The Program to Sell Government Buildings

02.27.2017

The House Government Modernization Committee continued its series of oversight hearings last week. It's been our goal to provide oversight to the various ongoing state government modernization and efficiency initiatives. We need to know if the reforms are working and how much money they are saving.

Last week we reviewed the effort to sell underutilized state-owned properties and return them to the private sector. 

It now appears that more than 3.1 million dollars has been generated through the program.

Oklahoma's Capital Assets Administrator told our committee that much of the proceeds from the sales have been used to repair and maintain the roofs of three Department of Corrections facilities, including the Oklahoma State Penitentiary at McAlester. 

He told committee members that taxpayers are experiencing added savings from not having to maintain the underutilized properties. 

In all, as part of the state asset reduction program, more than 362,000 square feet of owned and leased space have been removed from state custody. 

Upon transfer to the private sector the liquidated properties become tax producers, whereas prior to transfer they were tax exempt.

You may see the latest report from the Capital Asset Division by visiting https://www.ok.gov/DCS/documents/2016RealPropertyAssetReport.pdf.

I really enjoyed this particular oversight hearing. Long time readers will probably remember my articles from 2011 to 2013, which is when we created the legislation to start this program.

I wrote that it was our goal to require the state to inventory its properties, find those that are no longer needed, and use the proceeds from the sale to fix deferred maintenance repairs on the structures that it still uses. I felt this approach would allow the state to avoid the issuance of new bond debt to finance the repairs and the punitive debt payments which ensue.

That vision was considered utopic by some and, while it is true that 3 million dollars might not be much in government terms, it is still a lot of money and we have to start somewhere.

Better still, our central management officials are instilling a new culture within state government: government should attempt to shrink its real property footprint and return as much government-owned land to the private sector as possible. I think this culture will have an impact for many years. It will result in much more reduction of resources under government management, and the proceeds will keep the state from having to issue so much debt.

I believe the other committee members have also enjoyed getting to review the various ongoing money saving programs. They have become accustomed to the negative news about the year-to-year deficit in available appropriations, and our committee has become a healthy venue to escape the armageddon of state government financing while focusing on providing real financial solutions.

The good news will continue this week as our committee prepares to hear from those who are implementing the state's information technology unification. The recent unification of the Department of Human Services with the other agencies has had a dramatic impact in terms of savings. 

I will keep you informed.

@JWMurphey

Property Reduction Program Provides Benefit to Department of Corrections

02.25.2017

Contact: State Rep. Jason Murphey
Phone: (405) 557-7350

State Rep. Tom Gann
Office: (405) 557-7364

OKLAHOMA CITY – According to testimony provided to the Government Modernization Committee today, more than 3.1 million dollars has now been generated through a program of inventorying and selling underutilized state government properties.

Oklahoma's Capital Assets Administrator Dan Ross told committee members that much of the proceeds from the sales have been used to repair and maintain the roofs of three Department of Corrections facilities including the Oklahoma State Penitentiary at McAlester.

The program is part of state government's ongoing government modernization effort to identify and return the underutilized properties to the private sector.

Ross told committee members that taxpayers are experiencing added savings from not having to maintain the underutilized properties.

In all, as part of the state asset reduction program, more than 362,000 square feet of owned and leased space have been removed from state custody.

Additional benefit occurs as upon transfer to the private sector the liquidated properties become tax producers and benefit local school districts whereas prior to transfer they were tax exempt.

"In a time of budget shortfall, today's testimony serves as reminder that there is still plenty of good news as the legislative and executive branches of government continue to work together to implement common sense policies to right-size and lower the cost of state government to the taxpayer," said committee Vice Chair Tom Gann, R-Inola.

The real property hearing is one of a series by the House Government Modernization Committee as they seek to provide oversight to the various ongoing state government modernization and efficiency initiatives.

@JWMurphey

Inviting Common Sense Back Into State Government

02.20.2017

Last week the Government Modernization Committee took testimony regarding the millions of dollars of annual savings as a result of modernization reforms to the state's purchasing laws.

Oklahoma State Purchasing Director Ferris Barger provided the committee with his most recent savings report.

Ferris Barger

Barger's report is a result of past legislative purchasing reforms that we sponsored in response to an audit conducted by IBM of Oklahoma's purchasing agency.

Those reforms sought to refocus the agency on managing and driving down the cost of items that are commonly used by most state agencies.

The reforms also require the release of an annual savings report so the Legislature can track the implementation of the savings effort.

The latest report shows savings of 76 million dollars during the 2016 fiscal year. This savings amount is a combined result of both traditional purchasing contract savings and information technology purchasing reforms from Oklahoma's newly unified Information Technology agency.

You can review this report for yourself at :

https://www.ok.gov/DCS/documents/ProcurementSavingsReportFY2016.pdf.

 It is a detailed contract-by-contract breakdown of the savings. Upon reviewing these contracts, you will see that they extend not just to state government agency, but also to the local government entities that are participating in the program.

The savings didn't happen overnight. They are the result of an ongoing effort to change the culture of the state's purchasing operation.

IBM noted in their audit that the purchasing agency had focused on the bureaucratic compliance requirements of state purchasing, but hadn't focused on driving down the cost of items the state had purchased.

Now, however, the agency has been charged with the task of creating, managing, analyzing and monitoring the contracts.

This may seem like basic common sense, but common sense has not always found a home within state government.

Several years ago, as we started to work on the modernization of purchasing, the initial reaction of the purchasing agency to the IBM report was not welcoming. The suggestion of common sense best purchasing practices made department leadership bristle, and our early interactions with them were not pleasant. 

However, under current purchasing agency leadership, central purchasing and legislators have worked together as partners in the effort to lower costs.

This working relationship is evidenced by their regular appearances before our committees and willingness to address concerns from legislators and their state agency customers.

It should be a comfort to Oklahoma taxpayers to know that there are those in the legislative and executive branch who are working together to make common sense and best practices feel at home in state government.

@JWMurphey

Committee to Receive Report of Millions in Savings to Taxpayers

02.15.2017

Contact: State Rep. Jason Murphey
Office: (405) 557-7350

State Rep. Tom Gann
Office: (405) 557-7364

A House committee is preparing to take testimony showing the yearly cost to Oklahoma taxpayers has decreased by millions of dollars as a result of reforms to the state's purchasing laws.

On Wednesday, Oklahoma State Purchasing Director Ferris Barger will provide his most recent savings report to members of the House Government Modernization Committee.

Barger's report is a result of past legislative purchasing reforms that were sponsored in response to an audit of Oklahoma's purchasing agency. Those reforms sought to refocus the agency on managing and driving down the cost of items that are commonly used by most state agencies.

The reforms also require the release of an annual savings report so the Legislature can track the implementation of the savings effort.

The latest report shows $76 million in savings during the 2016 fiscal year. This savings amount is a combined result of both traditional purchasing contract savings and information technology purchasing reforms from Oklahoma's newly unified Information Technology agency.

"Modernized purchasing policies have saved the taxpayer millions, and it's our duty to ensure they save millions more," explained committee Vice Chair Tom Gann, R-Inola. "We are committed to doing what we can to assist state purchasing officials in their effort to enact continued and growing savings."

Barger's testimony will take place during the committee's 10:30 a.m. meeting. The public is invited to attend or to listen live on the Internet.

The most recent savings report may be viewed at:

https://www.ok.gov/DCS/documents/ProcurementSavingsReportFY2016.pdf.

Where Does All of That Lottery Money Go

02.06.2017

  Every so often a member of the local constituency inquires about the impact upon common education of Oklahoma lottery proceeds. 

  Based on lottery advocacy commercials, many likely thought the lottery would have a big impact, and now, they want to know where the money is going.

  This isn't an easy question to answer; but it's important to put into perspective.

  When Oklahoma policy makers created the lottery, they placed common education's component of the funding into the state aid for schools funding formula. There are many revenue streams which go to common education, both inside and outside of this funding formula.

  Here is how common education funds are generated and allocated.