Governor touts efficiency program expected to save Arkansas $300 million over 6 years
LITTLE ROCK, Ark. – A progress report delivered to Arkansas Gov. Sarah Huckabee Sanders on Monday is slated to save the state $300 million over the next six years.
The Arkansas Forward report is from a Sanders-mandated initiative to save money and improve services for state residents. Sanders said many initiatives in the Monday report are already underway.
The plan focuses on five areas for improvement: Information technology, state purchases, state vehicles, state employees and state government buildings.
Information technology improvements will center on integrating IT systems across the state. The report estimates changes in this realm will result in $130 million in annual cost savings.
The Arkansas purchasing system will be overhauled to center on the priorities of getting what the report labeled the “right stuff” at the “right price” through the “right process.” Savings by this overhaul and standardization are expected to be between $140 million to $230 million
Efficiency in state vehicles will be improved by centralizing and selling off older and under-used vehicles, the report stated. Savings here are expected to be in the $3 million to $5 million range, with one-time revenue for $1 million to $1.5 million.
Real estate improvements will come from selling off some property holdings and creating a database of existing real estate to identify areas for cost savings. The report anticipates savings of $15 million to $25 million through consolidation and selling off under-used property.
The report said a renewed play plan would be implemented for state employees, alongside a change from tenure-based pay to performance and skill-development-based pay.
“Our team took a sweeping, comprehensive look at government efficiency in Arkansas and I am excited by the report I received on that work today,” Sanders said.“Across all state agencies, this team discovered potential ways to save taxpayer money and improve services.”
Sanders delivered the 956-page report to the legislature on Monday. The full report is available for review online.
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