Ideas to take Connecticut from budget crisis to fiscal confidence
Is it really possible to improve state services, make the budget more sustainable, and reduce the need for more tax increases?
Yes, says Brian Renstrom, a partner at BlumShapiro and chief researcher for the Connecticut Institute for the 21st Century (CT21), a leading think tank on public spending. With deadlines looming for a state tax and spending package that must close a $1-billion-plus deficit in each of the next two fiscal years, Renstrom addressed a bipartisan group of lawmakers at an April 23 policy briefing where he outlined reforms that will make state government more effective, efficient, and affordable.
“It’s refreshing to hear a presentation with such candor,” said State Rep. Jonathan Steinberg (D-Westport), member of the Finance Committee. He added that the current state budget “paradigm is not working for us,” and urged lawmakers to continue exploring reforms.
“It’s a beginning,” said Rep. Mary Mushinsky (D-Wallingford), Finance Committee member and organizer of the event. “We will need legislators, the governor, [state] agencies, and OPM to be engaged to ensure accountability and that the state is running as efficiently as possible.”
Renstrom proposed reforms in several big-ticket budget areas, including the following:
Long-term care. Connecticut’s aging population will increase pressure on the state’s healthcare system. Transitioning more people out of long-term institutional care into home-based care can save money and give people the care they prefer. Transitioning 5,200 people could save the state an estimated $218 million per year.
Corrections. Moving nonviolent offenders out of prison, better preparing them for productive lives, and reducing their chances of going back is more effective and less costly than putting people behind bars. Renstrom recommended setting a target of reducing the prison population by 50% by 2020, which would save an annual $240 million.
Local governments. Working together on a regional basis to share more programs can save local and state tax dollars and provide better services. Creating regional centers of excellence to leverage currently available resources and better serve cities and towns could yield state savings of $200 million per year, according to Renstrom.
Social services. Using more of Connecticut’s outstanding nonprofit providers to deliver social services can improve service quality and save tax dollars. Renstrom advocates moving away from having the state be the manager and provider of services and that it makes more sense for nonprofit agencies to do more of what they do best.
State pensions and overtime. Many changes could and should be made to eliminate fraud and abuse in the system, said Renstrom. For example, we need to do a better job of managing overtime.
Overtime is a serious issue in state government, said Rep. Melissa Ziobron (R-East Haddam), adding that it’s “shocking” that the 2015 state budget contains about $250 million for overtime—$70 million in the Department of Corrections alone.
Technology. Better and more coordinated IT systems can increase the effectiveness and efficiency of state government. Among other things, said Renstrom, we need to put state government in the cloud and use excellent third-party technology services. That would allow for the elimination of the State Data Center by 2020 and help government get out of the IT business.
Streamline state government. Connecticut can also save millions by using innovative lean techniques to make state government more efficient and effective. In fact, some state agencies—including DEEP and the Department of Administrative Services—have shown great results by implementing lean. Connecticut businesses embrace lean because they have to work as economically and as smart as possible to be able to compete in our high-cost state.
Measure results. As well-intentioned as all programs and services are, there still has to be a way to determine if they’re accomplishing their goals and doing so in an affordable way. Renstrom suggested creating ways to measure all programs costing $1 million or more annually, starting with the most expensive, and changing or eliminating those that don’t work, as well as eliminating the use of overtime wherever possible.
Rep. Diana Urban (D-North Stonington) said she has noticed “pushback” from agencies on efforts to implement results-based accountability and other efficiency measures.
New ways. “The CT21 studies and comments from legislators show that we just can’t keep doing the same old things the same way,” says Pete Gioia, CBIA economist. “We have to try new ways of delivering services.” ■
For more information, contact CBIA’s Louise DiCocco (860. 244.1169; louise.dicocco@cbia.com); or Bonnie Stewart (860.244.1925; bonnie.stewart@cbia.com; @CBIAbonnie).