Volume I, No. 2 March 31. 2006 Office of the Governor Indiana State Government’s PPERFORMANCEERFORMANCE RREPORTEPORT July - DecemberDecember 20052005 PERFORMANCE REPORT July - December 2005 Table of Contents Memorandum ....................................................................................................... 1 2005: On the Road to an Indiana Comeback................................................. 2 Special Initiatives................................................................................................. 5 Report Highlights ............................................................................................... 8 Department of Administration.......................................................................10 State Department of Agriculture...................................................................11 Alcohol and Tobacco Commission................................................................12 State Budget Agency ........................................................................................13 Bureau of Motor Vehicles................................................................................14 Department of Child Services.........................................................................16 Department of Correction ...............................................................................18 Criminal Justice Institute ................................................................................22 Economic Development Corporation...........................................................24 Department of Environmental Management .............................................26 Family and Social Services Administration ................................................27 Finance Authority .............................................................................................31 Gaming Commission ........................................................................................32 Government Efficiency & Financial Planning ...........................................33 State Department of Health............................................................................34 Department of Homeland Security ...............................................................36 Hoosier Lottery..................................................................................................37 Office of the Inspector General......................................................................38 Department of Insurance.................................................................................39 Department of Labor ........................................................................................41 Department of Local Government Finance................................................42 Indiana National Guard ...................................................................................43 Department of Natural Resources.................................................................44 State Personnel Department...........................................................................45 Public Employees’ Retirement Fund............................................................47 Department of Revenue ...................................................................................48 Indiana State Police ..........................................................................................49 Office of Technology ........................................................................................50 Department of Transportation.......................................................................52 Department of Veterans Affairs.....................................................................55 Department of Workforce Development.....................................................56 Performance Metrics ...........................................................................Appendix Indiana State Government’s Performance Report 3 March 31, 2006 STATE OF INDIANA Mitchell E. Daniels, Jr. OFFICE OF THE GOVERNOR Governor State House, Second Floor Indianapolis, Indiana 46204 Memorandum To: Governor Daniels From: Betsy Burdick, Director of Cabinet & Agency Affairs Date: March 31, 2006 Re: Agency performance reports and metrics for July through December 2005 Upon taking office, you established a set of goals for all state employees and all state agencies to focus on increasing jobs and income growth in our state, improving customer service, reducing waste and spending Hoosier tax dollars in the most prudent way possible. Attached are a narrative report on progress during the second half of 2005 and an updated look at how agencies are measuring up to their established performance metrics. The narrative summarizes achievements, discoveries, successes and shortcomings over the last six months of 2005 in addi- tion to providing highlights of new initiatives and programs that your administration has begun. It provides a snapshot of how state government continues to find areas in need of improvement and aggressively address them while also taking a new look at what government should do for its citizens and develop programs aimed at job creation, economic growth for Indiana and the health and safety of its citizens. Four new agencies have developed performance metrics during the second half of 2005, bringing the total to thirty-four agencies who have established performance measures with targets that are linked to their core mission and are formally re- porting results. This report contains five sections: • 2005: On the Road to an Indiana Comeback — Provides a high-level overview of many of the tough issues and accom- plishments tackled during the first year of your administration. • Special Initiatives — Provides information on a few programs begun under the Daniels’ administration that are worthy of highlighting but that are the result of the collaboration of numerous government and private sector groups and there- fore are not attributable to any one particular agency. • Report Highlights — Provides a brief flavor of the information contained through the document including descriptions of the many savings measures begun and in some cases completed during the second six months of 2005. Estimated annual savings, one-time savings and funds redirected toward a better purpose total $100 million for this second six- month period. • Agency Narratives — Provide agency contact information, mission and specific examples of discoveries and actions taken to date as well as cost saving measures and summaries of new programs developed. • Agency Performance Metrics — Provides actual outcome-based performance measures as well as target ranges to allow agencies to truly measure their success on an ongoing basis. Performance targets have been set at red, yellow and green levels, with green representing superior performance. Over 73% of reported measures have red or yellow results indi- cating a slight improvement over the first six months when 87% or of reported measures fell into these two categories; however, there is still significant opportunity for improvement. In some cases, it may take years of unrelenting focus to “get to green” but what is most critical is the year to year improvement in achieving results with the investment of Hoo- sier tax dollars. On behalf of your Cabinet and other leaders in state government, we look forward to making this periodic report useful to you, the hard-working people of state government, and the public. Indiana State Government’s Performance Report 1 March 31, 2006 2005: On the Road to an Indiana Comeback Strengthening Indiana’s Economy Gov. Daniels and Republican-led General Assembly established the IEDC to focus on job creation and strengthening Indiana’s economy. • In 2005, the IEDC closed 140 deals - more than 2003 and 2004 combined. ◊ Commitments to create 13,500 new jobs. ◊ Retaining 19,500 existing jobs. ◊ Generating $2.45 billion in new investment - more than twice the 2004 level. • Gov. Daniels and the IEDC led the largest delegation in State history on a trade mission to Taiwan and Japan. Since then, ◊ Aisin agreed to expand its plant in Terre Haute – creating 125 new jobs. • Toyota will soon expand production to Lafayette – creating 1,000 new jobs. ◊ Taiwan agreed to purchase $150 million in Hoosier corn and soybeans. • Indiana is becoming a national leader in the production and distribution of bio-fuel ◊ Indiana had one bio-fuel plant at the beginning of the year, but 8 new bio-fuel plants are now under construction. ◊ 10 additional bio-fuel plants are currently in development. ◊ Indiana has gone from zero E85 ethanol pumps for public use in the state to 20. ◊ Louis Dreyfus Agriculture Industries has announced plans to build the world’s largest biodeisel plant in the world, producing 80 million gallons per year from soybean oil, near Claypool in Kosciusko County. After 30 years of trying, Gov. Daniels succeeded in creating the Northwest Indiana Regional Development Authority to rebuild the economy of this long-neglected area of the State. • Rep. Chet Dobis (D-Merrillville) compared the economic impact the RDA to the arrival of the steel industry in North- west Indiana a century ago. Gov. Daniels, Lt. Gov. Becky Skillman, and Indiana’s Congressional delegation successfully guided Indiana through the BRAC process. • The Navy originally planned to close Crane, but more than 5,500 jobs were saved and the facility is now poised as a focal point for future growth and development. • Added approximately 1,000