Reorganization: a program to save Georgia's taxpayers millions of dollars and improve services [1972]

REORGANIZATION
A PROGRAM TO SA VE GEORGIA'S TAXPAYERS MILLIONS OF DOLLARS AND IMPRO VE SER VICES.

"REORGANIZATION IS AS IMPORTANT TO THE FUTURE OF GEORGIA'S STATE GOVERNMENT AS EDUCATION IS TO THE FUTURE OF OUR YOUNG PEOPLE."
Governor Jimmy Carter

WHAT IS REORGANIZATION?
Reorganization and Management Improvement is a program to make State Government easier for citizens to deal with and more responsive to their needs. It will reduce the costs of government and improve services at the same time.
Reorganization will be accomplished in",three ways:
-- Reducing the number of State agencies to eliminate duplicating and overlapping activities caused by uncoordinated and unplanned growth.
- Streamlining governmental activities common to most State agencies to reduce costs and provide more efficiency.
- Implementing management procedures within or between departments that will improve services and bring all phases of State government closer to Georgians.
WHY IS REORGANIZATION NEEDED?
Reorganization is Georgia's first effort in 40 years to realign the functions of State Government. In 1931, then-Governor Richard B. Russell reorganized State Government and reduced the number of State agencies from 107 to 18. Now the Executive Branch comprises approximately 300 agencies, departments, boards, bureaus, commissions, committees, councils, and authorities.
This is a 1,600 percent increase while State population was climbing only 50 percent.
GROWTH NOT ORDERLY This increase in the size of State Government
has not been orderly. An antiquated and unwieldy organizational structure has evolved that is confusing to citizens, legislators, Governors, department heads, and State employees.
The present structure is costly in time and effort and is not serving citizens as it should.
NUMBER ONE PRIORITY In one of his first actions after taking office,
Governor Jimmy Carter asked the General Assembly to make reorganization of the Executive Branch of State Government the State's number one priority. Passage of House Bin 1 at the 1971 session established this priority. (The judicial and legislative branches are' not a part of this study.)
ECONOMIC IMPACT
The proposed reorganization plan can provide the State $60,863,700 in net annual financial benefits and $20,446,000 in net one-time savings. These benefits would come through cost reductions, cost avoidance (not spending funds already scheduled for expenditure), and revenue increases. (See chart on

pages 4 and 5 for a detailed analysis of financial benefits.) .
EMPLOYEE PROTECTION
As a matter of policy any employee whose present assignment is adversely affected by reorganization will have an opportunity to be reassigned to another open State position. Any reduction in personnel will be handled through normal attrition.
EXECUTIVE COMMITTEE
Governor Carter appointed an Executive Committee, which he headed as Chairman, to advise and work with him on the study. Other members were Senator Lamar Plunkett; State Representative George Busbee; Budget Officer Battle Hall; Auditor Ernest Davis; Clifford Clarke, President of the Georgia Business and Industry Association; and Tom Linder, Jr., State Planning and Community Affairs Officer who served as project director.
WHO MADE THE STUDY?
Most reorganization studies in other states have been conducted by one of three groups: (l) State personnel, (2) Business or labor executives on loan from their companies or organizations, or (3) Consultants.
Because of the importance of reorganization, Georgia decided to call on the talents of all three groups. The 117 persons who worked full-time on the study included 48 State employees, 65 volunteers representing business and labor, and four representing a nationwide management consulting firm.
EXPERIENCED STAFF
Governor Carter personally recruited the team by contacting the chief executives of many of Georgia's leading companies as well as State department heads and asking them to assign a qualified person to participate in the project for periods ranging from two to six months. In each instance, experienced and highly qualified individuals were volunteered.
The business executives brought more than four centuries of experit:nce to the project. State employees working on reorganization totaled more than three centuries of experience, most of it at government management levels.
Each participant in the study was assigned to a team based on his qualifications. Utmost caution was taken, however, to avoid having any person study his own department, a department regulating his business firm, or any other assignment involving a potential conflict of interest.
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"We assembled a capable and hard-working staff," Governor Carter said. "This is reflected in the quality of the study and final report."
Thoroughness and accuracy were stressed throughout the study. Teams reviewed every legislative report made during the past five years to find ideas and recommendations for consideration. Other previous studies of the Georgia State Go~rnment were also reviewed. In addition, reorganization reports from other states were studied.
State department heads participated in every phase of the study. Specialists in industry, education, and government were sought out and consulted wherever possible.
300 RECOMMENDATIONS The study resulted in some 300 recommendations
to improve the State Government. The recommendations covered some 2,500 pages and reflected over 34 man years of effort on the part of project members. Governor Carter devoted over 20 percent of his time to a personal involvement in the study.
Many of the study recommendations originated with department heads or within existing State departments. Several that involved administrative changes have already been implemented at a savings of several hundred thousand dollars a year.
"We believe the study was the most thorough and complete ever conducted of a State Government," Governor Carter said. "Every recommendation was reviewed by three different review groups to insure thoroughness, objectivity, and the application of sound business principles. The final report is a team effort that provides a blueprint for an efficient and economical State Government."
MANAGEMENT IMPROVEMENT
The management improvement recommendations represent a key element of the total reorganization program. These recommendations can not be put into practice without the successful structural reorganization of State agencies. Also, projected savings are dependent on economies that are possible through consolidation of functions to reduce administrative costs and attract highly qualified personnel. An example is in the proposed Department of Natural Resources, which will absorb the functions of 36 existing State agencies. The administrative affairs of all these agencies - now handled separately by each one - will be consolidated into one operation through reorganization at a major reduction in expenses.
IMPLEMENTATION
House Bill 1 provides that the reorganization plan automatically will become law if the General Assembly does not veto the plan within 15 calendar days after the 1972 session opens.
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ESTIMATED FINANCIAL BENEFITS OF REORGANIZATION

PROPOSED DEPARTMENTS Governor's Office Agriculture Attorney General Comptroller General
Labor Public Service Commission Secretary of State ... Planning and Budget Administrative Services

*COST REDUCTIONS

ONE-TIME

ANNUAL

$ 260,000

$ 348,000
73,000 20,000

Revenue Community Development University System of Georgia

563,000

Education Natural Resources Human Resources Veterans Service Defense Public Safety Financial Regulation
Tran~portation

(60,000)

1,884,000 852,700
43,000 9,394,800

ANNUAL COST REVENUE INCREASES

AVOIDANCE ONE-TIME

ANNUAL

$ 69,000

$ 2,000,000
$ 280,000 470,000
4,900,000

300,000 6,972,000 1,370,000
760,000

SPECIAL STUDIES

Air Transportation

Capit&1 Construction

Cash Management

Cash Receipts

Communications

Data Processing

Insur'lnce

(4,000,000 )

Laboratories

(3,000,000 )

Motor Vehicles

(2,000,000)

Payroll

Personal Property Management

'.11

Personnel

Printing and Publications

Purchasing

Records Management

746,000

Space Management

SPECIAL IMPLEMENTATION COST

(4,000,000)

TOTAL NOTE:

**(-$i 2,054,006\ - - - - - - - _ . _ - - - - - - - - _ . _ (A)

Net Annual Financial Benefit $60,863,700 (B+C+E)

Net One-time Financial Benefit $20,446,00 (A+D)

* These figures are net of costs to implement.

**Brackets indicate Det of costs to implement.

600,000
147,000 800,000 570,000 (1,746,000) 2,485,950 1,500,000 132,000
65,000 605,000 9,600,000 176,000
$28,113,450
- - [ B } - -~~-

2,670,000
12,000 274,000 830,000 $ 9,436,000
--(-C-)--- -

30,500,000

2,000,000 10,799,000
317,500

726,750

$32,500,000

(D)

\'

$23,314,250
-~ T E- ) -- - -

All estimates were made by the Reorganization Team.

The bill also provides that constitutional officers can veto proposals affecting a function assigned to them by statute or the Constitution. Vetoed proposals can be submitted as separate legislation, but must go through the normal legislative procedures for passage.
Legislative approval of the Reorganization Plan is only one step towards its implementation. Additional legislation and several amendments to the Georgia State Constitution will be necessary. Those constitutional amendments approved by the General Assembly will be submitted to the voters in the November 1972 general election.
One proposed constitutional amendment would limit the number of State Departments to 20 the number proposed in the Reorganization Plan. Implementation of this recommendation will keep the number of new agencies from growing out of control as they have in the past. As new functions are added to State Government, they will be placed within the existing structure rather than starting new agencies.
Complete implementation will require the continuous effort of the Governor, Legislature, and agency heads for several years.
NO NEW PROGRAMS The study dealt with the organization of State
Government and the management techniques employed in providing the most effective delivery of services at the smallest cost. The specific programs of government such as health, education, and law enforcement were not studied except for management considerations.
Reorganization also will not involve any new governmental programs. The legislative act said new programs could not be considered.
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.NEW STATE DEPARTMENTS
The 65 existing budgeted agencies are being reduced to 20 through reorganization. Unbudgeted agencies are being attached or their functions transferred to one of the 20 budgeted agencies.
Each of the new 20 departments embraces activities relating to a specific functional area such as natural resources, administrative services;~financial regulations, etc.
Following is a short summary of the new departments and their responsibilities:
NATURAL RESOURCES Thirty-six budgeted State agencies now have
some responsibility for developing or protecting the State's natural resources of air, land, water, fOFests, and wildlife, and making resources available for recreation. All 36 will be merged into one new department with overall responsibility for upgrading quality, use, and protection of natural resources.
Transferred to this department will be such existing agencies as Parks, Game and Fish, and Forestry. Also included will be recreational facilities such as the Stone Mountain Memorial Park and Jekyll Island. All seven of the State's anti-pollution functions will be combined into an Environmental Protection Division.
EDUCATION This existing department will continue to be
responsible for insuring a quality education for Georgia children. The major functional change is the transfer of Vocational Rehabilitation to the new Department of Humatl Resources so that all services that are provided to the same group of citizens will be together.
The State School Superintendent would be appointed by the State Board of Education instead of elected, if an amendment to the State Constitution is approved.
FINANCIAL REGULATION Regulatory powers over financial institutions
and security sales are now scattered among several State agencies. They will be merged into this new department to provide a centralized point in State Government for consumers to seek relief from fraudulent or unfair financial practices. To be supervised by this department are security sales, Statechartered savings and loan associations, industrial loan companies, and State banks.
COMPTROLLER GENERAL This office will continue to be responsible for
insurance regulation and fire safety. In addition, the Board of Workmen's Compensation, now a separate agency, and industrial safety from the Department of Labor will be transferred to this department to consolidate all functions relating to insurance. The
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PROPOSED NEW STATE DEPARTMENTS

Department of
Agriculture

Office of the Attorney General

v

Office of the Comptroller
General

[~

Department of Administrative
Services

Department of
Revenue

Department of Community Development

Department of Human
Resources

Department of Veterans Service

Department of
Defense

regulation of industrial loan companies is being transferred to the new State Department of Financial Regulation. Arson investigation leading to criminal prosecution is being transferred to the Department of Public Safety with other activities that an basically law enforcement functions.
ATTORNEY GENERAL This existing Law Department headed by the
Attorney General will continue its current responsibilities of representing the State in all legal matters, advising the General Assembly or its committees and investigating charges of malfeasance against State officials.
TRANSPORTATION Developing and coordinating a transportation
plan that considers all modes of travel for the entire State will be a responsibility of this new department. It will construct and maintain State and federal highways, and provide other transportation facilities such as airports and mass transit as authorized by the General Assembly.
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.>-

Department of
labor

Public Service Commission

Office of the Secretary of State

Office of
- Planning and Budget
I
University System of Georgia
I
Department of Public Safety

I
Department of
Education
I
Department of Financial Regulation

I
Department of Natural
Resources
I
Department of
Transportation

Transferred to this department will be the present Highway Department, and the Division of Aviation, and the Metropolitan Atlanta Rapid Transit Authority (MARTA) funding program presently in the Department of Industry and Trade.
OFFICE OF PLANNING AND BUDGET This new agency will serve in a staff capacity
to the Governor in areas of budget and planning. It absorbs the present Budget Bureau; Intergovernmental Relations and State planning from the present Bureau of Planning and Community Affairs; and the advisory functions of the Georgia Commission on the Arts and the Science and Technology Commission.
DEPARTMENT OF ADMINISTRATIVE SERVICES
Support services common to all agencies will be provided by this new department. These services are now scattered among 16 different agencies. Existing departments to be absorbed include the Treasurer's Office, Purchasing, and Merit System,
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among others. No direct services to the public will be provided. Several million dollars in savings will be realized by eliminating duplicating and overlapping functions.
The constitutional office of State Treasurer would be abolished and the duties of handling State funds placed in a division of this department. Georgia voters must approve this change.
LABOR This existing department will continue to be
responsible for carrying out programs of the U.S. Department of Labor and enforcing Georgia's labor laws. The industrial safety function will be transferred to the Comptroller General's office.
COMMUNITY DEVELOPMENT This new department will bring together and
expand most of the programs through which the State provides planning and economic development assistance to local communities. Combined into a single agency will be most of the State Department of Industry and Trade, and the Community Affairs Division of the Bureau of State Planning and Community Affairs. This department will assist area planning and development commissions and communities in comprehensive development programs.
GOVERNOR'S OFFICE This existing office will continue to provide
the support services needed by the Governor to direct the operations of State Government.
HUMAN RESOURCES Eight separate State agencies and more than
50 different programs now serve the social and health needs of Georgians. This has created many frustrations for citizens seeking help. The objective of this new department will be to create a single force responsible for providing a comprehensive program for Georgians who need help in such areas as physical and mental health, welfare, probation and parole, drugs, and others. It is also recommended that State programs involving housing be placed in this department.
Combined in one agency will be the present Department of Public Health, the Department of Family and Children Services, the Office of Vocational Rehabilitation (from State Department of Education), the Corrections Department, the Pardons and Paroles Board, the Probation Department, the Commission on Aging, and the Cooperative Area Manpower Planning Systems (including the Youth Opportunity Council) from the Governor's Office.
UNIV,ERSITY SYSTEM Responsibility for providing a quality higher
education for Georgia students will continue in this existing State agency.
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The five student financial aid programs now administered by nine State agencies will be consolidated under the central administration of the University System Academic Affairs Division.
SECRETARY OF STATE The duties of certifying and maintaining official
State records, providing staff support to certain State Boards and promoting interest in the history of the State will remain with the existing office of the Secretary of State. It is recommended that the State Constitution be amended to vest the authority of incorporation of Georgia' businesses in the Secretary of State, a responsibility now held by Superior Court judges. The State Library will be transferred to this office. New legislation is now being prepared in cooperation with the Secretary of State concerning transfer of a strengthened securities regulation function to the Department of Financial Regulation.
PUBLIC SAFETY All major State activity in the areas of public
safety, criminal investigation, and law enforcement are being combined for the first time in this existing department. Responsibilities will include all present functions of the department in addition to arson investigation from the State Fire Marshal's office, drug abuse investigation from the State Pharmacy Board, and the Office of the Coordinator of Highway Safety.
PUBLIC SERVICE COMMISSION The present regulatory powers of this existing
Commission over transportation and utility companies will ultimately be expanded to include certificate and regulatory powers, including financing, rates schedules, safety, etc., for water and sewerage, all communications, transportation, and energy resource use industries. The five-member commission will become a policy-making and appeals-hearing body, with examiners assigned to handle complaints and conduct certificate hearings.
DEFENSE This existing department will continue to have
a dual responsibility: (l) Protection of citizens during natural disasters such as floods and civil disorders, and (2) Participation in security, readiness, and defense of the State and nation in emergencies.
VETERANS SERVICE This existing department will continue to be
responsible for assisting Georgia's veterans in getting the benefits and services to which they are entitled by virtue of serving their country.
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AGRICULTURE Consumer protection - one of two basic
functions of this existing department - will be strengthened by the transfer of more than a dozen functions from other departments that involve inspection, regulation and laboratory analysis. These functions logically relate to the consumer protection responsibilities of agriculture. The other basic function of this department is economic development invoi ving agricuklral products.
REVENUE This existing department will continue to enforce
the state's tax laws, colicct all tax revenues, and audit personal and corporate financial records. It also will continue to enforce all stale liquor laws.
SPECIAL STUDIES
Studies of 16 Jjfferent governmental activities such ~,s purchasing and communications that are common to most or all departments were made to find ways to reduce costs and provide better services to taxpayers.
Study teams made the following observations and rEcommendations:
MOTOR VEHICLES A central State agency should be created to
coordinate and set guidelines for the use of State metor vehicles. Also, State lav,' should be amended to authorize purchase of passenger cars for use by employees traveling on official State business - an action that would reduce costs from 10 to less than seven cents a mile. Savings are estimated at $1.5 million a year.
PURCHASING Georgia can be saving $9,600,000 annually
within thrte years by overhauling Its entire purchasing structure. Ninety-eight percent of all State purchases are now mack 1y individual requisitions - the most expensive method of procurement. Buying in large volume will provide the savings.
COMl\WNICATIONS Sweeping changes in the State's communications
systems are recommended with an estimated annual savings of $800,000. More than half a million dollars of These savings wm come from reducing costs of long distance telephone calls.
PRINTING AND PUBLICATIONS A printing and publisiling unit should be
esta hlished in the Department of Administrati"le Services. This unit should consolidate the existine 42 printing units on Capitol BiB into eight units
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and develop and publish printing standards, policies, and procedures for all State agencies, among other duties. A document committee should be created to establish general guidelines and policies for the purchase or production of State publications. Financial benefits are estimated at $605,000 in annual cost reductions and $726,750 in annual revenue increases.
.--
CASH RECEIPTS Eight changes in revenue collections are rec-
ommended that will provide the State a one-time cash windfall of $30.5 million, annual revenue of $10,799,000 and annual savings of $147,000. A greater degree of control over handling of taxpayer funds will also be provided. The biggest windfalls would be $13.4 million by requiring semi-monthly deposits of sales tax receipts by large-volume vendors rather than once a month, $10.8 million by requiring payment of insurance premium taxes monthly instead of annually, and $5 million from changes in remittance dates for income tax withholdings.
CASH MANAGEMENT The State maintains over 300 sep"rate checking
accounts. Better control of bank accounts will free millions of dollars in State funds to yield some $2 million a year in additional investment revenues.
CAPITAL CONSTRUCTION The State should abandon authority bond
financing for major State construction projects and start issuing general obligation bonds. A higher rating on bonds would result and closer accountability for funds will be possible, saving the State some $600,000 a year.
DATA PROCESSING The State spends some $20 million per year on
data processing services and facilities. A Division of Information and Computer Services should be established within the Department of Administrative Services to serve as the single agency administratively responsible for providing all computerrelated services required by State Government. Savings would total $570,000 annually, with cost avoidance of $2,670,000 per year.
INSURANCE The State's self-insurance and other insurance
programs should be expanded to provide greater coverage and protection. Proposed changes would provide self-insurance to replace the present bonding of public officials, authorize tort liability actions against the State, establish mandatory self-insurance for all public school buildings, increase employee health insurance, and increase reinsurance protection, among others.
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BETTER SERVICE THROUGH EFFICIENCY
More than half of the some 300 recommendation memos made by the reorganization study teams dealt with wa% to achieve greater efficiency, better management techniques, and improved services within departments or between departments. Some of the recommendations and findings are:
ANTI-POLLUTION Protection of the State's environment is now
split into seven programs in four different agencies. All of these programs will be merged into the Environmental Protection Division of the State Department of Natural Resources to create a single agency charged with the abatement, control, or elimination of pollution and environmental protection of the State.
OFFENDER REHABILITATION A new program is proposed to rehabilitate
criminal offenders by emphasizing career planning beginning with pre-sentencing and continuing until release. All rehabilitation duties now split between three agencies - Pardons and Paroles, Probation and Corrections - will be merged and expanded.
HEALTH A "minimum foundation program" for health
services is proposed. To accomplish this goal, the State will assume responsibility for administering health services. Present county contributions will be frozen at $15 million and the State will pay for all new programs. District boards will be created to provide a broader scope of services. Present county health employees will become State employees. The present level of health services is dependent upon the willingness of counties to match State funds. The same level of services will be provided in every area of the State under the new plan.
WELFARE Welfare recipients are now eligible for varying
amounts of monetary benefits and social services, depending upon the county in which they live. The State will assume greater responsibility in providing welfare aid and will develop a standardized program for all citizens. No longer will programs and regulations be subject to 159 different interpretations which historically have made benefits different over the State.
Welfare services will be administered on a district basis. Under the district system, each county will continue to be served by a full or part-time satellite office. Welfare employees will work for the State and no longer will be limited to working only in one county.
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EDUCATION
Some 25 separate recommendations were made to improve the quality of public and higher education. cooperation and planning were emphasized.

Concerning cooperation, a seven-member coordinating committee comprised of the Governor and the top State educators was proposed tofollter more cooperation between the State Board of Educalion and Board of Regents. Mandatory cooperation was suggested between vocational-technical schools and junior colleges, although they would remain
separate.
Concerning planning, study teams recommended a mandatory multi-year plan for public education and a strong framework for planning and control within the University System.

Other higher education recommendations would

change the method for allocating funds to colleges

and universities and charge matriculation fees solely

on a uniform quarter-hour basis.

t

An expanded program of "shared services" was recommended for public schools. These are services which a single system can not afford, but two or more can afford through a joint effort.

It was further recommended that the Governor appoint a study group to determine what resources (federal, State and private) are necessary to provide a program of greater educational opportunity, including a post-secondary education, to all Georgians.

TRANSPORTATION AND HIGHWAYS
Creation of a Planning and Programming Division in the new Department of Transportation is recommended. Required would be a five-year construction program and a long-range, 20-year comprehensive transportation plan. Other highway recommendations include: allowing the State to negotiate in buying right-of-way and providing for a "change or revenue" in certain instances; enforcing maintenance agreements with counties on rural roads built with State funds;establishing standards to schedule maintenance and pre-construction activities that can be monitored and evaluated through the use of a computerized cost accounting system.

EMPLOYEE BENEFITS
Reorganization will provide a large number of benefits to State employees. Recommendations include:
- Major medical coverage for State employees should be increased from $30,000 to $50,000.
- A bill should be passed authorizing the purchase of personal automobile insurance through a State group plan at a savings estimated at 15 percent.
- A study to determine the need for the State to reimburse transferred employees for moving expenses.
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- Establishment of a policy to provide for standardized compensatory time-off practices and an overtime pay policy where inequities now exist.
- Self-insurance should be established to cover State employees 'of liability for accidents while on official State duty. This would be coupled with -authorization of limited tort liability actions against the State. If this is not done, the State should purchase insurance to prot.ect employees against accident liability.
- Uniform health benefits for all employees. - Change the law to allow the State to purchase passenger automobiles for employee use. - Bring most non-academic employees of the University System under the Merit System. - Develop stronger training and career development programs. - A uniform retirement age for employees.
The preparation of this document was aided financially through a Federal grant from the Department of Housing and Urban Development, under the Urban Planning Assistance Program authorized by Section 701 of the Housing Act of 1954, as amended. (Ga. P-167)
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printed by Georgia Correctional Industries Press
Reidsville, Georgia