Governor Cites Progress in Implementing SAGE Commission Recommendations but Many Proposals Still Await Action

CARSON CITY – Gov. Jim Gibbons is touting his successes in implementing recommendations from his SAGE Commission on ways to improve efficiencies and save money in state government, but many of the proposals remain in progress or will require action by the 2011 Legislature.
In a press release issued first by his office and then his campaign, Gibbons says eight of 44 recommendations from the panel of private business people he appointed in May 2008 have been fully implemented.
Another 19 are in progress or planned for implementation following the 2011 legislative session, assuming lawmakers are supportive of the proposals.
Gibbons praised the privately-funded commission, saying its work, “is invaluable to my staff as we continue to work on ways to make Nevada government smaller, smarter and more efficient. My daily goals are to get Nevadans back to work and to make government less burdensome on our economic recovery,� he said.
Gibbons is facing a tough re-election campaign, with two GOP opponents on the ballot in the June primary. Polls show him trailing former federal judge Brian Sandoval.
The 14-member bipartisan Spending and Government Efficiency Commission first met in June 2008, issuing reports and recommendations every 90 days. The final report of the panel was released in January.
Some of the recommendations already implemented or in progress will save millions of dollars, based on the commission’s analysis, although the actual savings may be different depending on when they are finalized.
They include:
-          Centralized billing for the Division of Mental Health and Developmental Services, with an estimated savings of $12 million by the Sage Commission. This was accomplished in the 2009 budget.
-          Setting staffing ratios at state run psychiatric facilities based on private sector and national norms. This too was accomplished in the 2009 budget with a SAGE savings estimate of $36 million.
-          Implementing managed care for the aged, blind and disabled populations being served by Medicaid in Clark and Washoe Counties, and expanding managed care to women and children in four rural counties, for an estimated savings of $36.5 million. This effort is in progress.
But many of the most sweeping proposals, including major changes to both the state employee health insurance plan and public employee retirement system, have yet to be accomplished. The proposals did not get support from a majority of lawmakers in the 2009 session.
A recommendation to close the Nevada State Prison at a savings of $19 million a year has also been rejected by lawmakers.
Lynn Hettrick, deputy chief of staff to Gibbons, said the closure remains on the table because of the $29 million cost to repair the outdated facility and because there are empty beds in other correctional facilities that could accommodate the approximately 700 inmates housed there.
The Gibbons release on the SAGE implementation process notes that it could be closed by executive order, bypassing the Legislature, if the state economy does not recover.
Bruce James, chairman of the panel and a former U.S. Public Printer, praised Gibbons for his ongoing efforts to implement the recommendations.
“He’s doing all he can to move forward,� he said. “We have to give him credit.�
James said some of the cost-saving and efficiency ideas may be better received in the 2011 session because of the serious budget shortfall facing lawmakers.
“Without question we’re going to be in tougher times next legislative session,� he said. “Everyone will be looking at ways to reduce expenditures without reducing citizen services. We want to make sure we do not diminish the quality of services.�
James said he has also heard the SAGE report mentioned by a number of candidates seeking legislative seats, another sign the report won’t gather dust on a shelf.
The report was the result of hundreds of hours of work by the panel members, and even more time from a small privately supported staff, he said. Hundreds of people testified before the commission and the final recommendations were carefully evaluated before being moved forward, he said.
All but two of the recommendations involving the state health insurance program received unanimous support from the commission, James said.
The SAGE Commission issued 90-day reports starting in the fall of 2008 but many of the recommendations did not get favorable attention in the 2009 legislative session.
James said he had hoped lawmakers in 2009 would have made more progress on the recommendations.
“I think the Legislature could have done a better job, but it is fair to say they probably didn’t understand a lot of the recommendations,� he said. “Perhaps the governor and the Sage Commission could have done a better job of engaging the Legislature.�
James said he would especially like to see more progress from the Legislature on the proposals for the public employee health insurance and retirement systems.
They include requiring state employees to pay more of the cost of their health care, similar to what is offered in the private sector. This change would save $322.7 million according to the SAGE Commission if it had been implemented on July 1, 2009.
While the 2009 Legislature did make a few changes to the retirement plan for new hires starting Jan. 1, 2010, James said more must be done to bring the public employee benefits into line with those offered in the private sector.
Assemblywoman Sheila Leslie, D-Reno, said many of the SAGE Commission recommendations will be under discussion in 2011 because they are ongoing issues of concern to lawmakers, whether it is the cost of state employee health care or ideas for reforming the public pension system.
While many of the issues likely will be under discussion, there are differing views on what should be done, she said.
Some SAGE recommendations, such as closing Nevada State Prison, were just not feasible, Leslie said. The actual savings were not as large as suggested, and the plan for relocating the inmates was not well thought out, she said.
“Some ideas sound good in theory but when we go to implement them another picture emerges,� Leslie said.
While the efforts of the SAGE Commission are welcome, the Legislature’s own Audit Division reviews all state programs and agencies on a rotating basis and in a methodical way that removes any element of politics from the process, she said.
This ongoing review process is likely to be a more valuable way to come up with ways to make state government more efficient, Leslie said.

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