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For Immediate Release

05.28.2015

Governor Asa Hutchinson on the Passage of Government Efficiencies Initiative

LITTLE ROCK – Governor Asa Hutchinson’s government efficiencies initiative (HB 1001 and SB 1) has passed both chambers of the Arkansas General Assembly with unanimous consent and will head to the Governor’s desk for his signature. (See below for “Efficiencies Fact Sheet.”)

Governor Hutchinson released the following statement upon final passage:

“I’m very pleased with the broad-based, bipartisan support for our efficiencies measures. It signals to the taxpayers of Arkansas that the executive and legislative branches of government are of one mind when it comes to finding smarter, more efficient ways to deliver services. It makes sense. If we can do a better job for the taxpayers at less cost, we should.”
 

Governor Asa Hutchinson’s Efficiency Initiative

Merging         
Arkansas Department of Rural Services ("Rural Services")
Receiving      
Arkansas Economic Development Commission (“AEDC”)
Mechanism         
Type 2 transfer of Rural Services and the eleven-­member Arkansas Rural Development Commission (ACA 15-­6-­105 et seq.); transfer entire Rural Services department, along with all of its powers, duties, functions, budget, records, and personnel into AEDC.
Information               
Rural Services is responsible for promoting cooperative and integrated efforts among various public, private, and nonprofit sector organizations that are designed to address rural issues and development.   
Justification              
AEDC’s Global Business Division’s responsibilities include community development through attracting businesses to invest in the State, including its rural communities. 
Potential Savings     
$175,599 in immediate annual state general revenue through the elimination of two positions. This represents an 8.4% reduction in agency operating costs and a 33% reduction in agency personnel.  

Merging          
Arkansas Science and Technology Authority (“ASTA”)
Receiving
Arkansas Economic Development Commission (“AEDC”)
Mechanism
Type 2 transfer of ASTA and its Board of Directors (ACA 15-­3-­101 et seq.); transfer entire department, along with all of its powers, duties, functions, budget, records, and personnel into AEDC.
Information
ASTA is responsible for leading a broad spectrum of programs and services that are designed to gain benefits and opportunities through advanced science and technology development. ASTA currently leases space in the same building as AEDC.
Justification    
AEDC’s Global Business Division’s responsibility is to support technology development through the use of existing business resources and developing opportunities for outside business investment in the State.  Science, technology, and economic development go hand-­in-­hand.
Potential Savings
$450,808 in state general revenue immediately through the elimination of six vacant positions. This represents a 14.4% reduction in general revenue and a 20% reduction in agency personnel. An additional $272,464 (not general  revenue)  could be saved through attrition.

Merging
Division of Land Survey (“Land Survey”)
Receiving 
Arkansas Geographic Information Office (“AGIO”)
Mechanism 
Type 2 transfer of Division of Land Survey and the Land Survey Advisory Board (ACA 15-­21-­201 et seq.); transfer entire Land Survey department, along with all of its powers, duties, functions, budget, records, and personnel into AGIO.
Information
Land Survey is a division of the Department of Agriculture and is responsible for investigation of consumer complaints and the maintenance of minimum standards for survey plats.  The Division currently leases space in southwest Little Rock and is not co-­located with any other state agency.
Justification
There is very little nexus between Land Survey and the Agriculture Department. However, there are a number of commonalities and service overlaps with AGIO, such as website design, hosting, and data utilization. A merger would facilitate greater cooperation and efficiencies in service delivery.
Potential Savings
$166,880 in state general revenue immediately through the elimination of two positions. This represents a 37% reduction in agency operating costs and a 50% reduction in agency personnel.

Merging
Arkansas Building Authority (“ABA”)
Receiving
DFA – Management Services (“DFA”)
Mechanism
Type 2 transfer of ABA and the Board (ACA 22-­2-­101 et seq.); transfer entire department, along with all of its powers, duties, functions, budget, records, and personnel into DFA.
Information
ABA acts as the State’s agent in all lease negotiations, assists with capital projects, and actively maintains and operates ABA-­owned or managed buildings.
Justification
A merger would utilize existing DFA departmental administrative support and resources to provide efficiency and eliminate possible duplications of duties.
Potential Savings
$416,069 immediately with the elimination of nine vacant positions. This represents a 2.4% reduction in agency operating costs and a 9.7% reduction in agency personnel. An additional $717,291 could be saved through attrition. This would increase the total reductions in revenues and positions to 6.7% and 22.5%, respectively.

Approximate Savings over 5 Years: 
$10,000,000 to $12,000,000

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