Thursday, November 4, 2010

On to Yuskewich, CPA discussing budget

Yuskewich (CPA): recommendations about how to deal with financial crisis - as if Ohio were our client.
We have four types of recommendations.
Either bring in more revenue or reduce expenditures. One-time income/expenditures go below the line - we do not count on them as recurrent. We do not want to become so focused on 2-year-cycle that we lose sight of longterm... look at Pennsylvania. Over 2000 vendors for office supplies... some selling at full retail price - so just bid out, get a single source - they saved 2 billion dollars. This is not rocket science but basic business best practices - sometimes we lose sight of this. What about healthcare? Employees have to share in the cost of health insurance. Wellness programs are helpful - if people participate, they pay less. Pension: addressed by other states and fed gov. - business recognizes that a defined benefit plan cannot be sustained. Why don't we create a two-tier? Defined contribution, 401k model, cap benefit, reasonable retirement age.
Strategic planning needed - longer look than a budget - bi-partisan group needed, from academia, business, etc. None of us like an 8 billion dollar surprise.
Efficiency in government: require performance auditing. Send a group in to look at a program or deptmt and see if they are using best practices and meeting constituent needs. Does not have to be political -
Consolidation. Trying to find another word for this. Want to consolidate backroom operations (accounts payable, etc. - more efficient)
Superintendent of Orrville school is now superintendent of another district as well, with no increase in salary.
Look at Revenue... you won't find one line that solves the problem. Every one will have to play ball to solve this problem and at the end of the day no one will be happy and that is probably a good result!

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