is that their recommendations include little in the way of detailed analysis or improvement plans, so nothing happens after everyone goes home. We should ensure that we leave behind a concrete plan for improvement in everything we study.

2. Performance management. As the saying goes, what gets measured (or checked) gets done. In Alabama’s state government, very little is reviewed systematically to correct problems and improve results; as a result, inefficiencies are perpetuated. The Finance Department is not only the primary manager of enterprise functions in Alabama government, but also the manager of the state budget. The Department should conduct systematic performance reviews within state government and see that the results of those reviews are incorporated in the state budget and in the management of enterprise functions. This performance management process can be created administratively using existing staff and the statutory and constitutional authority given to the Governor and Finance Director. Other states have processes of this type, and best-practice models are available. With the extraordinary legal powers given to the Governor and Finance Director, Alabama can be the best of class in this area if we implement a performance management process, as two recent study commissions have recommended. Pages 6-7 contain

Page | 67 the recommendations of recent study commissions on budgeting, performance management, and revenues. The Subcommittee met on April 8, 2011, and discussed their mission of reviewing enterprise functions as outlined above and performance management. The Subcommittee directed four teams to begin working on recommendations that may affect performance management, the accounting system, purchasing system, payroll system, and management and planning of our information systems division(within the finance and other agencies). Each team is a combination of public and private subject matter experts that are currently meeting weekly to prepare recommendations for the Executive Committee. The Executive Committee will likely sanction additional teams at their August meeting and should complete their recommendations by December.

The chairman of the Executive Committee also sent a letter to all state agencies and boards requesting any recommendations for the Commission’s consideration. Each of these issues were reviewed individually, forwarded to the respective owners for comment and may be included in the Executive Committee’s recommendations.

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Appendix B: Memorandums and Letters

Memorandum #1

April 29, 2011

MEMORANDUM

TO: Members of the Commission on Improving State Government

FROM: Treasurer Young Boozer, Chair of the Technology Subcommittee

SUBJECT: State computer purchasing procedures

A suggestion for improving the state’s computer purchasing process was transmitted to and reviewed by members of the Technology Subcommittee. The person submitting the suggestion asserted that the cost agreed to via bids is excessive. Everyday computers can be obtained at big box stores “for half the price.” No supporting documentation was provided to substantiate this number.

I inquired about computer purchasing with the Department of Finance Purchasing Division, which is responsible for these types of purchases. I learned that computers are currently purchased using a contract with one of two companies, Dell or HP. These companies were selected to do business with the state after completing the requirements set forth in the competitive bid process for computers that meet the state’s standard for compliance with system requirements.

It appears the Purchasing Division has the computer hardware purchasing process well in hand. Nonetheless, this commission should request that the Division review existing policies and procedures to determine whether a more cost-effective way of purchasing computers may be pursued. The review should address the acquisition of the “one off” computer at a lower price.

At this time, it is the recommendation of the Technology Subcommittee to allow Purchasing to review internal processes and provide us with an update at the conclusion of their examination.

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Memorandum #2

June 30, 2011

MEMORANDUM

TO: Members of the Commission on Improving State Government

FROM: Will Sellers, Chair of the General Subcommittee

SUBJECT: Clerical staff in the Department of Revenue

The Alabama Commission on Improving State Government sought from the public ideas that would help make Alabama honest, efficient and free of fraud, waste and abuse. A number of suggestions were submitted that have the potential to make government more effective and responsive. A suggestion that an evaluation be conducted concerning improving the organizational structure of the Department of Revenue’s Commissioner’s Office was transmitted to and reviewed by members of the General Subcommittee.

The person submitting the suggestion asserted that an analysis of the duties of the clerical staff in the Commissioner’s Office of the Department of Revenue be conducted to determine if they are really needed. The suggestion referenced that the Commissioner’s Office consists of four executives, three secretaries and a personal assistant. It was indicated that the new personal assistant makes approximately $45,000 and was brought in by the new Commissioner. The individual questioned the need for the one:one ratio of executives to clerical staff and suggested that the work could be performed by fewer support staff, alleging that some of these staff have been observed walking around visiting their friends, talking on the phone and playing on the Internet.

At this time, it is the recommendation of the General Subcommittee to allow the Department of Revenue to review their internal processes and staff allocation in their executive office and provide us with an update at the conclusion of their examination.

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Memorandum #3

June 30, 2011

MEMORANDUM

TO: Members of the Commission on Improving State Government

FROM: Will Sellers, Chair of the General Subcommittee

SUBJECT: Revenue Audits and Simplified Sales Tax

The Alabama Commission on Improving State Government sought from the public ideas that would help make Alabama honest, efficient and free of fraud, waste and abuse. A number of suggestions were submitted that have the potential to make government more effective and responsive. Suggestions for improving the state’s revenue audits and simplified sales tax were transmitted to and reviewed by members of the General Subcommittee.

As indicated by one of the suggestions, it was asserted that implementing stronger auditing practices for all ad valorem taxation by reviewing all exempt real property and personal property accounts in all 67 counties, would generate additional revenue. It was asserted that numerous accounts are miscoded due to human error, lack of training and expired exemptions.

This individual reported that the State is short auditors in the ad valorem taxation area. This suggestion was made on the improve.alabama.gov website, in addition to a letter submitted to Lt. Governor Kay Ivey (see enclosure).

Another suggestion was submitted in a letter to Lt. Governor Kay Ivey (see enclosures) detailing suggestions regarding five approaches that should be considered: single sales apportionment factor; Alabama Taxpayer Bill of Rights; simplified sales tax administration; refundable jobs tax credits; and bonus depreciation on Alabama property.

At this time, it is the recommendation of the General Subcommittee to allow the Alabama Department of Revenue to review these recommendations and provide us with an update at the conclusion of their examination.

Enclosures (Letter from Citizen Jane S. Mardis and Letter from JM Family Enterprises)

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Memorandum # 3, Attachment A: Letter from a Citizen

Jane Stubbs Mardis 3244 Brook Highland Trace Birmingham, AL 35242 (334) 221-0135 [email protected] March 6, 2011

Honorable Lt. Governor Kay Ivey 11 South Union Street, Suite 725 Montgomery, AL 36130

Re: Untapped Revenue

Dear Lt. Governor Ivey,

First and foremost, congratulations on your election! I am thrilled that you are serving as our new Lt. Governor. I would also like to congratulate you on chairing the Alabama Commission on Improving State Government. That recent appointment is actually why I am contacting you.

1 know you are very busy, but I want to share with you some items that I'm aware of regarding my niche in government; ad valorem taxation. A number of items directly related to "revenue streams" are slipping through the cracks that affect our State as well as the school systems, municipalities, and counties. I wish to offer solutions in this area that I hold expertise in. With each day, we hear news of "shrinking revenues," and our leaders are faced with the daunting task of budget cutting and creatively looking for revenue sources without raising taxes. Potentially we are losing millions of dollars annually in this division because there are not any formal auditing practices in place by the Department of Revenue or Examiner's office specifically reviewing exempt accounts. There is not a full-time designated individual from the State who continually visits and assists the county's elected officials making sure they are conducting their offices in accordance with Code of Alabama Section Title 40. The Alabama Department of Revenue employs Field Analysts that ensure certain items are being conducted in accordance to the Alabama valuation manual and the annual equalization plan. They fill out monthly reports and send them to Montgomery. The analysts have limitations because they do not handle items pertaining to assessments or exemption functions.

The Alabama Comptroller's office audits the abstracts by the Assessors and Revenue Commissioners checking for accounting errors in a variety of categories and reviewing some of the assessments. Their role is primarily focused on the collections and how monies were distributed to the entities (State, county, municipalities and school boards). Due to time, they do not run audits on every exempt account, abatement account, current use account, homesteaded account, etc. It is specifically in these categories where I have found extensive errors occurring that add up to a substantial amount of revenue going uncollected year after year.

Section 40-2-11 gives the Alabama Department of Revenue the complete authority over revenue, and in my twenty-four years of service related to property taxation (real and personal property) I know the loopholes, abuses, errors, etc. and no one is tracking the loss of revenue. Auditing practices have never been put into place, and someone should be actively engaged into looking under every rock for revenue. Historically, county officials (Assessors & Revenue Commissioners) are under continual

Page | 72 constituent pressure to please those who put them into office. Can you imagine how many errors exist in "exempt" accounts? You'd be surprised. There are innumerable errors taking place statewide, and they've increased since the 2008 election. Many of the officials do not know how to perform internal audits on their own accounts that they are responsible for and that is why I would like for the State of Alabama to consider having an auditor position to assist the elected officials with interpretations of Title 40. They must be taught how to conduct internal audits and teach them how to correctly keep their real property and personal property accounts in order.

One of the reasons I ran for the position of Revenue Commissioner-Montgomery County in 2008 was to correct the errors that I knew existed in Montgomery County alone. Thankfully in the months before my opponent was sworn in and before I resigned as the department head and Chief Appraiser, I successfully conducted a number of audits and demonstrated to the county commissioners that monies were simply not being sought after; whereby I coined the term "untapped revenue." The commissioners asked me to find every nickel under every rock and I immediately put a plan into motion.

The first thing I did was to audit the single most expensive personal property item in Montgomery County: Aircraft. I found 30 planes at Montgomery Aviation that were not being reported. Two were in excess of $25M in value. Aircraft have "N" numbers which are the equivalent to a car's tag and the "N" numbers must be registered and tax collected. Not only did I discover the planes that weren't being reported, I was able to perform escapes on many of them. (Escape taxation: By law you can go back on non-reported taxes for period up to 5 years.) The millage rate at Montgomery Aviation is very low, but the audit produced hundreds of thousands of dollars in revenue that was simply being lost. The audit only took about 1 1/2 months to complete beginning to end.

My next audit was to review every "exempt" account on the books for real and personal property taxation. For example, I found an $11M medical building that had erroneously been miscoded as exempt when it was actually taxable. That one account was $90,000 in annual revenue that was being lost. An escape on it for 2 years was allowable bringing in $180,000 total. This was just one account. Conservatively, I would say we found somewhere in the neighborhood several million dollars which at least helped offset the loss in revenue due to property values decreasing due to the economy of real estate.

Because I was finding these errors in Montgomery County, I wanted to know if this was happening statewide. The answer is "yes" it is happening statewide and because few people have the proper training and skills to conduct such audits, revenues are continually being lost. Former Alabama Revenue Commissioner Tim Russell and I discussed the lack of auditors and need for auditors before he left to become Probate Judge in Baldwin County. He was well aware that there was a great need for auditors statewide in a variety of areas (ad valorem tax, sales tax and income tax). Revenues cannot be adequately collected unless we have skilled individuals implementing the laws. There is a need for more accountability, fiscal responsibility, and training for the elected officials sworn in to collect revenues due.

In Jefferson County where I currently serve as the Court Appraiser for the Board of Equalization & Adjustments and where I handle all civil litigation for the county related to real and personal property valuation disputes, I have already discovered business practice concerns taking place in the Assessor's office (also elected "new" in 2008). A significant number of "rental" properties were found having "homestead" exemptions; therefore, only 50% of the tax was being collected. Cell towers and other high dollar personal property items were never accounted for. Abatement accounts and elderly exemptions are also not being handled properly. Since I'm not employed by the Assessor, there is little I can do. With over 320,000 parcels of real estate in Jefferson County, imagine the errors that could be

Page | 73 uncovered if a trained auditor could start looking and questioning accounts. Imagine the losses in revenue that are taking place right now. I realize some errors are simply human error due to mis-keying and/or lack of training and experience. I worry that other errors are consequence of political pressure or political favoritisms. Montgomery County and Jefferson County are large counties in Alabama, and we cannot afford to have revenues missing.

I would like to see every county in Alabama audited as it relates to ad valorem taxation in the following areas: 1) Abatement accounts / Industrial Development Board accounts (expiration dates, etc.) 2) Medical clinic board accounts 3) Current Use accounts 4) All EXEMPT accounts for real and personal property to include homesteaded accounts; and 5) Personal property accounts regarding proper listings of assets/equipment including aircraft accounts.

I know I cannot solve all the revenue losses taking place in State and local government, but I can sew up the hole where I see many dollars being lost. I feel strongly that this is an area worthy of exploring to find owed revenue. I know the losses are out there; however, State officials must decide if they wish to put forth a plan to pursue these losses. If so, I would love to be the one to spearhead such a plan. I am certain the return of revenue would far out-weigh any compensation for the efforts.

Last item I want to address is Code of Alabama Section 40-3-1 (Boards of Equalization). The qualifications are antiquated in comparison to other States. Most Boards qualify members who have real estate knowledge (ie, appraisal, sales, lending or law) and Alabama does not. It is far more important to have knowledge in this position than where one lives or how long they've resided somewhere. I sent Representative Jay Love information on this asking that our lawmakers consider a revision. Many counties are having problems with these Boards due to lack of competency with important decision making. It would be awesome to have revisions made this session and I would greatly appreciate input.

I thank you for taking the time to read my letter and allowing me to share what I've experienced in this area of State government. In this critical economic climate, I feel not only obligated to share my experiences, but also to offer sound and reasonable solutions. Please be sure to tell Chuck Carver I said "Hello." I look forward to hearing from you, and I would appreciate an opportunity to talk with you in further detail about this subject.

Sincerely,

Jane S. Mardis, ACA, G#00063-AL

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Memorandum # 3, Attachment B: Letter from an Alabama Company

April 21, 2011

Hon. Kay Ivey Lt. Governor State of Alabama Chairman 11 South Union Street, Suite 725 Montgomery, AL 36130

Dear Lt. Governor Ivey,

JM Family Enterprises, Inc. through its subsidiary, World Omni Financial Corp., operates a service center in Mobile, Alabama and employs approximately 300 individuals. We understand that the Governor's Commission on Improving State Government has been soliciting suggestions from companies in Alabama for ways in which to improve state government, enhance economic development and help create jobs. Below are some of our recommendations for your consideration.

• Single sales apportionment factor - Currently, the state of Alabama apportions a company's taxable income based on a three factor apportionment percentage, which is comprised of sales, payroll and property. To the extent a multi-state company has a significant physical presence in Alabama in the form of payroll and/or property, it has the potential to increase its apportioned taxable income to Alabama. Enacting a law to allow companies to use a single sales factor on an elective basis would not penalize companies which are already employing people and/or owning property in Alabama and may be an attraction for payroll and/or property intensive companies to establish a presence in Alabama.

• Alabama Taxpayer Bill of Rights - Rep. Paul DeMarco (R-Homewood) has introduced HB 427, which provides for the creation of a new independent state tax agency, the Alabama Tax Appeals Commission, to hear appeals of tax and other matters administered by the Department of Revenue. Taxpayers need to have a forum to resolve tax matters both fairly and timely. Our company has had a significant and duly approved tax refund pending from Alabama for over a year and the absence of an independent appeals process has thus far hampered all of our efforts to collect our refund. We strongly encourage the passage of Rep. DeMarco's legislation (HB 427) to encourage fair and prompt resolution of tax disputes in Alabama.

• Simplified sales tax administration - Currently, the state of Alabama requires taxpayers to file sales and lease tax returns on a city and county level. Other states, which like Alabama have differing rates at the county and city levels , still only require a single tax return to be filed. Alabama 's requirement causes a significant compliance burden for many companies and provides no beneficial impact on the economy of Alabama. For example, our company files approximately 2,100 sales and lease tax returns on a yearly basis across the United States of which, 1,000 (49%) are Alabama separate tax returns but which represent only 3% of the yearly total remittance. Rep. Mike Hill (R-Columbiana) has introduced HB 355 to create a Streamlined Sales tax Commission to study and recommend changes regarding the

Page | 75 administration and remittance of sales taxes. We strongly encourage the inclusion of lease taxes in this effort and the favorable consideration of HB 355 by Rep. Hill.

• Refundable jobs tax credits - We recommend that Alabama incentivize companies to hire new employees by enacting a law that provides for a jobs tax credit that is creditable against state income tax, sales tax or payroll withholding taxes without restriction for the size of a business, the number of employees or specific industries. To the extent there is a remaining jobs tax credit, it would be refunded.

• Bonus depreciation on Alabama property - Under federal income tax law, companies can currently deduct 50% of the cost of certain capital expenditures incurred beginning January 1, 2010 through September 8, 2010 and 100% for those incurred on September 9, 2010 through December 31,2011. To encourage capital expenditures in Alabama, lawmakers should consider enacting a law to allow bonus depreciation only for capital expenditures made in Alabama.

We would like to thank you and the Governor's Commission on Improving State Government for the opportunity to provide input on an important topic for Alabama's future.

Sincerely, Jorge E. Gonzalez Vice President, Corporate Taxes

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Letter from a Business: In Reference to Recommendation 20

March 2, 2011

Kay Ivey Lieutenant Governor II South Union Street, Suite 725 Montgomery, Alabama 36130

Reference: Improving State Government by Significantly reducing recidivism, crime, and associated costs.

Dear Lt. Governor Ivey:

No other servant of the people is better suited to be the Chairperson at" the Alabama Commission on Improving State Government. Towards that end, I am confident our organization can be of great value.

First Stop-Second Chance's mission is to reduce recidivism and crime, and in doing so, improve community economics and livability by matching, managing, and monitoring reentry resources. To that end is the genesis of this letter.

• FACT: Alabama's recidivism rate continues to climb. • FACT: Alabama's ongoing approach to reducing recidivism is flawed. • FACT: Alabama needs to change its ineffective approach to reducing recidivism.

Reducing Alabama's recidivism rate greatly impacts every person and community in the State by improving living and community conditions. Currently, the reentry labyrinth of service providers in Alabama is a loose arrangement of independent providers. More often than not, each is unaware of the maze of independent providers offering the same or similar service. However, and more importantly, if not critical, is the lack of relevant oversight regarding federal, state and foundation funding allocations and return on that investment.

To our way of thinking, the return on investment is really the return on individuals and the best way to substantiate financial support. As an example, reentry service providers are not all created equal. Some smaller operations achieve better results than bigger providers and visa-a-versa. As there is no system in place, who really knows which is which? Many providers are "rna and pa" type family ventures with little depth and structure, or just emotion-based services.

First Stop-Second Chance's recidivism reduction and reentry approach can save the State tens of millions annually by reducing its 35% recidivism rate. Returning to their 2009 30% recidivism rate, the State could save, at minimum, an estimated $28 million in incarceration costs. However, that is insignificant compared to the estimated $773 million in overall costs saved. These often overlooked expenses include both pre-incarceration and incarceration costs. The total pre-incarceration costs account for law enforcement activities, attorneys, prosecutors,

Page | 77 judges, clerks, administrative staff, and court expenses to apprehend and process a previously incarcerated person.

Some prison-industry experts estimate that that cost lingers around $200,000 per released/reincarcerated person. Alabama's Department of Corrections 2010 budget was only $410 million!

As one can easily see, the potential financial savings alone is mindboggling. The potential to improve living and community conditions is incredible. All that is needed is adequate funding. Though we have presented our approach to reducing recidivism to all key State judicial, correctional, and parole executives involved with recidivism and reentry, funding has never materialized, only promises. Department letter's of endorsement are provided for your review. A small initial investment of $250,000 could change the lives of millions of Alabamians, young and old, rich and poor, educated and uneducated.

How many faith-based and community organizations can truly show a measurable impact that their efforts had on overwhelmingly improving living and community conditions via improving economics, crime suppression, and better and happier citizens? We can, and if given the opportunity, will.

We have presented our approach to your predecessor and key members of his staff. However, it would give us great pleasure to meet you and present the First Stop-Second Chance approach to reducing recidivism by matching, managing, and monitoring reentry efforts. We believe you can appreciate the importance of our offering and perhaps assist us in overcoming "outsider" obstacles and making a significant contribution to the well being of all Alabamians.

Wishing you all the best in your role as Lt. Governor and Chairperson of the Committee to Improve State Government, and looking forward to presenting First Stop-Second Chance's approach to reducing recidivism and crime at your convenience.

Warmest regards, John O'Malley President 205-995-8495 cc: Bill Halligan, Executive Director 337 Tumberry Road Birmingham, AL 35244 205-995-8495 www.firststopsecondchance.org

(See Recommendation 20: Reduce Recidivism)

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Appendix C: Consolidation Considerations

Recommendation: Conduct a comprehensive study to determine the feasibility of consolidating agencies/functions that share similar missions, scope of responsibility, or citizenry. Meetings with the affected agency leaders should be conducted, as well as researching best practices in similarly situated states.

Special Note: This committee considered the recommendation of consolidating licensing and regulating boards and commissions as some states have done. Early research indicates that states that have done this have experienced a loss of efficiency, in some cases resulting in them decentralizing back to their original model. Some states have moved to an administrative fee structure, whereby boards and commissions remain decentralized, but pay a fee averaging around 10% of license fees collected to the general fund to cover the cost of services provided to their agencies (e.g., Comptroller’s Office, Attorney General’s Office, Department of Finance).

As Alabama’s leaders consider consolidating any agencies it is imperative that careful consideration, planning and cost projection be conducted with a clear cost-savings and efficiency benefit in doing so.

Examples of potential consolidations:

Governor’s Office Governor’s Contingency Fund Governor’s Mansion Fund Governor’s Proclamations Governor’s Coastal Mansion Fund Governor’s Office of Faith Based and Community Affairs

Alabama Department of Economic and Community Affairs Alabama Development Office Alabama Department of Tourism

Alabama Department of Public Safety Alabama Criminal Justice Information Center Alabama Department of Forensic Sciences

Alabama Department of Corrections Alabama Board of Pardons & Paroles Alabama Department of Youth Services

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Consolidate law enforcement functions of: • Alcoholic Beverage Control Board • Public Service Commission • Alabama Ethics Commission • Mental Health • Agriculture & Industries • Legislative Security • Senate Security • Forestry Commission • Peace Officers Standards and Training Commission • Department of Revenue • Securities Commission • State Port Authority/Docks • Board of Medical Examiners • Department of Conservation and Natural Resources

Alabama Department of Human Resources Alabama Department of Senior Services ADPH – Elderly and Disabled Waiver Program

Alabama Department of Industrial Relations Alabama Department of Labor

Alabama Department of Education Alabama Department of Children’s Affairs Alabama Public Television

State Employees Insurance Board Public Education Employees’ Health Insurance Plan

Archives and History Alabama Historical Commission

Alabama Emergency Management Agency Alabama Department of Homeland Security

Alabama Department of Conservation & Natural Resources Alabama Forestry Commission Soil and Water Conservation Committee Alabama Department of Environmental Management

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Surface Mining Commission Oil and Gas Board Geological Survey

Alabama Banking Department Alabama Credit Union Administration

Alabama Medicaid ADPH – Children’s Health Insurance Program (CHIP)/ALL Kids

Office of State Auditor Alabama Examiners of Public Accounts

Other Potential Program Consolidations: Agencies that Provide Children Services

Mental Health

Division of Children’s Services, Early Intervention, Autism Coordinator, Mental Illness and Intellectual Disabilities provide services to children and/or adolescents with intellectual disabilities, substance abuse or dependence and with Serious Emotional Disturbance (SED).

Children’s Affairs

Early Childhood Advisory Council

Head Start - Develop significant multi-agency and public/private partnerships between Head Start and other stakeholders that lead to positive outcomes for children and families.

Office of School Readiness - The mission is to provide effective, high quality, early childhood experiences that prepare Alabama’s Children for school success and lifelong learning.

State Children’s Policy Council members include the head of every state agency that affects children, and is the state’s leading children’s advocates, and political figures. Also, the Council is responsible for identifying duplication and/or conflict between all the agencies that provide services to children.

Children’s Policy Councils (County) bring together agency, organization and community members to perform needs assessment.

Children’s Trust Fund secures resources to fund evidence-based community programs committed to the prevention of child maltreatment. They advocate for children and the strengthening of families.

Public Health

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Provides ALL Kids insurance, WIC supplemental nutrition program for women and infants who qualify, Emergency Medical Services for Children (EMSC), and Safe Routes to School.

The Adolescent and School Health Program works to inform, educate and empower parents, communities and schools that serve adolescents and school age children in Alabama.

Healthy Child Care Alabama (HCCA) is a program that supports caretakers who take care of other people’s children - whether it is in a child care center or day care home, or through family, friends, or neighbor care.

The Alabama Newborn Screening Program ensures that state laws, rules and regulations mandating newborn screening are carried out.

The Oral Health Branch is dedicated to preventing dental disease for Alabama’s citizens by promoting and developing quality, cost–effective community and school-based preventive, educational and early treatment programs which emphasize elimination of oral health disparities.

Education

Public Education, Child Nutrition, Safe & Drug Free Schools, Alabama Student Assistance Plan, Safe Schools Hotline and Driver Education

Rehabilitation Services

Early Intervention Children’s Rehabilitation Services enable children with disabilities to reach their potential.

Children’s Trust Fund

Funds community based child abuse prevention programs across the state.

Youth Services

Incarceration facilities and schools hold juvenile offenders accountable through restitution, education, and community service.

Human Resources

Office of Child Protective Services, Child Support Enforcement, Foster Care and Adoption

Alabama Institute for the Deaf and Blind

The world's most comprehensive education, rehabilitation and employment system serving children and adults who are deaf, blind and multi-disabled.

Page | 82

Administrative Office of Courts

Juvenile probation officers are an integral part of the juvenile justice system. Juvenile probation officers perform a variety of services which are essential to the proper operation of the juvenile courts including working primarily with youth who are alleged to be delinquent or in need of supervision.

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Appendix D: Website Submissions by Web Category

*Note: The following website submissions are presented in the manner and format in which they were received and have not been edited.

Commerce Title: "head" tax on highway signage

Summary: Fund infrastructure repairs and improvements to the Alabama highway system and provide seed money for public transportation projects with an annual property tax on highway signage larger than 4 x 6 feet.

Date: 4/4/2011 8:54:32 AM

Profession: Non-State/Local Government Employee

Comments: Since moving back to Alabama a year ago, I am impressed by the efforts of the State to keep highways in repair. However, reliance on the property tax on vehicles to fund transportation-related expenses for the State is insufficient, and the bulk of costs come from other funding sources. Since roadways are used for advertising as well as for transportation, I propose registration of all signage larger than, say, 4 x 6 feet and an assessment structure based on size and proximity to the roadway. A yearly progressive property tax starting at, say, $100 per year stepping up to $1000 per year, administered by the established DMV agencies, would make the highway system fully self-supporting and provide seed money for the studies and planning stages of public transportation projects. Those business owners and advertising agencies that remove signage because of this tax would be contributing to public safety. Some roadways, US 231 for example, are so crowded with signage that it is difficult to give directions to visitors, and the accident rates support the claim that drivers are easily confused.

Hurdles: The initial registration of signage would require additional personnel and a dedicated computerized database. Ongoing enforcement would require hiring inspectors.

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Corrections

Title: First Stop-2nd Chance-Saving $mil. - Corrections

Summary: First Stop-Second Chance’s recidivism reduction and reentry approach can save the State tens of millions annually by reducing its 35% recidivism rate. We accomplish our mission by matching, managing, and monitoring reentry resources with technology.

Date: 4/5/2011 10:23:45 AM

Profession: Non-State/Local Government Employee

Comments: Dear Committee to Improve State Government: We have already presented our solution to Mr. Chris Reid of Governor Bentley's Policy Office in March of 2011 and he wants us to present it to the Department of Corrections. We welcome the opportunity to present First Stop-Second Chance to your committee on improving State Government. I am a colleague of Greg Powell who is a member of your committee. If Alabama’s business is to improve lives and community conditions by building and mobilizing resources, and First Stop-Second Chance’s mission is to reduce recidivism and crime, and improve community economics and livability by matching, managing, and monitoring reentry resources, then we are running parallel courses toward a common goal. To that end is the genesis of this letter. • FACT: Alabama’s recidivism rate continues to climb. • FACT: Alabama’s ongoing approach to reducing recidivism is flawed. • FACT: Alabama needs to change its ineffective approach to reducing recidivism. Reducing Alabama’s recidivism rate greatly impacts every person and community in the State by improving living and community conditions. Currently, the reentry labyrinth of service providers in central Alabama (and Alabama as a whole) is a loose arrangement of independent providers. More often than not, each is unaware of the maze of independent providers offering the same or similar service. However, and more importantly, if not critical, is the lack of relevant oversight regarding federal, state and foundation funding allocations and return on that investment. To our way of thinking, the return on investment is really the return on individuals and the best way to substantiate financial support. As an example, reentry service providers are not all created equal. Some smaller operations achieve better results than bigger providers and visa-a-versa. As there is no system in place, who really knows which is which? Many providers are “ma and pa” type family ventures with little depth and structure, or just emotion-based services. First Stop-Second Chance’s recidivism reduction and reentry approach can save the State tens of millions annually by reducing its 35% recidivism rate. Returning to their 2009 30% recidivism rate, the State could save, at minimum, an estimated $28 million in incarceration costs. However, that is insignificant compared to the estimated $773 million in overall costs saved. These often overlooked expenses include both pre-incarceration and incarceration costs. The total pre-incarceration costs account

Page | 85 for law enforcement activities, attorneys, prosecutors, judges, clerks, administrative staff, and court expenses to apprehend and process a previously incarcerated person. Some prison-industry experts estimate that that cost lingers around $200,000 per released/re-incarcerated person. Alabama’s Department of Corrections 2010 budget was only $410 million! As one can easily see, the potential financial savings alone is mindboggling. The potential to improve living and community conditions is incredible. All that is needed is adequate funding. Though we have presented our approach to reducing recidivism to all key State judicial, correctional, and parole executives involved with recidivism and reentry, funding has never materialized, only promises. Department letters of endorsement are provided for your review. A small initial investment of $200,000 could change the lives of millions of Alabamians, young and old, rich and poor, educated and uneducated. How many faith-based and community organizations can truly show a measurable impact that their efforts had on overwhelmingly improving living and community conditions via improving economics, crime suppression, and better and happier citizens? We can and, if given the opportunity, will. It would give us great pleasure to meet you and present the First Stop-Second Chance approach to reducing recidivism by matching, managing, and monitoring reentry efforts. We believe you can appreciate the importance of our offering and perhaps assist us in overcoming “outsider” obstacles and making a significant contribution to the well-being of all Alabamians. Warmest regards, John O’Malley - President - First Stop-Second Chance 205-995-8495 cc: Bill Halligan - Executive Director - First Stop-Second Chance 205- 492-3375

Hurdles: Alabama needs to think differently about its current approach to reducing recidivism. The current approach DOES NOT WORK!!! First Stop-Second Chance has a SOLUTION!!!!

Page | 86

Education

Title: Champions for Education

Summary: The University of Alabama, Auburn University, University of Alabama at Birmingham, University of North Alabama, etc... are institutes that gross millions if not billions of dollars in sports revenue. Some of this revenue should support schools.

Date: 4/3/2011 6:14:48 PM

Profession: State/Local Government Employee

Comments: This is a common sense recommendation. My family pays a ton of money to Tide Pride, a University of Alabama club, that supports the sports (football, baseball, basketball, softball, etc...). There is no telling how much money the universities in Alabama gross per year on sports revenue. As a state, we must ask ourselves, which are more important sports or academics? Thousands of residents in Alabama give universities a large amount of money to the sports programs. It just seems that the state of Alabama could use some of the revenue to improve school systems in the state.

Hurdles: The universities will argue that the money belongs to the institution, but without the students of this state, there would be no institutions. And most of those students attending the universities, attend school systems in Alabama.

Title: Community College Waste

Summary: Eliminate the $10,000 housing allowance for Community College Presidents. Everyone else has to make a house payment they should too. With salary near $150,000 they should be able to make their house payment. Interest rates are low right now.

Date: 4/7/2011 9:54:54 PM

Profession: State/Local Government Employee

Comments: Only 26 people would be effected if this was eliminated and it would save $260,000.

Hurdles: That's way it always been mentality.

Page | 87

Title: combining school systems

Summary: School systems need to be combined to save money. For example, in Calhoun County we have Anniston city schools, Calhoun co, Oxford, Jacksonville and Piedmont schools within a few miles of each. Calhoun Co schools have sold 4 of their schools recently

Date: 4/13/2011 10:08:06 AM

Profession: Non-State/Local Government Employee

Comments: Each school system pays a superintendent a salary of over $100,000 plus additional central office staff, maintains a building. This stretches our education dollars too thin. Simply combine some of the many school systems and save tax payers millions!

Hurdles: Superintendents will not want to give up their huge salaries and benefits.

Title: Education waste

Summary: 1) Eliminate housing allowance, car allowance, clothing allowance for community college presidents. Their salary is sufficient to pay for these things. 2) Eliminate mileage allowance for all college employees except faculty. t

Date: 4/1/2011 10:27:54 PM

Profession: State/Local Government Employee

Comments: 3) if mileage kept, restrict to essential travel only. Use technology for statewide meetings. 4) raise retirement service to 30 years for new employees. 5) encourage all schools to use a 4 day week

Hurdles: Good old boy network

Title: Disband State Dept of Education

Summary: Eliminate State Dept of Education

Date: 4/1/2011 8:36:54 PM

Profession: Non-State/Local Government Employee

Page | 88

Comments: My wife is a teacher with Hoover City Schools and most parents/teachers will tell you that the State Dept of Education serves no purpose which I agree with. Each school district whether city or county has "home rule" and deals with their own issues by district. The state dept of education really serves no purpose as it relates to directly impacting our children. The State Superintendent makes over $200,000/yr along with the other state dept of education employees on top of that and operating expenses. The taxes that are collected by counties and cities could go directly to the respective school system which would increase each districts revenue to operate it's school system. The state dept of education actually takes money away from classroom instruction.

Hurdles: Legislature and politicians afraid to make a truly "tough decision" for fear of angering someone that has power verses doing what is right for the state.

Title: Eliminate yearly testing

Summary: Eliminate yealy testing of K-12 Students

Date: 4/1/2011 9:02:58 PM

Profession: Non-State/Local Government Employee

Comments: My wife is a teacher with Hoover City Schools and if you ask just about ANY teacher in the state, they will tell you that they spend their year teaching kids how to take these government mandated tests(how to fill in bubbles, read all the instructions, etc). A teachers year is spent teaching children how to take a test instead of teaching them math, english, reading, science. The tests DO NOT BENEFIT children. The tests are for the Government(Local, State and Federal) to figure out how they are doing. Most ANY teacher will tell you, the tests do not show a complete picture of a students progress and most students "hurry" through the tests because they just want to get done with it. That alone should be reason enough to do away with them as that shows the results are not accurate. The testing also provides the government "stats" to dissiminate money to higher score school systems. Going back to my earlier suggestion of doing away with State Dept of Education, that would do away with that issue. If you are just dead set on the testing which I can understand just to guage progress, AT LEAST ELIMINATE YEARLY TESTING!!! The testing could be given at the highest grade level of each segment of school, i.e, 5th grade, 8th grade and 11th grade. The reason I say 11th instead of 12th is the already required graduation exams. This would save TENS of MILLIONS!

Hurdles: Politicians will be against it as they like to see the "progress" of school systems even though the results are not accurate. Parents and teachers would support it. The testing companies would attempt to block it due to their loss of revenue.

Page | 89

even though the results are not accurate. Parents and teachers would support it. The testing companies would attempt to block it due to their loss of revenue.

Title: Management Roles and Mission Budget and Funding

Summary: Span of control capability and ability is of paramount consideration in the management and control for any government program.

Alabama Education System is a prime candidate for total reorganization to bring Funding, Budgeting, Management.

Date: 4/11/2011 12:28:43 PM

Profession: Non-State/Local Government Employee

Comments: Roles and Mission responsibilities need to be applied to the Alabama Education System.

There is a critical need to organize the Alabama Education System into managble Span Of Control management and oversight capabilities.

The Alabama Education System should not be vested in one titular head as is currently done with a Superintendent responsible for managing so many separate divisions the span of control loses its ability to adequately account for the myriad of responsible actions.

Organize the Department of Education into Support Authority and Academic Operations Authority. Deliniate the Role and Mission responsibilities with a Director being the central reporting point but two separate responsilbe Branches operating as independent Branches within their charted or enforced Roles and Mission statements.\

Director, Department of Alabama Education System Head, Supporting Branch (Real and Private Property) Head, Operations of Academics and Teaching Curriculum and Teachers.

Budgetery and Funding criteria and accountable actions pertaining to these separate Branches within the Department of Education System can become a more meaningful and controllable responsibility within a structured Roles and Missions Division of The overall Education system.

Page | 90

Hurdles: There should be none when men and women within the leadership roles of our present Legislature take the time to visualize there could be quantum management control and accountability improvement over using the same old behemoth of guess and by ---

Environmental and Natural Resources

No Submissions for this category

General

Title: Al Trust Fund/City and County Distribution

Summary: The General Fund collects 90% of the income from the Al Trust Fund Investments. On or before April 15th the State must send 10% to the Cities and 10% to the Counties. This year the cost is $20+ million dollars. This needs to be reconsidered.

Date: 4/11/2011 10:03:49 PM

Profession: State/Local Government Employee

Comments: This distribution reduces the amount of funds the general fund gets to keep from these investments. The cities and county government capital improvement trust fund already collects interest and builds their principal from the Alabama Trust Fund. This distribution to them further reduces the general fund interest collected and should be stopped. Also, the Al Trust Fund Board may declare gains realized and unrealized. When these gains are declared the cities and counties also collect those funds. This entire process should be looked at to reduce the lost funds to the general fund. Also, when money is pulled from the ATF for the general fund there must also be a pull of 25% of the proration to go into the city and county trust fund principal. The general fund is required to pay these funds back to the ATF (good idea); however the city and county portion does not have to be returned (BAD idea). This should be reversed/changed/reconsidered. These few changes could save multi-millions of dollars for the general fund.

Hurdles: Passing legislation and getting the city/county lobbyist and legislators to help the State general fund. If they are really interested in helping the general fund this idea should be looked at seriously.

Page | 91

Title: Defunding of so-called public radio and television

Summary: The taxpayers expect Government to do the essential things and get into areas strictly assigned to the private sector according to our Constitution. The State should not be funding any tv or radio stations nor ads for such for any agency, etc.

Date: 4/6/2011 7:39:15 AM

Profession: State/Local Government Employee

Comments: I suggest the immediate defunding and return the money to the State treasury from so-called public TV and Radio and all advertising funded by the State of Alabama which is in effect the Taxpayers of Alabama. Conservatives on the national level have finally realized there is a waste of tax money when it comes to funding NPR, etc. We have allowed the politicians to spend money on projects and programs not allowed by the Constitution or the approved by the majority of citizens.

Hurdles: The media has a lot of power and will use it against those who oppose throwing money at them. No Guts No Glory! I am waiting to see if the new legislature and Governor will make the tough decisions or just the politically correct ones.

Title: Does everyone really need a Blackberry or I-Phone?

Summary: The State should evaluate the job functions of employees who have Blackberries and I-Phones to determine if they really need the devices.

Date: 4/7/2011 10:36:24 AM

Profession: State/Local Government Employee

Comments: The State should evaluate the job functions of employees who have Blackberries and I-Phones to determine if they really need the devices. My Division Director didn't want an I- phone, because he didn't need one, but he was issued one anyway. Just because you are a division director or manager does not mean that there will be a dire emergency anytime you step out of the office. We are not on call and there are other competent people here who can handle any issues that arise. Most problems can wait until the person returns from lunch. My department spends about $4,000 per month on air charges for I-Phones and Blackberries. We also upgrade to the newest device as soon as it’s available. We could reduce the plan charges to $500 or less if the unnecessary phones were removed. The equipment costs could be almost eliminated if we only purchased phones when an existing one no longer functioned.

Hurdles:

Page | 92

Title: Paperless Pay Stub Review

Summary: Instead of sending paper paystubs out twice a month, each employee would go to a website to view their net/gross pay; annual/sick time; other deductions that are normally printed on their paychecks.

Date: 4/5/2011 9:51:25 PM

Profession: State/Local Government Employee

Comments: I am not aware of any states that have implemented this type of system. I proposed the idea of a website to be set up to review employee's personal information such as state/federal tax status; marital status; credit union status; insurance status; or any other benefits. State related newsletters or information for the benefit of the employee. It would be similar to the website that allows the employee to view their email. Each individual person can be set up with their own password to access the website. Unsure of the cost savings due to the cost of paper, printing, delivery and postage for checks that are mailed throughout the state in the current system used.

Hurdles: The departmental responsibility of entering data.

Title: Management Analysis

Summary: Conduct management analysis of the various agencies/departments of government.

Date: 4/5/2011 2:23:07 PM

Profession: Non-State/Local Government Employee

Comments: While in the U.S. Navy I worked as an analyst reviewing various units. We would interview the workers and list the tasks they performed. We would then compare these tasks with the mission of that unit. We always found that although the people were working hard and staying busy, many times the tasks performed were not contributing to the mission of the unit. By eliminating these unnecessary tasks we were able to document savings of thousands of dollars each year. In one case over $800,000. I am sure the state employees work hard one must question the result. Especially when a department has more employees in Montgomery than in the rest of the state.

Hurdles:

Title: Combining Unemployment and Food Assistance Payment

Page | 93

Summary: Families that may be eligible for Unemployment apply online now most of the time and those applying for Food Assistance complete an application and may have to go for an interview at the Food Assistance Office. Can we combine both.

Date: 4/4/2011 3:05:47 PM

Profession: State/Local Government Employee

Comments: I suggest two parent families where both parents are the legal parents of all the children in the home be able to apply for U/C (unemployment compensation) and F.A.(food assistance at the same time. If U/C is currently designed to help a family make the minimum payments to stay in their home which includes paying the utility bills then why is it we cannot include the cash amount needed for Food Assistance. Including an amount of cash for Food would keep the family from having to travel to the F.A. office and have to complete more forms and wait another period of time to receive benefits. It certainly would reduce the labor load for the F.A. offices.

Hurdles: I guess a waiver would have to come from the Dept. Of Agriculture since they oversee the Food Assistance program. If this does not mean a lot more paperwork in the form of verifications for the U/C office then it should work.

Title: Vehicle Costs

Summary: DOT seems to have too many large F150 vehicles carrying only one person.

Date: 4/4/2011 2:04:33 PM

Profession: State/Local Government Employee

Comments: It should be possible to use a smaller vehicle than the large F150 trucks currently used by DOT. These are very expensive vehicles to have only one person riding around in them all day.

Hurdles: Sometimes you get use to luxury.

Title: Utility Bill Savings

Summary: It is my understanding the digital type heating and cooling monitors can save anywhere from 30-40% on utility bills.

Date: 4/4/2011 9:00:26 AM

Page | 94

Profession: State/Local Government Employee

Comments: Many new State buildings may have the new digital heating and cooling monitors but there are many out there that do not. The cost savings comes in two ways. First the outright 30-40% savings in energy use and Second the digital units are easier to set on the precise temperature employees in a certain section would like most of the time. The old spring type temperature dials are not efficient and employees are constantly turning them up and down trying to find the right setting.

Hurdles: I do not believe the cost is prohibitive especially if done in stages for the larger buildings and as always the labor cost is the major part. It should not take years to recoup the costs

Title: Overhauling AL State Employment System

Summary: The State should consider adding a classification for part-time employees. Higher pay scale with no medical benefits and no retirement package. It could save on contracting costs, since that is the only other cost-effective option.

Date: 4/3/2011 12:29:51 PM

Profession: Non-State/Local Government Employee

Comments: The tourism bureau, VA offices, state colleges, court system, administration and inspection agencies could all benefit from using part-time employees vice full-time workers. Part time employees should be treated like full-time employees when it comes to layoffs, tenure, pay raises and earning vacation and sick leave. Plus, they could be considered for transition to full- time, if and when an opening becomes available. The majority of employment cost is benefits. Higher wages for 30 hour work weeks, shorter vacation periods and no medical or retirement costs = savings.

Hurdles: There is an institutional mentality within the state employment system and that will be a difficult hurdle to overcome...

Title: Too much middle management

Summary: Task Commissioners and Directors to evaluate and examine if so many levels of management are necessary.

Date: 4/2/2011 6:42:55 PM

Profession: State/Local Government Employee

Page | 95

Comments: Task Commissioners and Directors to evaluate and examine if so many levels of management are necessary. The majority of my time spent in the workforce has been spent in the private sector. I was astonished by the number of middle managers employed by my department. Instead of wielding an axe at state employees, perhaps the Governor should take out his scalpel and evaluate what is necessary and what is not. For example, there are three managers between me and my director. When I have been employed in similar positions in the private sector, there has been one or two managers between my position and the VP of the department. I believe that the majority of the high salaried middle managers are not doing much actual work and are not necessary.

Hurdles: The major hurdle to implementing this idea is the amount of bias that exists at the top. This is too much "you scratch my back and I'll scratch yours" going on. Directors and others don't employ objectivity when making these types of decisions.

Title: Separate General Funds

Summary: The General Fund is to broad.

Date: 4/1/2011 11:08:40 PM

Profession: State/Local Government Employee

Comments: There are to many hands taking dollars out of the general fund than paying into it. Education has it's own fund, why do the state employees not have their own? Instead of giving the state employees a pay cut by not paying for holidays, a few which were given in lieu of raises, why not cut legislative pay, don't ask them just mandate a cut. They voted it in for themselves which is ridiculous and they make more than enough money for their so called part time positions. If they claim they can't afford a cut, then they need to scale back their living expenses and think twice before they run for an election. Their jobs were never meant to be part time work for full time pay.

Hurdles: crybabies and whiners

Title: Increase "SIN" tax

Summary: Increase alcohol sales tax and make it proportional to cigarette tax.

Date: 4/1/2011 9:38:25 PM

Profession: Non-State/Local Government Employee

Page | 96

Comments: As much as I hate to admit it, I am a smoker. A few years ago, the taxes on cigarettes increased DRAMATICALLY. I went from paying around $26 a carton to $54 a carton currently. Yes, I know I am stupid and I know that, I pray daily to be able to quit smoking. Look, bottom line, someone who is going to drink alcohol is going to drink, period; just like I am going to smoke. The taxes for alcohol are not proportional to the cigarette tax. Think about how much revenue an increased alcohol tax would generate for the state!!!! This type of tax would ONLY affect people who drink alcohol while GREATLY increasing revenue. The majority of citizens would not be affected but would benefit from the tax

Hurdles: Alcohol manufacturers, distributors, bars, restaurants will fight it saying that it will reduce their business. NOT TRUE, people who are going to drink are going to drink! Legislators themselves because they don't want to spend more on alcohol.

Title: Cut state employee travel, legislators' pay;

Summary: Eliminate all travel and use the Internet access to conduct face-to-face meetings. Eliminate legislative travel expenses. Reduce vehicles driven by state employees, especially admin types.

Date: 4/1/2011 10:51:30 AM

Profession: Non-State/Local Government Employee

Comments: I'm sure other states have made similar cuts, but the sooner it is done here the better. Use of Skype, gotomeetings.com, telephone conference calls can eliminate need to travel. My neighbor, assistant Superintendent of education drives a state vehicle from Montgomery to Alexander City every day. Why? How many new DOT trucks have one person in them sitting watching the job rather than working the job? Why do state employees pick up trash when we have 31,000 prison inmates sitting in prison?

Hurdles: Should be gubernatorial mandate

Title: Savings on Administrative Costs

Summary: Saving costs on printing and postage by providing newsletters from RSA and SEIB via e-mail.

Date: 3/29/2011 8:14:40 AM

Profession: State/Local Government Employee

Page | 97

Comments: Currently as my husband and I are both state employees, we receive duplicate mailings from various agencies, such as SEIB and RSA. I can only imagine the amount of money that is being spent needlessly on these mailings. Perhaps a change to the system could be affected to prevent duplicate mailings, or better yet, this information could be provided via e- mail or on-line.

Hurdles: None that I can think of.

Title: No More Time Expiration Printers

Summary: Do not purchase any printers where cartridges and print heads are tied to an expiration date. State wasted public money on HP Inkjet Products for this reason.

Date: 4/14/2011 6:16:16 PM

Profession: State/Local Government Employee

Comments: State purchasing must do their homework! It is not enough to accept a low bid. While HP may have been a low bidder, we, the taxpayer, are stuck with print cartridges and print heads that expired. We paid for them and they are not useable.

When placing a notice for print equipment, please investigate the facts prior to soliciting bids.

Implore your purchasing agents to engage in reading the fine print prior to making a purchase. The warehouse is full of unusable print cartridges because good stewardship was not employed.

DO NOT PURCHASE EQUIPMENT WITH THIS SEVERE LIMITATION!

Hurdles: None - Good planning and adequately training employees is good government.

Title: Material Receipt Conversion to Electronic Version

Summary: Currently when purchases by state agencies are paid for, someone must hand write the items on in a carbon "material receipt" book, which must then be signed. This is extremely antiquated and time-consuming. Copies of invoices must be attached.

Date: 4/14/2011 2:14:01 PM

Profession: State/Local Government Employee

Comments: All agencies would see improved efficiency if this was converted to an electronic system. Making electronic transmission available from agecies to the finance department would save time, therefore letting employees work on other tasks.

Hurdles:

Page | 98

Title: Employment Service Representative

Summary: I retire from the state employment office in Dec 2009. All Employment Service Representatives(Class 11408) are required to have a BD. The majority of work that they do can be handled by an Administrative Support Assistant I/II/III at less pay.

Date: 4/13/2011 5:40:10 PM

Profession: State/Local Government Employee

Comments: All state jobs should be reclassified according to job duties performed not those they used to perform before the technical advances over the last 10 years. Employment Service Representatives used to actually interview applicants and visit employers. Now all they do is show or tell them how to get on-line at Joblink.Alabama.gov.

Hurdles: ASEA!

Title: UNTAPPED REVENUE

Summary: Implement strong auditing practices for all ad valorem taxation by reviewing ALL exempt real property and personal property accounts in all 67 counties. Numerous accounts are mis-coded (human error, lack of training, expired exemptions).

Date: 4/11/2011 9:22:12 PM

Profession: State/Local Government Employee

Comments: The State is short auditors in the ad valorem taxation area. Every EXEMPT account needs to be reviewed (total and partial exemptions). An auditor could also assist in how to better put checks and balances in place AND discovery of new accounts (how to research, what docs to request from taxpayers, utilization of forms, etc...) We also need stronger Boards of Equalizations across the State that are PROPERLY trained in their duties. I wish to express that stronger auditing and appraisal practices will successfully bring in more revenue that can be collected for the State, Counties, Schools and Municipalities. We need uniform practices set forth by the Alabama Department of Revenue and implemented to ensure each county is adhering to a standardized procedure to collect all lawful revenue owed. The property tax

Page | 99 division must also work closely with the sales tax division and real & personal property divisions must also work closer. The State needs a statewide sales data bank for researching closed sales/transactions. All elected officials and appointed officials MUST have more training of their role. Please see explanations previously submitted by letter to Lt. Gov. Ivey.

Hurdles: Only a few people in the State are trained to do this. Only a few have ever actually audited every exempt account in a county or developed new property discovery techniques. Upside: You only need a few to work on this statewide.

Title: Excess clerical staff

Summary: Evaluate clerical staff in the Department of Revenue's Commissioners Office to determine if they are really needed.

Date: 4/7/2011 11:35:56 AM

Profession: State/Local Government Employee

Comments: Someone should evaluate the clerical staff in the Commissioner’s Office of the Department of Revenue to determine if they are really needed. The office consists of four executives, three secretaries and a personal assistant. The new personal assistant makes approximately $45,000 and was brought in by the new Commissioner. When I started working here, we only had three executives and three secretaries. Does each person really need their own secretary? Could one secretary not cover two people?

Hurdles: Secretarial staff would actually have to do some work instead of walking around visiting their friends, talking on the phone and playing on the internet.

Title: Pay travel vouchers through electronic deposit

Summary: Instead of paying travel reimbursement with warrant, pay through electronic deposits. This gets the money back to the employee quicker, saves paper & resources to issue a warrant. An e-mail notification could be sent to employee when funds transfer.

Date: 4/7/2011 1:18:40 PM

Profession: State/Local Government Employee

Comments: Any agency that reimburses employees for travel will be impacted. A lot of employees have their payroll direct deposited. Travel should also be set up for direct deposit. This will be helpful to someone who does a lot of travel and may not be in the office when a warrant is issued, thus increasing the time for them being reimbursed for travel expenses. It

Page | 100 eliminates the cost of issuing a warrant. When the direct deposit is scheduled, an e-mail notification can be sent automatically to the employee.

Hurdles: It would require either inputting an account number for the employee or linking with the payroll system which may already have an account for direct deposit.

Health, Human Services and Medicaid

Title: Change Alabama Medicaid to 100% Managed Care

Summary: Alabama should follow Florida's example and shift the state Medicaid program to 100% managed care. Florida is expecting to save $20B with this move.

Date: 4/6/2011 9:08:16 AM

Profession: Non-State/Local Government Employee

Comments: Florida is shifting it's entire Medicaid population to a managed care model. In other words, all health benefits for Medicaid recipients will be administered via private Managed Care Organizations. This model is good for a number of reasons. First, private companies can administer medical services more efficiently than government. Government is good at oversight, but weak at implementation. Private companies have profit motives which ensure efficiency. Recipients would have protections in place, because the State would exercise careful scrutiny of the plans and their operations, etc. Second, substantial savings would be realized by the state via a competitive bid process and a fixed per member per month model (much like the Federal Medicare Advantage program). Since costs to the MCOs are fixed, the risk is fully shifted from the state. Third, allowing at least 3 private carriers to provide benefits would offer recipients choice and flexibility in their coverage and provider selection. Fourth, the current Medicaid personnel levels could be right sized to achieve greater savings and/or Medicaid personnel could be trained to assist with the new Managed Care Model. See this article: http://www.healthcarepayernews.com/content/florida-pushes-forward-plan-shift-medicaid- managed-care

Hurdles: Perceived fear. Many people think that a move to managed care is in some way "taking away" their Medicaid coverage. Nothing is further from the truth. It's ensuring that Medicare will be viable in the long term.

Title: Combining Unemployment and Food Assistance Payment

Page | 101

Date: 4/4/2011 3:05:47 PM

Profession: State/Local Government Employee

Title: Reduce cost of Medicaid/reduce expense to government

Summary: Reduce Medicaid abuse, reduce expenses by government officials, county officials and city and county officials.

Date: 4/6/2011 7:19:04 AM

Profession: Non-State/Local Government Employee

Comments: We have Alabamians that are receiving Medicaid and an SSI check. As well as their children. We should give these parents 6 months to find a job or they will lose their Medicaid and SSI checks. If their children are in school, why are they receiving benefits? If they have under school age children, the should be in the Head Start program which most would qualify for. Have the parents register with the state unemployment office with at least 3 check ins a month. If Florida, someone verifies the list where you have applied for a job. Get unnecessary folks off Medicaid and SSI and get a real job. I see on the weekends, especially during the summer, trucks that are state, county, and city vehicles being used to pull their boats to the river or lake. I have seen trailers attached to them where they go to the hardware store to purchase personal items for their homes. I have followed some to verify that they were going home. Have all State, County, city, or any government official that uses a state, county, city car to leave it parked at the office and only be allowed to drive that vehicle after they have driven their own

Page | 102 personal car to work. I see State trooper, Birmingham city, Jefferson County, and other police cars, transporting their children to school and to doctor’s appointments. They should use their own vehicle instead of our tax money paying for their errands. I have seen these same official cars being driven to church and the whole family pile out. Is this really fair to the people of Alabama? No, we are paying for the gas, for their personal errands or for their trips to the lake. Once I saw a government SUV pull up at a family reunion and they stayed the whole day. I am sure the gas card he used was not his personal one or else he filled up at the office before he went home for his family outing. Instead of starting construction on our interstates, lets be sensible about it. Don't block off a 15mile section and one company start at one end, and another start at the other. Start at one end and work 2 miles at a time until you get to the end. Stop blocking up our interstates and State highways when no work is being done in the middle of the blocked off section. And if these workers are really getting paid, why are so many of them see sleeping on the job? i see it all the time. If they are getting paid, get up and work. I see county trucks parked under shade trees in the afternoon and the crew is sleeping. I stayed and waited to see how long they would nap. When they got up after 45 minutes, I followed them to the Ketona shop where they pulled up, checked out and left. They all got paid for sleeping on the job. Also, when you walk into government offices and you are needing something and no one else is in line and you take a number and you can clearly see 5 - 10 staff standing around talking and you take a number and wait anywhere from 15 to 45 minutes before anyone helps you. You can clearly hear them talking about their kids, what they are planning for summer or what are they going to do with their horrible teenagers. This is not conversation that we need to be hearing when we need assistance. This happens in the tag office in Montgomery. check into phone plans, are we spending too much money on everyone having a cell phone? If some are just going to be receiving emergency calls to come in, they only need minimum minutes on their phones. You probably have hundreds of employees who have phones who really only need to be called in so they should not have the right to use that phone for their personal use. Pay for my phone if that is the case. We have wasting the taxpayers money on silly things and it needs to STOP. We lose money every year and have major budget cuts, LETS START THE BUDGET CUTS WITH EMPLOYEE CARS, PHONES AND THE WASTE OF MEDICAID. IF YOU HAVE HEALTHY PEOPLE ON MEDICAID, THEY SHOULD ONLY BE GIVEN 6 MONTHS TO MOOCH OFF THE GOVERNMNET. GET OUT AND GET A JOB LIKE THE REST OF US. FOOD STAMPS ARE WASTED AS WELL. I KNOW SEVERAL INDIVIDUALS THAT CLAIM THAT THEY ARE SEPARATED FROM THEIR SPOUSES AND THEY HAVE ANYWHERE FROM 3 TO 5 KIDS. THEY ARE GETTING FOOD STAMPS AND THEY LIVE AT HOME WITH DADDY WHO IS WORKING. HOW IS THAT FAIR TO THOSE WHO ARE STRUGGLING AND DON'T QUALIFY FOR ASSISTANCE AND THEY COULD REALLY USE THE HELP. OUR COUNTY OFFICES ARE NOT THOROUGHLY DOING THERE JOB AND WHY SHOULD THEY, NOBODY IS GOING IN AND CHECKING UP ON THIS. HAVE SOMEONE FROM THE FOOD STAMP OFFICE POP IN ON THEM. TALK TO THE KIDS ABOUT WHERE THERE DADDY LIVES, KIDS WILL

Page | 103

ALWAYS TELL THE TRUTH. I HAVE MANY MORE SUGGESTIONS AND IDEAS BUT THIS PAGE IS NOT BIG ENOUGH FOR ME TO GO ON AND ON.

Hurdles: GETTING SOMEONE IN OUR GOVERNMENT POSITION TO TAKE THIS SERIOUSLY,TO BELIEVE THAT THE FACTS STATED ARE TRUE. BELIEVE IN ME AND WHAT I HAVE SAID. I SEE IT EVERYDAY. IT TAKES 1 PERSON TO BELIEVE THAT WE CAN MAKE CHANGES ALABAMA. HELP SAVE our money.

Title: Social Security and Food Assistance Recipients

Summary: Many Social Security Recipients receive both SSA and or SSI and Food Assistance which the client has to apply for at two different locations.

Date: 4/4/2011 2:14:02 PM

Profession: State/Local Government Employee

Comments: I never could understand why elderly people had to find a way to the Food Assistance Office or go through the trouble of applying for Food Assistance by completing forms to send to Montgomery, etc. when it is cash and so is the SSA and or the SSI they receive. Seems the State would save a lot of paperwork, time, effort etc if the Social Security Office simply issued the amount of Food Assistance along with their Social Security Checks.

Hurdles: Sometimes getting the Feds to go along is hard to do. It would have to be a standard amount without a lot of verification involved.

Title: Reducing the Food Assistance Rolls

Summary: Several years ago the central government passed laws to make the TANF program more efficient. They left out the Food Assistance Program and have even made it more inefficient or less cost effective over the years.

Date: 4/4/2011 2:01:19 PM

Profession: State/Local Government Employee

Comments: Even though I agree we should not count some minor resources against an applicant or recipient of Food Assistance I do believe we should look at property including homes owned by the applicant or recipient other than their homestead or place of residence. We do have some Food Assistance households that own other property which they should be required to liquefy prior to being eligible. Also, bank accounts must be verified in my opinion. Finally, the Food Assistance cases would be cut in half if eligible clients were referred to the Child Support and Jobs Units as those in the TANF unit.

Page | 104

Hurdles: The State may need to get a waiver for some changes in programs where the Feds are involved.

Title: Medicaid savings

Summary: Medicare payments being made by Medicaid for people on Social Security who also have IRAs.

Date: 4/3/2011 10:44:29 AM

Profession: Non-State/Local Government Employee

Comments: Social security recipients that receive under a certain amount month are eligible to have their Medicare payments paid by Medicaid. I have been told that if the recipient has an IRA and receives their IRA withdrawal in a once a year payment that the recipient will only have to pay their own Medicare payment for that month as they would be over the maximum allowed. They would be eligible for Medicaid the other 11 months of the year. This doesn’t seem fair. The eligibility should be on the “adjusted gross income” as most other programs are based on. If this is true, it seems that a great deal of Medicaid money could be saved if the rules were changed.

Hurdles: Change the requirements to "adjusted gross income".

Judicial No web submissions for this category

Legislative No web submissions for this category

Public Safety

Title: combining agencies/services

Summary: to combine the services of some agencies that are duplicated by other agencies or by divisions inside agencies

Date: 4/7/2011 9:24:35 AM

Page | 105

Profession: State/Local Government Employee

Comments: Combine Marine Police and Conservation Enforcement. Currently, Game Wardens mostly patrol hunting and fishing and primarily in the fall, winter and spring and Water Patrol works the rivers and lakes in the summer. One officer may be able to provide all services. ABC and DPS currently both work narcotics. Transfer all narcotics operations to ABC (alcohol is usually considered a drug.) Any officers not wanting to go to ABC could go back on the road as Troopers. Review the DPS structure. Will probably find it to be extremely top heavy, resulting in officers with rank in offices instead of on the highways.

Hurdles: Egos and turf protection

Statewide Policy

Title: Creation of a cabinet level director and division

Summary: The Governor should appoint a person and create a Department of Energy division that would encompass several agencies already in existence.

Date: 4/5/2011 8:22:52 PM

Profession: Non-State/Local Government Employee

Comments: For three years, I was Senator Wendell Mitchell's legislative assistant and point person for the senate side of the Joint Energy Committee (Senator Mitchell and Rep. Wren were co-chairman). I found throughout the experience that there is no working cohesion within the state agencies for the betterment of the state of Alabama regarding energy and a energy policy. (ADECA, Dept. of Agriculture, and the Legislature) Everyone is invested in their own interests. Alabama has lost out on several multi-million dollar grants for research and development and bio-fuel/bio-mass agricultural development with the dollars going to our neighboring states of Mississippi, Tennessee and Florida. I have had conversations with Jeff Session's chief of staff, Richard Shelby's office, Ron Sparks and other stakeholders about implementing a Dept of Energy and all agree that it would help Alabama start retaining much of the federal money that is being lost to other states. In light of Congress working on the possible 2012 Farm Bill, America's need for less foreign oil dependency and the Renewable Fuels Standard; Alabama needs to have one person (Commissioner) and one department where all information regarding all the facets needed to development a sustainable working energy plan are accessible. We also need to have an "inventory" of our actual and potential agricultural farm land. For instance, in the Black Belt, on unused farm land fast growing timber or switch grass that could be used for bio-mass could be planted. Possibly adding funds and jobs to rural and blighted areas. The universities that work with biofuel and next generation of energy could also benefit with having a definitive infrastructure of a Dept of Energy. They too have been shutout of several grants.

Page | 106

Hurdles: none

Title: Do we need SEIB?

Summary: With as many state employees and teachers in the state, I find it incredibly hard to believe that the insurance premiums and benefits cannot be negotiated better.

Date: 4/1/2011 11:39:00 PM

Profession: State/Local Government Employee

Comments: I have friends that work in plants/factories that have about the same insurance coverage with fewer premiums. I find it hard to believe that their employers are making up the difference. SEIB either needs to be abolished or do a better job at making BCBS know that there are over 20,000 employees that could get other insurance. Alfa Insurance has a more cost saving plan with decent benefits for less than the $800-$900 premium that agencies pay for employees. With the punishment that is about to handed to employees, ie..pay cut. No paid holidays = pay cut) no longevity = pay cut, higher insurance premiums = pay cut, no raises in 4 years while the cost of living is sky rocketing = pay cut.

Hurdles: SEIB will have to transfer to other positions

Title: Early retirement for state employees

Summary: A state employee who is within 2 to 3 years of retirement but less than 60 years old could be offered an early retirement with 25 years of service and start drawing their money now. New hires could come on at lower pay and provide help with unemployment

Date: 4/6/2011 8:52:42 AM

Profession: State/Local Government Employee

Comments: Offer state employees with a higher pay that have 22 to 23 years in the retirement system an early retirement with 25 years of retirement pay. Hire people who would come on at a lower pay scale with less leave accrued and not receiving longevity. Hopefully someone who is on unemployment would be on the list which would relieve that burden. Possibly hire someone who has left state employment and would like to come back. They would pay taxes and get another person back to work. It would reward a faithful employee for their many years worked

Page | 107 with no raises for 4 years and no hope for a raise before they would retire to help increase their retirement pay. It would save the state because the new hire would be paid less.

Hurdles: Just a bill introduced in the Legislature and a positive yes vote on it. Then send out notices to all agencies and start the process. Make it effective Jan 1 2012 to give the personnel dept enough time to make it work.

Title: Property Tax Assessment Lean Analysis

Summary: Replace "Property Tax" with "Citizenship Tax" not to increase or decrease this tax revenue, but to drastically reduce the cost associated with assessing and maintaining property tax records.

Date: 4/5/2011 10:53:38 PM

Profession: Non-State/Local Government Employee

Comments: Basically all Alabamians are privilege to the same roads, parks and state government, so then why shouldn't each Alabamian pay the same amount for these services. If a person is a citizen (owns property), he or she will pay a flat rate "citizenship tax". If a person is a part year resident(buys or sells their property), they will pay a portion of this tax based on the number of months they own the property. Eliminate thousands of county and state administrative positions, approximately 500 vehicles, untold computers, files and software and the ambiguity associated with the changing property values, uses, and assessment. As a practicing engineer supporting Alabama industry for 30+ years I have often seen efforts toward reducing administrative cost. These are common place in industry, same should be practiced in government.

Hurdles: Simplified smaller leaner and less burdensome government. (Politically this is a hurdle)

Title: Government Employee Compensation

Summary: As an avg citizen of Alabama and Jefferson County i resent the benefits awarded to government employees. Legislature should be passed whereas government employees pay and benefits should not exceed that of the average in the state for the same job.

Date: 4/5/2011 4:01:09 PM

Profession: Non-State/Local Government Employee

Comments: I am a Maintenance Supervisor in the private sector for one of the largest solid wast haulers is the country. We do not have a company paid retirement. We only have our 401k the company matches 100% on the first 3% and 50% on the nest 3% after that it's just how much you can afford to invest. We don’t have 100% paid health insurance. It costs me around $52.00

Page | 108 per week for health, dental, and vision. None of the insurance will continue when i retire at 64 on SSI and my 401k. Some government employees retire in their 40's draw full retirement paid for by me, and then get another job in the private sector and have two incomes and there health insurance continues through their retirement paid for by me and average private sector citizens like me. That’s extra money i could be putting in my on retirement plan. I know of one Jefferson county supervisor at a water treatment plant that will retire in 3 years in his 40's. He receives 4 weeks’ vacation, and he has accumulated enough sick days that he will be able to retire 2 years early. There are not very many tax payer that can say that. Then there are State vehicles issued to State employees who would not have a company car in private sector. State should have a car pool and if State business requires a vehicle check it out of the car pool and then bring it back at the end of the day.

Hurdles: The main hurdle is the people that would implement this is the very people that receives these compensations.

Title: Reduce the amount of travel

Summary: The local health departments hold satellite conferences; this is time effect and little to no cost for traveling.

Date: 4/1/2011 11:19:52 PM

Profession: State/Local Government Employee

Comments: Install Satellite communications abilities county wide for satellite meetings. I've always found it ridiculous for employees including law makers to travel from all over the state to go to Montgomery for a one day a few hour meeting. Per Diem and/or mileage is paid and it's not necessary when the same result could be achieved through either tele-conferencing or satellite. Additionally, the travel per diem rate could be cut drastically if there were a contract in place with a couple major hotels throughout the state. Employees who need to travel would be required to request travel and then reserve lodging at hotels on the contract. There would be no out of pocket for the employee and they could then afford to pay for meals out of pocket while traveling. I'm not sure how I feel about reimbursing for meals, depending on how many days of travel, i suppose could be reimbursed with receipt, there is so much abuse in the $13 a meal it's ridiculous, make them turn in receipts for all meals whether it's off the dollar menu or at a 4 star restaurant. Make sure the receipts are for the approved traveling employee only, no buying meals for travel companions or for favors.

Hurdles: Shouldn't be any

Page | 109

Title: State services on line

Summary: State needs to develop computer system where citizens can obtain vehicle tags/titles on line.

Date: 4/1/2011 9:46:39 PM

Profession: State/Local Government Employee

Comments: Currently, Alabama requires citizens to have in person contact at local courthouse or satellite office to obtain a title/tag on vehicle purchases. The state would save MILLIONS UPON MILLIONS just by going to an on line system to do this. I know there would be some concern over fraud and that could be averted by the following: A system could be created where New Car Dealers would have access to state system to obtain tag and title on the purchase on site at the dealer. If you are truly worried about fraud, you could continue in person contact for sales between individuals or allow the new car dealers to conduct transactions at their dealership for private transactions. Along with that, ALL TAG RENEWALS should be on line, ALL, STATE WIDE.

Hurdles: This would cause "layoffs" as current personnel could be reduced. however, this same personnel could obtain jobs at the dealers as they already know the system. You could even allow them to stay state employees. MUCH LESS OPERATING COSTS!

Title: Act to Close Corporate Tax Loopholes

Summary: Enacting such legislation would clearly put an end to the deficit problems this state has, overnight. Making Corporate Tax Dodgers pay their fair share would put an end to the State's deficit problems.

Date: 4/1/2011 7:11:01 PM

Profession: Non-State/Local Government Employee

Comments: We, the people, and the Corporations operating here in Alabama, are users of the goods and services the State provides. All services from Corrections, Education, Police agencies, et al. Yet, the ultra-rich and these same Corporations have for years, escaped paying a fair share of taxes due to the long standing loopholes past years ago in legislation intended to actually avoid these very same loopholes. Corporate attorneys are experts at finding and sharing their "legal escape routes". It's time to make the changes in government policy and legislation to close these loopholes where they can rent to themselves, purchase from themselves, write all these payments down to a zero balance and then get a fat "Dividend" check back from their Corporate Mail Box in a Tax Haven State or Country. It is time Exxon-Mobile, Wal-Mart, TARGET, Bank of America, Ford Motor Company, Hewlett Packard and so many others get these loopholes

Page | 110 closed so they are required to pay fair and equitable taxes on the multi-millions of dollars they make annually in this State. Further, the State needs to stop making all these land tax deals to spur outside Corporations coming in and setting up shop to do the very same thing. Not only are they not paying fair taxes, they are actually getting some of the property taxes, if not all, paid back to them for the next twenty years under these deals. Econ and Finance 101 you can't give away more than you make and then expect all the other little players to pick up the slack. Teachers, Firefighters, Police, electricians, etc etc, are not making the money of these gluttonous Corporations, and it is TIME for them to pay their fair share back to this State and this Country.

Hurdles: You will need to get a bill through a Republican Legislature, now ruled by the very same people who have blocked this type of fix for years. I realize you are a Republican, but I think you may actually have a soul and want to fix this.

Title: The Fair Retirement Pay Policy

Summary: Stop providing (full pay) retirement for former Governors.

Date: 4/1/2011 2:30:23 PM

Profession: Non-State/Local Government Employee

Comments: We in Alabama are thinking of having state employees take extended day's off without pay. While we give as retirement pay, the full amount that was earned while in office to all former Governors. Whoever made that law probably can't balance their own Checkbooks. Why do they get their full pay for life when they leave office. no one else does.

Hurdles: Trying to get elected officials to change a law that takes away money from one of their own.

Technology

Title: Save money buying computers

Summary: I've seen inventory sheets with the prices paid for state owned computers. It's ridiculous.

Date: 4/1/2011 11:29:37 PM

Profession: State/Local Government Employee

Page | 111

Comments: While i understand the need for competitive bidding, everyday use computers do not cost in excess of $1000. The cost agreed to via bids is excessive. Staples, Best Buy, Wal- Mart et al.. sell the same type, brand etc... for half the price.

Hurdles: Shouldn't be any

Transportation No web submissions for this category.

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Appendix E: Website Submissions by Title

*Note: The following website submissions are presented in the manner and format in which they were received and have not been edited.

AL TRUST FUND/CITY AND COUNTY DISTRIBUTION

JUDICIAL RETIREMENT

UNTAPPED REVENUE

COMMISSIONER OF AGRICULTURE AND INDUSTRIES

MANAGEMENT ROLES AND MISSION BUDGET AND FUNDING

CUTTING CORPORATE TAX

STOPPING ROAD CONSTRUCTION

REDUCE THE POLICE FORCE

TAX BREAKS FOR DOCTORS DOING CHARITY WORK...

ENABLE INTERSTATE HEALTH INSURANCE PURCHASE

REFORM THE STATE CONSTITUTION

COMMON SENSE WAY TO SAVE MONEY

OPEN THE CASINOS

CONSTITUTIONAL REFORM

EQUAL OPPORTUNITY TO HEALTHCARE ACT

CONTROL STATE WIDE LOTTERY-PLEASE READ

SUGGESTION ON PAYING STATE OF AL EMPLOYEES

BENEFITS PAID UNDESERVINGLY

DHR AND PRIVATE ADOPTIONS

REDUCING OPERATING COSTS FOR ALDOT AND DPS FLEETS

CHANGE NEW CONT. ED. RULE FOR AL LPCS (COUNSELORS)

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PLACE NON-VIOLENT OFFENDERS ON PAROLE

PURSUE DIFFERENT TYPES OF RETIREMENT PLANS AND INS

RETIREMENT

PAYMENTS TO NURSING HOMES

ASSESSMENT VALUATION - MAJOR COMMERCIAL PROPERTIES

REVENUE

USE NATURAL GAS TO RUN VEHICLES

CHANGE TO FLAT TAX FOR ALL

STATE TROOPER RETIREMENT

CONSERVATION

RURAL FAMILY HEALTH BOARD

AGRICULTURAL AGENCIES

COMBINE DEPARTMENT OF LABOR AND DIR

DEPARTMENT OF CORRECTIONS

PRACTICE FISCAL RESPONSIBILITY

CONTACT LABOR

PRIVATIZE LIQUOR DISTRIBUTION

FOOD PER DIEM

USAGE OF STATE VEHICLES

DEPARTMENT OF CONSERVATION

IMPROVING WORKING EFFICIENCY

LIGHT EMITTING DIODE LIGHTING - INDOORS/OUTDOORS

ELECTRONIC PAYMENT ADVICE

VEHICLE TAGS MAIL FEE SWAP

BACK TO THE FUTURE: IMPROVE SCHOOL READINESS

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CHANGE THE FOOD ASSISTANCE PROGRAM

WIC & SNAP DOUBLE DIPPING

MEDICAID WAIVERS - CMS PROPOSED RULE CHANGE

PARKING DECK NEEDED

CONSOLIDATE IT FUNCTIONS

STATE VS. PERSONAL CELL PHONE USAGE

STATE CARS

FARMER'S MARKET AUTHORITY

ACCOMMODATE PAYMENT OF SALES TAX ON INTERNET SALES

PURCHASE RATHER THAN RENTAL OF CERTAIN PROPERTIES

REVIEW (SUNSET) ALL AGENCIES AS TO NEED AND VALUE

MEAL ALLOWANCE

PAVING ROADS

STATE MOTOR POOL

HAVE PAYCUTS START WITH THE LEGISLATURE

CAPITALIZE ON GAMBLING AND LOTTERIES

STATE MOTOR POOL VS. PRIVATE COMPANY RENTAL CARS

SALARIES OF THE COMMISSIONER'S

GET RID OF THE ABC BOARD

STATE TROOPER MOTORCYCLES

HOME COMMUNITY BASE SERVICES

PAY PERIODS

STATE LOTTERY

VEHICLE USE

DIRECT DEPOSIT SOLUTION

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REQUIRE EMPLOYEE TO SUBMIT LIST OF DAILY ACTIVITY

IMPOUND VEHICLES WHEN STOPPED W/OUT PROOF OF INS

TRAINING

PAPER CALENDARS

SUBSCRIPTIONS

PRINTING

SURPLUS UNUSED STATE VEHICLES

SHREDDING VS. RECYCLING PAPER

CELL PHONE USAGE

BUDGETS & EARMARKS

ONE SCHOOL SYSTEM IN EACH COUNTY

NURSING HOME RATES

APPROPRIATIONS

COMBINE SERVICES

ELIMINATE SMART GOVERNING & RELATED REPORTS

HOW TO SAVE MONEY FOR THE CITIZENS OF ALABAMA

EMPLOYMENT TESTING

ERGONOMIC KEYBOARDS

SHARE RESOURCES AMONG STATE AGENCIES

STATE LOTTERY - SIMILAR TO GEORGIA

CHECK CONSULTANTS PROPOSALS BEFORE COMMITTING

NO MORE TIME EXPIRATION PRINTERS

FAMILY COVERAGE - ASSESS RATE BY # OF DEPENDENTS

STAGGERED WORK WEEK

MANDATORY DIRECT DEPOSIT / ON-LINE PAY STUB

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CALL CENTER FOR DEPARTMENT OF REVENUE

REGULATION OF OPERATORS OF FOUR ALL TERRAIN VEHICLES

TRANSPORTATION

INK CARTRIDGES WITH TIME EXPIRATION

MATERIAL RECEIPT CONVERSION TO ELECTRONIC VERSION

ADPH INSPECTIONS

ELIMINATING DUAL VENUE COUNTIES/COURTHOUSES

DO NOT PUT PEOPLE IN SUB-PART COMMUNITY HOMES

EMPLOYMENT SERVICE REPRESENTATIVE

COMPUTERIZE PAY STUBS

REST AREAS

PROVIDE AGENCIES WITH CREDIT CARDS

REDUCE THE USE OF IT CONTRACTORS

PUT MORE TROOPERS ON HIGHWAY

IMPROVE OUR RAIL & TRAIN SYSTEM

FOUR DAY WORK WEEK

COMBINING SCHOOL SYSTEMS

MANDATORY EDUCATION

REDUCE AMOUNT OF EMPLOYEE HEALTH INSURANCE PREMIUM

PAY DAY LOAN REGULATION

LOW TAXES ARE NOT ALWAYS BEST

SIMPLIFY THE AL STATE TAXES

TREE THINNING / ENVIRONMENTAL MANAGEMENT

COMMISSIONS

PROVIDING TRANSPARENCY FOR SPENDING OF FUNDS

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STATE PROVIDED VEHICLES FOR CABINET MEMBERS

JURY DUTY

GET OUT OF JOINT COMMISSION

FIXED INDIRECT COST RATE

VIRTUAL PUBLIC SCHOOL FROM HOME

ALABAMA TAXPAYERS DESERVE BETTER

DON'T HURT THE MENTALLY ILL

TELECOMMUTING

DIRECT DEPOSIT OR DEBIT CARDS FOR CHILD SUPPORT

STATE CONTRACTORS

CITY/COUNTY CAPITAL IMPRV TRUST FUND

CAP LEGISLATIVE SPENDING

STATE TROOPERS TAKING VEHICLES HOME

TAXES ARE IMPORTANT!

ELIMINATE COMPANY CARS

REQUIRE CITIZENSHIP PROOF

CUT STATE LAWMAKER BENEFITS

JEFCOTRANSIT AUTHORITY USE OF BUSES ON HWY 280

COMMUNITY COLLEGE WASTE

REDUCE UNNECESSARY PERSONNEL/INCREASE ACCOUNTABILITY

PAY TRAVEL VOUCHERS THROUGH ELECTRONIC DEPOSIT

BUILD US A PARKING DECK

EXCESS CLERICAL STAFF

VEHICLES

DOES EVERYONE REALLY NEED A BLACKBERRY OR I-PHONE?

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JUDICIAL EMPLOYEES

INTERNET MEDICATIONS

INSURANCE COSTS

COMBINING AGENCIES/SERVICES

FAIR TAXATION AND REPRESENTATION

ELIMINATE STATE TROOPERS

SUPPORT HIGH SPEED RAIL; HUGE ROI

PHIP NEEDS TO RECOGNIZE NURSE PRACTITIONERS

POLICE THE SYSTEM

ALL PAY

ELIMINATE SUPERNUMARY PAY

STOP THE USE OF STATE RESOURCES FOR RECREATION

ENABLE E-FILING FOR AL TAX RETURNS

FREEBY STUFF

DOG LICENSE

PLASTIC ENCASEMENT PROCEDURE FOR UTILITIES

MAKE THE LEGISLATORS ROLL BACK THEIR 62% PAY RAISE

CHANGE ALABAMA MEDICAID TO 100% MANAGED CARE

EARLY RETIREMENT FOR STATE EMPLOYEES

SYNCHRONIZATION OF TRAFFIC LIGHTS

ENFORCING THE LAW

TAKE AWAY MEDICAID AND SSI FOR CERTAIN CHILDREN

A TRUE STATE LOTTERY, NOT MOM AND POP BINGO HALLS

DEFUNDING OF SO-CALLED PUBLIC RADIO AND TELEVISION

REDUCE COST OF MEDICAID/REDUCE EXPENSE TO GOVERNMENT

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PROPERTY TAX ASSESSMENT LEAN ANALYSIS

PAPERLESS PAY STUB REVIEW

CUT OUT THE TANNIF PROGRAM AND THE MILEAGE PROGRAM

DEAD BEAT FAMILIES

CREATION OF A CABINET LEVEL DIRECTOR AND DIVISION

PRISON AND JAIL SYSTEM REFORM

STOP GIVING OUR TAX MONEY TO BUSINESS

REIMBURSEMENT OF DRUG TEST FEES

GOVERNMENT EMPLOYEE COMPENSATION

COURT REFEREES AND ATTORNEYS' FEES

REDUCING THE WELFARE ROLLS

MAILING COSTS

UNEMPLOYMENT COMPENSATION APPROVALS

MANAGEMENT ANALYSIS

LIMITING ATTORNEY FEE DECLARATIONS/GOING PAPERLESS

CLOSE STATE LIQUOR STORES

FIRST STOP-2ND CHANCE-SAVING $MIL. – CORRECTIONS

STICK ON CAR TAGS

STOP PRINTING PAYSTUBS AND W2S

IMPROVE THE WAY CONSERVATION SPEEDING

STOP PRINTING & MAILING EMPLOYEE NEWSLETTERS

COMMUNITY COLLEGE SYSTEM

INITIATIVE, REFERENDUM, AND RECALL

GET RID OF THE PACS!

COMBINING UNEMPLOYMENT AND FOOD ASSISTANCE PAYMENT

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SOCIAL SECURITY AND FOOD ASSISTANCE RECIPIENTS

VEHICLE COSTS

REDUCING THE FOOD ASSISTANCE ROLLS

BINGO

EDUCATION LOTTERY

TIME TO STOP THROWING MONEY AWAY

ELIMINATE ENTITLEMENTS TO ILLEGAL ALIENS

PASS E-VERIFY FOR THE STATE

INCREASE PARTICIPATION BY TEACHER AND PUBLIC WORKER

REPEAL THE AUTOMATIC PAY INCREASES FOR LEGISLATORS

UTILITY BILL SAVINGS

"HEAD" TAX ON HIGHWAY SIGNAGE

SAVING MONEY FOR SCHOOLS

CUT THE SALARIES OF ELECTED OFFICIALS

LEGALIZE PROSTITUTION

ILLEGAL IMMIGRANTS AND PUBLIC SCHOOLS

ELIMINATE ALL MEDICAL ON ILLEGAL IMMIGRANTS

ELIMINATE EXTRAS IN PRISONS

REFORM WELFARE, FOOD STAMPS AND MEDICAID

CHAMPIONS FOR EDUCATION

EXPIRED/MISSING VEHICLE TAGS

STAFF EFFICIENCY

CUT SALARIES!

SUPPLIES

CLOSE PARTLOW INSTITUTION

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USE OF STATE VEHICLES

OVERHAULING AL STATE EMPLOYMENT SYSTEM

MEDICAID SAVINGS

DEALER TAGS

GAMBLING

CELL PHONE USE AND SMOKING

REDUCTION IN STATE VEHICLE USAGE

GOVERNOR'S MANSION ELECTRICAL BILL

CLOSE PARTLOW ON SEPT 30, 2011

DRUG TEST

PAYMENTS TO NON PROFITS

TOTALLY ELIMINATE DROP PROGRAM

TOTAL COST OF LAY OFFS

DO BUSINESS WITH COMPANIES BASED IN ALABAMA

PARKING ALL STATE VEHICLES

PURSUE MERS AND UNLICENSED LOAN COMPANIES

TOO MUCH MIDDLE MANAGEMENT

PURCHASE OF STATE VEHICLES

1. EQUAL LAND TAXING 2. DENY PAY INCREASE(LEGISLATORS)

JUSTICE FOR ALL

CENTRALIZED PURCHASING OF ALL PUBLIC SCHOOL BUSES

LAND TAX

EVALUATE GENEVA COUNTY COURTS AND EMPLOYEES

TAX COLLECTION FROM CONVENIENCE STORES

POLYGRAPH THOSE WITH PURCHASING AUTHORITY

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DO WE NEED SEIB?

SAVE MONEY BUYING COMPUTERS

STATE (DOT) GAS PUMPS

REDUCE THE AMOUNT OF TRAVEL

SEPARATE GENERAL FUNDS

NO BENEFITS TO ILLEGAL IMMIGRANTS

LET THE PEOPLE OF ALABAMA HAVE A SAY......

PAY

EDUCATION WASTE

GREEN JOBS

STATE SERVICES ON LINE

61%

INCREASE "SIN" TAX

ELIMINATE FOOD TAX

ELIMINATE YEARLY TESTING

ELIMINATE ACCIDENT REPORTS WITH NO INJURY

DISBAND STATE DEPT. OF EDUCATION

RESTRICT VEHICLE USAGE

REDUCE LEGISLATURE SALARIES FROM $52,000/YR

ACT TO CLOSE CORPORATE TAX LOOPHOLES

THERE'S NO FREE LUNCH, RIGHT? SO, WHY NOT TAX!!!

IMPLEMENT ELECTRONIC PAYSTUBS FOR EMPLOYEES

NATURAL GAS POTENTIAL REVENUE

LOTTERY FOR EDUCATION

TEACHERS SHARE TO PREVENT LAYOFFS

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PUBLIC SERVICE COMMISSION OFFICERS

CLOSE THE CORPORATE TAX LOOPHOLES

PENNIES OF IMPROVEMENT

LOTTERY

THE FAIR RETIREMENT PAY POLICY

NEW CONSTITUTION

START AT THE TOP

CONSOLIDATION

QUICKER AND CHEAPER TO TRAVEL IN A STRAIGHT LINE

REPLACING CONTRACTS WITH FREE LABOR

CUT STATE EMPLOYEE TRAVEL, LEGISLATORS' PAY;

STOP PRINTING CHECK STUBS

LUXURY TAX ON VEHICLES WITH PURCHASE PRICE >$40000

SAVINGS ON ADMINISTRATIVE COSTS

CLARIFY THE SEX OFFENDER AND 3 STRIKE LAW

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REFERENCES

Links and Case Studies 1. BCA Task Force on Governmental Change and Management Reform 2003 (PDF on File); 2. Initial Report of the Education Spending Commission - (PDF on file) 3. Governor Riley’s Commission on Efficiency, Consolidation, and Funding - http://www.archives.state.al.us/reorganization/2004_full.pdf 4. Alabama Archives on Government Reorganization – http://www.archives.alabama.gov/reorganization 5. Certified Public Manager® Program Studies – http://www.ati.aum.edu/Content.aspx?cid=5def45b4-d983-44d4-a056-9a93aca2d8d8