Agencies pledge $20.5 million in revenue, savings
It is part of the state's reinvention plan
by ASSOCIATED PRESS
DES MOINES (AP) - The state's six charter agencies have promised
to earn or save $20.5 million this fiscal year.
That's $5.5 million more than the agencies pledged last year, but
about $2 million less than the $22.5 million they actually brought
in.
The charter agencies are part of the state's reinvention plan,
introduced in 2003. It's a performance-based program meant to
improve service to Iowa taxpayers.
Charter agencies pledged to save money or earn more revenue in
exchange for more flexibility and freedom from state mandates.
"It's not just upping the bill. They're really trying to do new,
innovative things to collect the money that's already owed, not
create new
(taxpayer) obligations," said Jim Chrisinger with the Iowa
Department of Management, which oversees state agencies.
The six charter agencies include: the Iowa Veterans Home, the
Alcoholic Beverages Division, Corrections, Natural Resources,
Revenue, and Human Services departments.
Human Services has promised to save the same as last year at $1
million, while Corrections has again pledged $500,000 in savings.
The Veterans Home committed to earn an additional $1.3 million, the
same target as last year.
The Alcoholic Beverages Division, which earned about $7.75 million
over its $1.25 million revenue target last year, has promised to
find an additional $3.75 million. The agency has worked to change
the way it priced liquor, using a variable markup to boost profits
and reduce the price of premium liquors.
Chrisinger said the state asked the agencies to save or earn $2
million less than what they actually did last year to keep things
conservative, especially for the Alcoholic Beverages Division.
"I'm just not sure it's realistic to sustain that kind of jump -
that's the really big difference," Chrisinger said.
The charter agencies also got an extra $1.75 million in state grants
last year that won't be available this year.
The DNR pledged to save or earn an additional $100,000 over last
year's $200,000 commitment.
The state agency saved more than $35,000 last year by replacing
contract employees with 15 full-time positions. The DNR also started
an online catalog of products to earn money.
DNR Director Jeff Vonk said he's confident the program is proving
itself.
"People inside the various departments are believing that these
flexibilities are real and that there's a seriousness within state
government to become more efficient," Vonk said.
Revenue has upped its promise by $500,000 to $1.5 million. The
department brought in an additional $1.3 million last year. It
boosted its revenue by about $634,000 mainly through increased
audits and saved more than $683,000 by reducing interest payments on
tax refunds.
The Iowa Lottery Authority, although not a charter agency, has
been given permission to operate under the same type of program,
Chrisinger said. Last year, it promised to increase revenue $8
million and overshot that goal by $400,000. It's upped its promise
by $2.9 million this year.
During the past legislative session, charter agencies won even more
freedom, including the ability to approve their own out-of-state
travel, convention participation and professional memberships.
Senate Republican President Jeff Lamberti, R-Ankeny, said it may be
too early to tell how the charter agencies will perform in the long
run.
"There's some cases that made a lot of sense, and I'd agree ..."
he said, pointing to the lottery's results. "We're eager to get some
more
information on what's going on."
----
On the Net:
Iowa Department of Management: http://www.dom.state.ia.us/
Iowa General Assembly: http://www.legis.state.ia.us/
-Associated Press, January 01, 2005
|
iowa charter agencies