HOUSE No. 2137 Message from the Governor and Report ON Reorganization of Boards and Commissions HAVING SUPERVISION AND CONTROL OF STATE INSTITUTIONS. Submitted by COMMISSION ON ECONOMY AND EFFICIENCY. February 7, 1914. BOSTON; WRIGHT & POTTER PRINTING CO., STATE PRINTERS, 32 BERNE STREET. 1914. Cfte CommonUiealtJ) of Qiassadnisetts. MESSAGE FROM THE GOVERNOR RELATIVE TO THE REORGANIZATION OF CERTAIN STATE DEPART- MENTS AND TO PROVIDING FOR A CENTRAL BOARD OF CONTROL, AND TRANSMITTING A PLAN FOR THE SAME PREPARED BY THE COMMISSION ON- ECONOMY AND EFFICIENCY. The Commonwealth of Massachusetts, Executive Department, Boston, Feb. 11, 1914 To the Honorable Senate and House of Representatives In my inaugural address to your honorable bodies, I recommended that “there be established a central purchasing agency for all the state departments and institutions, and that careful study be given to plans for reorganization under a central administrative body, a method of administration which has been adopted with marked success in several states with great saving to the public treasury.” I now have the honor to transmit to you a plan for the reorganiza- tion of certain state departments providing for a central board of control which has been prepared by the Commission on Economy and Efficiency, and which, in its essential particulars, meets the recommendation made in my inaugural. The report of this com- mission is entitled to your most careful consideration. It comes to you from that department of the state government which has been especially entrusted by the legislature with the duties and respon- sibilities of advising you on this particular problem and after study and investigation of state institutions covering a period of several months. Chapter 719 of the Acts of 1912, creating the commission on economy and efficiency, defined among its other duties the following: “To inquire into the laws governing the financial transactions of the commonwealth and to study into the possibility of promoting greater economy and efficiency and utility in the transaction of the business of the commonwealth by any changes in such laws by the 1\ GOVERNOR’S MESSAGE [Feb. reorganization, consolidation or co-ordination of departments and institutions, by different methods of administration” ... “by organizing a central purchasing agency or department,” . “and it shall report thereon from time to time to the governor and council and to the general court, if it is in session. In the report herewith submitted, the commission finds after thorough investigation, that our present system of managing the institutions of the state is faulty and leads to waste and unnecessary expense, and recommends in the interest of economy and efficiency a complete reorganization of all the state activities in dealing with its institutions should be undertaken. The sole issue presented to the legislature, therefore, is this; Is it in the interest of a better and more economical management, and that means, is it in the interest of the taxpayers of the common- wealth, that a change from the separate independent management of our state institutions should be made and in its stead a new system established providing for a central board of control? The importance of this subject can be better realized by a con- sideration of the following statistics; The number of members of boards, commissions and trustees which the report deals with and which this problem concerns is follow; Board of Insanity o Board of Charity 9 Prison Commission 5 Trustees under Board Insanity 89 Trustees under Board Charity 28 136 Number of inmates of institutions affected 22,120 Number of employees 4,537 Investment of state money to date in all these institutions . $24,453,016.59 These various departments and state institutions are now asking for an appropriation of $7,040,800, for maintenance during the year 1914. Assuming the members of the commission to be honest and free from partisan bias or misdirected prejudice against the present management of these institutions, this report ought to make out a 1914.] HOUSE No. 2137. V prima facie case in favor of the adoption of the recommendations made. I do not undertake to point out to you in detail what reorganiza- tion plan should be finally agreed upon for before that question is reached there is a greater one which you must pass upon, namely, whether or not the state should depart from its present policy to that of a central board of control. When that is settled, I can foresee no serious differences as to details, and I have confidence that this legislature with the aid of the report before it will work out the necessary legislation along safe lines. If there is any field in the public service for the application of the principles of economy and efficiency here certainly is one, for the maintenance of our state institutions is the heaviest of all demands upon the public treasury; and we should see to it that there is such organization that the various managers, officers and employees shall at all times direct their work with a view to the strictest economy. By a consolidation such as is recommended, our state institutions would become inter-related; their industrial activities could serve each other; a specialization of their industries incident to their penal and correctional functions could be introduced with economy and efficiency and the whole be managed and directed upon a general basis and policy. While the legislature is giving its attention to these recommendations, pending demands for development of state in- stitutions calling for large appropriations of money for building and equipment should be held in abeyance. Finally, I urge upon the legislature, which has in a most com- mendable way shown a determination to keep down to the very lowest point possible all new demands upon the state treasury, that it manifest the same spirit in weighing the recommendations made by this commission with a view to finding out whether or not a large saving may not be made in expenditures and more efficient management provided through a reorganization along the lines pro- posed of all the state agencies dealing with charitable, health and correctional problems. There is a widespread demand that public officials proceed cautiously with public expense that there may be prevented a revolt against the excessive burdens of government. DAVID I. WALSH. CONTENTS PAGE Plan I. Centralized control under supervision of commissioners, but vestedjin or director .......... 5 Commission on Public Institution, Powers and Duties Director of Institutions Executive Secretaries Division of work among executive secretarie Executive Secretary for Insane Executive Secretary for Hospitals and Sanatoria. Executive Secretary for Prisons and Correctional Institutions 9 Secretary Charity Executive for ..... 9 Business Agent 9 Unpaid Board of Three Visitors for Each Institution 10 Plan i 11. Supervision and Control by Board .f Co:•mmissioners 10 Fact :ors to be Considered .... 11 Orgaanization within Institution; 12 Prei sent Conditions Considered 17 Cases of Divided Authority in Supervi; •n •f State Institutions 17 State Infirmary 18 State Farm 18 Massachusetts Training Schc 18 Norfolk State Hospital . 19 Insane Hospitals and Asylums 19 Cross-Purposes in Functions and Activit 19 Development of Present Methods 21 Work Within the Institutions 9.9 Superintendents Other Official; 23 Employees 25 Som< Results of Present Methods 28 Accountir 29 Farm Managers Building Constn 33 The Immediate Xeec 51 Sit? (Umnnumunmltlj of ifaaadtusrtta. February 9, 1914 To His Excellencij the Governor, State House, Boston, Ma . Dear Sir:—In its annual report for the year 1913, the Com- mission on Economy and Efficiency stated that it would recom- mend, in detail, such a reorganization of the different state boards having to do with the care of the various wards of the state and having control of the institutions for the care of insane, defective, delinquent and dependent persons, as would center the administra- tive work for all such institutions entirely in the hands of one central organization. In pursuance of that plan two outlines of organiza- tion for such a single department are presented to the legislature for consideration. To carry out its recommendations the Commission on Economy and Efficiency submits drafts of bills for the consideration of the legislature. The recommendation of the commission provides for organization on either of the following two lines: 1. A centralized control under a board of five commissioners, em powered to vest in one director the duties of administration. 2. A supervision and actual control by a board of five commis- sioners, to give all their time to the duties of their offices, and to be chosen with particular reference to the several different problems in- volved, from an administrative and correctional standpoint. Plan I. A CENTRALIZED CONTROL UNDER A BOARD OF FIVE COMMISSIONERS EMPOWERED TO VEST IN ONE DIRECTOR THE DUTIES OF ADMINISTRATION. COMMISSION ON PUBLIC INSTITUTION Five members, citizens of the Commonwealth, to be appointed by governor and council; chairman, to be designated by the governor for a term of five years, one member for term of 4 vears, one member 6 BOARDS AND COMMISSIONS, [Feb, for term of 3 years, one for term of 2 years, and one for term of 1 year, and thereafter the chairman and each member to be designated for the full term of 5 years. Each to receive an annual salary of $1,000.00, and to devote such time to the work as may be neces- sary. To be reimbursed for necessary travelling expenses. Powers and Dutie (1) Their principal function should be to formulate the general policies and plans for the entire work of the new organization. Their responsibility for administrative duties should be direct, but they should be authorized to place such responsibility entirely upon the director whom they would choose and the executive secretaries whom they would approve.