2011-05-27 Cost of Government Commission Agenda (2)

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DRAFT REPORT INTRODUCTION/EXECUTIVE SUMMARY As stated in the Hawai‘i County Charter, Section 5-2.1, the policy of the county is to promote economy, efficiency and improved service in the transaction of the public business in the legislative and executive branches of the county by: 1. Limiting expenditures to the lowest amount consistent with the efficient performance of essential services, activities, and functions. 2. Eliminating duplication and overlapping of services, activities, and functions. 3. Consolidating services, activities, and functions of a similar nature. 4. Abolishing services, activities, and functions not necessary to the efficient conduct of government. As set forth by Charter the COGC took action to study and investigate the organizations and methods of operations of all departments, commissions, boards, offices and other instrumentalities of all branches of the county government and determine what changes, if any may be desirable to accomplish this policy set forth. Part 1 –Overarching Cost and Revenue Concerns for the County of Hawai‘i A.Changing the Way We Do Business As the Commission investigated how our County government could reduce costs and enhance revenues, we found that changing the way we do business as a County is imperative as we st advance into the 21century. Just as innovation and adaptability are the action words for private enterprise, these same concepts must motivate the public sector if we are to reduce the cost of government yet still provide essential services to support the quality of life its citizens desire. As the Commission gathered input from departments, legislators and County employees, we found that many excellent suggestions to save costs and enhance revenues were not being taken into consideration. The lack of flexibility in the negotiation of union contracts prevents the application of reasonable and efficient cost saving measures. The absence of a county-wide technology plan promotes inefficiencies of operations. A resistance to adoption of simple cost saving measures such as online approvals and electronic signatures makes the County’s contracting process slow and unresponsive. Continuing practices such as extending homeowner exemptions to unpermitted buildings not only short changes the County coffers, but encourages unsafe and unsanitary living conditions while forcing all the County’s residents to pay higher tax rates to fund this practice. The Commission decided to tackle its mandate by looking not only at ways to reduce the costs of government, but also by identifying ways to enhance revenues. Are building permit fees too low? Could the County charge user fees for services that are currently offered for free? We looked at what services really are the responsibility of the County to provide and how we can continue to support the needs of the island’s population and visitors without being forced to reduce public services to an unacceptable level. This Commission served during an especially difficult economic downturn as reflected by furlough days and implementation of other drastic measures to contain costs, yet the recommendations provided herein should be guiding principles for our County government even when the economy is expanding. 3