Shared services is a collaborative strategy about optimizing

Shared services is a collaborative strategy about optimizing staff, equipment and facilities and other corporate or public resources across jurisdictions to improve operational efficiencies and service delivery. 1

How we got here- Govt Spending: $47. 8 billion (1993) $107. 2 billion (2009) Gross State Product: $268 billion (1993) $462 billion (2009) Population: 11. 1 million (1993) 11. 5 million (2009) www. beyondboundaries. ohio. gov 2

3, 962 20, 232 784, 000 www. beyondboundaries. ohio. gov 3

A glimpse at the future. Fiscal Gap- US GAO “State and Local Governments’ Fiscal Outlook” April 2012 http: //gao. gov/assets/590/589908. pdf …equivalent to a 12. 7 percent reduction… The fiscal gap is an estimate of the action needed today and maintained for each year to achieve fiscal balance over the next 50 years www. beyondboundaries. ohio. gov 4

Ohio’s situation has been studied and well documented… This isn’t a Partisan Issue: § “Ohio’s individual cities and townships have taken on expenses that are unsustainable, and the state’s ability to assist them is limited. Regional approaches to collaboration and coordination are necessary to preserve services to Ohioans and achieve affordability. ” p. 19 Compact with Ohio Cities Task Force, January, 2010 This isn’t a New Issue: § What the state has generally not done is step back and redesign major systems and their governance and finance structures with a goal of improving program and policy effectiveness. ” Redesigning Ohio , December 2010 This is a Leadership Issue: § “The Commission, as a whole, concluded from testimony and research that the citizens of Ohio, in numerous cases, already enjoy some of the benefits of collaboration currently permissible under current law. It also determined, however, that in many cases, it wasn’t the ‘rules of the game’ that inhibited cost-saving collaboration, but rather the ‘players in the game. ” Commission on Local Government Reform and Collaboration, 2010 www. beyondboundaries. ohio. gov 5

Our world is changing… When the speed of change outside the organization exceeds the speed of change within. . . The end is in sight! Jack Welch, C. E. O. , General Electric www. beyondboundaries. ohio. gov 6

Our world is changing… www. beyondboundaries. ohio. gov 7

The Roadmap to Change. Beyond Boundaries § Beyond Boundaries: A Shared Services Action Plan for Ohio Schools and Governments § § Ten Recommendations; Major Recommendations included in the MBR- HB 487 & HB 509; Regional Shared Service Centers; Results of the Shared Services Survey: § 32 types of governments identified, 5, 867 potential respondents, 1, 789 completed, § 15 Questions, 9 categories, 91 examples of types of shared services, § Highest rates in Technology, Joint Purchasing, Instructional Support, www. beyondboundaries. ohio. gov 8

Broad Themes of the Plan § Sharing Services Should Be Simple; § Creating a Network of Regional Shared Services Centers; § Applying Market Forces to Ensure Positive Results; § Keeping the Momentum of Shared Services; § Following the Shared Services Model. www. beyondboundaries. ohio. gov 9

Beyond Boundaries: Ten Recommendations Recommendation Status 1) Use Shared Service Authority (p. 11) HB 153, Revised HB 225 2) Remove Additional Barriers (p. 12) HB 487, HB 509, FY 14 -15 budget 3) Review Educational Service Centers (ESCs) and Information Technology Centers(ITCs)- create Regional Shared Service Centers (RSSCs) (p. 13) New Legislation, ODE Policy, and FY 14 -15 Budget 4) Apply Market forces to RSSCs (p. 14) ODE policy and FY 14 -15 budget 5) Develop Tools-2 portals (p. 18) HB 487 6) LGIC Bonus Points (p. 20) LGIC Policy (January, 2012) 7) Create Benchmarks (p. 20) TBD 8) Create Triggers (p. 21) HB 509 9) State Associations Support Effort (p. 21) TBD 10) Use Shared Services Model (p. 24) State and Local Policy www. beyondboundaries. ohio. gov 10

Statewide Examples of Shared Services Potential § The Management Council of the Ohio Education Computer Network estimates that regional coordination of shared technology services, along with development of regional datacenters and shared “cloud services” could yield at least $91 million in accumulated savings over the next five years. § A 2010 study by RCC Consultants indicates that utilizing MARCS (Multi. Agency Radio Communication System) at a statewide level through coordination of a “system of systems” could yield over $500 million in savings to ongoing capital and operating expenses for the state and local governments between now and 2020. § A study by the Mercer Group indicated potential savings from pooling healthcare insurance purchases among Ohio school districts and institutions of higher education could result in savings of up to $318 million, or about six percent in costs, over a two-year period. www. beyondboundaries. ohio. gov 11

“Regionalism” (Fear Factor) www. beyondboundaries. ohio. gov 12

“Shared Services” (The Vision) Center of Excellence www. beyondboundaries. ohio. gov 13

Our world is changing… “Our business model has changed permanently. In order for us to maximize our service to students and our impact on the community, we need great partners. If shared services with like-minded partners enables us to do something better, faster, and cheaper, we’re compelled to consider it. My guess is in some cases we’ll be buyers, in other cases we’ll be sellers. ” – David T. Harrison - President, Columbus State Community College. www. beyondboundaries. ohio. gov 14

Be Aggressive and Connect the dots… “Budget Bingo” www. beyondboundaries. ohio. gov 15

Shared Services Categories § § § § § Technology- 19* Administration- 26 Public Works- 34 Public Safety- 67 Education – Instructional Support- 17 Economic Development- 23 Health and Human Services- 15 Fleet Management and Operations- 20 Facilities- 6 Other-11 * Examples listed in shared Services Idea Center www. beyondboundaries. ohio. gov 16

H L H H Educational Service Center (ESC) 56 H H H L H H Information Technology Center (ITC) 21 H H H L H H County Office (Commissioner) 88 H H H H County Office (Auditor, Recorder, Treasurer) 88 H H L M County Office (Engineer) Public Safety Public Works Facilities H H Human Services Economic Development H 49 Traditional School District # Administration 614 Joint Vocational School District Organization Technology Education – Support Fleet Management Budget Bingo 88 H H County Office (Sheriff, Prosecutor, Clerk, Coroner) County Office (Treasurer) Municipality or Village 88 88 932 H H M H L H H L H H H H Court 720 H H M L L H 1308 H H H M H H Hospital 17 H H M H L H College or University 37 H H H M L L H Joint Fire or Ambulance District 130 H H M H L H H Library District 251 H H M L H Metropolitan Housing Authority 15 H H M H L M H Park District 90 H H M H H L Solid Waste Management Authority 52 M H L L L Transit Authority 46 H H H M Water and Sewer District or Authority 42 H H H L Metropolitan Planning Organization 23 H ? L ? ? H ? ? L ? 126 H H L M 88 H H L L H H M H Township Council of Governments (COG) not listed above Local Health Districts Board of Developmental Disabilities ? ? ? www. beyondboundaries. ohio. gov 17

Shared Services Success§ City of Green (popn. 25, 000) and Green City Schools (enrollment 4, 000) § § Shared administration building, pooled health care, county building, county health, Sheriff provides police services, dispatch Results: 7% to 8% savings in $24. 6 million annual budget § City of Tallmadge (popn. 17, 537) (GRF $13. 2 Million, all funds $28. 7 Million) § § Shared dispatch, county building, regional income tax, JEDD, IT consolidation and upgrade, shared heavy equipment (with 12 communities) Results: 2008 General fund balance $2. 2 million July 2012 balance $5. 1 Million with NO tax increases, NO layoffs. § Harrison Hills Schools (enrollment 2, 031, budget $15 Million) § Over a Dozen Shared Service projects with other schools, local governments and county agencies § Results: Turnaround from Fiscal Caution to $717, 900 “Taxpayer Savings” § Summit County and it’s townships, cities and villages(543, 000 popn) § § Akron, Barberton, County combined Health District 25 Communities have combined building departments § Results: American City and County Award, reduced fees, increased services www. beyondboundaries. ohio. gov 18

State Support (Tools) § § § § § Beyond Boundaries. ohio. gov Skinny. Ohio. org (Auditor of State Dave Yost) Local Government Innovation Program Public Notice Website and Public Notice Newspaper Publishing DAS Office of Information Technology MARCS Public Employees Health Care Program Local Government Debt Collection- Attorney General Joint Purchasing Portal www. beyondboundaries. ohio. gov 19

Beyond Boundaries. Ohio. gov § Report, news stories, examples, visits, links: http: //www. beyondboundaries. ohio. gov/index. aspx www. beyondboundaries. ohio. gov 20

Skinny. Ohio. org § Access Tools and Information and the Shared Services Idea Center www. beyondboundaries. ohio. gov 21

Local Government Innovation Program § $45 Million Fund- Access applications, results, projects, calendar here: http: //development. ohio. gov/cs/cs_localgovfund. htm www. beyondboundaries. ohio. gov 22

Public Notice Website § Publish first Ad in paper, then refer here. Searchable, RSS feed § http: //publicnotice. ohio. gov, http: //business. ohio. gov/efiling/help/createacct. stm (Create account) www. beyondboundaries. ohio. gov 23

DAS Office of Information Technology (OIT) • Specific opportunities for technology services include: • Shared servers/infrastructure, Data center activities/migration, • Vo. IP, Networking efforts, Virtualization and e-Mail http: //das. ohio. gov/Divisions/Information. Technology/Stateof. Ohio. ITService. Catalog. aspx www. beyondboundaries. ohio. gov 24

MARCS www. beyondboundaries. ohio. gov 25

Public Employees Health Care Program § Since July 2011, the Public Employees Health Care Program (PEHCP) has focused on three main areas. § Best Practices Survey: administered in May 2012 § Advisory Committee will begin meeting soon § DAS will propose revisions in FY 14 -15 budget to 9. 901 § The PEHCP mission is to reduce health care costs for public employers with flexibility and through the expansion of regional pooling efforts. Findings and Alternatives for schools and local governments will be posted through Purchasing portal § § For more information contact: Cheryl Reeves Public Employees Health Care Program 614 -644 -8608 Cheryl. Reeves@das. state. oh. us www. beyondboundaries. ohio. gov 26

Debt Collection- Attorney General § § Local governments can certify debt to the Attorney General for collection when the receivable becomes 45 days past due. ORC Section: 131. 02 Contact: Sherry Phillips (Attorney General’s Office) Phone: (614) 466 -5160 Email: sherry. phillips@ohioattorneygeneral. gov www. beyondboundaries. ohio. gov 27

Joint Purchasing Portal § Some examples of shared administrative services available through the purchasing portal: § § § § Grant administration Purchasing opportunities and contracts Printing Services HR and benefits management Business services Insurance Food service § Searchable site by keyword, program name or other identifiers § Anticipated Go-Live January 2013 www. beyondboundaries. ohio. gov 28

Be Creative 29

Job-A-Bego www. beyondboundaries. ohio. gov 30

P. L. A. Y (play and language for autistic youngsters) www. beyondboundaries. ohio. gov 31

Questions? Contact me Randy. Cole@obm. state. oh. us 614 -949 -1182 Twitter: @crandycole www. beyondboundaries. ohio. gov 32