Zero based budget reports, fiscal year 2016

ZERO BASED BUDGET REPORTS
Fiscal Year 2016
Governor Nathan Deal

Table of Contents

Introduction ................................................................................................i Department of Agriculture
Departmental Administration ...................................................1 Department of Banking and Finance
Consumer Protection and Assistance ......................................7 Departmental Administration .................................................12 Department of Behavioral Health and Developmental Disabilities Adult Mental Health Services .................................................17 Department of Community Health Indigent Care Trust Fund .........................................................27 State Health Benefit Plan .........................................................33 Georgia Board for Physician Workforce: Physicians for Rural Areas .................................................................................42 Georgia Composite Medical Board ........................................47 Department of Corrections Private Prisons ..........................................................................53 Transition Centers ....................................................................59 Department of Early Care and Learning Pre-Kindergarten ......................................................................65

Employees' Retirement System System Administration ............................................................72
Georgia Forestry Commission Commission Administration ....................................................78
Office of the Governor Georgia Professional Standards Commission .......................85 Governor's Emergency Fund ...................................................92 Office of the State Inspector General ....................................97
Department of Human Services Child Care Licensing ...............................................................103 Child Welfare Services ...........................................................109 Elder Abuse Investigations and Prevention ........................116 Elder Support Services ...........................................................122 Georgia Vocational Rehabilitation Agency: Georgia Industries for the Blind ..........................................................128
Commissioner of Insurance Insurance Regulation .............................................................134 Special Fraud ...........................................................................142
Georgia Bureau of Investigation Forensic Scientific Services ....................................................150

Department of Juvenile Justice Departmental Administration .............................................158
State Board of Natural Resources Parks, Recreation and Historic Sites ....................................167
Georgia Public Defender Standards Council Public Defender Standards Council .....................................173
Department of Public Health Departmental Administration ..............................................179 Infant and Child Essential Health Treatment Services ....185 Infant and Child Health Promotion ......................................191
Department of Public Safety Aviation ....................................................................................200 Motor Carrier Compliance ....................................................206
Public Service Commission Commission Administration ..................................................213
Board of Regents of the University System of Georgia Marine Institute ......................................................................218 Marine Resource Extension Center .....................................224 Skidaway Institute of Oceanography ...................................230
Department of Revenue Local Tax Officials Retirement and FICA ..............................236

Secretary of State Corporations ...........................................................................241 Elections ...................................................................................247 Office Administration .............................................................253 Professional Licensing Boards ..............................................260 Securities .................................................................................267
Georgia Student Finance Commission Engineer Scholarship ..............................................................274 Tuition Equalization Grants ...................................................280
Technical College System of Georgia Quick Start and Customized Services ..................................286
Department of Transportation Intermodal ...............................................................................294 Local Maintenance and Improvement Grants ...................300
State Board of Workers' Compensation Board Administration .............................................................306

Zero-Based Budget Analysis

Introduction

The Governor's Office of Planning and Budget (OPB) is responsible for managing and developing the state budget. OPB utilized a zerobased budgeting (ZBB) approach to analyze selected programs during the AFY 2015 and FY 2016 budget process. The purpose of the zero-based budget analysis is to assess individual programs against their statutory responsibilities, purpose, cost to provide services, and outcomes achieved in order to determine the efficiency and effectiveness of the program and its activities.
OPB conducted a zero-based budget analysis of approximately 15 percent of all budgetary programs during the fall of 2014. The ZBB review process included a detailed analysis of the cost and sources of funding for program activities, an examination of two years of expenditure trend data, as well as a review of the program's performance through measures capturing the effectiveness, efficiency, and workload of program activities. This analysis was used to develop recommendations for the AFY 2015 and FY 2016 Governor's Budget Report.
The ZBB review process formalizes the work inherent in OPB's budget analysis and provides a systematic review and reporting of the activities, performance and expenditures of the programs in the state budget.

The reports in this document are a summary of the information gathered and analyzed by OPB as part of our ZBB reviews. The document includes four sections for each program reviewed:
1. Results of Analysis: This section summarizes OPB's analysis and provides recommendations for future review or changes to the program budget and operations.
2. Key Activities and Alternative Approach: This section lists the program's key activities and provides its authority, number of positions, and state and total funds budgeted. In addition, this section lists alternative approaches to delivering program services within the current agency budget.
3. Financials: This section provides a summary of the program expenditures and budget. The section lists two years of expenditures, the current fiscal year budget, and the Governor's recommended changes for the FY 2016 budget. Recommended changes exclude statewide adjustments for retirement contributions, Risk Pools, and TeamWorks.
4. Performance Measures: This section lists agency purpose, the program purpose, and a set of measures for the program.

i

FY 2016 Zero-Based Budget Analysis
Department of Agriculture ZBB Program: Departmental Administration

Office of Planning and Budget

1

01/16/2015

Department of Agriculture
ZBB Program: Departmental Administration
FY 2016 Zero-Based Budget Report
Purpose of Review The Department of Agriculture's Departmental Administration program provides support to all agency programs by providing human resource, information technology, financial, and fleet management services. The purpose of this review is to analyze the efficiency and effectiveness of activities in the Administration program.
Results of Analysis 1. Statutory Alignment: Program activities are aligned with statutory responsibilities. 2. Staffing Levels: The program has 53 full-time benefit eligible employees. 3. Fleet Management: There are seven motor vehicles assigned to the program. 4. Performance Measures: OPB worked with the agency to identify metrics for key program activities. The updated measures accurately
reflect the performance of the program. 5. Budget Impact: Maintain the current funding level.
Program Operations: 6. The Departmental Administration program budget includes funding from state, federal, and other fund sources. State funds are reported
in the appropriation bill; however, the agency typically amends federal and other funds to the budget in the third and fourth quarters of the fiscal year. To more accurately reflect budget and expenditures throughout the fiscal year, the department should amend the Annual Operating Budget (AOB) each quarter. Recommendation: Comply with the Office of Planning and Budget's AOB instructions and submit quarterly amendments to more accurately reflect federal and other funds.

Office of Planning and Budget

2

01/16/2015

Department of Agriculture
ZBB Program: Departmental Administration
FY 2016 Zero-Based Budget Report
7. The Departmental Administration program administers the call center for the Department of Agriculture's Consumer Protection program. Call center staff answer consumer questions about licensing and license renewals. In FY 2014, the call center received 110,914 calls. There are five full-time employees in the call center. Additionally, up to five hourly employees are hired during peak seasons, such as October when Georgia Agricultural Tax Exemption licenses are renewed. The current performance measures do not accurately reflect the service level provided. The call center software does not measure hold or wait times. Newly purchased software will allow the call center to track this information and will be implemented in September of 2014. Recommendation: Use new data from Call Center Xpress software to accurately reflect customer response time. Provide updated data and metrics to the Office of Planning and Budget to evaluate service levels and potential staffing needs.

Office of Planning and Budget

3

01/16/2015

Department of Agriculture
ZBB Program: Departmental Administration
Key Activities and Alternative Approach

Key Activities (Listed in priority order as determined by Agency)

Activity

Description

Finance Division

Manages accounts receivable, accounts payable, purchasing, budgeting, grant management, and travel reimbursement.

Authority OCGA 2-1-1 et seq

No. of

FY 2015

FY 2015

Positions State Funds Total Budget

15

$948,643

$948,643

Zero Based Budget Review (State Funds)

Changes Recommendation

$0

$948,643

Personnel Information Technology

Administers employee benefits, performance evaluations, and

OCGA 2-1-1 et

compensation. Also manages transactions, employee relations, and seq

internal policies and procedures.

Updates software, monitors infrastructure performance, responds OCGA 2-1-1 et to client tickets, maintains website and server, and provides online seq technology training to employees.

5

530,101

530,101

18

1,714,935

1,714,935

0

530,101

0

1,714,935

Executive Management

Responds to constituent inquiries, issues press releases, handles legal matters and administrative hearings.

OCGA 2-1-1 et seq

15

1,331,137

1,331,137

0

1,331,137

Total

53

$4,524,816

$4,524,816

$0

$4,524,816

Alternative (Alternative approach to delivering program services as provided by the agency) No viable alternative approaches to program delivery are recommended at this time.

Office of Planning and Budget

4

01/16/2015

Department of Agriculture
ZBB Program: Departmental Administration
Financial Summary

Objects of Expenditure Personal Services Regular Operating Expenses Motor Vehicle Purchases Equipment Computer Charges Real Estate Rentals Telecommunications Contractual Services Grants and Benefits Total Expenditures
Fund Type
State General Funds Federal Funds Other Funds Total Funds

Expenditures

FY 2013

FY 2014

$3,708,910

$4,040,768

347,243

243,581

FY 2015 Current Budget
$3,881,167 100,040

9,536 289,806 350,975 210,790
37,474 749,319 $5,704,053

38,277 245,775 284,857 176,643
84,026 846,935 $5,960,861

72,004 321,962 141,758
7,885
$4,524,816

Zero Based Budget Review

Changes

Recommendation

$0

$3,881,167

0

100,040

0

72,004

0

321,962

0

141,758

0

7,885

$0

$4,524,816

$4,320,200 798,763 585,090
$5,704,053

$4,390,407 973,715 596,739
$5,960,861

$4,524,816 $4,524,816

$0

$4,524,816

$0

$4,524,816

Positions* Motor Vehicles

52

55

53

20

5

7

0

53

0

7

* Position counts shown under expenditures reflect the number of salaried, benefit eligible employees as of June 30 of that fiscal year.

Office of Planning and Budget

5

01/16/2015

Department of Agriculture
ZBB Program: Departmental Administration
Performance Measures

Agency Purpose: The Department of Agriculture's mission is to protect consumers, promote agriculture locally and globally, and to assist Georgia's customers using education, technology and a professional workforce.
Program Purpose: The purpose of this program is to provide administrative support to all programs of the department.

Performance Measures 1. Percentage of calls answered in call centers 2. Percentage of IT tickets completed within 48 hours of being submitted 3. Agency turnover rate 4. Number of audit findings each year 5. Number of licenses issued per year

FY 2011 N/A 39% 30% 9
77,324

Actuals

FY 2012

FY 2013

N/A

95%

57%

87%

29%

24%

5

1

86,353

80,529

FY 2014 91% 91% 23% N/A
71,012

Office of Planning and Budget

6

01/16/2015

FY 2016 Zero-Based Budget Analysis
Department of Banking and Finance ZBB Program: Consumer Protection and Assistance

Office of Planning and Budget

7

01/16/2015

Department of Banking and Finance
ZBB Program: Consumer Protection and Assistance
FY 2016 Zero-Based Budget Report
Purpose of Review The Department of Banking and Finance (DBF) enforces and administers all state laws, rules, and regulations governing the operation of statechartered financial institutions in Georgia. The current purpose of the Consumer Protection and Assistance (CPA) program is to provide legal advice and legislative drafting support for the Commissioner and staff. In FY 2009, funding was eliminated for the CPA call center, including four full-time positions. Prior to elimination of the call center, the program purpose was to assist consumers with problems encountered when dealing with department regulated entities. The purpose of this review is to determine the need for this program in the Department of Banking and Finance since the call center was eliminated from the CPA program.
Results of Analysis 1. Statutory Alignment: The Department is authorized but not required to perform the activities in this program. 2. Staffing Levels: The program has one full-time benefit eligible employee. 3. Fleet Management: There are no motor vehicles assigned to the program. 4. Performance Measures: No performance measures exist for this program. 5. Budget Impact: Eliminate the Consumer Protection and Assistance program and transfer $227,776 for one attorney position and
operating expenses to the Departmental Administration program.
Program Operations: 6. In FY 2009, funding was eliminated for the CPA call center, including four full-time positions. Currently, the Department refers consumer
calls to the Consumer Financial Protection Bureau, which is a federal agency responsible for financial consumer protection. The Department is statutorily authorized to provide consumer assistance, but it is not required to do so. 7. One attorney position provides legal advice and support to the Commissioner, senior staff, and three other programs. The responsibilities of this position are administrative in nature and serve the Department as a whole. Primary responsibilities include drafting of legislation, providing counsel on all legal matters, and interpretation and implementation of laws and regulations that impact the Department and/or the institutions regulated by the Department. Recommendation: Eliminate the Consumer Protection and Assistance program and transfer $227,776 for one attorney position and operating expenses to the Departmental Administration program.

Office of Planning and Budget

8

01/16/2015

Department of Banking and Finance
ZBB Program: Consumer Protection and Assistance
Key Activities and Alternative Approach

Key Activities (Listed in priority order as determined by Agency)

Activity

Description

Legislation and Rule Making

Drafts, advocates, educates, and comments on legislation and rule making.

Authority OCGA 7-1-3(a)

No. of

FY 2015

FY 2015

Positions State Funds Total Budget

0.34

$77,444

$77,444

Zero Based Budget Review (State Funds)

Changes Recommendation

($77,444)

$0

Advisory Services

Provides advice to the Commissioner on all legal matters including OCGA 7-1-35

0.33

75,166

75,166

(75,166)

0

litigation, in court and in administrative proceedings.

Research

Researches relevant laws; drafts orders, memos, and agreements to OCGA 7-1-3(a)

0.33

75,166

75,166

(75,166)

0

include the interpretation and implementation of laws and

regulations that impact the Department and/or the institutions

regulated by the Department.

Total

1.00

$227,776

$227,776 ($227,776)

$0

Alternative (Alternative approach to delivering program services as provided by the agency) No alternative approaches to program service delivery are recommended at this time.

Office of Planning and Budget

9

01/16/2015

Department of Banking and Finance
ZBB Program: Consumer Protection and Assistance
Financial Summary

Objects of Expenditure Personal Services Regular Operating Expenses Motor Vehicle Purchases Equipment Computer Charges Real Estate Rentals Telecommunications Contractual Services Total Expenditures
Fund Type
State General Funds Total Funds

Expenditures

FY 2013

FY 2014

$189,319

$202,794

7,062

4,213

FY 2015 Current Budget
$211,515 3,000

52 3,854 7,458 2,400
224 $210,369

1,744 7,077 2,374
92 $218,294

3,400 7,056 2,727
78 $227,776

Zero Based Budget Review

Changes

Recommendation

($211,515)

$0

(3,000)

0

(3,400)

0

(7,056)

0

(2,727)

0

(78)

0

($227,776)

$0

$210,369

$218,294

$227,776

($227,776)

$0

$210,369

$218,294

$227,776

($227,776)

$0

Positions* Motor Vehicles

1

1

1

(1)

0

* Position counts shown under expenditures reflect the number of salaried, benefit eligible employees as of June 30 of that fiscal year.

Office of Planning and Budget

10

01/16/2015

Department of Banking and Finance
ZBB Program: Consumer Protection and Assistance
Performance Measures
Agency Purpose: The Department of Banking and Finance (DBF) is the state agency that regulates and examines banks, including merchant acquirer limited purpose banks, credit unions, and trust companies chartered by the State of Georgia. DBF also has regulatory and/or licensing authority over mortgage brokers, lenders, processors and originators, money service businesses, international banking organizations, and bank holding companies conducting business in Georgia. Program Purpose: The purpose of this program is to provide legal advice and legislative drafting support for the Commissioner and staff.
Performance Measures
*There are no performance measures for this program.

Office of Planning and Budget

11

01/16/2015

FY 2016 Zero-Based Budget Analysis
Department of Banking and Finance ZBB Program: Departmental Administration

Office of Planning and Budget

12

01/16/2015

Department of Banking and Finance
ZBB Program: Departmental Administration
FY 2016 Zero-Based Budget Report
Purpose of Review The Department of Banking and Finance (DBF) enforces and administers all state laws, rules, and regulations governing the operation of statechartered financial institutions in Georgia. The purpose of this review is to analyze the efficiency and effectiveness of activities in the Departmental Administration program, which provides agency-wide support.
Results of Analysis 1. Statutory Alignment: Program activities are aligned with statutory responsibilities. 2. Staffing Levels: The program has 12 full-time benefit eligible employees. 3. Fleet Management: There are no motor vehicles assigned to the program. 4. Performance Measures: OPB worked with the agency to identify metrics for key program activities. The updated measures accurately
reflect the performance of the program. 5. Budget Impact: Increase funds by $227,776. See specific recommendations listed below.
Program Operations: 6. The Consumer Protection and Assistance (CPA) program is recommended for elimination in FY 2016. Currently, funding for this program
includes one attorney position and operating expenses. Recommendation: Transfer one attorney position and $227,776 from the Consumer Protection and Assistance program to the Departmental Administration program to incorporate legal functions within the Departmental Administration program. 7. In FY 2009, the call center in the CPA program was eliminated. Currently, the Department refers consumer calls to the Consumer Financial Protection Bureau; however, the Department does not track the number of calls received. Recommendation: Monitor the number of calls received and referred to the Consumer Financial Protection Bureau to determine the need for a position to address consumer calls.

Office of Planning and Budget

13

01/16/2015

Department of Banking and Finance
ZBB Program: Departmental Administration
Key Activities and Alternative Approach

Key Activities (Listed in priority order as determined by Agency)

Activity

Description

Executive Leadership

Exercises supervision and control over all divisions and employees.

No. of

Authority Positions

OCGA 7-1-31, 7-

2.25

1-35

FY 2015

FY 2015

State Funds Total Budget

$576,048

$576,048

Zero Based Budget Review (State Funds)

Changes Recommendation

$227,776

$803,824

Planning

Ensures appropriate structure and staffing to effectively and

OCGA 7-1-3, 7-1-

0.50

122,045

122,045

0

efficiently accomplish the mission.

30

122,045

Budgeting

Develops and monitors budgets and provides reports.

OCGA 7-1-30

0.75

191,198

191,198

0

191,198

Financial Management

Oversees accounting services, financial reporting, collection of

OCGA 7-1-30

2.25

313,709

313,709

0

assessments, fees and fines, accounts payable, and procurement.

313,709

Information Technology Support Procures, installs, maintains, and secures hardware, software, and OCGA 7-1-30

3.75

595,566

595,566

0

Services

telecommunications resources as well as interfaces with third-party

technology service providers.

Human Resources

Recruits employees in addition to administering compensation and OCGA 7-1-30, 7-

0.75

90,800

90,800

0

benefits programs.

1-35

Administrative Support

Provides agency-wide assistance and support.

OCGA 7-1-30

1.75

158,517

158,517

0

595,566 90,800
158,517

Total

12.00

$2,047,883

$2,047,883 $227,776

$2,275,659

Alternative (Alternative approach to delivering program services as provided by the agency) No alternative approaches to service delivery are recommended at this time.

Office of Planning and Budget

14

01/16/2015

Department of Banking and Finance
ZBB Program: Departmental Administration
Financial Summary

Objects of Expenditure Personal Services Regular Operating Expenses Motor Vehicle Purchases Equipment Computer Charges Real Estate Rentals Telecommunications Contractual Services Total Expenditures
Fund Type
State General Funds Total Funds

Expenditures

FY 2013

FY 2014

$1,653,893

$1,583,928

57,602

77,985

FY 2015 Current Budget
$1,752,047 76,484

670 99,404 96,567 24,713
5,030 $1,937,879

140,951 85,625 24,709 19,977
$1,933,175

306 95,873 84,637 26,336 12,200 $2,047,883

Zero Based Budget Review

Changes

Recommendation

$211,515

$1,963,562

3,000

79,484

0 3,400 7,056 2,727
78 $227,776

306 99,273 91,693 29,063 12,278 $2,275,659

$1,937,879 $1,937,879

$1,933,175 $1,933,175

$2,047,883 $2,047,883

$227,776 $227,776

$2,275,659 $2,275,659

Positions* Motor Vehicles

11

13

12

1

13

* Position counts shown under expenditures reflect the number of salaried, benefit eligible employees as of June 30 of that fiscal year.

Office of Planning and Budget

15

01/16/2015

Department of Banking and Finance
ZBB Program: Departmental Administration
Performance Measures
Agency Purpose: The Department of Banking and Finance (DBF) is the state agency that regulates and examines banks, including merchant acquirer limited purpose banks, credit unions, and trust companies chartered by the State of Georgia. DBF also has regulatory and/or licensing authority over mortgage brokers, lenders, processors and originators, money service businesses, international banking organizations, and bank holding companies conducting business in Georgia.
Program Purpose: The purpose of this program is to provide administrative support to all department programs.

Performance Measures 1. Percentage of fees and fines submitted electronically 2. Agency turnover rate 3. Number of audit findings

FY 2011 85% 18% 0

Actuals

FY 2012

FY 2013

85%

87%

14%

17%

0

0

FY 2014 89% 20% N/A

Office of Planning and Budget

16

01/16/2015

FY 2016 Zero-Based Budget Analysis
Department of Behavioral Health and Developmental Disabilities ZBB Program: Adult Mental Health Services

Office of Planning and Budget

17

01/16/2015

Department of Behavioral Health and Developmental Disabilities
ZBB Program: Adult Mental Health Services
FY 2016 Zero-Based Budget Report

Purpose of Review The purpose of this review is to analyze the efficiency and effectiveness of activities in the Adult Mental Health Services program. Since a settlement was reached with the U.S. Department of Justice, the program has implemented a variety of services to create accessibility to care in the community.
Results of Analysis 1. Statutory Alignment: Program activities are aligned with statutory responsibilities. 2. Staffing Levels: There are 1,127 authorized positions and 700 full-time benefit eligible employees. 3. Fleet Management: There are 24 vehicles assigned to the program; however, the vehicle number is inaccurate. See specific
recommendation below. 4. Performance Measures: OPB worked with the agency to identify metrics for key program activities. The updated measures accurately
reflect the performance of the program. 5. Budget Impact: Increase the program budget by $7,315,000 in state funds to address crisis needs and administrative improvements. See
specific recommendations below.
Program Operations: 6. The program's budgeted fleet did not accurately reflect the number of vehicles associated with this program until the fleet inventory was
reviewed and reconciled. There are no vehicles assigned to this program based on the reconciliation. The 24 authorized vehicles were transferred to the Adult Developmental Disabilities Services program and the Direct Care and Support Services program. Recommendation: Perform an annual review of fleet inventory to ensure they are linked to the appropriate program for budget and expense purposes. 7. Four positions are being expensed from the Adult Mental Health Services program that should be reallocated to programs more closely associated with each position's function. Recommendation: Reallocate three individuals to the Departmental Administration program and one individual to the Child and Adolescent Mental Health program for expense purposes and to align the job functions with the appropriate program activities. The Department indicated no budget transfer was needed for these positions.

Office of Planning and Budget

18

01/16/2015

Department of Behavioral Health and Developmental Disabilities
ZBB Program: Adult Mental Health Services
FY 2016 Zero-Based Budget Report
8. Several Regional staff positions are expensed in this program that are associated with administrative functions rather than programmatic functions. Recommendation: The Department is currently in the process of a reorganization, and regional positions will be reviewed. Since there may be organizational changes as a result of the agency reorganization, no budget or position transfers are recommended at this time. Determine potential impact on budgetary transfers as the reorganization moves forward.
9. The authorized position count does not accurately reflect the number of positions associated with this program. Authorized positions in BudgetNet total 1,127, but filled, regular, benefit-eligible positions only total 700, leaving 427 vacancies. It is unlikely there are actually 427 budgeted vacancies in this program. Recommendation: Reconcile the budgeted position count to reflect the actual number of budgeted positions.
10. The Department is currently involved in a Core Provider Redesign Initiative. This will change the financial mechanisms of its core services, which may include services like counseling, medication management, psychosocial rehabilitation, etc. Essentially, core services will be shifted from a "grant-in-aid" model to a "fee-for-service" model. Recommendation: This process is already in place for specialty behavioral health services, so the new model should improve core providers' abilities to obtain appropriate reimbursement based on actual services provided. This change will occur within the program's current budget conditions.
11. Region 3, which includes Clayton, DeKalb, Fulton, Gwinnett, Newton, and Rockdale counties, has a large volume of clients and not enough capacity at behavioral health facilities to serve them. The focus on crisis services was placed heavily on Region 1 (North Georgia), Region 4 (Southwest Georgia), and Region 6 (Midwest Georgia) due to the hospital closures in those areas. This lack of additional beds has resulted in long wait times for critical services. Additionally, the utilization rate at the Viewpoint Crisis Stabilization Unit (CSU) was 98.2% in FY 2014, and the utilization rate at the DeKalb CSU was 76.5%. While DeKalb's utilization may not seem high, they are unable to staff the facility to function at full capacity, meaning the beds that are able to be staffed are frequently full. Recommendation: The Department is aware of the issue and has requested additional funding to increase capacity at its own facilities, as well as purchase private psychiatric beds as needed. Provide $2,315,000 to address behavioral health crisis needs in Region 3. The funding will support the following items: $300,000 to maintain services at the DeKalb CSU; $800,000 to increase bed capacity by an additional seven beds at the Viewpoint CSU; and $1,215,000 to purchase five additional private psychiatric beds as needed.

Office of Planning and Budget

19

01/16/2015

Department of Behavioral Health and Developmental Disabilities
ZBB Program: Adult Mental Health Services
FY 2016 Zero-Based Budget Report
12. The Department is working to employ an Administrative Services Organization (ASO) to improve administrative processes, which were previously handled by three separate vendors. The ASO will have better reporting capabilities, so the program can track quality data. This data will allow for better financial reporting, utilization management, and quality management. Recommendation: Utilize base funding for new administrative services contract.

Office of Planning and Budget

20

01/16/2015

Department of Behavioral Health and Developmental Disabilities
ZBB Program: Adult Mental Health Services
Key Activities and Alternative Approach

Key Activities (Listed in priority order as determined by Agency)

Activity

Description

Crisis Services

This activity includes a continuum of Mental Health Crisis Services utilizing Behavioral Health Crisis Centers, Crisis Stabilization Units, Crisis Respite Apartments, and Mobile Crisis Response Services collectively offering 24 hour community based walk-in access, assessments, temporary observation, stabilization, and linkage/referrals.

Authority OCGA 37-1-2; ADA Settlement*

No. of

FY 2015

FY 2015

Positions State Funds Total Budget

2 $100,396,274 $104,951,504

Zero Based Budget Review (State Funds)

Changes Recommendation

$2,315,000

$102,711,274

Adult Core/Psychosocial Rehabilitation

Core services are community based, comprehensive outpatient mental health clinic services.

OCGA 37-1-2

Case Management/Intensive Case Management

Case management addresses the needs of individuals diagnosed OCGA 37-1-2;

with mental illness who need assistance in order to successfully

ADA

implement their Individual Recovery Plans and maintain recovery. Settlement*

Services include care coordination, service integration, and recovery

supporting services.

Assertive Community Treatment These are contracted services to provide 22 ACT Teams and 8 CST's, OCGA 37-1-2;

(ACT) /Community Support Team utilizing an intensive multi-disciplinary community based treatment ADA

(CST)

model, focused on supporting the individual and reducing hospital Settlement*

readmission.

Supported Employment

22 supported employment teams provide support for vocational assessments, job searches, job coaching, and benefits counseling.

OCGA 37-1-2; ADA Settlement*

63 144,696,930 144,696,930

14

8,956,156

8,956,156

4

20,669,173

20,669,173

4

2,948,672

5,825,371

0

144,696,930

0

8,956,156

0

20,669,173

0

2,948,672

Peer Support Services

Certified Peer Specialists facilitate the services, which include providing therapeutic and supportive wellness and recovery services.

OCGA 37-1-2; ADA Settlement*

2

6,302,070

9,028,610

0

6,302,070

Programs for Assistance in Transition from Homelessness (PATH) **

PATH involves outreach services to individuals with mental illness OCGA 37-1-2 and co-occurring substance abuse disorders who are homeless or at
risk of becoming homeless.

574,000

2,005,750

0

574,000

Office of Planning and Budget

21

01/16/2015

Department of Behavioral Health and Developmental Disabilities
ZBB Program: Adult Mental Health Services
Key Activities and Alternative Approach

Key Activities (Listed in priority order as determined by Agency)

Activity Treatment Courts/Jail Diversion

Description

Authority

Evaluation and treatment services for adults with a serious mental OCGA 37-1-2 illness who have committed an offense and are willing to consent to

treatment instead of serving jail time.

Suicide Prevention Deaf Services

Suicide prevention and intervention services are provided through suicide prevention coalitions, local trainings to recognize the signs and symptoms of those experiencing suicidal thoughts, building local systems of care, and surveillance activities to analyze data and statistics.

OCGA 37-1-2

Resource coordination for provision of deaf services for adults who OCGA 37-1-2 are deaf, hard of hearing, or deaf and blind.

External Review

Organization ** The organization provides prior authorization for consumer services, OCGA 37-1-2 care management reviews, encounters and claims data, provider audits and reports, an information technology system, and a public website knowledgebase.

Hospital Inpatient Services

Four state-operated hospitals with inpatient mental health units provide care for consumers in crisis and those who require longterm behavioral health care.

OCGA 37-1-2

No. of

FY 2015

FY 2015

Positions State Funds Total Budget

1

0

153,734

Zero Based Budget Review (State Funds)

Changes Recommendation

0

0

2

200,000

200,000

0

200,000

3

211,399

211,399

2,097,121

2,097,121

576

51,713,523

54,048,618

0

211,399

0

2,097,121

0

51,713,523

Administration

Administration includes key personnel and operations, ensuring fiscal, programmatic, clinical, and policy oversight of the program.

OCGA 37-1-2; ADA Settlement*

29

7,337,201

7,337,201

0

7,337,201

Total

700 $346,102,519 $360,181,567 $2,315,000

$348,417,519

Alternative (Alternative approach to delivering program services as provided by the agency) Due to the settlement agreement with the U.S. Department of Justice, the program is limited in its ability to deliver services in alternate ways. One possible alternative would be a managed care arrangement to deliver services; however, the cost for such an alternative is uncertain.

Office of Planning and Budget

22

01/16/2015

Department of Behavioral Health and Developmental Disabilities
ZBB Program: Adult Mental Health Services
Key Activities and Alternative Approach

Key Activities (Listed in priority order as determined by Agency)

Activity

Description

Notes:

Authority

No. of

FY 2015

FY 2015

Positions State Funds Total Budget

Zero Based Budget Review (State Funds)
Changes Recommendation

* The ADA Settlement refers to the agreement reached between the State of Georgia and the U.S. Department of Justice in 2010 alleging violations of the Americans with Disabilities Act (ADA) because Georgia failed to administer services in the most integrated settings appropriate to the needs of qualified individuals with disabilities. The ADA Agreement expands community services for Adult Mental Health and Developmental Disabilities and creates a department-wide Quality Management program (See https://dbhdd.georgia.gov/sites/dbhdd.georgia.gov/files/related_files/site_page/DOJ%20ADA%20Overview.pdf ).

**While there are no positions indicated next to PATH or External Review Organization, there are individuals who support these activities. The individuals spend the majority of their time on other activities and are reported in those activity position counts.

Office of Planning and Budget

23

01/16/2015

Department of Behavioral Health and Developmental Disabilities
ZBB Program: Adult Mental Health Services
Financial Summary

Objects of Expenditure Personal Services Regular Operating Expenses Computer Charges Real Estate Rentals Telecommunications Contractual Services Grants and Benefits Total Expenditures
Fund Type
State General Funds Federal Funds Other Funds Total Funds

Expenditures

FY 2013

FY 2014

$56,149,454

$48,503,626

3,773,192

4,653,493

23,095

20,164

247,521

181,399

409,166

399,041

244,095,263

274,134,793

970,740

901,236

$305,668,431 $328,793,752

FY 2015 Current Budget
$47,025,564 8,844,389 18,700 186,000 373,440
302,915,974 817,500
$360,181,567

Zero Based Budget Review

Changes

Recommendation

$0

$47,025,564

0

8,844,389

0

18,700

0

186,000

0

373,440

2,315,000

305,230,974

0

817,500

$2,315,000

$362,496,567

$280,863,237 24,140,378 664,816
$305,668,431

$305,452,317 22,337,467 1,003,968
$328,793,752

$346,102,519 11,858,953 2,220,095
$360,181,567

$2,315,000 0 0
$2,315,000

$348,417,519 11,858,953 2,220,095
$362,496,567

Positions* Motor Vehicles

898

700

700

(4)

696

24

24

24

(24)

0

* Position counts shown under expenditures reflect the number of salaried, benefit eligible employees as of June 30 of that fiscal year.

Office of Planning and Budget

24

01/16/2015

Department of Behavioral Health and Developmental Disabilities
ZBB Program: Adult Mental Health Services
Performance Measures

Agency Purpose: The Department of Behavioral Health and Developmental Disabilities provides treatment and support services to people with behavioral health challenges and addictive diseases, and assists individuals who live with developmental disabilities. The agency seeks to provide high-quality health care opportunities for individuals with developmental disabilities or behavioral health challenges close to their homes, so they can live a life of independence and recovery and create a sustainable, self-sufficient, and resilient life in their community.

Program Purpose: The purpose of this program is to provide evaluation, treatment, crisis stabilization, and residential services to facilitate rehabilitation and recovery for adults with mental illness.

Performance Measures 1. Number of adult mental health consumers served in state facilities* 2. Number of adult mental health consumers served in community behavioral health services 3. Number of persons receiving peer services 4. Percentage of adult mental health consumers served in state facilities* 5. Percentage of homeless individuals in adult community mental health services who obtain stable housing while enrolled in services 6. Average response time for Mobile Crisis Response services (in minutes) 7. Percentage of people enrolled in supportive employment who are competitively employed 8. Number of adult mental health consumers who received crisis services

FY 2011 6,331
116,477
3,085 5% N/A
N/A N/A
6,453

Actuals

FY 2012

FY 2013

5,601

5,143

119,627

106,180

3,274 5%
35%

3,011 5%
33%

N/A

N/A

34%

17%

7,784

8,462

FY 2014 3,390
118,327
3,165 3%
30%
50 44%
8,820

Office of Planning and Budget

25

01/16/2015

Department of Behavioral Health and Developmental Disabilities
ZBB Program: Adult Mental Health Services
Performance Measures

Performance Measures

FY 2011

Actuals

FY 2012

FY 2013

FY 2014

9. Percentage of Assertive Community Treatment (ACT) clients admitted to psychiatric hospitals
Notes:

N/A

7.3%

7.8%

9.9%

* Since 2010, the Department has been transitioning individuals out of state facilities and into the community as part of the Department of Justice Settlement Agreement, which alleged violations of the Americans with Disabilities Act. Additionally, the Department has instituted a variety of services to treat individuals with mental illness in the community, attempting to prevent hospital admissions and provide a better continuum of care.

Office of Planning and Budget

26

01/16/2015

FY 2016 Zero-Based Budget Analysis
Department of Community Health ZBB Program: Indigent Care Trust Fund (ICTF)

Office of Planning and Budget

27

01/16/2015

Department of Community Health
ZBB Program: Indigent Care Trust Fund (ICTF)
FY 2016 Zero-Based Budget Report

Purpose of Review The Indigent Care Trust Fund (ICTF) was established in 1990 for the purpose of funding healthcare for medically indigent and rural Georgians. The primary activity of the ICTF is to act as a conduit for Disproportionate Share Hospital (DSH) funds, which is a federal program that increases access to healthcare for the medically indigent by distributing payments to hospitals based on the uncompensated cost of services provided to Medicaid patients and the uninsured. In addition to acting as a conduit mechanism for DSH funds, the program also acts as a conduit mechanism for Certificate of Need (CON) penalty fees, breast cancer automobile tag fees, and ambulance fees. These funds are all used to increase access to healthcare for medically indigent and rural Georgians. The purpose of this review is to evaluate the effectiveness and efficiency of the program at increasing access to healthcare for its target populations, and to examine the impact of future federal reductions in DSH funds as a part of the federal healthcare reform law, the Patient Protection and Affordable Care Act (PPACA).
Results of Analysis 1. Statutory Alignment: Program activities are aligned with statutory responsibilities. 2. Staffing Levels: There are no positions funded in this program. 3. Fleet Management: There are no motor vehicles assigned to this program. 4. Performance Measures: OPB worked with the agency to identify metrics for key program activities. The agency should continue to
develop relevant and measureable outcomes for its key activities. 5. Budget Impact: Federal and other funds reflected in the Appropriations Act for the Disproportionate Share Hospital (DSH) activity and the
Ambulance Licensing Fee activity do not reflect actual federal and other funds received. See recommendations below.
Program Operations: 6. The amount of federal DSH funds available to Georgia hospitals changes annually based on the federal allotment and annual reductions to
that allotment as required by the federal health care reform law, the Patient Protection and Affordable Care Act (PPACA). Recommendation: Federal funds for the DSH program should be adjusted in the Governor's Budget Recommendation for AFY 2015 to reflect projected actual receipts for FY 2015.

Office of Planning and Budget

28

01/16/2015

Department of Community Health
ZBB Program: Indigent Care Trust Fund (ICTF)
FY 2016 Zero-Based Budget Report
7. The amount of other funds available for the Ambulance Licensing Fee activity varies annually based on collections, but the amount available over the past several years has been nearly $1 million more than the amount budgeted in the Appropriations Act. Recommendation: Increase funds in the Ambulance Licensing Fee activity to reflect actual funds available (Total Funds: $1,000,000).
8. Georgia hospitals reported approximately $1.4 billion in uncompensated care to poor and uninsured Georgians in 2014. The DSH program currently pays for approximately 21% of that uncompensated care, but the federal government is scheduled to begin reducing funds for the program in October 2015 as part of the federal healthcare reform law, PPACA. These reductions will be phased-in beginning in October 2015, with program funds scheduled to be reduced by approximately 50% by 2023. Recommendation: Convene a task force of state legislators, Georgia hospital representatives, and the Commissioner of the Department of Community Health to develop a plan to continue supporting uncompensated hospital care for poor and uninsured Georgians once the federal DSH funds have been reduced. Complete this plan and submit it to the General Assembly and Governor by August 1, 2015.
9. For the DSH program, the federal government categorizes hospitals as deemed, eligible, or not eligible. To receive DSH funds, a hospital must be either deemed or eligible. Furthermore, federal law requires that deemed hospitals be included in the state's DSH payment distribution plan. A deemed hospital is one that, according to a federal definition, provides a disproportionate share of all the uncompensated care delivered by hospitals in the state. Specifically, deemed and eligible hospitals must have at least two obstetricians on staff who provide services to Medicaid patients and have a Medicaid Inpatient Utilization Rate (MIUR) of at least 1%. In addition to those two requirements, a deemed hospital must also either have a MIUR of at least one standard deviation above the average of all hospitals receiving Medicaid payments or have a Low Income Utilization Rate that exceeds 25%. In FY 2014, 23% of Georgia hospitals were classified as deemed. In FY 2014, these hospitals provided 36% of all uncompensated care delivered by hospitals in Georgia, and they received 51% of DSH funds distributed to Georgia hospitals.

Office of Planning and Budget

29

01/16/2015

Department of Community Health
ZBB Program: Indigent Care Trust Fund (ICTF)
Key Activities and Alternative Approach

Key Activities (Listed in priority order as determined by Agency)

No. of

Activity

Description

Authority Positions

Disproportionate Share Hospital Increase health care access for the medically indigent by distributing Constitution of

Program

payments to hospitals based on uncompensated cost of services the State of

provided to Medicaid patients and the uninsured.

Georgia, Article

III, Section IX,

Paragraph VI(i);

OCGA 31-8-152, 31-8-153, 31-8154

FY 2015

FY 2015

State Funds Total Budget

$0 $396,462,493

Zero Based Budget Review (State Funds)

Changes Recommendation

$0

$0

Certificate of Need Penalty Fees Collection

Penalty fees are collected from healthcare facilities that do not

OCGA 31-6-40;

provide at least the specified amount of clinical health services to 31-8-153

indigent patients required by the facilities' certificates of need.

These funds can be used to provide funding for care provided to the

medically indigent.

Breast Cancer Automobile Tag Fees

Program that makes special breast cancer automobile tags available OCGA 40-2-86 to Georgia motorists for a fee. Revenues are used to fund the Georgia Access to Care, Treatment, and Services Breast Cancer Grant Program administered by the Georgia Center for Oncology Research and Education (CORE).

Ambulance Licensing Fees

Fees assessed to all ambulance services in the state by the Board of OCGA 31-11-31 Public Health. Revenues from the fee are deposited into the ICTF and used to fund Medicaid benefit payments for ambulance services.
Total

0

0

0

0

0

0

0

0

0

2,200,000

0

0

$0 $398,662,493

$0

$0

Alternative (Alternative approach to delivering program services as provided by the agency) No alternative approaches to program services delivery are recommended at this time.

Office of Planning and Budget

30

01/16/2015

Department of Community Health
ZBB Program: Indigent Care Trust Fund (ICTF)
Financial Summary

Objects of Expenditure Personal Services Regular Operating Expenses Motor Vehicle Purchases Equipment Computer Charges Real Estate Rentals Telecommunications Contractual Services Grants and Benefits Total Expenditures
Fund Type
State General Funds Federal Funds Other Funds Total Funds

Expenditures

FY 2013

FY 2014

FY 2015 Current Budget

Zero Based Budget Review

Changes

Recommendation

$439,639,315 $439,639,315

$445,237,096 $445,237,096

$398,662,493 $398,662,493

$16,622,029 288,234,506 134,782,779 $439,639,315

$14,445,532 293,047,063 137,744,501 $445,237,096

$257,075,969 141,586,524
$398,662,493

$1,000,000 $1,000,000

$399,662,493 $399,662,493

$0 1,000,000 $1,000,000

$257,075,969 142,586,524
$399,662,493

Positions* Motor Vehicles

0

0

0

0

0

0

0

0

0

0

* Position counts shown under expenditures reflect the number of salaried, benefit eligible employees as of June 30 of that fiscal year.

Office of Planning and Budget

31

01/16/2015

Department of Community Health
ZBB Program: Indigent Care Trust Fund (ICTF)
Performance Measures
Agency Purpose: Through effective planning, purchasing, and oversight, DCH provides access to affordable, quality health care to millions of Georgians, including some of the state's most vulnerable and underserved populations.
Program Purpose: The purpose of the program is to support rural and other healthcare providers, primarily that serve medically indigent Georgians.

Performance Measures 1. Percent of Georgia hospitals receiving Disproportionate Share Hospital (DSH) payments 2. Percent of Georgia hospitals achieving "deemed" status for DSH payments
3. Percent of uncompensated care reimbursed through DSH payments 4. Percent of uncompensated care delivered by deemed hospitals 5. Average percent of uncompensated care costs covered by DSH dollars for 6. DSH dollars spent supporting healthcare for medically indigent Georgians 7. Amount of uncompensated care Georgia hospitals self-report providing to
indigent individuals

FY 2011 98%

Actuals

FY 2012

FY 2013

99%

99%

FY 2014 99%

15%

23%

26%

23%

21%

22%

22%

21%

28%

29%

34%

36%

43%

48%

47%

41%

$312,915,978 $306,066,843 $304,856,535 $307,492,595

$1,461,702,811 $1,413,156,021 $1,368,139,217 $1,498,887,147

Office of Planning and Budget

32

01/16/2015

FY 2016 Zero-Based Budget Analysis
Department of Community Health ZBB Program: State Health Benefit Plan (SHBP)

Office of Planning and Budget

33

01/16/2015

Department of Community Health
ZBB Program: State Health Benefit Plan (SHBP)
FY 2016 Zero-Based Budget Report

Purpose of Review The State Health Benefit Plan (SHBP) provides health insurance benefits to active and retired state employees, teachers, non-certificated school service personnel (non-certs), contracted groups, members of the General Assembly, and their dependents. The SHBP's goal is to offer members a competitive health benefit in terms of quality and access to providers, while also providing members with an affordable health benefit option. However, over the past six years, employee premiums and cost-sharing have increased substantially which has led to concerns regarding the plan's affordability and whether it is providing a benefit that is competitive with other government employee health benefit plans and health benefit plans available on the individual market. The purpose of this review is evaluate the SHBP's costs and its efficiency in providing health benefits to members.

Results of Analysis 1. Statutory Alignment: Program activities are aligned with statutory responsibilities.
2. Staffing Levels: There are no positions funded in this program. All program activities are performed by 50 full-time benefit eligible employees funded through the Departmental Administration and Program Support program of DCH.
3. Fleet Management: There are no motor vehicles assigned to the program.
4. Performance Measures: OPB worked with the agency to identify metrics for key program activities. The performance measures reflected in this zero-based budget analysis have been revised from the SHBP's previously reported measures. The revised measures focus on encouraging sound fiscal management of the plan in an effort to enhance the plan's affordability and long-term sustainability. However, data for certain measures were not available. The agency should track and record data to ensure accurate reporting of performance data in the future.
5. Budget Impact: Maintain the current funding level. Certain administrative activities performed by DCH staff are not represented in the SHBP program budget, but are instead represented in the Departmental Administration and Program Support program budget of DCH. Program Operations:
6. Increases in SHBP's medical expense trends have been lower over the past five years than the national average. While SHBP has experienced an approximately 8% increase in medical expenses since FY 2009, the national average has been an approximately 16% increase since FY 2009.

Office of Planning and Budget

34

01/16/2015

Department of Community Health
ZBB Program: State Health Benefit Plan (SHBP)
FY 2016 Zero-Based Budget Report
7. While medical expense trends have been below the national average, SHBP costs are higher than other comparable health plans. For example, the health plan offered to Board of Regents (BOR) employees offers richer plans at lower total costs. In another example, a 2014 study by The Pew Charitable Trusts found that when adjusted for plan richness and member household size, SHBP total costs are nearly 25% higher than other southern states' employee health plans' costs and nearly 16% higher than all other states' employee health plans' costs. Additionally, the cost of SHBP plans was substantially higher than that of similar plans offered on the Federally Facilitated Marketplace (FFM) throughout the state in 2014. Recommendation: Examine why SHBP's costs are higher than other comparable government employee health plans and develop options for reducing the SHBP's costs without further diminishing the value of health benefits received by members. Submit a study detailing the cause of SHBP's costs and options for reducing costs to the Governor and General Assembly by June 30, 2015.
8. Administrative expenses for the SHBP have increased substantially over the past five years. Between FY 2009 and FY 2013, administrative expenses for the SHBP were, on average, 4.8% of total expenses, or approximately $139 million annually. In FY 2014, administrative expenses were 6.6% of total expenses, or approximately $186 million. The SHBP's administrative expenses have two major components, one is vendor services and the second is health plan administration and oversight. The vendor services component includes all major health plan contracts, such as third party claims administration, network administration, medical management services, pharmacy benefit administration, and wellness services. This vendor services component jumped from an average annual cost of $129 million between FY 2009 and FY 2013 to an annual cost of $166 million in FY 2014. This increase was largely attributable to the one-time expense of termination fees associated with the end of the United Healthcare and Cigna contracts, which cost approximately $42 million. The second component of the SHBP's administrative expense is the plan administration and oversight activity, which is performed by 50 full-time benefit eligible employees at DCH. This activity includes plan design, medical policy development, financial management, legal services, claims auditing, member services, and employer services. This component went from average annual expenses of $9 million between FY 2009 and FY 2013 to annual expenses of almost $18 million in FY 2014. This large increase was primarily caused by one-time costs associated with the replacement of the legacy MEMS eligibility, enrollment, and billing system. Recommendation: Many of the administrative expenses that caused the increase should have been one-time expenses. Monitor administrative expenses and identify options for stabilizing administrative expense at the historical average of 5% or less of total expense.

Office of Planning and Budget

35

01/16/2015

Department of Community Health
ZBB Program: State Health Benefit Plan (SHBP)
FY 2016 Zero-Based Budget Report
9. In FY 2014, SHBP expenses for pre-Medicare retirees were almost 30% more than those of active employees who were enrolled in the same plans. Pre-Medicare retirees (sometimes referred to as early retirees) are state employees, teachers, or non-certs who retire from public service and collect an annuity from the Employee Retirement System (ERS) or the Teacher Retirement System (TRS), which makes these individuals eligible for SHBP coverage in retirement; however, these retirees are younger than age 65, which makes them ineligible for Medicare. These retirees enroll in the same plans as active employees until they reach age 65 and become Medicare-eligible. Once these retirees become eligible for Medicare, SHBP requires that they enroll in Medicare and SHBP offers them subsidized supplemental Medicare coverage through a Medicare Advantage plan. When pre-Medicare retirees costs are separated out from active employee costs who are enrolled in the same plans, the expenses for pre-Medicare retirees are 30% higher, largely because the pre-Medicare retiree population is, on average, older than the active employee population. Recommendation: Examine and report on alternative options for providing health care benefits to pre-Medicare retirees. These potential alternatives may include different plan designs for these retirees, moving these retirees to a private exchange with defined contribution, or differential premiums for these retirees. Submit a study detailing alternative options for providing health care benefits to pre-Medicare retirees to the Governor and General Assembly by June 30, 2015.
10. Medicare-eligible retirees have limited choices for supplemental Medicare-coverage in the SHBP because the plan offers only two Medicare Advantage plan choices with the vendor(s) offering commercial SHBP plans. The Board of Regents Health Plan (BORHP) is planning to transition its Medicare-eligible retirees to a private health benefit exchange in Calendar Year 2016. Under this plan, BORHP will offer its Medicare-eligible retirees a defined contribution which can be used to purchase a supplemental Medicare coverage plan of the member's choice on a private health benefit exchange. Recommendation: Contract with a benefit-consulting firm that offers a private supplemental Medicare coverage exchange, and allow Medicare-eligible retirees to purchase coverage through an exchange for Calendar Year 2016. Provide these retirees with a defined contribution to purchase this coverage, and allow them to buy-up or buy-down depending on each individual members' needs. Coordinate with BORHP to provide similar options for both BORHP and SHBP Medicare-eligible retirees.

Office of Planning and Budget

36

01/16/2015

Department of Community Health
ZBB Program: State Health Benefit Plan (SHBP)
FY 2016 Zero-Based Budget Report
11. Employer contributions for non-certificated school service personnel (non-certs) do not cover 75% of the cost of their expenses. Until FY 2012, the employer contribution for non-cert employees was paid through two pieces: 1. a per member per month (PMPM) payment to SHBP on behalf of the Local Education Agencies (LEAs), and 2. a state appropriation that the Department of Education paid directly to the SHBP that was intended to cover part of the cost of the employer contribution for non-certs employees. As a result of the state providing payment for a portion of these employees' health benefits, the PMPM contribution rate paid by LEAs was set artificially low. The state appropriation was reduced in FY 2009 through FY 2011 and finally eliminated completely in FY 2012. When the state eliminated its appropriation for this purpose, the SHBP began to gradually increase the employer contribution rates that LEAs pay for their insured noncerts. However, the increases have been steep because the employer contribution rates paid by LEAs were set very low; for example, in July 2010, the employer contribution rate paid by an LEA to insure a non-cert was $162.72. By July 2013, employer contribution rates for non-certs had risen to $596.20 per member per month. However, to achieve a situation where the LEA employer contribution covers 75% of non-certs' expense, this employer contribution rate would need to increase by at least $354 PMPM to $950 PMPM. The Governor's Budget Recommendation for FY 2015 and the FY 2015 Appropriations Act froze the non-cert employer contribution rate at $596.20 for FY 2015, and the Governor's Office and OPB established a workgroup of stakeholders from LEAs, DCH, OPB, and the Governor's Office to develop options for reducing costs to provide more affordable care to non-certs. Recommendation: The LEA workgroup should issue recommendations regarding non-cert coverage by January 1, 2015. This recommendation should contain options for reducing costs to provide more affordable care to non-certs to enable the elimination of the subsidy from state agency employer contribution rates.
12. SHBP has been implementing a wellness initiative since 2012, but has not yet reported on whether the program is having the intended effects of improving the health status of SHBP members and reducing costs. Recommendation: Develop effectiveness measures for the wellness initiative to determine whether the program is having its intended effects, and submit them to OPB by June 30, 2015 for inclusion in the SHBP's performance measures.

Office of Planning and Budget

37

01/16/2015

Department of Community Health
ZBB Program: State Health Benefit Plan (SHBP)
FY 2016 Zero-Based Budget Report
13. Employer contribution methodologies used by SHBP mask what employers are paying for, and this has led to confusion among employers and employees about how much SHBP costs. Each group pays for employer contributions in a different way. State agencies pay a percent of their total payroll as their employer contribution; in FY 2015, the percent of payroll rate for state agencies is 30.454%. LEAs pay per member per month amounts for teachers and non-certs; in FY 2015, the per member per month amounts are $945.00 per enrolled teacher and $596.20 per enrolled non-cert. Employers frequently indicate that they believe they could achieve less expensive employer contributions by moving their agency off of SHBP for health insurance coverage and shopping commercially available plans. These employers may not realize that the employer contribution for SHBP pays for active employee coverage and retired employee coverage. For those employers that have shopped commercially available plans for non-certs, all have found that when the cost of covering retirees is included in their quotes, SHBP offers the most cost effective option. Recommendation: Reflect employer contribution rates in bills to employers and Board of Community Health resolutions as two separate rates - one rate to pay for active employee coverage and another rate to pay for retired employee coverage.
14. LEAs are separate entities from state government, and leadership of many LEAs have expressed the desire to comparison shop health benefit plans to determine if SHBP is the most cost-effective means of providing health coverage benefits to their employees. Currently, statute allows LEAs to opt out of SHBP for their non-cert employees, but it does not allow them to opt out of SHBP for their teachers. Recommendation: Review legislative changes that would be necessary to provide flexibility to LEAs in the provision of health benefits for all of their employees, and recommend any necessary changes to provide this flexibility to the General Assembly during the 2015 legislative session.
15. The plan's Other Post-Employment Benefits (OPEB) liability, the actuarially calculated liability for retiree benefits, is currently not funded. Recommendation: Utilize any reserve funds remaining after allowing for the plan's Incurred But Not Reported (IBNR) liability plus 10% of plan expense to fund the accrued liability portion of the Annual Required Contribution (ARC).

Office of Planning and Budget

38

01/16/2015

Department of Community Health
ZBB Program: State Health Benefit Plan (SHBP)
Key Activities and Alternative Approach

Key Activities (Listed in priority order as determined by Agency)

No. of

Activity

Description

Authority Positions

Active Employee Claims

Payment of medical and pharmacy benefit claims for active state OCGA 20-2-881,

Payments

employees, teachers, non-certificated school personnel, contracted 20-2-911, 45-18-

groups, members of the General Assembly, and their dependents 2

who are members of the SHBP.

FY 2015 State Funds
$0

FY 2015 Total Budget $2,267,774,120

Zero Based Budget Review (State Funds)

Changes Recommendation

$0

$0

Pre-Medicare Retiree Claims Payments
Medicare Retiree Medical Benefits Payments

Payment of medical and pharmacy benefit claims for pre-Medicare OCGA 20-2-885,

retired state employees, teachers, non-certificated school

20-2-915, 45-18-

personnel, members of the General Assembly, and their dependents 2

who are members of the SHBP.

Payment of capitation rates for supplemental Medicare coverage for OCGA 20-2-885,

retired state employees, teachers, non-certificated school

20-2-915, 45-18-

personnel, members of the General Assembly, and their dependents 2

who are members of the SHBP and eligible for Medicare.

0

506,382,390

0

0

0

227,505,132

0

0

Vendor Services

Provide contracted services to the SHBP - third party claims administration, network administration, medical management services, wellness services, and pharmacy benefit management.

OCGA 45-18-6

0

150,000,000

0

0

Health Plan Administration and Vendor Oversight

Determine plan design for all active and retiree members, conduct OCGA 45-18-2, periodic procurements for vendors to administer plan, govern plan 45-18-15 eligibility and enrollment, collect employer contributions and employee premiums, and oversee and hold vendors accountable for performance. (Note: This activity is funded through SHBP revenues, but the expense is reflected in the Departmental Administration budget of DCH.)

Alternative (Alternative approach to delivering program services as provided by the agency) No alternative approaches to program services delivery are recommended at this time.

0

0

0

0

$0 $3,151,661,642

$0

$0

Office of Planning and Budget

39

01/16/2015

Department of Community Health
ZBB Program: State Health Benefit Plan (SHBP)
Financial Summary

Objects of Expenditure Personal Services Regular Operating Expenses Motor Vehicle Purchases Equipment Computer Charges Real Estate Rentals Telecommunications Contractual Services Health Insurance Payments Total Expenditures
Fund Type
State General Funds Federal Funds Other Funds Total Funds

Expenditures

FY 2013

FY 2014

FY 2015 Current Budget

Zero Based Budget Review

Changes

Recommendation

$131,445,112 2,702,729,942 $2,834,175,054

$166,148,079 2,593,361,967 $2,759,510,046

$150,000,000 3,001,661,641 $3,151,661,641

$2,834,175,054 $2,759,510,046 $3,151,661,641 $2,834,175,054 $2,759,510,046 $3,151,661,641

$0

$150,000,000

0

3,001,661,641

$0 $3,151,661,641

$0 $3,151,661,641 $0 $3,151,661,641

Positions* Motor Vehicles

0

0

0

0

0

0

0

0

0

0

* Position counts shown under expenditures reflect the number of salaried, benefit eligible employees as of June 30 of that fiscal year.

Office of Planning and Budget

40

01/16/2015

Department of Community Health
ZBB Program: State Health Benefit Plan (SHBP)
Performance Measures
Agency Purpose: Through effective planning, purchasing, and oversight, DCH provides access to affordable, quality health care to millions of Georgians, including some of the state's most vulnerable and underserved populations.
Program Purpose: The purpose of this appropriation is to provide a healthcare benefit for teachers and state employees that is competitive with other commercial benefit plans in quality of care and access to providers; and to provide for the efficient management of provider fees and utilization rates.

Performance Measures 1. Average expense per member per month 2. Number of active subscribers supporting each retiree subscriber (active to retiree ratio) 3. Percent of SHBP members accessing any preventive care services 4. Preventive care expenses per member per month
5. Percent of SHBP members with a common chronic condition (asthma, diabetes, coronary artery disease (CAD))
6. Percent of SHBP members with a common chronic condition (asthma, diabetes, coronary artery disease (CAD)) who are engaged in the disease state management co-pay waiver program
7. Average per member per month expense for SHBP members with common chronic conditions (asthma, diabetes, coronary artery disease (CAD))
8. Percent of SHBP members with high dollar claim accumulation (paid over $100,000 in claims in one year)
9. Percent of SHBP members with a high dollar claim accumulation (paid over $100,000 in claims in one year) who are engaged in case management

FY 2011 $347.31 2.59
36.32% $11.49 10.62%
N/A

Actuals

FY 2012

FY 2013

$368.80

$370.45

2.40

2.20

44.93% $13.55 10.66%

40.21% $13.61 10.42%

N/A

N/A

FY 2014 $371.19 2.00
36.32% $12.68
9.05%
TBD

$418.84 0.36% N/A

$440.58 0.39% N/A

$413.77 0.43% N/A

$365.26 0.29% TBD

Office of Planning and Budget

41

01/16/2015

FY 2016 Zero-Based Budget Analysis
Department of Community Health ZBB Program: Georgia Board for Physician Workforce: Physicians for Rural Areas

Office of Planning and Budget

42

01/16/2015

Department of Community Health
ZBB Program: Georgia Board for Physician Workforce: Physicians for Rural Areas
FY 2016 Zero-Based Budget Report
Purpose of Review The Georgia Board for Physician Workforce: Physicians for Rural Areas program is responsible for awarding and monitoring medical education loan repayments to physicians who agree to practice in qualifying rural Georgia counties and medical scholarships to Georgia medical students who agree to practice a primary care core specialty in qualifying rural Georgia counties. The purpose of this review is to analyze the efficiency and effectiveness of activities in the Physicians for Rural Areas program, focusing on the return on investment of the scholarships awarded versus the loan repayments awarded.
Results of Analysis 1. Statutory Alignment: Program activities are aligned with statutory responsibilities. 2. Staffing Levels: There are no positions funded in this program. 3. Fleet Management: There are no motor vehicles assigned to the program. 4. Performance Measures: OPB worked with the agency to identify metrics for key program activities. The updated measures accurately
reflect the performance of the program. 5. Budget Impact: Transfer $160,000 in state general funds from the scholarship activity to the loan repayment activity.
Program Operations: 6. Scholarships are awarded to students in medical school with the expectation that they will enter a primary care residency program and
practice in rural Georgia for as many years as they received the medical school scholarship. Between the time a scholarship award is given to a student and the time they finish their residency, many things can happen to change the trajectory of their medical specialty or the geographic area in which they wish to practice, causing them to default on the scholarship and have to pay back three times the scholarship amount. By contrast, those receiving the Physicians for Rural Areas Assistance (PRAA) loan repayment are physicians currently practicing a primary care core specialty, identified by the Georgia Board for Physician Workforce, in a rural community in Georgia. Recommendation: Sunset the scholarship program over the next three fiscal years, and redirect funds to the loan repayment program. 7. The Physicians for Rural Areas program has received a 50/50 federal match on $100,000 in state funds to be used for the Physicians for Rural Areas Assistance Loan Repayment awards with the stipulation that loan repayment awards granted using the matched funds can be no lower than $25,000 per recipient. Current loan repayment awards are $20,000 per recipient. Recommendation: Increase all loan repayment awards to $25,000 per recipient.

Office of Planning and Budget

43

01/16/2015

Department of Community Health
ZBB Program: Georgia Board for Physician Workforce: Physicians for Rural Areas
Key Activities and Alternative Approach

Key Activities (Listed in priority order as determined by Agency)

Activity

Description

Physicians for Rural Areas Assistance Loan Repayment

Manage medical education loan repayments to physicians who agree to practice in a qualifying Georgia county.

Authority OCGA 31-34 et seq

No. of Positions

FY 2015

FY 2015

State Funds Total Budget

$530,000

$530,000

Zero Based Budget Review (State Funds)

Changes Recommendation

$160,000

$690,000

Scholarship Assistance

Manage scholarships to Georgia medical students who agree to OCGA 20-3-510 practice primary care core specialty in a qualifying Georgia county. et seq

500,000

500,000 (160,000)

$340,000

Medical Fair

Provide staff support and financial support to the Georgia Association of Community Hospitals (GACH) to sponsor the annual medical fair.

40,000

40,000

0

$40,000

Total

0

$1,070,000

$1,070,000

$0

$1,070,000

Alternative (List an alternative approach to delivering program services) No alternative approaches to program service delivery are recommended at this time.

Office of Planning and Budget

44

01/16/2015

Department of Community Health
ZBB Program: Georgia Board for Physician Workforce: Physicians for Rural Areas
Financial Summary

Objects of Expenditure Personal Services Regular Operating Expenses Motor Vehicle Purchases Equipment Computer Charges Real Estate Rentals Telecommunications Contractual Services Medical Scholarships Total Expenditures
Fund Type
State General Funds Total Funds
Positions Motor Vehicles

Expenditures

FY 2013

FY 2014

FY 2015 Current Budget

Zero Based Budget Review

Changes

Recommendation

$330,000 500,000
$830,000
$830,000 $830,000

$390,000 500,000
$890,000
$890,000 $890,000

$570,000 500,000
$1,070,000
$1,070,000 $1,070,000

$160,000 (160,000)
$0
$0 $0

$730,000 340,000
$1,070,000
$1,070,000 $1,070,000

Office of Planning and Budget

45

01/16/2015

Department of Community Health
ZBB Program: Georgia Board for Physician Workforce: Physicians for Rural Areas
Performance Measures

Agency Purpose: The Georgia Board for Physician Workforce addresses the health care workforce needs of Georgia communities through the support and development of medical education programs and increases the number of physicians and health care practitioners practicing in underserved rural areas.
Program Purpose: The purpose of this appropriation is to ensure an adequate supply of physicians in rural areas of the state, and to provide a program of aid to promising medical students.

Performance Measures 1. Number of physicians receiving loan repayment 2. Number of students receiving scholarships 3. Percentage of qualified applicants receiving loan repayment award 4. Percentage of scholarship recipients who default
5. Percentage of loan repayment recipients still practicing in rural Georgia
6. Percentage of scholarship recipients still practicing in rural Georgia

FY 2011 13 28
39% 0%
N/A
N/A

Actuals

FY 2012

FY 2013

17

17

25

25

94%

61%

20%

0%

N/A

N/A

N/A

N/A

FY 2014 18 25
50% 4%
62%
54%

Office of Planning and Budget

46

01/16/2015

FY 2016 Zero-Based Budget Analysis
Department of Community Health ZBB Program: Georgia Composite Medical Board

Office of Planning and Budget

47

01/16/2015

Department of Community Health
ZBB Program: Georgia Composite Medical Board
FY 2016 Zero-Based Budget Report

Purpose of Review The Georgia Composite Medical Board licenses, investigates complaints against and disciplines physicians, physician's assistants, residency trainees, respiratory care professionals, perfusionists, acupuncturists, orthotists, prosthetists, auricular (ear) detoxification specialists, laser tech specialist and pain management clinics. The purpose of this review is to analyze the efficiency and effectiveness of activities of the Georgia Composite Medical Board.
Results of Analysis Department of Community Health 1. Statutory Alignment: Program activities are aligned with statutory responsibilities.
2. Staffing Levels: There are 28 authorized positions and 25 full-time benefit eligible employees. 3. Fleet Management: There are six motor vehicles assigned to the program.
4. Performance Measures: OPB worked with the agency to identify metrics for key program activities. The updated measures accurately reflect the performance of the program.
5. Budget Impact: Reflect other funds in the base budget and annualize Laser Tech Licensure state funds. See recommendation below.
Program Operations:
6. With advances in telemedicine, there are increased opportunities for physicians all over the United States to practice in Georgia without being a Georgia resident. Physicians licensed in other states who wish to practice in Georgia must go through the same application process as an unlicensed physician seeking a license. Currently there are 35 states that participate in active interstate reciprocity compacts. Recommendation: Evaluate licensing by reciprocity compacts with other states. The Georgia Composite Medical Board may still charge a licensing fee for each Georgia Medical License issued under this new agreement but will not require applicants to go through the same application process as physicians applying for their first physician's license.
7. Six months of funding was added for the Laser Tech Licensure activity by the Georgia State Assembly during the FY 2014 session. Recommendation: Annualize funding for the Laser Tech Licensure activity ($35,000).
8. There will always be a need for primary and sealed auxiliary application documents to be delivered by hand. However, most of the application process for medical licensure could be done online, streamlining the application process. Recommendation: Work with Georgia Technology Authority to explore steps that would be necessary to move all licensure application processes online. Assess any cost savings or increased expenses associated with moving to an online application process.

Office of Planning and Budget

48

01/16/2015

Department of Community Health
ZBB Program: Georgia Composite Medical Board
FY 2016 Zero-Based Budget Report
9. Though licensing fees are remitted to the Treasury, the agency retains administrative fees. Administrative fees are used to cover regular operating expenses not funded by the state funds appropriation. Recommendation: Align budget with expenses and amend administrative fees into the base budget ($200,000). Utilize other funds collected during the fiscal year for program operations and in accordance with the state's policy on spending order. Lapse to the state treasury all other funds in addition to state funds not used within the fiscal year.
10. HB 147 (2011 session) required the Georgia Composite Medical Board to link malpractice coverage to the online profile of all physicians licensed in Georgia. The link has yet to be added to physician online profiles due to one-time costs to upgrade technology and ongoing costs for maintaining the upgraded system. Recommendation: Work with Georgia Technology Authority to make necessary changes to comply with HB 147. Use administrative fees retained by the agency to cover any one-time costs associated with upgrading the physician profiles and ongoing maintenance cost.

Office of Planning and Budget

49

01/16/2015

Department of Community Health
ZBB Program: Georgia Composite Medical Board
Key Activities and Alternative Approach

Key Activities (Listed in priority order as determined by Agency)

Activity Health Care Professional Licensing

Description License qualified applicants as physicians, physician assistants, respiratory care professionals, perfusionists, acupuncturists, orthotists, prosthetists, cosmetic laser practitioners, cosmetic laser technicians, and auricular (ear) detoxification specialists.

Authority OCGA 43-34-6, OCGA 43-34240

No. of

FY 2015

FY 2015

Positions State Funds Total Budget

8.0

$681,370

$681,370

Zero Based Budget Review (State Funds)

Changes Recommendation

$71,718

$753,088

Pain Clinic Licensure
Delegated Prescription Protocol Review Website Management

Process applications for pain management clinic licenses.

OCGA 43-34-

0.5

52,455

52,455

0

280

Review advanced practice registered nurse (APRN) protocols that OCGA 43-34-25

1.5

111,546

111,546

1,325

delegate the physician's prescribing privileges to the APRN.

Provide information to health care consumers, insurance providers, OCGA 43-34A-3

2.8

362,495

362,495

36,718

hospitals, and other stakeholders through the physician profiles

published on its website.

$52,455 $112,871
$399,213

Investigations
Mediate Physician Health Program

Investigate complaints and discipline those who violate the Medical OCGA 43-34-8 Act, pain management clinic laws or other laws governing the professional behavior of the Board licensees.
Administer and serve as mediator for the Physician Health Program OCGA 43-34-5.1 (PHP).
Total

12.0

941,733

1,041,733

125,239

0.2

39,415

39,415

0

25.0

$2,189,014

$2,289,014 $235,000

$1,066,972
$39,415 $2,424,014

Alternative (Alternative approach to delivering program services as provided by the agency) Centralize the licensing and regulation of all healthcare professions under one agency. The agency believes efficiencies would be enhanced and cost reduced if licensing board's administrative and fiscal management functions were consolidated. Licensing boards to be considered include: nurses, podiatrist, physical therapist, optometrist, dentist, pharmacists, speech therapist, occupational therapist and psychologist.

Office of Planning and Budget

50

01/16/2015

Department of Community Health
ZBB Program: Georgia Composite Medical Board
Financial Summary

Objects of Expenditure Personal Services Regular Operating Expenses Motor Vehicle Purchases Equipment Computer Charges Real Estate Rentals Telecommunications Contractual Services Total Expenditures
Fund Type
State General Funds Other Funds Total Funds

Expenditures

FY 2013

FY 2014

$1,773,555

$1,868,637

203,446

133,446

0

39,725

FY 2015 Current Budget
$1,942,822 68,896 0

579 37,823 107,080 157,208 $2,279,691

2,244 44,238 147,589 178,512 $2,414,391

12,000 35,000 93,108 137,188 $2,289,014

Zero Based Budget Review

Changes

Recommendation

$35,000

$1,977,822

64,550

133,446

0

0

0 9,238 54,481 71,731 $235,000

12,000 44,238 147,589 208,919 $2,524,014

$1,929,334 350,357
$2,279,691

$2,109,582 304,809
$2,414,391

$2,189,014 100,000
$2,289,014

$35,000 200,000 $235,000

$2,224,014 300,000
$2,524,014

Positions* Motor Vehicles

26

25

28

1

29

6

6

6

0

6

* Position counts shown under expenditures reflect the number of salaried, benefit eligible employees as of June 30 of that fiscal year.

Office of Planning and Budget

51

01/16/2015

Department of Community Health
ZBB Program: Georgia Composite Medical Board
Performance Measures
Agency Purpose: The Georgia Composite Medical Board licenses qualified applicants as physicians, physician's assistants, residency trainees, respiratory care professionals, perfusionists, acupuncturists, orthotists, prosthetists, and auricular (ear) detoxification specialists. The Board also to investigates complaints and disciplines those who violate the Medical Practice Act or other laws governing the professional behavior of the licensed professionals.
Program Purpose: The Georgia Composite Medical Board licenses qualified applicants as physicians, physician's assistants, residency trainees, respiratory care professionals, perfusionists, acupuncturists, orthotists, prosthetists, and auricular (ear) detoxification specialists. The Board also to investigates complaints and disciplines those who violate the Medical Practice Act or other laws governing the professional behavior of the licensed professionals.

Performance Measures 1. Number of initial licensure applications processed
2. Number of licensure applications renewals processed
3. Number of complaints received 4. Number of investigations 5. Percentage of licenses issued or denied within 90 days of application 6. Number of disciplinary actions taken against licensed professionals 7. Average investigator caseload

FY 2011 3,459
21,258
2,195 1,131 74.5%
333 19.6

Actuals

FY 2012

FY 2013

2,963

3,531

24,103

21,534

2,061 748
74.0%

1,729 595
77.6%

549

457

20.3

22.7

FY 2014 4,481
21,369
1,771 538
75.5% 249 22.8

Office of Planning and Budget

52

01/16/2015

FY 2016 Zero-Based Budget Analysis
Georgia Department of Corrections ZBB Program: Private Prisons

Office of Planning and Budget

53

01/16/2015

Georgia Department of Corrections
ZBB Program: Private Prisons
FY 2016 Zero-Based Budget Report

Purpose of Review The Georgia Department of Corrections (GDC) administers the prison and probation sentences of offenders adjudicated by Georgia's courts. The Private Prisons program consists of four facilities, under two contracts, with Corrections Corporations of America (CCA) and GEO Corporation. Combined, these facilities are contracted to house up to 7,974 inmates, typically of low to medium risk. The purpose of this review is to evaluate the cost-effectiveness of program activities and assess the need of private prisons as part of Georgia's future correctional infrastructure.
Results of Analysis 1. Statutory Alignment: Program activities are aligned with statutory responsibilities. 2. Staffing Levels: There are no positions funded in this program. 3. Fleet Management: There are no motor vehicles assigned to the program. 4. Performance Measures: OPB worked with the agency to identify metrics for key program activities. The updated measures accurately
reflect the performance of the program. 5. Budget Impact: Maintain the current funding level.
Program Operations:
6. The Criminal Justice Reform Act of 2012 is expected to divert low risk inmates and drug offenders away from the correctional system through the utilization of alternative sentencing programs such as county drug courts. These diversions are expected to negate the previously projected 8% increase in the prison population and $264 million in associated costs. The future prison population will consist of a more hardened and higher risk inmate, of which private prisons are not currently equipped to detain. Private prisons utilize an "openbay" housing design structure in the majority of their facilities. This design is meant to accommodate a low to medium security risk inmate and is not conducive to accommodate a large number of inmates who require single-cell confinement. Recommendation: Evaluate contracts with private prison vendors on an annual basis to ensure that offenders' profiles fit private prison capacity and capabilities.
7. Research has shown that offenders who re-enter communities after receiving evidence based programming (substance abuse, educational, and vocational) are up to 7.5% less likely to reoffend within three years. Private prisons are required to provide components of evidence based programming to offenders, but programs are not standardized among the private prison facilities.

Office of Planning and Budget

54

01/16/2015

Georgia Department of Corrections
ZBB Program: Private Prisons
FY 2016 Zero-Based Budget Report
Recommendation: Negotiate with private prison vendors upon contract renewal to mandate that evidence based programming is available to meet the needs of offender profile types. The Department shall plan to provide services to ensure offenders are afforded the same opportunity to rehabilitate and succeed following their release from the prison system, regardless of their assignment to a state or private prison. In the interim period prior to contract renewal, the Department shall continue to transfer offenders to other prison locations if programming is not available to meet their needs at a private prison.

Office of Planning and Budget

55

01/16/2015

Georgia Department of Corrections
ZBB Program: Private Prisons
Key Activities and Alternative Approach

Key Activities (Listed in priority order as determined by Agency)

Activity Riverbend Correctional Facility

Description

Authority

Opened in December 2011 as an adult male medium security prison OCGA 42-2-11

in Milledgeville with a max capacity by contract of 1,500 inmates.

Offers various academic, vocational, and counseling classes to

rehabilitate offenders. Owned and operated by the GEO Group.

No. of Positions

FY 2015

FY 2015

State Funds Total Budget

$28,196,250 $28,196,250

Zero Based Budget Review (State Funds)

Changes Recommendation

$0

$28,196,250

Wheeler Correctional Facility

Opened in 1998 as an adult male medium security prison in Alamo with a max capacity by contract of 2,638 inmates. Offers various academic, vocational, and counseling classes as well as faith based programs to rehabilitate offenders. Owned and operated by Corrections Corporation of America.

OCGA 42-2-11

42,733,573

42,733,573

0

42,733,573

Jenkins Correctional Facility Coffee Correctional Facility

Opened in 2012 as an adult male medium security prison in Millen with a max capacity by contract of 1,150 inmates. Offers various academic, vocational, and counseling classes as well as faith based programs. Owned and operated by Corrections Corporation of America.

OCGA 42-2-11

Opened in 1998 as an adult male medium and close security prison in Nicholls with a max capacity by contract of 2,628. Offers various academic, vocational, and counseling classes as well as faith based programs. Owned and operated by Corrections Corporation of America.

OCGA 42-2-11

22,057,863

22,057,863

0

22,057,863

41,920,338

41,920,338

0

41,920,338

Total

0 $134,908,024 $134,908,024

$0

$134,908,024

Alternative (Alternative approach to delivering program services as provided by the agency) No alternative approaches to program services delivery are recommended at this time.

Office of Planning and Budget

56

01/16/2015

Georgia Department of Corrections
ZBB Program: Private Prisons
Financial Summary

Objects of Expenditure Personal Services Regular Operating Expenses Motor Vehicle Purchases Equipment Computer Charges Real Estate Rentals Telecommunications Contractual Services Total Expenditures
Fund Type State General Funds Total Funds
Positions Motor Vehicles

Expenditures

FY 2013

FY 2014

FY 2015 Current Budget

Zero Based Budget Review

Changes

Recommendation

$134,694,789 $134,694,789

$133,811,261 $133,811,261

$134,908,024 $134,908,024

$134,694,789 $134,694,789

$133,811,261 $133,811,261

$134,908,024 $134,908,024

$0

$134,908,024

$0

$134,908,024

$0

$134,908,024

$0

$134,908,024

Office of Planning and Budget

57

01/16/2015

Georgia Department of Corrections
ZBB Program: Private Prisons
Performance Measures
Agency Purpose: The Georgia Department of Corrections administers the prison and probation sentences of offenders adjudicated by Georgia courts. The Department of Corrections creates a safer Georgia by effectively managing offenders and providing opportunities for positive change.
Program Purpose: The purpose of this program is to contract with private companies to provide cost-effective prison facilities that ensure public safety.

Performance Measures 1. Annual occupancy rate 2. Three-year felony reconviction rate 3. Number of GED diplomas received in private prisons 4. Number of contracted private prison beds as a percentage of all inmate beds 5. Average daily cost per inmate*
*FY 2014 data will not be available until an independent audit has been completed.

FY 2011 97% 31% 178 11%
$46

Actuals

FY 2012

FY 2013

83%

99%

28%

30%

82

200

14%

16%

$53

$51

FY 2014 99% 30% 234 17%
N/A

Office of Planning and Budget

58

01/16/2015

FY 2016 Zero-Based Budget Analysis
Georgia Department of Corrections ZBB Program: Transition Centers

Office of Planning and Budget

59

01/16/2015

Georgia Department of Corrections
ZBB Program: Transition Centers
FY 2016 Zero-Based Budget Report
Purpose of Review The Georgia Department of Corrections (GDC) administers the prison and probation sentences of offenders adjudicated by Georgia courts. The Transition Centers (TC) program provides work release for offenders, which allows the offender to obtain and maintain a paying job in the community while living in the TC. Offenders also participate in relevant programming targeted to substance abuse counseling, educational classes, and developing career skills. There are 13 Transitional Centers located throughout the state, two of which are dedicated to housing female inmates, for a maximum occupancy of 2,683 offenders. The purpose of this review is to evaluate the cost effectiveness of program activities and ensure that performance measures effectively track progress to program goals.
Results of Analysis 1. Statutory Alignment: Program activities are aligned with statutory responsibilities. 2. Staffing Levels: The program has 434 full-time benefit eligible employees. 3. Fleet Management: There are 82 motor vehicles assigned to the program. 4. Performance Measures: OPB worked with the agency to identify metrics for key program activities. The updated measures accurately
reflect the performance of the program. 5. Budget Impact: Maintain the current funding level.
Program Operations: 6. When traveling to and from work sites, the offender must utilize an approved mode of transportation, which varies by facility. The
offender is responsible for all costs associated with transportation, which also varies depending on the mode and frequency of travel. If public transportation is not suitable or available, some facilities contract with private vendors to provide transportation services. Although the vendor contracts are facilitated by the TC, the offenders are responsible for payment. The lack of transportation standardization across facilities, coupled with limited available transportation options currently provided by the facility, leads to high transportation costs for the offender, affects an offender's ability to get to and from work sites in a timely manner, and imposes on the accountability of off-site offenders.

Office of Planning and Budget

60

01/16/2015

Georgia Department of Corrections
ZBB Program: Transition Centers
FY 2016 Zero-Based Budget Report
Recommendation: Research and implement a private and agency-based transportation standard across all TC's. Methods for each TC will be based upon location (rural/metropolitan), proximity and availability of public transportation, and cost effectiveness to both inmate and facility. The fees collected from the offenders for transportation services will be remitted to the state treasury and offset the cost of providing the service. 7. Offenders on work release travel to and from a TC to their respective work sites by various modes of transportation with no means to formally communicate any urgent issue that may occur during travel to the appropriate party. Current law (OCGA 42-5-18) prohibits the transport of non-state authorized cell phones into any state correctional facility. GDC officials now believe that allowing TC offenders to utilize cell phones while traveling to and from their work site would improve security and communication between inmates, TC staff, and employers. A cell phone pilot was conducted at the Valdosta TC from April to September 2010, with success. The pilot increased communication between staff and inmates, and served as a tool to incentivize inmate compliance. Recommendation: Evaluate allowing TC offenders to voluntarily use cell phones while outside of the TC during work-hours by utilizing a check-in process in which the cell phones would be detained by the appropriate TC personnel upon entering the TC. Cell phones can be checked-out by the TC offender once the offender has been processed out of the facility for the next work day. 8. Around 18,000 inmates per year are released into society who have either served the entirety of their sentence or will be released under parole supervision. On average, 2,400 inmates enter into a TC twelve months prior to their release annually. Many inmates are released into the general population without receiving the same opportunities afforded to those inmates in the TC program. Recommendation: Offenders who re-enter into the community after being released from a transitional center are up to one-third less likely to recidivate. In light of recent re-entry initiatives, the agency should increase transition services to offenders before release. 9. Seven out of every ten inmates lack a high school diploma or GED upon entry to prison. In FY 2014, only 605 inmates received their GED in a state prison (excludes county and private prisons) due to lack of capacity or because the inmate had been rendered ineligible for participation due to low aptitude test scores. GDC has developed a proposal that seeks to expand GED program capacity in TC's by establishing a `fast-track' online GED program at each TC for inmates who have yet to earn their GED or high school diploma 12-months prior to their release. Recommendation: Incorporate the TC educational expansion proposal and increase the GED program capacity.

Office of Planning and Budget

61

01/16/2015

Georgia Department of Corrections
ZBB Program: Transition Centers
Key Activities and Alternative Approach

Key Activities (Listed in priority order as determined by Agency)

Security

Activity

Facility Operations

Food Services Administration Counseling Adult Education

Description
Provides a safe and secure environment for offenders and staff and transports offenders to and from various appointments and work sites on an as needed basis. Provides maintenance and operational support to transition center facilities with the assistance of the TC's long-term maintenance resident offenders. Prepares and serves food at the statutorily required level of nutrition for the offenders under supervision. Provides financial, human resource, clerical, and other support to the program. Provides behavioral health and substance abuse counseling to offenders. Provides GED (General Education Development), basic education, and vocational training for a variety of skill areas.

Authority OCGA 42-2-5
OCGA 42-2-5
OCGA 42-4-32; 42-2-5 OCGA 42-2-5
OCGA 42-2-5 OCGA 42-5-57; 42-2-5

No. of

FY 2015

FY 2015

Positions State Funds Total Budget

299 $15,648,591 $15,648,591

5

4,946,266

4,946,266

25

1,106,489

1,106,489

64

3,961,478

3,961,478

40

3,244,393

3,244,393

1

64,950

64,950

Zero Based Budget Review (State Funds)

Changes Recommendation

$0

$15,648,591

0

4,946,266

0

1,106,489

0

3,961,478

0

3,244,393

0

64,950

Total

434 $28,972,167 $28,972,167

$0

$28,972,167

Alternative (Alternative approach to delivering program services as provided by the agency) No alternative approaches to program services delivery are recommended at this time.

Office of Planning and Budget

62

01/16/2015

Georgia Department of Corrections
ZBB Program: Transition Centers
Financial Summary

Objects of Expenditure Personal Services Regular Operating Expenses Motor Vehicle Purchases Equipment Computer Charges Real Estate Rentals Telecommunications Capital Outlay Contractual Services Grants and Benefits Central Repair Fund Total Expenditures
Fund Type
State General Funds Federal Funds Other Funds Total Funds

Expenditures

FY 2013

FY 2014

$22,474,523

$22,534,521

2,725,777

2,773,889

317,966

6,790

106,131

106,761

2,300,907

2,425,574

572,078

621,751

34,970

108,296

1,316,451

422,208

4,248

51,766

$29,848,803

$29,055,804

FY 2015 Current Budget
$23,869,702 2,424,176
43,009 2,366,801
265,779 2,700
$28,972,167

Zero Based Budget Review

Changes

Recommendation

$0

$23,869,702

0

2,424,176

0

43,009

0

2,366,801

0

265,779

0

2,700

$0

$28,972,167

$27,756,858 1,239,010 852,936
$29,848,803

$28,400,214 400,689 254,901
$29,055,804

$28,972,167 $28,972,167

$0

$28,972,167

$0

$28,972,167

Positions Motor Vehicles

435

437

434

82

82

82

0

434

0

82

* Position counts shown under expenditures reflect the number of salaried, benefit eligible employees as of June 30 of that fiscal year.

Office of Planning and Budget

63

01/16/2015

Georgia Department of Corrections
ZBB Program: Transition Centers
Performance Measures
Agency Purpose: The Georgia Department of Corrections administers the prison and probation sentences of offenders adjudicated by Georgia courts. The Department of Corrections creates a safer Georgia by effectively managing offenders and providing opportunities for positive change.
Program Purpose: The purpose of this program is to provide "work release," allowing inmates to obtain and maintain a paying job in the community, while still receiving housing, academic education, counseling, and substance abuse treatment in a structured center.

Performance Measures 1. Percent of offenders who successfully completed TC programming 2. Annual occupancy rate 3. Three-year felony reconviction rate 4. Number of transition center beds as a percentage of all inmate beds 5. Annual room and board fees collected 6. Employment rate for TC offenders statewide 7. Percent of vacant security positions

FY 2011 78% 97% 19% 6%
$4,508,981 N/A 4%

Actuals

FY 2012

FY 2013

81%

80%

97%

100%

20%

18%

5%

5%

$4,479,296 $4,482,073

N/A

78%

5%

7%

FY 2014 79%
100% 19% 6%
$5,140,843 89% 7%

Office of Planning and Budget

64

01/16/2015

FY 2016 Zero-Based Budget Analysis
Department of Early Care and Learning ZBB Program: Pre-Kindergarten

Office of Planning and Budget

65

01/16/2015

Department of Early Care and Learning
ZBB Program: Pre-Kindergarten
FY 2016 Zero-Based Budget Report

Purpose of Review Georgia's Pre-Kindergarten program (Pre-K) provides universal, voluntary access to high-quality learning environments for the state's fouryear-olds. The program includes standards based instruction, formative assessments, observations of teacher-child interactions, workforce professional development opportunities, and a monitoring system to track progress and quality. Classroom instruction on language skills are aligned with the Governor's goal to increase the percentage of students reading at grade level by the third grade. The purpose of this review is to ensure the Pre-K program operates efficiently and is strategically aligned with the program purpose to increase school readiness by further defining key activities of the program, examining program expenditures, and updating performance measures.

Results of Analysis 1. Statutory Alignment: Program activities are aligned with statutory responsibilities. 2. Staffing Levels: The program has 62 full-time benefit eligible employees. 3. Fleet Management: There are two motor vehicles assigned to the program.
4. Performance Measures: OPB worked with the agency to identify metrics for key program activities. The updated measures accurately reflect the performance of the program.
5. Budget Impact: Increase lottery funds by $4,476,817. See recommendations below.
Program Operations:
6. In FY 2014, 34.3% of total lottery funds were appropriated for the Pre-K program. Approximately 96.4% of the Department of Early Care and Learning's (DECAL) lottery funds appropriation provided direct grant payments for 3,848 classrooms. Approximately 55.6% of sites are managed by private providers, 43.2% by local school systems, and 1.2% by other public providers.
7. Since FY 2014, Pre-K grants fund 180 instructional days and 8 planning days for teachers. Increasing the number of planning days increases teacher salaries and the Pre-K program's ability to retain experienced teachers. Between FY 2012 and FY 2014, as lead teacher salaries increased by 9.9%, the lead teacher retention rate also increased by 10.8%. Recommendation: Increase lottery funds by $3,036,817 to increase the number of teacher planning days to 10 days. Increasing planning days will increase teacher salaries by 1.5% and provide teachers with additional time to better prepare for the purpose of offering high quality learning opportunities for Pre-K children.

Office of Planning and Budget

66

01/16/2015

Department of Early Care and Learning
ZBB Program: Pre-Kindergarten
FY 2016 Zero-Based Budget Report
8. Since FY 2010, DECAL has offered the Summer Transition Program (STP), which is designed to reduce the achievement gap by offering a six-week transition program during June and July. The program uses federal funds and includes students who meet low-income eligibility requirements. STP runs two separate course offerings. The original Rising Kindergarten STP started in FY 2010 and a Rising Pre-K STP program started in FY 2013. Rising Kindergarten STP is for rising kindergarteners who did not receive Pre-K instruction or needed additional academic support before entering kindergarten. Rising Pre-K STP targets Spanish-speaking dual language learners eligible to attend Pre-K the following school year. An independent study found these programs make a significant impact on students' pre-literacy and school readiness skills. Recommendation: Increase lottery funds by $1,440,000 for 40 Rising Kindergarten classes and 20 Rising Pre-K classes. Providing additional transition services for low-income students will help reduce the achievement gap by providing additional family support and resources to targeted high needs populations.
9. The Pre-K program serves approximately 60% of Georgia's four year olds. There were 6,076 students on the waitlist in FY 2014 waiting to enter the Pre-K program. While the number of children on the waitlist decreased by 29% since FY 2011, some rural and highly populated areas continue to have large waitlists and limited capacity to serve these children. Fifteen of 180 local school systems do not offer Pre-K. Of these 15 systems, four systems offered Pre-K in the past but withdrew citing lack of instructional space as a significant factor in their withdrawal. Recommendation: Increase capacity by studying how to adequately address lack of instructional space, particularly in areas with large waitlists, and collaborate with Pre-K providers to expand existing sites and add classrooms.
10. A FY 2007 independent study concluded policies focused only on increasing teachers' education did not definitively improve classroom quality or maximize children's academic gains. It further stressed the importance of teacher trainings. DECAL now requires lead teachers to obtain a bachelor's degree, pass the New Teacher Institute courses, and attend annual trainings. DECAL provides additional training and professional development opportunities to ensure teachers have substantial training to effectively manage a classroom.
11. DECAL commissioned a three phase study beginning in FY 2012 to measure the impact of Georgia's Pre-K program. The agency released two reports on two out of three phases for this study. Results showed participation in the Pre-K program improves school readiness skills. Average scores for Georgia's Pre-K participants were above the national norm on key standardized measures of language, literacy and math skills. Average scores for Georgia's children who did not attend Georgia's Pre-K program showed students to be at or below the national norm. The first two phases did not evaluate the long term impact of Pre-K education on children. The third phase of the study is designed to track a cohort of Pre-K students through third grade.

Office of Planning and Budget

67

01/16/2015

Department of Early Care and Learning
ZBB Program: Pre-Kindergarten
FY 2016 Zero-Based Budget Report
Recommendation: Continue funding the third phase of the study tracking children's progress through the third grade to adequately determine the impact Pre-K has on the student population and on a child's ability to read at grade level by third grade. Determining this impact informs best practices in reaching the Governor's goal of increasing the percentage of children reading at grade level by third grade.

Office of Planning and Budget

68

01/16/2015

Department of Early Care and Learning
ZBB Program: Pre-Kindergarten
Key Activities and Alternative Approach

Key Activities (Listed in priority order as determined by Agency)

Activity Pre-Kindergarten Grants
Monitoring and Technical Assistance

Description

Authority

Georgia Pre-Kindergarten classroom grants are formula-driven

OCGA 20-1A-4

grants to fund Pre-Kindergarten classrooms and administration in

public and private facilities across the state. The grants are intended

to fund classrooms to accommodate up to 84,000 four year old

students annually. In FY 2015, $303M will go directly to classrooms

as grants. The remainder funds administration including budgeting

and accounting, information systems, and statewide programming

coordination.

Department of Early Care and Learning (DECAL) staff monitor Pre- OCGA 20-1A-4

Kindergarten classrooms and their administration to ensure

program adherence as well as provide on-site technical assistance to

teachers and administrators for better program outcomes.

Training for Teachers and Administrators

In an effort to increase the quality of student-teacher interactions, OCGA 20-1A-4 DECAL contracts with the Best Practices Division at Georgia State University to develop and conduct annual professional development training modules for lead teachers, assistant teachers, and administrators.

Pre-Kindergarten Research Head Start Coordination

Primarily contracted, researchers conduct independent research and OCGA 20-1A-4 analysis of data in order to determine the impact of the PreKindergarten program amongst a variety of factors including school readiness. DECAL acts as a State of Georgia liaison for the federal Head Start OCGA 20-1A-4 Program and all Georgia grantees.

Total

No. of

FY 2015

FY 2015

Positions State Funds1 Total Budget

25.4 $307,064,482 $307,064,482

35.3

4,000,679

4,000,679

0.1

1,594,468

1,594,468

0.2

1,640,403

1,640,403

1.0

162,400

62.0 $314,300,032 $314,462,432

Zero Based Budget Review (State Funds)

Changes Recommendation

$4,476,817

$311,541,299

0

4,000,679

0

1,594,468

0

1,640,403

0 $4,476,817

162,400 $318,939,249

Alternative (Alternative approach to delivering program services as provided by the agency) Provide Pre-K classrooms only through local school systems. Currently, DECAL has a grant agreement with 171 schools systems to offer Georgia's Pre-K at 776 schools. However, Pre-K services are not the primary function of local school systems, and the funding to support the classes is lottery funded. Without lottery funding, many schools systems would not have the local funds to offer services.

1All state funds in this program are lottery proceeds.

Office of Planning and Budget

69

01/16/2015

Department of Early Care and Learning
ZBB Program: Pre-Kindergarten
Financial Summary

Objects of Expenditure Personal Services Regular Operating Expenses Motor Vehicle Purchases Equipment Computer Charges Real Estate Rentals Telecommunications Contractual Services Pre-Kindergarten Grants Federal Nutrition Grants Total Expenditures
Fund Type
Lottery Funds Federal Funds Total Funds

Expenditures

FY 2013

FY 2014

$3,588,121

$4,258,290

493,103

571,640

FY 2015 Current Budget
$4,923,069 873,080

38,951 330,927 109,800 122,725 6,684,133 282,571,918 194,326 $294,134,004

8,047 358,545 114,718 121,557 5,883,478 293,768,173 175,000 $305,259,448

10,000 633,522 125,126 110,445 4,771,191 302,853,599 162,400 $314,462,432

Zero Based Budget Review

Changes

Recommendation

$0

$4,923,069

0

873,080

0 0 0 0 0 4,476,817 0 $4,476,817

10,000 633,522 125,126 110,445 4,771,191 307,330,416 162,400 $318,939,249

$293,939,678 194,326
$294,134,004

$305,084,448 175,000
$305,259,448

$314,300,032 162,400
$314,462,432

$4,476,817 0
$4,476,817

$318,776,849 162,400
$318,939,249

Positions* Motor Vehicles

40

57

62

0

62

2

2

2

0

2

* Position counts shown under expenditures reflect the number of salaried, benefit eligible employees as of June 30 of that fiscal year.

Office of Planning and Budget

70

01/16/2015

Department of Early Care and Learning
ZBB Program: Pre-Kindergarten
Performance Measures
Agency Purpose: The Department of Early Care and Learning oversees a wide range of programs focused on meeting the child care and early education needs of Georgia's children and their families.
Program Purpose: The purpose of this program is to provide funding, training, technical assistance, and oversight of Pre-Kindergarten programs operated by public and private providers throughout the state and to improve the quality of early learning and increase school readiness for Georgia's four-year-olds.

Performance Measures 1. Georgia Pre-Kindergarten program enrollment 2. Number of children on Pre-Kindergarten waiting list 3. Percentage of classrooms implementing Work Sampling System (WSS) online in order to monitor and report student progress 4. Percentage of children rated as "in process" or "proficient" on at least 80% of the WSS Language and Literacy Indicators 5. Percentage of children rated as "in process" or "proficient" on at least 80% of the WSS Mathematics indicators 6. Percentage of new Pre-Kindergarten teachers who attended both days of New Pre-K Teacher Institute who scored at 80% or above on all proficiency quizzes

FY 2011 82,608 8,503 27%
94%
91%
N/A

Actuals

FY 2012

FY 2013

82,868

81,683

6,214

6,883

53%

83%

92%

93%

92%

94%

N/A

N/A

FY 2014 81,453 6,076 100%
95%
92%
93%

Office of Planning and Budget

71

01/16/2015

FY 2016 Zero-Based Budget Analysis
Employees' Retirement System of Georgia ZBB Program: System Administration

Office of Planning and Budget

72

01/16/2015

Employees' Retirement System of Georgia
ZBB Program: System Administration
FY 2016 Zero-Based Budget Report
Purpose of Review The System Administration program in the Employees' Retirement System (ERS) of Georgia collects employee and employer contributions, invests the accumulated funds, and disburses retirement benefits to members and beneficiaries. The purpose of this review is to ensure that this program is functioning efficiently and effectively.
Results of Analysis 1. Statutory Alignment: Program activities are aligned with statutory responsibilities. 2. Staffing Levels: The program has 95 full-time benefit eligible employees. 47 in Member Services, 17 in Financial Services, and 31 in
Support Services. There are currently two vacant funded positions in Member Services. 3. Fleet Management: There is one motor vehicle assigned to the program: a pool-car available for use by ERS employees traveling on
business outside of the office. 4. Performance Measures: OPB worked with the agency to identify metrics for key program activities. The updated measures accurately
reflect the performance of the program. 5. Budget Impact: Maintain the current funding level.
Program Operations: 6. In 2014, the agency conducted an enrollment audit to determine if employees were enrolled appropriately in the system. This was the
first time this audit was conducted and resulted in identifying some employees who were not properly enrolled. Recommendation: Conduct an annual enrollment verification audit to ensure all individuals are enrolled properly. 7. ERS does not subscribe to any state indicators or federal benchmarks relating to pension system administration. Recommendation: ERS will participate in some form of benchmarking analysis. This will allow ERS a chance to identify what the organization is doing well and what it can improve upon based on the results of other pension systems.

Office of Planning and Budget

73

01/16/2015

Employees' Retirement System of Georgia
ZBB Program: System Administration
FY 2016 Zero-Based Budget Report
8. ERS uses their website to connect with members and beneficiaries. Currently, members of ERS can obtain informational packets, access and update personal account information, apply for a refund, and run estimate calculations. The agency is working towards enhancing their website by implementing an online retirement application process which would eliminate manual input of potential retiree information. Recommendation: Continue to develop a system where members can fill out retirement applications online in order to enhance electronic data collection. Consider creating a web based chat system for members to interact with communications specialists.
9. HB 764 (2014 Session, Act 663) allows for Georgia State Employees' Pension and Savings Plan (GSEPS) members to become eligible for membership on or after July 1, 2014 with an initial contribution rate of 5% of their salary (rather than 1%) to the 401(k) plan. Employees may opt out of the 5% contribution or otherwise elect to change their contribution rate through GaBreeze. The automatic enrollment change from 1% to 5% allows members to take advantage of the full employer match offered by the state. Recommendation: Continue to educate members on their overall benefits under GSEPS and the new 5% default rate through newsletters, the human resources community, new hire packets, GSEPS videos, and electronic mail.

Office of Planning and Budget

74

01/16/2015

Employees' Retirement System of Georgia
ZBB Program: System Administration
Key Activities and Alternative Approach

Key Activities (Listed in priority order as determined by Agency)

Activity

Description

Member Services Financial Services

Calculate benefits; provide and process paperwork to begin payment of benefits; communicate regularly with members and retirees. Collect and store data (demographic, work history, payroll); maintain the retiree payroll that provides benefits; report financial and tax information; collect monetary contributions; invest funds; disburse benefits.

Support Services

Provide IT services; maintain the document processing center; provide administrative support services.

No. of
Authority Positions OCGA 47-2-20 47 OCGA 47-2-52

FY 2015 State Funds
$0

OCGA 47-2-20 17 OCGA 47-2-52 OCGA 47-2-31 OCGA 47-2-331 OCGA 47-20-82 OCGA 47-20-83
31

0 15,400

FY 2015 Total Budget
$3,261,608 9,806,424
6,655,638

Zero Based Budget Review (State Funds)

Changes Recommendation

$0

$0

0

0

0

15,400

Total

95

$15,400

$19,723,670

$0

$15,400

Alternative (Alternative approach to delivering program services as provided by the agency) No alternative approaches to program services delivery are recommended at this time.

Office of Planning and Budget

75

01/16/2015

Employees' Retirement System of Georgia
ZBB Program: System Administration

Financial Summary

Objects of Expenditure
Personal Services
Regular Operating Expenses
Motor Vehicle Purchases
Equipment
Computer Charges
Real Estate Rentals
Telecommunications Investment Contracts1 Accounting Contracts2 Other Contractual Services3
Social Security Administration Judicial Retirement System Contributions4
Total Expenditures

Expenditures

FY 2013

FY 2014

$7,547,492

$7,606,102

206,566

230,416

FY 2015 Current Budget
$8,273,269 284,350

189,519 456,981 622,416 119,319 5,523,255 465,586 1,458,026
$16,589,160

165,701 479,891 603,936 116,132 6,110,970 480,513 1,471,828
$17,265,489

147,000 500,000 603,936 146,000 6,929,000 524,000 2,316,115
10,400 5,000
$19,739,070

Fund Type
State General Funds Other Funds Total Funds

$16,589,160 $16,589,160

$17,265,489 $17,265,489

$15,400 19,723,670 $19,739,070

Positions5 Motor Vehicles

95

95

95

1

1

1

1ERS contracts with the Division of Investing Services in Teachers Retirement System. 2ERS contracts with Teachers Retirement System for accounting services. 3Temporary help (contractual labor - IT); IT security (disaster recovery); actuarial services and medical fees. 4The $5,000 listed above are one time pass-through funds for employees moving from JRS to ERS to cover credible service. 5Position counts shown under expenditures reflect the number of salaried, benefit eligible employees as of June 30 of that fiscal year.

Zero Based Budget Review

Changes

Recommendation

$0

$8,273,269

0

284,350

0

147,000

0

500,000

0

603,936

0

146,000

0

6,929,000

0

524,000

0

2,316,115

0

10,400

0

5,000

$0

$19,739,070

$0

$15,400

0

19,723,670

$0

$19,739,070

0

95

0

1

Office of Planning and Budget

76

01/16/2015

Employees' Retirement System of Georgia
ZBB Program: System Administration
Performance Measures
Agency Purpose: Employees' Retirement System of Georgia administers separate and distinct cost-sharing, multiple employer defined benefit pension plans for various employer agencies of the State of Georgia, as well as defined contribution plans, and a life insurance plan. Employees' Retirement System of Georgia also serves as the State Social Security Administrator for all political subdivisions of the state. Program Purpose: The purpose of this program is to collect employee and employer contributions, invest the accumulated funds, and disburse retirement benefits to members and beneficiaries.

Performance Measures 1. Number of retirees and beneficiaries currently receiving benefits 2. Total benefit payments made during fiscal year (in millions) 3. New retiree on-time processing rate 4. Average speed to answer incoming calls (in seconds)1 5. Number of calls dropped compared to volume of calls 6. Number of audit findings in the Annual Financial Audit 7. Number of active enrollees as of June 30th 8. Total number of applications processed compared to the number of applications processed without error2

FY 2011 40,250 $1,168.82 99.0%
49 4.0%
0 66,081
N/A

1FY 2013 performance is due to a 21% increase in call volume over the average call volume of the two prior fiscal years. 2ERS is in the process of conducting an internal review for this data.

Actuals

FY 2012

FY 2013

42,053

44,546

$1,216.74

$1,269.20

99.5%

99.7%

56

82

4.3%

6.4%

0

0

63,963

61,554

N/A

96.5%

FY 2014 45,819 $1,306.00 99.6%
50 3.7%
0 60,490
N/A

Office of Planning and Budget

77

01/16/2015

FY 2016 Zero-Based Budget Analysis
Georgia Forestry Commission ZBB Program: Commission Administration

Office of Planning and Budget

78

01/16/2015

Georgia Forestry Commission
ZBB Program: Commission Administration
FY 2016 Zero-Based Budget Report
Purpose of Review The Commission Administration program incorporates a variety of roles and responsibilities to support the Georgia Forestry Commission (GFC) including financial and grant administration, procurement, property, fleet and contract management, IT services, and human resources. The purpose of this review is to identify efficiencies in the operation and key activities of the Commission Administration program.
Results of Analysis 1. Statutory Alignment: Program activities are aligned with statutory requirements. 2. Staffing Levels: The program has 33 full-time benefit eligible employees. 3. Fleet Management: There are 18 motor vehicles assigned to this program, which serve as an agency-wide motor pool. 4. Performance Measures: OPB worked with the agency to identify metrics for key program activities. The updated measures accurately
reflect the performance of the program. 5. Budget Impact: Maintain the current funding level.
Program Operations: 6. The Commission Administration program provides oversight for the agency's participation in the Federal Firefighter Property (FFP)
program. The program allows for the acquisition of excess Department of Defense (DOD) vehicles, generators, tools, and supplies for local emergency and firefighting use. To date, the Commission has acquired FFP equipment worth $20.9 million. Of this amount, rural fire departments have received equipment valued at $13.4 million. After the equipment is received, it is retrofitted to match the need of agencies that provide fire protection activities and emergency services throughout the state. The equipment is provided by the federal government at no cost to the agency, local governments, and rural firefighting departments. The Commission designates screeners throughout the agency to monitor the DOD property database for potential equipment to acquire. The asset and fleet managers in the program coordinate the screening process and make the final request to the DOD to obtain the equipment.

Office of Planning and Budget

79

01/16/2015

Georgia Forestry Commission
ZBB Program: Commission Administration
FY 2016 Zero-Based Budget Report
7. Since the beginning of FY 2014, the agency has employed an in-house online workers' compensation program, CAIRS (Close call, Accident, and Injury Reporting System) to electronically monitor and manage workers' compensation incidents and claims. The system also allows for the collection of data for incidents that did not necessarily result in workers' compensation claim. The data is used by agency safety officers to investigate and institute preventative measures to assist in preventing and reducing future exposure. There were 40 new workers' compensation claims in FY 2014, averaging $2,579 per claim. This is a slight decrease from FY 2013 when there were 43 claims averaging $4,583. The system was developed internally and could be made available to other state agencies in the future. Recommendation: Partner with the Risk Management Services division within the Department of Administrative Services to determine if the CAIRS system to manage workers' compensation claims would be beneficial to other state agencies.
8. The Commission Administration program's current FY 2015 budget is $3,526,653. During the past two fiscal years, the program has lapsed an average of $63,951 in total state and other funds to the state treasury at the end of each fiscal year.
9. The Governor's Winter Weather Task Force included a fleet management working group, aimed at identifying ways to allow for the accurate tracking of vehicles and personnel in the field, with minimal additional investments. The working group recommended using the existing Georgia Online Disaster Awareness Geospatial System (GODAWGS) at the Georgia Emergency Management Agency to create a common fleet management approach. The system can track GPS locations for strike teams using smart phone applications. Recommendation: Utilize existing funds of $48,000 to implement GPS tracking with GODAWGS by using smart phone technology for 100 strike teams.

Office of Planning and Budget

80

01/16/2015

Georgia Forestry Commission
ZBB Program: Commission Administration
Key Activities and Alternative Approach

Key Activities (Listed in priority order as determined by Agency)

Activity Director's Office

Description

Authority

Develops GFC strategy and ensures resources are appropriately and OCGA 12-6-5;

effectively allocated to accomplish the organization's mission.

12-6-6; 12-6-81

No. of Positions
3

FY 2015

FY 2015

State Funds Total Budget

$273,533

$273,533

Zero Based Budget Review (State Funds)

Changes Recommendation

$0

$273,533

Director of Field Operations

Manages and supervises the field level implementation of all GFC OCGA 12-6-5;

programs in six districts and 110 field offices.

12-6-6; 12-6-81

Federal Grants Administration

Manages Incident Business Management processes and federal grant processes. Oversees and prepares federal applications. Oversees federal grant budgets, expenditures, and cash disbursements. Assures all federal compliance.

OCGA 12-6-5; 12-6-6; 12-6-81

Human Resources and Training
Financial Services Administration Information Technology
Fleet Management

Administers all system-wide employee benefit programs and internal human resource activities including recruitment. Provides training to employees.

OCGA 12-6-5; 12-6-6; 12-6-81

Provides general financial support to the agency including: payroll, OCGA 12-6-5; accounts payable, accounts receivable, procurement, fixed assets, 12-6-6; 12-6-81 and budgeting.

Provides operational support and technical assistance for the acquisition and operation of hardware/software used in agencywide operations. Develops and maintains the automated agency intranet program.

OCGA 12-6-5; 12-6-6; 12-6-81

Manages the GFC inventory of vehicles and crawler tractors

OCGA 12-6-5;

including replacement schedules, procurement, distribution,

12-6-6; 12-6-81

specifications, Automotive Resources International (ARI) and Wright

Express (WEX) maintenance fuel and expense records.

2

210,182

210,182

2

269,561

336,753

6

461,025

509,825

14

1,382,254

1,382,254

4

451,607

451,607

1

98,699

98,699

0

210,182

0

269,561

0

461,025

0

1,382,254

0

451,607

0

98,699

Office of Planning and Budget

81

01/16/2015

Georgia Forestry Commission
ZBB Program: Commission Administration
Key Activities and Alternative Approach

Key Activities (Listed in priority order as determined by Agency)

Activity Building and Grounds

Description

Authority

Performs building repairs and maintenance, housekeeping, and OCGA 12-6-5;

ground keeping for the agency headquarters. Supports and assists 12-6-6; 12-6-81

district management and county units with repairs and maintenance

as needed.

No. of Positions
1

FY 2015

FY 2015

State Funds Total Budget

254,704

263,800

Zero Based Budget Review (State Funds)

Changes Recommendation

0

254,704

Total
Alternative (Alternative approach to delivering program services as provided by the agency) No alternative approaches to program service delivery are recommended at this time.

33

$3,401,565

$3,526,653

$0

$3,401,565

Office of Planning and Budget

82

01/16/2015

Georgia Forestry Commission
ZBB Program: Commission Administration
Financial Summary

Objects of Expenditure Personal Services Regular Operating Expenses Motor Vehicle Purchases Equipment Computer Charges Real Estate Rentals Telecommunications Contractual Services Total Expenditures
Fund Type
State General Funds Federal Funds Other Funds Total Funds

Expenditures

FY 2013

FY 2014

$2,420,528

$2,449,170

411,943

414,639

20,683

88,492

46,574

266,205

258,997

FY 2015 Current Budget
$2,482,276 322,341
31,665 388,475

122,527 160,605 $3,490,983

119,017 152,419 $3,440,816

123,246 178,650 $3,526,653

Zero Based Budget Review

Changes

Recommendation

$0

$2,482,276

0

322,341

0

31,665

0

388,475

0

123,246

0

178,650

$0

$3,526,653

$3,249,093 135,952 105,938
$3,490,983

$3,303,400 84,517 52,899
$3,440,816

$3,401,565 48,800 76,288
$3,526,653

$0

$3,401,565

0

48,800

0

76,288

$0

$3,526,653

Positions* Motor Vehicles

29

30

33

0

33

18

18

18

0

18

* Position counts shown under expenditures reflect the number of salaried, benefit eligible employees as of June 30 of that fiscal year.

Office of Planning and Budget

83

01/16/2015

Georgia Forestry Commission
ZBB Program: Commission Administration
Performance Measures
Agency Purpose: The Georgia Forestry Commission provides leadership, service, and education in the protection and conservation of Georgia's forest resources through fire detection, burn permitting, wildfire suppression and prevention, emergency and incident command, rural fire department assistance, forest management assistance, marketing and utilization of forest resources, and tree seedlings and planting services to landowners.

Program Purpose: The purpose of this program is to administer workforce needs, handle purchasing, accounts receivable and payable, meet information technology needs, and provide oversight that emphasizes customer values and process innovation.

Performance Measures 1. Number of audit findings 2. Total federal dollars received agency wide

FY 2011 0
$11,423,937

Actuals

FY 2012

FY 2013

0

0

$9,216,489 $9,278,954

FY 2014 N/A
$6,657,171

Office of Planning and Budget

84

01/16/2015

FY 2016 Zero-Based Budget Analysis
Office of the Governor ZBB Program: Georgia Professional Standards Commission

Office of Planning and Budget

85

01/16/2015

Office of the Governor
ZBB Program: Georgia Professional Standards Commission
FY 2016 Zero-Based Budget Report
Purpose of Review The Georgia Professional Standards Commission (GaPSC) sets and enforces rules for educator certification, educator ethics, and educator preparation programs. The work of the GaPSC supports the Governor's strategic education initiative of increasing teacher and leader effectiveness. The Commission implemented new board rules effective July 2014 that will increase performance standards for educator preparation programs and create a tiered-certification system for teachers in Georgia. The purpose of this review is to evaluate the workload and performance of the GaPSC as a result of these new rules.
Results of Analysis 1. Statutory Alignment: Program activities are aligned with statutory responsibilities. 2. Staffing Levels: The program has 74 full-time benefit eligible positions, including three time-limited positions. 3. Fleet Management: There are no motor vehicles assigned to the program. 4. Performance Measures: OPB worked with the agency to identify metrics for key program activities. However, data for certain measures
was not available. The agency should track and record data to ensure accurate reporting of performance data in the future. 5. Budget Impact: Increase funds by $454,066 to meet increased workload. See recommendations below.
Program Operations: 6. Effective July 1, 2014, the GaPSC adopted rule 505-2-.01, which establishes a tiered-certification system in Georgia that creates a new
structure for teacher certification, expands certification to prospective teachers enrolled in educator preparation programs, and provides two pathways of distinction for excellent teachers in the state. The new certification system uses performance data to inform professional development throughout a teaching career to recognize classroom teachers as either Lead Professional or Advanced Professional. This system was designed to promote professional growth and retention at each stage of a teacher's career. The GaPSC also adopted rule 505-3-.01, effective July 3, 2014, which updates requirements and standards for the approval of educator preparation providers and education preparation programs that prepare individuals for certification as educators in Georgia. The new rule increases accountability by establishing Preparation Program Effectiveness Measures (PPEMs) and raising performance standards for a number of training practices.

Office of Planning and Budget

86

01/16/2015

Office of the Governor
ZBB Program: Georgia Professional Standards Commission
FY 2016 Zero-Based Budget Report
7. The GaPSC has traditionally reviewed and approved educator preparation programs on a seven-year cycle. Each education program approval specialist is currently responsible for approximately 155 programs that require ongoing program review, approval, and support. Rule 505-3-.01 requires new categories of review if a program's annual performance data indicates that standards are not being met or if previous reviews indicate underlying issues so that the GaPSC can identify and address high-risk programs through ongoing monitoring and provide support. This will create additional workload for education specialists. Recommendation: Increase funds by $208,925 for two education specialists for program approval.
8. Each certification evaluator currently processes an average of approximately 2,500 certification applications each year. Rule 505-2-.01 will result in an increased workload for certification staff by approximately 6,600 certification cases each year for pre-service teachers and an unknown number of Advanced Professional and Lead Professional certification cases. Under OCGA 50-36-1, the GaPSC is required to ensure verification of lawful presence for all certification applications. The GaPSC began implementing the new requirements of this law in FY 2014. Implementing this law has drastically impacted the agency's caseload because they must verify lawful presence for both new and renewing teachers. The number of certification cases reported in FY 2014 increased by 126% over FY 2013. Recommendation: Increase funds by $75,852 for one certification staff member.
9. The GaPSC currently employs six investigators that process approximately 177 ethical complaints annually. Under board rule 505-2-.01, the agency also expanded its enforcement of ethical standards for educators to include students accepted into approved educator preparation programs. It is expected to impact the workload of the agency by approximately 6,600 criminal history checks each year and additional investigations associated with violations by students. Recommendation: Increase funds by $69,289 for one investigator.
10. The GaPSC maintains numerous IT systems and websites related to educator certification, ethics, and educator preparation. Beginning in FY 2016, the agency will no longer receive federal Race to the Top funds and will require additional funding to support the base level of contracted developers needed to maintain their applications and websites. Recommendation: Increase funds by $100,000 for maintenance and support of IT systems and websites.

Office of Planning and Budget

87

01/16/2015

Office of the Governor
ZBB Program: Georgia Professional Standards Commission
FY 2016 Zero-Based Budget Report
11. Under OCGA 20-2-205, the GaPSC governed the Georgia's Master Teacher Program, which has been federally funded through the state's Race to the Top grant in recent years and expired June 30, 2014. Maintaining a recognition program for excellent teachers was a factor in designing GaPSC's tiered certification system and there are several key similarities between the Master Teacher program and the new Advanced Professional certificate. Both are teacher recognition programs, specify a number of years of teaching experience to qualify, include a performance component, and have five-year validity periods. Unlike the Georgia Master Teacher Program, Advanced Professional certification requires an advanced degree in a teaching field, certification in Curriculum and Instruction or Instructional Technology, or National Board Certification. The performance data that will be used to determine eligibility for an Advanced Professional certificate is currently being refined to ensure reliability and validity. The GaPSC expects to begin accepting applications for this certificate when the Teacher Keys Evaluation System (TKES) becomes fully operational. Recommendation: Propose legislation to eliminate the Georgia Master Teacher Program and utilize the Advanced Professional certificate to recognize excellent teachers in the state.
12. The GaPSC certifies all teachers, education administrators, school support personnel and paraprofessionals. The $20 application fee for certification collected by GaPSC was set in Georgia code (OCGA 20-2-200) in 1988 and has not changed since. All funds collected are remitted to state treasury; however, Georgia law does not require the majority of educators and administrators to pay this fee for their professional certification. Since 2010, annual collections have ranged from a high of approximately $256,500 to a low of approximately $193,000. Recommendation: Work with stakeholders to evaluate the potential benefits of expanding fee requirements for all certificate applicants.

Office of Planning and Budget

88

01/16/2015

Office of the Governor
ZBB Program: Georgia Professional Standards Commission
Key Activities and Alternative Approach

Key Activities (Listed in priority order as determined by Agency)

No. of

FY 2015

FY 2015

Activity Educator Certification

Description
The GaPSC is responsible for establishing rules and regulations for P-12 (pre-kindergarten to grade 12) educator certification and evaluating individual certification applications through the issuance and renewal of educator credentials for all teachers, leaders, and support staff employed by Georgia's P-12 schools.

Authority Positions*

OCGA 20-2-200-

41

206; 20-2-211-

212.2; 20-2-215;

20-2-982-984;

20-2-984.5-989;

50-36-1

State Funds $2,669,325

Total Budget $2,828,808

Educator Ethics

Agency staff and Commission members are responsible for establishing and enforcing a code of ethics for GaPSC-credentialed P-12 educators, conducting investigations of alleged misconduct, and sanctioning violators.

OCGA 20-2-200; 20-2-204; 20-2207; 20-2-211.1; 20-2-982-989

18

1,777,828

2,030,775

Zero Based Budget Review (State Funds)

Changes Recommendation

$136,853

$2,806,178

77,289

1,855,117

Educator Preparation

Program approval specialists work with Commission members to OCGA 20-2-201;

establish standards for the approval of programs leading to Georgia 20-2-206; 20-2-

educator certification, review and approve programs, and regularly monitor program quality to ensure program completers are prepared to meet the needs of all learners in P-12 classrooms in Georgia.

212.5; 20-2-982984; 20-2-985.5989

Total

15

1,827,187

1,827,187

239,925

74

$6,274,340

$6,686,770 $454,066

2,067,112 $6,728,406

Alternative (Alternative approach to delivering program services as provided by the agency) No alternative approaches to program service delivery are recommended at this time.
*Position count includes three federally funded time-limited positions.

Office of Planning and Budget

89

01/16/2015

Office of the Governor
ZBB Program: Georgia Professional Standards Commission
Financial Summary

Objects of Expenditure Personal Services Regular Operating Expenses Motor Vehicle Purchases Equipment Computer Charges Real Estate Rentals Telecommunications Contractual Services Grants and Benefits Total Expenditures
Fund Type
State General Funds Federal Funds1 Federal Recovery Funds1 Other Funds Total Funds

Expenditures

FY 2013

FY 2014

$6,525,014

$7,009,265

488,743

493,849

FY 2015 Current Budget
$5,215,067 355,424

61,361 172,676 299,078 124,279 1,527,054 177,000 $9,375,206

91,541 147,584 299,142 117,127 1,700,042 227,105 $10,085,654

201,210 299,142 116,465 499,462
$6,686,770

Zero Based Budget Review

Changes

Recommendation

$349,066

$5,564,133

5,000

360,424

0 0 0 100,000
$454,066

201,210 299,142 116,465 599,462
$7,140,836

$5,754,125 1,977,218 1,640,877 2,986
$9,375,206

$6,117,340 2,172,847 1,790,728 4,739
$10,085,654

$6,274,340 411,930 0 500
$6,686,770

$454,066 0 0 0
$454,066

$6,728,406 411,930 0 500
$7,140,836

Positions2 Motor Vehicles

73

76

71

4

75

1 Federal Funds budgeted for FY 2015 reflect amount shown in the base budget and do not represent all available federal funds. 2 Position counts shown under expenditures reflect the number of salaried, benefit eligible employees as of June 30 of that fiscal year. Position count shown under FY 2015 current budget does not include the three time-limited positions.

Office of Planning and Budget

90

01/16/2015

Office of the Governor
ZBB Program: Georgia Professional Standards Commission
Performance Measures

Agency Purpose: The Georgia Professional Standards Commission is responsible for overseeing the development and enforcement of standards for educator certification, educator ethics, and educator preparation.

Program Purpose: The purpose of this program is to direct the preparation of, certify, recognize, and recruit Georgia educators, and to enforce standards regarding educator professional preparation, performance, and ethics.

Performance Measures 1. Number of approved educator preparation programs 2. Average processing time in days for certification cases submitted with all necessary documentation 3. Number of certification cases completed* 4. Total number of individuals with an active GaPSC credential 5. New ethics complaints received 6. Percentage of ethics cases extended by the Commission past the 60 calendar-day timeframe established in Georgia code 7. Percentage of ethics cases cleared by the Commission voting "no probable cause" after an investigation 8. Number of P-16 educators and administrators reached through outreach events and training opportunities 9. Percentage of educator preparation program completers who qualify for certification

FY 2011 778 6
39,916 283,107
1,287 22%
8%
N/A
86%

Actuals

FY 2012

FY 2013

852

910

9

7

40,572 286,932
1,354 34%

38,877 284,388
1,234 38%

11%

22%

N/A

N/A

87%

84%

FY 2014 929 10
87,758 287,607
1,064 N/A
22%
N/A
N/A

*Following changes to OCGA 50-36-1, the reported number of certification cases completed in FY 2014 includes renewal certificates not previously included in the count for certification cases.

Office of Planning and Budget

91

01/16/2015

FY 2016 Zero-Based Budget Analysis
Office of the Governor ZBB Program: Governor's Emergency Fund

Office of Planning and Budget

92

01/16/2015

Office of the Governor
ZBB Program: Governor's Emergency Fund
FY 2016 Zero-Based Budget Report

Purpose of Review The Governor's Emergency Fund provides funds to draw on when disasters create extraordinary demands on government. From Fiscal Years 2011 - 2014, the Governor's Emergency Fund (GEF) appropriation had less than 10% remaining at fiscal year end. The purpose of this review is to ensure the Governor's Emergency Fund has adequate funding to address unforeseen emergencies.

Results of Analysis 1. Statutory Alignment: Program activities are aligned with statutory requirements.
2. Staffing Levels: There are no positions funded in this program.
3. Fleet Management: There are no motor vehicles assigned to the program.
4. Performance Measures: OPB worked with the agency to identify metrics for key program activities. The updated measures accurately reflect the effectiveness of the GEF.
5. Budget Impact: Maintain the current funding level.
Program Operations:
6. The base funding for the Governor's Emergency Fund is adequate to cover the state's share of costs for natural or man-made disasters as the federal government usually covers a majority share of the costs for these situations when a federal disaster is declared. Recommendation: Maintain the current base level of funding for FY 2016.
7. Emergency funds are used for contingency planning for state agencies with anticipated but unknown funding needs during the fiscal year. The funds are reserved in the GEF to provide more accountability and prevent funds from being utilized for non-emergency spending.
8. Emergency funds can only be released by Executive Order of the Governor. OPB receives and reviews an agency request for emergency funds and makes a recommendation to the Governor for the utilization of funds. There are no procedures in place for submitting requests for emergency funds to OPB for review and recommendation to the Governor. Recommendation: Establish procedures for agencies to submit funding requests to OPB for review and recommendation to the Governor for approval.
9. The annual Budgetary Compliance Report includes an explanation of all funds transferred from the Governor's Emergency Fund during the fiscal year.

Office of Planning and Budget

93

01/16/2015

Office of the Governor
ZBB Program: Governor's Emergency Fund
Key Activities and Alternative Approach

Key Activities (Listed in priority order as determined by Agency)

Activity Emergency Fund Allocation

Description

Authority

An appropriation whose funds can be released for necessary and OCGA 45-12-77

unforeseen costs that are temporary in nature and: 1) assists

agencies with responding to emergencies such as natural disasters;

2) covers costs for difficult to estimate expenditures; 3) covers costs

related to legal judgments against the state; 4) covers costs for

unanticipated litigation.

No. of Positions

FY 2015

FY 2015

State Funds Total Budget

$11,062,041 $11,062,041

Zero Based Budget Review (State Funds)

Changes Recommendation

$0

$11,062,041

Total
Alternative (Alternative approach to delivering program services as provided by the agency) No alternative approaches to program service delivery are recommended at this time.

0 $11,062,041 $11,062,041

$0

$11,062,041

Office of Planning and Budget

94

01/16/2015

Office of the Governor
ZBB Program: Governor's Emergency Fund
Financial Summary

Objects of Expenditure Governor's Emergency Fund Criterion Referenced Competency Tests Tobacco Settlement Legal Judgment Unemployment Insurance Loan Interest Natural Disasters Conflict Cases Vocational Rehabilitation Agency Transfer
Total Expenditures
Fund Type State General Funds Total Funds
Positions Motor Vehicles

Expenditures

FY 2013

FY 2014

$54,161 339,576 100,000 16,763,825
10,000 1,980,000
985,839

$2,709
10,206,196 7,092,000 4,000,000

FY 2015 Current Budget
$11,062,041

$20,233,401

$21,300,905

$11,062,041

Zero Based Budget Review

Changes

Recommendation

$0

$11,062,041

$0

$11,062,041

$20,233,401 $20,233,401

$21,300,905 $21,300,905

$11,062,041 $11,062,041

$0

$11,062,041

$0

$11,062,041

Office of Planning and Budget

95

01/16/2015

Office of the Governor
ZBB Program: Governor's Emergency Fund
Performance Measures
Agency Purpose: The Office of the Governor oversees the executive branch and ensures that the laws are faithfully executed. Furthermore, the Office is responsible for policy development, legal counsel, legislative relations, communications, appointments, intergovernmental relations, and emergency management.
Program Purpose: The purpose of this appropriation is to provide emergency funds to draw on when disasters create extraordinary demands on government.

Performance Measures 1. Amount of dollars appropriated for Governor's Emergency Fund (GEF) 2. Percentage of state general funds appropriated for GEF 3. Percentage of GEF used for disaster relief 4. Percentage of GEF used for contingencies designated to a specific agency* 5. Percentage of GEF used for unforeseen agency or departmental expenditures 6. Number of funding requests approved for GEF 7. Amount of GEF appropriation remaining at fiscal year end
* Funds allocated in the appropriations bill for an agency

FY 2011 $3,469,576
0.02% 74.35%
N/A 25.65%

Actuals

FY 2012

FY 2013

$24,561,096 $20,233,401

0.15%

0.12%

16.06%

0.05%

62.92%

82.85%

11.03%

17.10%

FY 2014 $21,301,567
0.12% 33.29% 47.91% 18.79%

5

10

$0 $2,453,512

11

5

$0

$662

Office of Planning and Budget

96

01/16/2015

FY 2016 Zero-Based Budget Analysis
Office of the Governor ZBB Program: Office of the State Inspector General

Office of Planning and Budget

97

01/16/2015

Office of the Governor
ZBB Program: Office of the State Inspector General
FY 2016 Zero-Based Budget Report

Purpose of Review The Office of the State Inspector General examines, investigates, and makes recommendations with respect to the prevention and detection of fraud, waste, abuse, and corruption in the executive branch of the state government. This purpose of this review is to evaluate the cost effectiveness of the program's activities, ensure that performance measures track program goals, and evaluate the program's adherence to the program purpose.
Results of Analysis 1. Statutory Alignment: The Office of the State Inspector General (OIG) is not codified. Program activities are aligned with Executive Order
1-13-03. 2. Staffing Levels: The program has five full-time benefit eligible employees. 3. Fleefft Managel menht: There ahre nfo mof tlolr vehicbles asfsignl edbtlo the pl rogram. 4. Performance Measures: OPB worked with the agency to identify metrics for key program activities. The agency should continue to
develop relevant and measurable outcomes for its key activities. 5. Budget Impact: Maintain the current funding level.
Program Operations: 6. A key activity and requirement of OIG's guiding authority (EO 1-13-03) is for investigators to consult with state agencies and advise them
in developing, implementing, and enforcing policies and procedures that will prevent or reduce fraud, waste, abuse, and corruption. Approximately 1% of total funds allocated to the OIG is currently used for external training for state agencies. Recommendation: Develop a plan to increase statewide consultation and training on procedures to prevent or reduce fraud, waste, abuse, and corruption by state officials and employees, and work with Georgia Public Broadcasting to develop a video presentation for all agencies to utilize as part of their new employee on-boarding program.
7. OIG has primarily been a reactive agency by investigating complaints received from tips and referrals. Recommendation: Develop a fraud risk assessment plan that is frequently reviewed to detect anomalies.
8. OIG uses an Access database with limited capabilities to manage investigations and allegations. As a result, the agency is unable to adequately track progress status of cases and performance.

Office of Planning and Budget

98

01/16/2015

Office of the Governor
ZBB Program: Office of the State Inspector General
FY 2016 Zero-Based Budget Report
Recommendation: Utilize identified resources to purchase case management software that increases the investigators' ability to more efficiently and effectively maintain, manage, and close investigations and allegations.
9. Upon completion of an investigation, OIG meets with agency officials to provide a report of results and recommendations. No additional follow-up is performed to evaluate the impact of the recommendations. Recommendation: Develop a policy to conduct follow-up reviews to determine the changes made by agencies based on recommendations provided by the OIG.
10. O.C.G.A. 36-82-100 - (Local Government) Expenditure of Bond Proceeds, gives the OIG authority to review any claim of fraud, waste, abuse, or mismanagement of local bond proceeds in the amount of $5 million or more. In addition, Executive Order 06-28-13-03 designates the OIG as the state agency responsible for receiving complaints made by students enrolled in private postsecondary institutions within the State of Georgia. The aforementioned provisions are not listed or referenced in Executive Order 1-13-03. Recommendation: Work with OPB to determine a more appropriate agency in which to transfer OIG responsibilities to better align with the activities currently performed by the other agencies.
11. OIG is not the central reporting agency for all matters of fraud, waste, and abuse within the State of Georgia. Several state agencies including the Department of Human Services, Department of Community Health, and the Department of Public Health each have internal investigative divisions established to examine, investigate, and report fraud, waste, and abuse. Without a centralized reporting system or procedure, the depiction of fraud within Georgia's state agencies could be distorted if solely based on figures presented by the OIG. Recommendation: Evaluate the feasibility of a centralized reporting portal to track the number of complaints and investigations involving fraud, waste, and abuse within the State of Georgia.

Office of Planning and Budget

99

01/16/2015

Office of the Governor
ZBB Program: Office of the State Inspector General
Key Activities and Alternative Approach

Key Activities (Listed in priority order as determined by Agency)

No. of

Activity

Description

Authority Positions

Investigations

Investigate the management and operation of state agencies within Executive Order

4.0

the executive branch to determine if acts or omissions of fraud, 1-13-03

waste, abuse, or corruption have been or are being committed by

state officers or state employees within state government.

FY 2015

FY 2015

State Funds Total Budget

$522,210

$522,210

Zero Based Budget Review (State Funds)

Changes Recommendation

$0

$522,210

Training Administration

Consult with state agencies and advise them in developing,

Executive Order

0.1

6,528

6,528

0

implementing, and enforcing policies and procedures that will

1-13-03

prevent or reduce fraud, waste, abuse, and corruption by state

officers and employees.

Perform day-to day operations including employee timekeeping, agency budget development and amendments, billing / invoicing, procurement, IT maintenance, etc.

0.9

124,024

124,024

0

6,528 124,024

Total

5.0

$652,762

$652,762

$0

$652,762

Alternative (Alternative approach to delivering program services as provided by agency) Deliver fraud awareness training online and work with state agencies to deliver training as part of their new employee on-boarding program.

Office of Planning and Budget

100

01/16/2015

Office of the Governor
ZBB Program: Office of the State Inspector General
Financial Summary

Objects of Expenditure Personal Services Regular Operating Expenses Motor Vehicle Purchases Equipment Computer Charges Real Estate Rentals Telecommunications Contractual Services Total Expenditures
Fund Type
State General Funds Total Funds

Expenditures

FY 2013

FY 2014

$475,098

$441,349

17,919

26,929

FY 2015 Current Budget
$582,917 18,793

Zero Based Budget Review

Changes

Recommendation

$0

$582,917

0

18,793

575 28,746 15,424
2,498 $540,260

37,530 28,746 13,158 18,182 $565,894

600 28,835 15,902
5,715 $652,762

0

600

0

28,835

0

15,902

0

5,715

$0

$652,762

$540,259 $540,259

$565,893 $565,893

$652,762 $652,762

$0

$652,762

$0

$652,762

Positions* Motor Vehicles

4

5

5

0

5

* Position counts shown under expenditures reflect the number of salaried, benefit eligible employees as of June 30 of that fiscal year.

Office of Planning and Budget

101

01/16/2015

Office of the Governor
ZBB Program: Office of the State Inspector General
Performance Measures
Agency Purpose: The Office of the State Inspector General examines, investigates, and makes recommendations with respect to the prevention and detection of fraud, waste, abuse, and corruption in the executive branch of state government.
Program Purpose: The purpose of this appropriation is to foster and promote accountability and integrity in state government by investigating and preventing fraud, waste, and abuse.

Performance Measures 1. Number of complaints received 2. Number of no probable cause complaints 3. Number of probable cause complaints resulting in an investigation 4. Average time to resolve a complaint (in hours) 5. Number of cases open / active at year-end 6. Number of cases closed 7. Percentage of recommendations accepted by state agencies 8. Number of outreach and trainings conducted 9. Number of cases concluded with action 10. Value of fraud referred for prosecution

FY 2011 190 138 52 N/A 16 179
100% N/A 5 N/A

Actuals

FY 2012

FY 2013

202

134

124

114

78

20

N/A

N/A

17

7

200

146

100%

100%

4

5

7

8

$4,638,950

$828,373

FY 2014 127 104 23 N/A 9 119
100% 5 2
$6,246,393

Office of Planning and Budget

102

01/16/2015

FY 2016 Zero-Based Budget Analysis
Department of Human Services ZBB Program: Child Care Licensing

Office of Planning and Budget

103

01/16/2015

Department of Human Services
ZBB Program: Child Care Licensing
FY 2016 Zero-Based Budget Report

Purpose of Review Child Care Licensing is responsible for issuing licenses and monitoring Child Placement Agencies, Child Care Institutions, Child Transitional Care Centers, Maternity Homes, Outdoor Child Care Programs, and Runaway Homeless Youth Programs. The purpose of this review is to analyze the efficiency and effectiveness of activities in the Child Care Licensing program.

Results of Analysis 1. Statutory Alignment: Program activities are aligned with statutory responsibilities.
2. Staffing Levels: There are 27 authorized positions and 26 full-time benefit eligible employees. 3. Fleet Management: There are no motor vehicles assigned to the program. 4. Performance Measures: OPB worked with the agency to identify metrics for key program activities. The updated measures accurately
reflect the performance of the program. 5. Budget Impact: Maintain the current funding level.
Program Operations:
6. The program name is misleading, giving the impression that the program licenses all child care businesses. Child Care Licensing is only responsible for licensing residential child care facilities. Recommendation: Change the name of the program to Residential Child Care Licensing.
7. Child Care Licensing does not currently charge application or renewal fees. Recommendation: Conduct an internal review to evaluate other states' residential child care licensing program applications and renewal fee policies, possible impact of instituting application and renewal fees on the Georgia Department of Human Services' Out of Home Care program, and any changes in Georgia legislation that would be required to implement application and renewal fees.
8. Child Care Licensing performs annual inspections and follow-up visits to Child Care Institutions (CCI) and Child Care Placement Agencies (CPA). The Department of Human Services' Child Welfare Services program also conducts annual visits, inspecting facilities using similar guidelines as Child Care Licensing program. Recommendation: Work with Child Welfare Services program to coordinate inspections and/or follow-up visits to CCIs and CPAs.

Office of Planning and Budget

104

01/16/2015

Department of Human Services
ZBB Program: Child Care Licensing
FY 2016 Zero-Based Budget Report
9. Child Care Licensing has one employee trained to extract data from Georgia-TRAILS. The employee is on a leave of absence. Recommendation: Cross train multiple staff to be able to extract data from Georgia-TRAILS.
10. Real Estate Rentals object class is not aligned with expenditures. Recommendation: Align budget with expenditures.

Office of Planning and Budget

105

01/16/2015

Department of Human Services
ZBB Program: Child Care Licensing
Key Activities and Alternative Approach

Key Activities (Listed in priority order as determined by Agency)

No. of

Activity

Description

Authority Positions

Licensing Administration

Process residential child care licenses for Child Caring Institutions OCGA 49-5-8;

4

(CCI), Child Placing Agencies (CPA), Outdoor Child Caring Programs 49-5-12; 50-13-

(OCCP), Maternity Homes (MH), and Children's Transitional Care 9.1; 49-5-160 et

Centers (CTCC). Process the initial and renewal registrations of

seq; 49-5-12; 49-

Runaway Homeless Youth Programs (RHYP) Develop and revise new 5-8; 50-13-9.1

rule sets and process refutations, waivers, and exemptions.

FY 2015

FY 2015

State Funds Total Budget

$320,497

$445,373

Zero Based Budget Review (State Funds)

Changes Recommendation

$0

$320,497

Inspect, monitor, enforce actions, Regularly inspect licensed facilities and perform follow up

OCGA 49-5-8;

and follow up

inspections. Monitor foster homes and perform surprise inspections 49-5-12

in compliance with the Kenny A mandate. Enforce any actions taken

against residential child care facility.

22

1,268,853

1,763,240

0

1,268,853

Total
Alternative (Alternative approach to delivering program services as provided by the agency) No alternative approaches to program service delivery are recommended at this time.

26

$1,589,350

$2,208,613

$0

$1,589,350

Office of Planning and Budget

106

01/16/2015

Department of Human Services
ZBB Program: Child Care Licensing
Financial Summary

Objects of Expenditure Personal Services Regular Operating Expenses Motor Vehicle Purchases Equipment Computer Charges Real Estate Rentals Telecommunications Contractual Services Other Total Expenditures
Fund Type
State General Funds Federal Funds Total Funds

Expenditures

FY 2013

FY 2014

$1,886,297

$1,874,966

64,773

69,018

FY 2015 Current Budget
$2,001,919 72,047

Zero Based Budget Review

Changes

Recommendation

$0

$2,001,919

0

72,047

6,244 0
105,964 1,302 644
$2,065,224

5,731 125
124,494 1,114 120
$2,075,568

6,557 7,200 118,600 1,440
850 $2,208,613

0

6,557

0

7,200

0

118,600

0

1,440

0

850

$0

$2,208,613

$1,529,098 536,126
$2,065,224

$1,542,176 533,392
$2,075,568

$1,589,350 619,263
$2,208,613

$0

$1,589,350

0

619,263

$0

$2,208,613

Positions* Motor Vehicles

26

26

27

0

27

0

0

0

0

0

* Position counts shown under expenditures reflect the number of salaried, benefit eligible employees as of June 30 of that fiscal year.

Office of Planning and Budget

107

01/16/2015

Department of Human Services
ZBB Program: Child Care Licensing
Performance Measures
Agency Purpose: The Department of Human Services is responsible for the delivery of social services. The Department serves all Georgia citizens through regulatory inspection, direct service, and financial assistance programs
Program Purpose: The purpose of this program is to protect the health and safety of children who receive full-time care outside of their homes by licensing, monitoring, and inspecting residential care providers.

Performance Measures 1. Number of new license and renewal applications processed
2. Number of complaints and incident reports received
3. Percentage of licensed facilities, agencies and institutions who received a follow-up visit within the required time frame following issuance of an Enforcement Action
4. Percentage of inspections closed within 30 days
5. Percent of received complaints and incident reports that result in investigations
6. Average number of days for investigations

FY 2011 325 N/A
94.0%

Actuals

FY 2012

FY 2013

318

279

N/A

N/A

93.0%

82.0%

FY 2014 309
5,940
N/A

89.7% 30.0%
N/A

80.8% 24.0%
N/A

58.9% 28.0%
N/A

N/A 33.3%
N/A

Office of Planning and Budget

108

01/16/2015

FY 2016 Zero-Based Budget Analysis
Department of Human Services ZBB Program: Child Welfare Services

Office of Planning and Budget

109

01/16/2015

Department of Human Services
ZBB Program: Child Welfare Services
FY 2016 Zero-Based Budget Report

Purpose of Review Child Welfare Services investigates allegations of child abuse, abandonment, and neglect, and provides services to protect children and strengthen families. The Governor has appointed the Child Welfare Reform Council to assess and make recommendations regarding child welfare policy in Georgia. The purpose of this review is to analyze the efficiency and effectiveness of activities in the Child Welfare Services program.

Results of Analysis 1. Statutory Alignment: Program activities are aligned with statutory responsibilities. 2. Staffing Levels: There are 169 authorized positions and 2,401 full-time benefit eligible employees. Positions funded through grants and
benefits for the Child Welfare Services program are not included in the authorized position count. 3. Fleet Management: There are no motor vehicles assigned to the program. 4. Performance Measures: OPB worked with the agency to identify metrics for key program activities. The updated measures accurately
reflect the performance of the program. 5. Budget Impact: Increase funds for additional Child Protective Services workers. See recommendation below.
Program Operations: 6. Child Protective Services caseworker's caseloads are fluid across counties due to fluctuations in the number of intake calls received and
number of children in care throughout the year. Current caseload numbers are higher than the ideal caseload ratio of 15 to 1. Areas most affected in Georgia are metro Atlanta and southeast Georgia. Recommendation: The Governor has committed to bring Child Protective Service worker's caseload down to 15 to 1 by FY 2017. Work with the Governor's Office of Planning and Budget to increase staff as needed to reach 15 to 1 caseload ratio by FY 2017 (Total Funds: $15,612,887).
7. The average turnover rate across county offices in FY 2014 was 26.8%. Some counties, especially in the metro Atlanta and north Georgia areas, experienced up to 36% turnover. High turnover rates result in higher than average case loads, increased training costs, and unstable work environments. Recommendation: Perform an internal review examining underlying issues affecting turnover rates in county offices.

Office of Planning and Budget

110

01/16/2015

Department of Human Services
ZBB Program: Child Welfare Services
FY 2016 Zero-Based Budget Report
8. Child Welfare Services performs annual inspections and follow-up visits to Child Care Institutions (CCI) and Child Care Placement Agencies (CPA). The Department of Human Services' Child Care Licensing program also conducts annual visits, inspecting facilities using similar guidelines as Child Welfare Services. Recommendation: Work with the Child Welfare Services program to coordinate inspections and/or follow-up visits to CCIs and CPAs.
9. The Department of Human Services has prior year Temporary Assistance for Needy Families (TANF) funds not budgeted ($64,359,116). Recommendation: Maximize prior year TANF funds quarterly to bring prior year unobligated TANF funds to the most current fiscal year.

Office of Planning and Budget

111

01/16/2015

Department of Human Services
ZBB Program: Child Welfare Services
Key Activities and Alternative Approach

Key Activities (Listed in priority order as determined by Agency)

No. of

Activity

Description

Authority Positions

Intake

Receive and evaluate reports of alleged child abuse/neglect 24/7. OCGA 15-11-

95

Each report is assessed to determine if the information alleged by 390; 19-7-5; 19-

the reporter regarding the child's situation meets the statutory and 10A-1 through

policy definition of child/abuse and neglect and whether the child is 19-10A-7; The

safe/unsafe. Each report is evaluated and a decision is reached Adam Walsh

whether the report should be screened in or screened out. For reports screened in, a response time is established based on child safety concerns

Act; CAPTA Reauthorization P.L. 111-320;

McKinney Vento

Assistance Act

of 2002.

FY 2015

FY 2015

State Funds Total Budget

$1,475,178

$7,375,889

Zero Based Budget Review (State Funds)

Changes Recommendation

$0

$1,475,178

Assessment (Investigation, Family Support, Family Preservation)

An investigator is assigned to make face-to-face contact with the family to address allegations of child maltreatment. During this phase, the worker completes an assessment of present danger and any impending danger. The results of the assessment determine if DFCS needs to take further action to ensure the child is safe through in-home or out-of-home safety plan. Family Preservation Services are offered to families when court intervention is not needed.

OCGA 19-7-5; 49-5-1 & 49-5-2; 49-5-8; CAPTA Reauthorization P.L. 111-320; A.S.F.A of 1997 P.L. 105-89; and Title IV-E of the S.S.A. section 471(a)(9)

1,011

42,964,544 102,001,701

0

42,964,544

Office of Planning and Budget

112

01/16/2015

Department of Human Services
ZBB Program: Child Welfare Services
Key Activities and Alternative Approach

Key Activities (Listed in priority order as determined by Agency)

No. of

Activity

Description

Authority Positions

Foster Care (Permanency,

When children are determined to be unsafe during the course of a OCGA 15-11-

1,114

Resource Development,

CPS investigation and an in-home-safety plan is found to be

135; 15-11-231

Independent Living Services) ineffective in ensuring child safety an out-of-home safety plan must & 232; Title IV-E

be developed. If no other option is available, a child is placed in of the S.S.A.

foster care. The Permanency Section is tasked with providing

sections

positive permanency outcomes for children in care. This is accomplished by assessing the child and family to identify what resources are needed. DFCS staff collaborate with families to

471(a)(29) and (31); 475(7) and (8); P.L. 96-272;

develop case planning which outline what must be accomplished to A.S.F.A. of 1997

ensure child safety and expedite reunification. If children cannot be P.L. 105-89;

returned to their caregiver, the agency must develop an alternative F.C.A. P.L. 110-

permanency plan for the child which may include willing relative, 351

adoption or guardianship. The Resource Development section is responsible for recruiting, developing and approving DFCS foster homes. The Independent Living Program offers services to children

designed to develop and sustain life skills and self-sufficiency as they

approach adulthood.

FY 2015

FY 2015

State Funds Total Budget

47,522,112 108,948,096

Zero Based Budget Review (State Funds)

Changes Recommendation

12,490,310

60,012,422

Administration

These staff provide practical guidance to the field workers and work OCGA 49-5-8 in conjunction with other staff to develop, monitor, and report out on federal plans.

181

21,652,267

51,404,434

0

21,652,267

Total

2,401 $113,614,101 $269,730,120 $12,490,310

$126,104,411

Alternative (Alternative approach to delivering program services as provided by the agency) Some program activities could be privatized. Preliminary estimates suggest that this would increase overall program cost.

Office of Planning and Budget

113

01/16/2015

Department of Human Services
ZBB Program: Child Welfare Services
Financial Summary

Objects of Expenditure Personal Services Regular Operating Expenses Motor Vehicle Purchases Equipment Computer Charges Real Estate Rentals Telecommunications Contractual Services Grants and Benefits Other Total Expenditures
Fund Type
State General Funds Federal Funds Other Funds Total Funds

Expenditures

FY 2013

FY 2014

$11,652,845

$12,818,306

1,321,784

1,648,240

FY 2015 Current Budget
$15,695,266 1,617,450

Zero Based Budget Review

Changes

Recommendation

$0

$15,695,266

0

1,617,450

227,322 92,918 86,973
27,547,677 203,681,559
(684,581) $243,926,497

560,522 347,431 126,138 32,426,493 201,344,155 (522,716) $248,748,569

60,167 11,216 72,483 28,162,274 224,814,238 (702,974) $269,730,120

0 0 0 0 15,612,887 0 $15,612,887

60,167 11,216 72,483 28,162,274 240,427,125 (702,974) $285,343,007

$92,649,994 141,471,969
9,804,534 $243,926,497

$97,481,251 142,513,239
8,754,079 $248,748,569

$113,614,101 142,253,529 13,862,490
$269,730,120

$12,490,310 3,122,577 0
$15,612,887

$126,104,411 145,376,106 13,862,490
$285,343,007

Positions* Motor Vehicles

2,047

2,056

2,401

381

0

0

0

0

* Position counts shown under expenditures reflect the number of salaried, benefit eligible employees as of June 30 of that fiscal year.

2,782 0

Office of Planning and Budget

114

01/16/2015

Department of Human Services
ZBB Program: Child Welfare Services
Performance Measures
Agency Purpose: The Department of Human Services is responsible for the delivery of social services. The Department serves all Georgia citizens through regulatory inspection, direct service and financial assistance programs
Program Purpose: The purpose of this program is to investigate allegations of child abuse, abandonment, and neglect, and to provide services to protect the child and strengthen the family.

Performance Measures 1. Number of calls received by CPS Intake Communication Center 2. Number of calls screened out
3. Number of investigations conducted 4. Number of substantiated maltreatment incidents
5. Percentage of children seen within 24 hours of the receipt of the report of alleged maltreatment
6. Number of Family Preservation cases 7. Number of Family Support cases 8. Percentage of children who return home within 12 months of being
removed 9. Percentage of children who were victims of subsequent maltreatment
within 6 months
10. Percentage of foster children who re-enter foster care within 12 months
11. Child Protective Service worker's average caseload 12. Child Protective Service workers turn over rate

FY 2011 63,547 11,590 21,148 21,686
54.8%

Actuals

FY 2012

FY 2013

67,859

73,042

16,705

19,131

26,746

27,175

22,471

23,432

57.0%

53.0%

FY 2014 87,373 22,368 31,559 25,531
51.1%

30,809 9,585 75.2%
3.2%

24,408 8,561 75.6%
3.3%

26,196 7,450 72.5%
4.2%

29,075 7,044 75.4%
N/A

6.4%
14.4 20.4%

7.1%
17.0 21.4%

7.4%
19.4 24.0%

7.8%
21.9 26.8%

Office of Planning and Budget

115

01/16/2015

FY 2016 Zero-Based Budget Analysis
Department of Human Services ZBB Program: Elder Abuse Investigations and Prevention

Office of Planning and Budget

116

01/16/2015

Department of Human Services
Elder Abuse Investigations and Prevention
FY 2016 Zero-Based Budget Report
Purpose of Review The Elder Abuse Investigations and Prevention program investigates cases of abuse, neglect, and exploitation of adults over 65 who are not living in long term care facilities and adults 18 and over with disabilities. Along with rectifying these situations, the program works to prevent them from ever occurring. The purpose of this review is to determine how the program can better serve at-risk elderly adults.
Results of Analysis 1. Statutory Alignment: Program activities are aligned with statutory responsibilities. 2. Staffing Levels: The program has 269 authorized positions and 247 full-time benefit eligible employees. 3. Fleet Management: There are no motor vehicles assigned to the program. 4. Performance Measures: OPB worked with the agency to identify metrics for key program activities. The updated measures
accurately reflect the performance of the program. 5. Budget Impact: Increase budget by $693,333. See recommendation below.
Program Operations:
6. Adult Protective Services (APS) investigators' caseloads have increased on average from 13 to 19 from FY 2011 to FY 2014. The average guardianship case manager's caseload has varied from the last few years and is currently at 29. With the elderly population continuing to increase, these caseloads are expected to remain at these levels or possibly increase, particularly for investigators. Recommendation: The Governor has committed 11 additional case workers each year through FY 2017. Continue to work with OPB to monitor caseload for adult protective services investigators and guardianship case managers. It is anticipated that these additions will lead to a slowing of growth in investigators' caseloads and a reduction in the caseloads of guardianship case managers.
7. This program provides training and assistance with recognizing and arresting perpetrators of elder abuse. It also has an At-Risk Adult Crime Tactics (ACT) certification program for primary and secondary responders. In FY 2014, only 288 individuals received ACT Recommendation: Explore the possibility of putting ACT training online by either live streaming the classes or making them available for people to work on at their own pace. This could lead to more certifications as well as a better use of product material.

Office of Planning and Budget

117

01/16/2015

Department of Human Services
Elder Abuse Investigations and Prevention
Key Activities and Alternative Approach

Key Activities (Listed in priority order as determined by Agency)

Activity

Description

Receive/Investigate Reports of Alleged Abuse

Centralized intake of web, fax, telephone reports of abuse and contact and investigation of allegations of abuse of vulnerable adults. This includes the emergency relocation of abused adults.

Authority OCGA 30-5-1 et seq

No. of Positions
203

FY 2015

FY 2015

State Funds Total Budget $12,075,749 $14,660,765

Zero Based Budget Review (State Funds)

Changes Recommendation

$436,800

$12,512,549

Public Guardianship Services

Provides case management for Persons Under Guardianship where OCGA 29-4-

DHS is the Guardian of last resort.

3(b.1)

35

1,817,249

1,951,349

256,533

2,073,782

Legal Case Representation,

Representation of clients 60+ regarding civil matters and

42 U.S.C.3058j

1

102,421

357,506

0

Document Preparation

preparation of documentation such as advanced directives. Holds

legal education sessions on various topics.

102,421

Long-Term Care Ombudsman

Serve as advocate for nursing facility residents and responds to their 42 U.S.C. 3058g,

complaints regarding living conditions, food, treatment etc.

O.C.G.A. 31-8-

50 et seq.

Training and technical assistance At-Risk Adult Crime Tactics (ACT) certification training and

to Law Enforcement/Mandated assistance with recognizing and arresting perpetrators regarding

Reporters

OCGA 16-5-101&102

42 U.S.C. 3058i Elder Abuse Prevention, 42 U.S.C. 3032b(b)

5

1,272,783

1,751,626

3

231,544

351,933

0

1,272,783

0

231,544

Total

247 $15,499,746 $19,073,179 $693,333

$16,193,079

Alternative (Alternative approach to delivering program services as provided by the agency)
1) Currently, Long Term Care Ombudsman Services are contracted through Area Agencies on Aging. Directly contracting with provider agencies could enhance quality control, and monitoring statewide. Administrative effort at the state level would increase while overall costs would remain almost unchanged. 2) Develop contracted services to replace ongoing APS caseload and free staff to pursue new investigations. Cost of the contracted services would increase the overall program cost. 3) Utilize a statewide contract, if sufficient interest is evident from providers, to deliver Elderly Legal Assistance statewide. Cost should remain unchanged.

Office of Planning and Budget

118

01/16/2015

Department of Human Services
Elder Abuse Investigations and Prevention
Financial Summary

Objects of Expenditure Personal Services Regular Operating Expenses Motor Vehicle Purchases Equipment Computer Charges Real Estate Rentals Telecommunications Contractual Services Grants and Benefits Other Total Expenditures
Fund Type
State General Funds Federal Funds Other Funds Total Funds

Expenditures

FY 2013

FY 2014

$13,916,370

$13,771,025

1,099,514

1,184,610

FY 2015 Current Budget
$14,162,103 1,025,923

Zero Based Budget Review

Changes

Recommendation

$693,333

$14,855,436

0

1,025,923

47,643 340,639 573,728 1,671,655 322,920
2,286 $17,974,755

54,089 334,649 663,931 1,585,165 344,216
2,791 $17,940,476

31,625 965,400 479,246 2,008,882 400,000
$19,073,179

0 0 0 0 0
$693,333

31,625 965,400 479,246 2,008,882 400,000
$19,766,512

$14,156,588 3,448,057 370,110
$17,974,755

$14,218,117 3,595,854 126,805
$17,940,776

$15,499,746 3,573,433
$19,073,179

$693,333 0
$693,333

$16,193,079 3,573,433
$19,766,512

Positions* Motor Vehicles

240

236

247

11

258

0

0

0

0

0

* Position counts shown under expenditures reflect the number of salaried, benefit eligible employees as of June 30 of that fiscal year.

Office of Planning and Budget

119

01/16/2015

Department of Human Services
Elder Abuse Investigations and Prevention
Performance Measures
Agency Purpose: The Georgia Department of Human Services (DHS) is responsible for the delivery of social services. DHS serves all Georgia citizens through regulatory inspection, direct service, and financial assistance programs.
Program Purpose: The purpose of this appropriation is to prevent disabled adults and elder persons from abuse, exploitation and neglect, and investigate situations where it might have occurred.

Performance Measures 1. Number of reports of abuse, neglect, or exploitation
2. Number of wards 3. Number of complaints received by Long-Term Care Ombudsman 4. Number of participants in the At-Risk Adult Crime Tactics Training Program
5. Percentage of Adult Protective Services investigations initiated within 10 days
6. Percentage of Adult Protective Services investigations completed within 30 days
7. Average Adult Protective Services investigator caseload 8. Average Adult Protective Services guardianship manager caseload 9. APS investigator turnover rate 10. Public guardianship case manager turnover rate 11. Percentage of reports resulting in an investigation 12. Percentage of investigations where claims were substantiated
13. Percentage of investigations reopened within 6 months (Case Recidivism)

FY 2011 36,888 662 3,255 N/A 92.2%
90.7%
13 32 10.4% 10.4% 24.9% N/A N/A

Actuals

FY 2012

FY 2013

33,709

39,000

674 4,265
455

714 3,116
354

92.4%

91.4%

91.7%

89.4%

16 29 12.3% 11.1% 34.8% 51.0% 4.8%

17 27 18.0% 16.7% 31.3% 50.0% 4.7%

FY 2014 43,630 760 N/A 288 90.6%
88.4%
19 29 14.0% 22.6% 31.1% 50.0% 5.2%

Office of Planning and Budget

120

01/16/2015

Department of Human Services
Elder Abuse Investigations and Prevention
Performance Measures
Performance Measures 14. Amount of consumer savings through Elderly Legal Assistance counseling 15. Percentage of Long-Term Care Ombudsman complaints resolved to client's
satisfaction

FY 2011 $10,083,092
94%

Actuals

FY 2012

FY 2013

$8,699,359 $9,776,059

94%

91%

FY 2014 $12,893,533
93%

Office of Planning and Budget

121

01/16/2015

FY 2016 Zero-Based Budget Analysis
Department of Human Services ZBB Program: Elder Support Services

Office of Planning and Budget

122

01/16/2015

Department of Human Services
Elder Support Services
FY 2016 Zero-Based Budget Report

Purpose of Review This program helps elderly Georgians remain in their homes and communities by providing health, employment, nutrition, and other support and educational services. The Older Americans Act (OAA) requires that these services be provided through local Area Agencies on Aging (AAAs). AAAs contract with local organizations, mostly nonprofits and local governments, to provide these services. The purpose of this review is to find efficiencies within this structure that still comply with the OAA law.
Results of Analysis 1. Statutory Alignment: Program activities are aligned with statutory responsibilities. 2. Staffing Levels: The program has 19 full-time benefit eligible employees.
3. Fleet Management: There are no motor vehicles assigned to the program. 4. Performance Measures: OPB worked with the agency to identify metrics for key program activities. The updated measures accurately
reflect the performance of the program. 5. Budget Impact: Maintain the current funding level.
Program Operations: 6. Administrative costs within the Area Agencies on Aging (AAA) are high. Administration costs for the 12 AAAs range from 10%-46% of
contracted funds. Higher administration costs means that fewer funds go to services, some of which have wait lists. Federal restrictions limit administration costs charged to federal funds in some service categories to 10%. Recommendation: Negotiate the percentage of state funds going to AAAs that can be expensed toward administrative costs. The percentages should decrease from their current rates, with an emphasis on aligning with the federal caps. 7. In FY 2015, the Senior Community Service Employment Program (SCSEP) at one AAA is being contracted directly to a provider agency.
Recommendation: After one year, determine if this alternative approach had a positive or negative impact. If the results are promising, the Department should look to contract SCSEP statewide to streamline the service, or have the other 11 regions make a similar change. 8. In FY 2015, the legislature added $750,000 in state funds and $750,000 in Social Security Block Grant (SSBG) funds to the Meals on Wheels program due to a waitlist of over 5,000 people. Recommendation: Continue to monitor the number of people on the Meals on Wheels wait list who meet nursing home standard of care.

Office of Planning and Budget

123

01/16/2015

Department of Human Services
Elder Support Services
FY 2016 Zero-Based Budget Report
9. In FY 2014, $680,000 in SSBG funds were de-amended from the Elder Community Living Services program to Elder Support Services to help fund Money Follows the Person (MFP) activities. Recommendation: In the FY 2016 budget, transfer these SSBG funds into the Elder Support Services program.
10. Balancing Incentive Program (BIP) funds may be earned through September 30, 2015 and spent through March 31, 2016. These funds have been used by the department to enhance and expand activities at Georgia's 12 Aging and Disability Resource Centers (ADRC). ADRCs provide information and options-counseling regarding long-term care supports and services. Recommendation: Provide information to OPB detailing the funds needed to replace the enhanced federal funding once they expire, as well as the possibilities and outcomes at the ADRCs if the funding isn't replaced.
11. The department subcontracts with the Department of Community Health to manage the Division of Aging's responsibilities under the state's Money Follows the Person Grant (MFP) and much of the statewide activities required under the state's Balancing Incentive Program (BIP). This program amends its portion of the grant awards each year as federal dollars and expenses them as federal dollars. Recommendation: Amend these grant awards into the budget as other funds since this is an interagency transfer from DCH.

Office of Planning and Budget

124

01/16/2015

Department of Human Services
Elder Support Services

Key Activities and Alternative Approach

Key Activities (Listed in priority order as determined by Agency)

No. of

Activity

Description

Authority Positions

Resource Information and

The Aging and Disability Resource Connection (ADRC) provides 42 U.S.C. 3026, 42

8

Options Counseling

accurate, up-to date information about community resources for U.S.C. 3030d

elderly Georgians and those with disabilities. ($2,465,000 in BIP grant awards will be amended in during Fiscal Year).

Job Training and Placement

The Senior Community Services Employment Program provides 42 U.S.C. 3056, OCGA

1

employment to low-income elderly individuals.

49-6-3

FY 2015

FY 2015

State Funds Total Budget

$1,682,201

$1,682,201

50,804

2,181,474

Zero Based Budget Review (State Funds)

Changes Recommendation

$0

$1,682,201

0

50,804

Home Delivered Meals and Congregate Meals Medicare Counseling
Medicare Fraud Prevention
Money Follows the Person

Improves the nutritional health of elderly Georgians by providing 42 U.S.C. 3030 nutritious meals and promote the health and well-being of older individuals.

Assists Georgia's Medicare beneficiaries and families in understanding their rights, benefits and services under the Medicare program.
Assists Georgia's Medicare beneficiaries and families in identifying and reporting fraud.

CMS grant/MOU with Ga. DCH, P.L. 101-508 (1990) OBRA Section 4360
OAA Title II, P.L. 104191, AoA grant, 42 U.S.C. 3032

Transition services for people who want and are able to live in the community. ($2,440,418 in MFP grant awards will be amended in during Fiscal Year).

42 U.S.C. 1396n (SSA 1915c waiver), CMS, MOU with DCH

0

1,822,400

5,423,940

3

0

704,058

2

60,102

240,102

5

0

0

0

1,822,400

0

60,102

Total

19

$3,615,507 $10,231,775

$0

$3,615,507

Alternative (Alternative approach to delivering program services as provided by the agency)
1) Division of Aging Service (DAS) could directly administer and deliver services under ADRC, GeorgiaCares, and SCSEP with state employees. Since grant awards are capped, costs would remain constant but the number of clients served would fall because of higher expenditures for benefits and technology. 2) Currently SCSEP services are contracted through the AAAs. Directly contracting with provider agencies could enhance quality control and monitoring statewide. Administrative effort at the state level would increase while overall costs would remain almost unchanged. During FY 2015, SCSEP will contract directly with a provider agency in one region as a pilot. 3) DAS could contract the entire SCSEP program to one or more national providers who would manage the entire grant. Costs would remain the same since the grant award is capped. 4) While all services are contracted out to non-state entities, the cost to deliver the services across the state varies. An analysis of service delivery systems might suggest a more efficient method or model of providing elder support services. The amount of grant funding would be unchanged; however, it is possible that through administrative efficiencies, more funding would be made available to serve clients from the wait lists.

Office of Planning and Budget

125

01/16/2015

Department of Human Services
Elder Support Services
Financial Summary

Objects of Expenditure Personal Services Regular Operating Expenses Motor Vehicle Purchases Equipment Computer Charges Real Estate Rentals Telecommunications Contractual Services Grants and Benefits Total Expenditures
Fund Type
State General Funds Federal Funds Tobacco Funds Total Funds

Expenditures

FY 2013

FY 2014

$1,195,818

$1,043,376

478,895

470,082

FY 2015 Current Budget
$722,122 205,635

Zero Based Budget Review

Changes

Recommendation

$0

$722,122

0

205,635

3,122
24,083 10,365,078
204 $12,067,200

4,201
351,255 10,867,091
172 $12,736,177

5,158
42,107 9,256,753
$10,231,775

0
0 680,000
$680,000

5,158
42,107 9,936,753
$10,911,775

$1,736,320 9,212,951 1,117,929
$12,067,200

$2,843,748 9,892,429
$12,736,177

$3,615,507 6,616,268
$10,231,775

$0 680,000
$680,000

$3,615,507 7,296,268
$10,911,775

Positions* Motor Vehicles

17

19

19

0

0

0

0

19

0

0

* Position counts shown under expenditures reflect the number of salaried, benefit eligible employees as of June 30 of that fiscal year.

Office of Planning and Budget

126

01/16/2015

Department of Human Services
Elder Support Services
Performance Measures
Agency Purpose: The Georgia Department of Human Services (DHS) is responsible for the delivery of social services. DHS serves all Georgia citizens through regulatory inspection, direct service, and financial assistance programs.
Program Purpose: The purpose of this appropriation is to assist older Georgians so that they may live in their homes and communities, by providing health, employment, nutrition, and other support and education services.

Performance Measures 1. Percentage of clients retaining employment for 6 months or longer 2. Out of pocket savings to Medicare consumers 3. Number of Aging & Disability Resource Connection clients served 4. Percentage of clients receiving either home delivered meals or congregate meals that maintain or improve their nutrition risk score 5. Number of seniors served meals at senior centers
6. Number of seniors served home delivered meals 7. Total number of home delivered meals
8. Number of Money Follows the Person transitions 9. Money Follows the Person Savings to Medicaid (based on average Medicaid
Nursing Home costs)

FY 2011 76.0%
$19,315,193 87,179
62.2%
14,802 13,995 2,559,037
NA
NA

Actuals

FY 2012

FY 2013

100.0%

80.0%

$29,585,083 $30,081,816

158,400

162,507

62.4%

63.5%

14,660 14,258 2,530,109
206

14,505 14,106 2,496,511
340

$5,325,924 $10,491,380

FY 2014 72.0%
$26,255,169 328,672
63.0%
13,774 12,445 2,306,337
262
$8,218,416

Office of Planning and Budget

127

01/16/2015

FY 2016 Zero-Based Budget Analysis
Department of Human Services ZBB Program: Georgia Vocational Rehabilitation Agency: Georgia Industries for the Blind

Office of Planning and Budget

128

01/16/2015

Department of Human Services
ZBB Program: Georgia Vocational Rehabilitation Agency: Georgia Industries for the Blind
FY 2016 Zero-Based Budget Report
Purpose of Review Georgia Industries for the Blind (GIB) operates manufacturing plants in Albany, Bainbridge, Griffin, and Warner Robbins. The purpose of this review is to analyze how the program can grow revenues and manage expenses so more blind persons can be employed.

Results of Analysis 1. Statutory Alignment: Program activities are aligned with statutory responsibilities. 2. Staffing Levels: The program has 131 full-time benefit eligible employees. 3. Fleet Management: There are 16 motor vehicles assigned to the program. 4. Performance Measures: OPB worked with the agency to identify metrics for key program activities. The updated measures accurately reflect 5. Budget Impact: Maintain the current funding level.
Program Operations: 6. Two cars and one van in good condition are not being used because the positions associated with them will no longer be filled.
Recommendation: Surplus the three unused motor vehicles or transfer them to the Vocational Rehabilitation program within Georgia Vocational Rehabilitation Agency (GVRA). 7. There are no state funds appropriated to this program. However, in AFY 2014 the program was appropriated $118,000 for a projected deficit. Though the deficit did not materialize, state funds were expensed. Recommendation: As permitted under O.C.G.A 30-2-9, Georgia Industries for the Blind is authorized to retain surplus funds as reserve funds to be used as working capital. In accordance with the state's policy on fund source spending order, the program should use other funds earned during the fiscal year, and not otherwise currently remitted to the state treasury, for program expenditures prior to the use of state funds. Additionally, any state or other funds remaining unexpensed at fiscal year end should be remitted to the state treasury. If this was done, the remaining state funds would have surplused to the state treasury. 8. Only four times in the past forty years did net profits exceed state appropriation. This means that historically, GIB has not been able to operate profitably without state support. Recommendation: Diversify products and vendors. GIB should expand further into the service industry, which has lower overhead costs. GIB should consider contracting with private vendors more often than federal contractors. GIB is bound to federal pricing structures, 9. According to the latest data provided to OPB, GIB contracted with nine state entities for a total of $227,674 or 2.2% of their annual revenue.

Office of Planning and Budget

129

01/16/2015

Department of Human Services
ZBB Program: Georgia Vocational Rehabilitation Agency: Georgia Industries for the Blind
FY 2016 Zero-Based Budget Report
Recommendation: Continue to explore opportunities to provide products and services to state agencies. Work with state agencies to ensure compliance with OCGA 30-2-4, which says that all state agencies must give preference of purchase to GIB if the product is of equal quality and sold at a competitive price. 10. Georgia is one of only eight states to operate their industries for the blind as a state agency. Most states' industries for the blind now operate as nonprofits. Recommendation: Once the program has diversified the type of products they make, the vendors they contract with, and the services they provide, legislation should be pursued to privatize GIB. This would only take place when both OPB and the agency feel confident GIB is ready to operate independently.

Office of Planning and Budget

130

01/16/2015

Department of Human Services
ZBB Program: Georgia Vocational Rehabilitation Agency: Georgia Industries for the Blind
Key Activities and Alternative Approach

Key Activities (Listed in priority order as determined by Agency)

Activity Production

Description

Authority

GIB is a manufacturing and production facility that utilizes a workforce OCGA 30-2-1

that by law must consist of at least 75% individuals who are blind or et.seq

have a significant visual disability. Current products include a variety

of office products, pillows, flatware, and sewn items.

No. of

FY 2015

FY 2015

Positions State Funds Total Budget

113

$0

$8,753,513

Zero Based Budget Review (State Funds)

Changes Recommendation

$0

$0

Services Management

GIB's current services include workforce staffing for box reclamation OCGA 30-2-1

3

0

104,037

0

0

in Warner Robbins and a call center.

et.seq

GIB's management structure is intended to oversee production,

OCGA 30-2-1

15

0

1,185,066

0

0

develop new and diversified business opportunities, and expand sales. et.seq

Total

131

$0 $10,042,616

$0

$0

Alternative (Alternative approach to delivering program services as provided by the agency) 1) Increase non-production opportunities in staffing or services types of jobs (examples: call centers, work crews, etc.); 2) Identify "integrated" production opportunities within select businesses as employment options (this means blind individuals perform production work at a non-GIB location; 3) Develop customized skill training opportunities for blind individuals with the outcome being obtaining employment.

Office of Planning and Budget

131

01/16/2015

Department of Human Services
ZBB Program: Georgia Vocational Rehabilitation Agency: Georgia Industries for the Blind
Financial Summary

Objects of Expenditure Personal Services Regular Operating Expenses Motor Vehicle Purchases Equipment Computer Charges Real Estate Rentals Telecommunications Contractual Services Other Total Expenditures
Fund Type
State General Funds Other Funds Total Funds

Expenditures

FY 2013 $5,374,809

FY 2014 $4,666,956

5,263,910

3,722,650

77,981

152,823

27,477

58,123

51,990

36,082

36,000

24,724

18,660

163,625

116,715

126,787

69,949

$11,278,864

$8,710,397

FY 2015 Current Budget
$4,893,048 4,275,298
465,286 60,492 36,000 30,000
152,496 129,996 $10,042,616

Zero Based Budget Review

Changes Recommendation

$0

$4,893,048

0

4,275,298

0

465,286

0

60,492

0

36,000

0

30,000

0

152,496

0

129,996

$0

$10,042,616

$11,278,865 $11,278,865

$118,000 8,592,397 $8,710,397

$10,042,616 $10,042,616

$0

$10,042,616

$0

$10,042,616

Positions* Motor Vehicles

161

135

131

0

131

15

16

16

(3)

13

* Position counts shown under expenditures reflect the number of benefit eligible employees as of June 30 of that fiscal year.

Office of Planning and Budget

132

01/16/2015

Department of Human Services
ZBB Program: Georgia Vocational Rehabilitation Agency: Georgia Industries for the Blind
Performance Measures

Agency Purpose: The Georgia Vocational Rehabilitation Agency (GVRA) operates five integrated and interdependent statutory programs that share a primary goal to assist people with disabilities to become fully productive members of society by achieving independence and meaningful employment. The largest of the programs are the Vocational Rehabilitation (VR) Program, Disability Adjudication Services, and the Roosevelt Warm Springs Institute for Rehabilitation. Two other unique programs serve consumers with visual impairments: the Business Enterprise Program and Georgia Industries for the Blind (GIB).

Program Purpose: The purpose of this program is to employ people who are blind in manufacturing and packaging facilities.

Performance Measures 1. Number of blind persons employed by GIB 2. Total revenue generated from products and services 3. Percentage of total direct labor hours performed by individuals who are legally blind (federal minimum standard 75%) 4. Percentage of total revenue from services
5. Percentage of total revenue from commercial sales 6. Percentage of total revenue from federal sales

FY 2011 120
$10,959,233
92.8%
2.6% 2.8% 92.8%

Actuals

FY 2012

FY 2013

113

92

$10,807,934 $10,219,953

93.8%

91.5%

2.3% 2.0% 93.8%

3.0% 2.9% 91.5%

FY 2014 74
$8,741,813
92.9%
2.7% 3.0% 92.9%

Office of Planning and Budget

133

01/16/2015

FY 2016 Zero-Based Budget Analysis
Office of the Commissioner of Insurance ZBB Program: Insurance Regulation

Office of Planning and Budget

134

01/16/2015

Office of the Commissioner of Insurance
ZBB Program: Insurance Regulation
FY 2016 Zero-Based Budget Report
Purpose of Review The Insurance Regulation program ensures that licensed insurance entities maintain solvency and conform to state law by reviewing and auditing company financial statements to ensure they have resources sufficient to pay claims, reviewing company product offerings to ensure they comply with all applicable laws, operating a consumer hotline and portal to address insurance questions and complaints, investigating consumer complaints, licensing insurance companies and agents, collecting the Premium Tax and Special Insurance Fraud Fund assessments, and administering insurance companies placed in administrative supervision, rehabilitation, or liquidation. The purpose of this review is to address concerns about billing practices at the Office of the Commissioner of Insurance (OCI), whereby some expenses for activities and staff in the Insurance Regulation program are charged to the Special Fraud program. This review also examined how the implementation of the federal health care reform law, the Patient Protection and Affordable Care Act (PPACA), has impacted business processes, specifically in the Consumer Services division of this program.
Results of Analysis 1. Statutory Alignment: Program activities are aligned with statutory responsibilities. 2. Staffing Levels: The program is authorized for 33 positions in its FY 2015 Annual Operating Budget (AOB) that was submitted to OPB. The
state's human resources management system, PeopleSoft HCM, reflects 79 positions filled in this program. The state's accounting system, PeopleSoft Financials, which reflects where each employee's expenses are billed to, reflects 59 positions filled in the program. This mismatch of employee counts has resulted because the agency bills portions of expenses for some employees who primarily perform regulatory activities to the Special Fraud program because some of the activities of these employees impact insurance fraud investigations. See recommendation below. 3. Fleet Management: There are 3 motor vehicles assigned to the program. 4. Performance Measures: OPB worked with the agency to identify metrics for key program activities. The agency should continue to develop relevant and measurable outcomes for its key activities. 5. Budget Impact: Transfer $4,214,365 State General Funds (Total Funds: $4,220,841) from the Special Fraud program to the Insurance Regulation program. See recommendation below.

Office of Planning and Budget

135

01/16/2015

Office of the Commissioner of Insurance
ZBB Program: Insurance Regulation
FY 2016 Zero-Based Budget Report
Program Operations:
6. In FY 2013, the Insurance Regulation program collected a total of $369 million, with $35.7 million in fees for regulatory services (insurance agent licensing, insurance company licensing, insurance product reviews, etc.), $329.2 million in state premium tax revenues, and $4.0 million in fraud fund collections.
7. Activities taking place in the Insurance Regulation program impact and contribute to insurance fraud investigations taking place in the Special Fraud program, and substantial overlap occurs between activities in the two programs. Due to the nature of the activities taking place in the Insurance Regulation program, many potential fraud cases are identified and initially worked by employees in this program. For example, an employee in the Consumer Services division may receive a consumer complaint about an insurance agent, and when the employee attempts to resolve the complaint identifies potential instances of insurance fraud. At this point, the employee would turn the case over to an investigator in the Special Fraud program; however, the Insurance Regulation employee has already identified the case and conducted basic fact-finding. This same scenario of an Insurance Regulation employee identifying and conducting fact-finding on potential fraud cases also occurs with employees conducting financial reviews, financial audits, insurance product reviews, and market conduct studies. Recommendation: Combine the Special Fraud and Insurance Regulation programs into a single program to account for the overlap in activities between the two programs. Transfer $4,214,365 state general funds (Total Funds: $4,220,841), 55 positions, and 5 vehicles from the Special Fraud program to the Insurance Regulation program.
8. A 2008 performance audit conducted by the Department of Audits and Accounts expressed concern about the practice of billing portions of insurance regulation activities to the Special Fraud program because the agency did not demonstrate that the activities adequately contributed to insurance fraud investigations. Recommendation: Implement reporting procedures to track the number of potential fraud referrals reported and worked by employees in the regulatory divisions, and use this data to develop a consistent and defensible algorithm to be used for determining the amount of regulatory expense that will be billed to the Special Insurance Fraud Fund.
9. Georgia statute (OCGA 33-1-17) requires that the Commissioner of Insurance prepare a separate budget request for the General Assembly which sets forth the anticipated cost and expense associated with the investigation and prosecution of insurance fraud for 12 months. The Special Fraud program budget has fulfilled this requirement each year; however, it has not reflected the full costs of investigating and prosecuting insurance fraud because it did not include some costs of investigation occurring in the Insurance Regulation program.

Office of Planning and Budget

136

01/16/2015

Office of the Commissioner of Insurance
ZBB Program: Insurance Regulation
FY 2016 Zero-Based Budget Report
Recommendation: Establish "Special Fraud" as a subprogram within the Insurance Regulation program. This will allow for the agency to continue to report on the budget for the Special Insurance Fraud Fund. 10. The Insurance Regulation program's operating budget, human resources records, and accounting records each reflect a different number of employees working in the program, which prevents policymakers from understanding how many employees are required to regulate the insurance industry in Georgia. The program is authorized for 33 positions in its FY 2015 Annual Operating Budget (AOB) that was submitted to OPB. The state's human resources management system, PeopleSoft HCM, reflects 79 positions filled in this program. The state's accounting system, PeopleSoft Financials, which reflects where each employee's expenses are billed to, reflects 59 positions filled in the program. This mismatch of employee counts has resulted because the agency bills portions of expenses for some employees who primarily perform regulatory activities to the Special Fraud program because some of the activities of these employees impact insurance fraud investigations, as explained above. However, this practice causes the employee counts reflected in the program's budget, human resources records, and accounting records to be different from each other. Recommendation: Align authorized positions in the AOB with actual positions filled once the Special Fraud and the Insurance Regulation programs have combined. 11. The Consumer Services division, within the Insurance Regulation program, operates a hotline and an online portal for Georgia consumers to submit insurance questions and complaints. Consumer Services staff investigate and resolve any complaints reported to the agency by Georgia insurance consumers. The agency reported that the average number of days required to resolve a complaint increased by 31% in FY 2013, from 47 to 62 days; and by another 10% in FY 2014, from 62 to 68 days. The agency reports that this increased time required to resolve complaints is related to increased call volumes and increased case complexity resulting from the federal health care reform law, the Patient Protection and Affordable Care Act (PPACA). Recommendation: Monitor if the number of days required to resolve a complaint is reduced in FY 2015. If the number of days required to resolve a complaint is not reduced, request additional funds to increase staffing levels for consumer services during the FY 2017 budget development cycle.

Office of Planning and Budget

137

01/16/2015

Office of the Commissioner of Insurance
ZBB Program: Insurance Regulation
Key Activities and Alternative Approach

Key Activities (Listed in priority order as determined by Agency)

Activity Consumer Services

Description

Authority

Provides consumer protection by investigating consumer complaints OCGA 33-2-9

related to insurance policies and products, claims adjudication,

rates, or any other issues reported to the Department.

No. of

FY 2015

FY 2015

Positions State Funds Total Budget

32

$1,009,027

$1,009,027

Zero Based Budget Review (State Funds)

Changes Recommendation

$0

$1,009,027

Insurance Financial Oversight

Investigates and audits the accuracy of the filed statements of

OCGA 33-2-1,

Georgia domiciled insurers, investigates unfair trade practices and 33-2-3, 33-2-11

other violations of Georgia law, and provides in-house desk audits of

the Annual Financial Statement and all other supplemental filings

made by insurers. Also administers insurers who have been placed

into administrative supervision, rehabilitation, or liquidation by the

Commissioner.

17

1,513,036

1,513,036 1,820,833

3,333,869

Product Review

Reviews all product offerings for insurance companies licensed to transact business in the state in order to ensure compliance with insurance code, case law, bulletins, and directives.

OCGA 33-9-21, 33-24-9, 33-7-6, 33-9-12, 33-918, 33-46-1

17

1,562,639

1,562,639 1,348,813

2,911,452

Agents Licensing

Licenses insurance agents, solicitors, counselors, brokers and

OCGA 33-2-12

8

685,319

685,319

0

adjusters for all classes of insurance through administering license

qualifications, approving formal classroom and other training

courses, issuing temporary licenses to qualified first-time applicants,

issuing permanent licenses as prescribed by law, and implementing

reciprocal agreements with other states for licensing non-resident

applicants.

685,319

Premium Tax Collection

Ensures compliance with the insurance tax laws, rules and

OCGA 33-8-4,

3

284,931

284,931

0

regulations and processes the premium tax returns for all insurance 33-1-17

companies and surplus lines transactions in the State of Georgia.

Assesses, collects and distributes the County/Municipal Tax.

Assesses and collects the Special Insurance Fraud Fund.

284,931

Office of Planning and Budget

138

01/16/2015

Office of the Commissioner of Insurance
ZBB Program: Insurance Regulation
Key Activities and Alternative Approach

Key Activities (Listed in priority order as determined by Agency)

Activity Administrative Procedures

Description

Authority

Provides administrative support (financial management, budget, OCGA 33-2-9

human resources, senior management) for the Insurance Regulation

program.

No. of

FY 2015

FY 2015

Positions State Funds Total Budget

2

222,652

222,652

Zero Based Budget Review (State Funds)

Changes Recommendation

0

222,652

Transfers from the Special Fraud program*

Fraud Investigation*

Investigates allegations of insurance fraud and resolves the case by OCGA 33-1-9,

referring for prosecution, referring for administrative action, or

33-1-17

deeming the case unfounded.

1,044,719

1,044,719

Total

79

$5,277,604

$5,277,604 $4,214,365

$9,491,969

Alternative (Alternative approach to delivering program services as provided by the agency) No alternative approaches to program services delivery are recommended at this time.
Notes: * The Fraud Investigation activity is currently funded in the Special Fraud program. The recommendations of this Zero Based Budget analysis transfer this activity to the Insurance Regulation program.

Office of Planning and Budget

139

01/16/2015

Office of the Commissioner of Insurance
ZBB Program: Insurance Regulation
Financial Summary

Objects of Expenditure Personal Services Regular Operating Expenses Motor Vehicle Purchases Equipment Computer Charges Real Estate Rentals Telecommunications Contractual Services Total Expenditures
Fund Type
State General Funds Federal Funds Total Funds

Expenditures

FY 2013

FY 2014

$4,479,988

$4,862,878

86,040

69,902

FY 2015 Current Budget
$4,719,858 66,767

427 19,690 302,714 73,776 47,107 $5,009,742

14,689 12,108 200,733 55,066
4,093 $5,219,468

1,348 302,714
81,761 105,156 $5,277,604

Zero Based Budget Review

Changes

Recommendation

$3,520,395

$8,240,253

262,644

329,411

50,001

50,001

17,500

17,500

20,301

21,649

222,169

524,883

21,789

103,550

106,042

211,198

$4,220,841

$9,498,445

$4,794,082 215,659
$5,009,742

$5,143,913 75,555
$5,219,468

$5,277,604 $5,277,604

$4,214,365 6,476
$4,220,841

$9,491,969 6,476
$9,498,445

Positions* Motor Vehicles

56

59

33

55

88

3

3

3

5

8

* Position counts shown under expenditures reflect the number of salaried, benefit eligible employees as of June 30 of that fiscal year.

Office of Planning and Budget

140

01/16/2015

Office of the Commissioner of Insurance
ZBB Program: Insurance Regulation
Performance Measures
Agency Purpose: The Office of the Commissioner of Insurance is accountable for upholding state laws regarding insurance, small loans, fire safety, and manufactured housing.
Program Purpose: The purpose of the appropriation is to ensure that licensed insurance entities maintain solvency and conform to state law by conducting financial and market examinations, investigating policyholder complaints, monitoring for compliance with state laws and regulations, reviewing and approving premium rates, and disseminating information to the public and insurance industry about the state's insurance laws and regulations.

Performance Measures 1. Number of licensed insurance companies 2. Average number of days required to certify that a new insurance product is reviewed, approved, and market-ready 3. Average number of days to resolve a complaint received by the Consumer Services division
4. Funds returned to Georgia consumers through complaint resolution 5. Number of cases referred to the Special Fraud division 6. Number of companies placed in administrative supervision, rehabilitation,
or liquidated

FY 2011 1,632 34

Actuals

FY 2012

FY 2013

1,550

1,567

28

22

FY 2014 TBD 22

40

47

62

68

$10,198,910 73 5

$7,844,176 167 0

$12,094,517 98 1

$7,970,138 114 4

Office of Planning and Budget

141

01/16/2015

FY 2016 Zero-Based Budget Analysis
Office of the Commissioner of Insurance ZBB Program: Special Fraud

Office of Planning and Budget

142

01/16/2015

Office of the Commissioner of Insurance
ZBB Program: Special Fraud
FY 2016 Zero-Based Budget Report
Purpose of Review The Special Fraud program identifies, investigates, and takes appropriate action to deter insurance fraud. The Special Fraud program is funded through the Special Insurance Fraud Fund, which is an assessment on all insurance companies doing business in Georgia. This assessment was established by the General Assembly in 1995, and each year the assessment is made according to an algorithm that assesses fees equal to the appropriation for the Special Fraud program. The purpose of this review is to address concerns about billing practices at the Office of the Commissioner of Insurance (OCI), whereby some expenses for activities and staff in the Insurance Regulation program are charged to the Special Fraud program. This review also addresses concerns about the effectiveness of the program at identifying and detering insurance fraud.
Results of Analysis 1. Statutory Alignment: Program activities are aligned with statutory responsibilities. 2. Staffing Levels: The program is authorized for 61 positions in its FY 2015 Annual Operating Budget (AOB) that was submitted to OPB. The
state's human resources management system, PeopleSoft HCM, reflects 9 positions filled in this program. The state's accounting system, PeopleSoft Financials, which reflects where each employee's expenses are billed to, reflects 42 positions filled in the program. This mismatch of employee counts has resulted because the agency bills portions of expenses for some employees who primarily perform regulatory activities to the Special Fraud program because some of the activities of these employees impact insurance fraud investigations. Specific recommendations are below. 3. Fleet Management: There are 6 motor vehicles assigned to the program, but the AOB only reflects five motor vehicles. See recommendation below. 4. Performance Measures: OPB worked with the agency to identify metrics for key program activities. Some performance measures overlap with performance measures reported for the Insurance Regulation program. 5. Budget Impact: Transfer $4,214,365 State General Funds (Total Funds: $4,220,841) from the Special Fraud program to the Insurance Regulation program. See recommendation below.

Office of Planning and Budget

143

01/16/2015

Office of the Commissioner of Insurance
ZBB Program: Special Fraud
FY 2016 Zero-Based Budget Report
Program Operations: 6. In most years, OCI staff submits relatively few potential fraud cases to local district attorneys (DAs) for prosecution. For example, in FY
2014, only 39 cases, or approximately 10% of all potential fraud cases closed by OCI staff, were submitted to a local DA for prosecution. Of those 39 cases submitted, only 12 cases (or 31% of the cases submitted) resulted in a criminal conviction. The remaining 27 cases were not prosecuted or did not result in a conviction. OCI staff indicate that some fraud cases investigated by the unit are not prosecuted by DAs because they were focused on other areas or lacked resources. The program's enabling legislation allows program funds to be used to reimburse DAs to prosecute insurance fraud cases. Additionally, in the Department of Audits and Accounts' (DOAA) 2008 review of the Special Fraud program, DOAA recommended that special fraud assessment funds be used to facilitate the prosecution of insurance fraud cases. Recommendation: In cooperation with the insurance industry that funds the Special Insurance Fraud Fund, create a fraud prosecution reimbursement program for local DAs that prosecute insurance fraud cases referred to them by the Special Fraud unit of the agency. 7. In the course of the Zero-Based Budget process, OCI staff were unable to explain to OPB staff how fraud cases were resolved for those cases referred to prosecutors that had not yet resulted in convictions. In 2008, DOAA staff reviewing the Special Fraud program similarly found that Special Fraud staff were uncertain of the status of each case that had been referred to prosecutors, when these cases would be prosecuted, or whether these cases would be prosecuted. However, state law requires that prosecuting attorneys notify OCI of the reasons for lack of prosecution when the prosecution has not begun within 90 days. Recommendation: Implement tracking procedures for all cases referred to prosecutors. Sixty days after the submission of cases to prosecutors, send notices to prosecutors reminding them of the state law requirement that OCI be notified of case status within 90 days of case submission.

Office of Planning and Budget

144

01/16/2015

Office of the Commissioner of Insurance
ZBB Program: Special Fraud
FY 2016 Zero-Based Budget Report
8. Activities taking place in the Insurance Regulation program impact and contribute to insurance fraud investigations taking place in the Special Fraud program, and substantial overlap occurs between activities in the two programs. Due to the nature of the activities taking place in the Insurance Regulation program, many potential fraud cases are identified and initially worked by employees in this program. For example, an employee in the Consumer Services division may receive a consumer complaint about an insurance agent, and when the employee attempts to resolve the complaint identifies potential instances of insurance fraud. At this point, the employee would turn the case over to an investigator in the Special Fraud program; however, the Insurance Regulation employee has already identified the case and conducted basic fact-finding. This same scenario of an Insurance Regulation employee identifying and conducting fact-finding on potential fraud cases also occurs with employees conducting financial reviews, financial audits, insurance product reviews, and market conduct studies. Recommendation: Combine the Special Fraud and Insurance Regulation programs into a single program to account for the overlap in activities between the two programs. Transfer $4,214,365 State General Funds (Total Funds: $4,220,841), 55 positions, and 5 vehicles from the Special Fraud program to the Insurance Regulation program.
9. The Special Fraud program's operating budget, human resources records, and accounting records each reflect a different number of employees working in the program, which prevents policymakers from understanding how many employees are required to identify, investigate, and deter insurance fraud in Georgia. The program is authorized for 61 positions in its FY 2015 Annual Operating Budget (AOB) that was submitted to OPB. The state's human resources management system, PeopleSoft HCM, reflects 9 positions filled in this program. The state's accounting system, PeopleSoft Financials, which reflects where each employee's expenses are billed to, reflects 42 positions filled in the program. This mismatch of employee counts has resulted because the agency bills portions of expenses for some employees who primarily perform regulatory activities to the Special Fraud program because some of the activities of these employees impact insurance fraud investigations, as explained above. However, this practice causes the employee counts reflected in the program's budget, human resources records, and accounting records to be different from each other. Recommendation: Align authorized positions in AOB with actual positions filled once the Special Fraud and the Insurance Regulation programs have combined.
10. Six motor vehicles are assigned to the program which are used by the nine investigators staffing the program. The AOB only reflects five motor vehicles. Recommendation: Align authorized motor vehicle count with the actual number of motor vehicles assigned to the program.

Office of Planning and Budget

145

01/16/2015

Office of the Commissioner of Insurance
ZBB Program: Special Fraud
FY 2016 Zero-Based Budget Report
11. A 2008 performance audit conducted by the Department of Audits and Accounts expressed concern about the practice of billing portions of insurance regulation activities to the Special Fraud program because the agency did not demonstrate that the activities adequately contributed to insurance fraud investigations. Recommendation: Implement reporting procedures to track the number of potential fraud referrals reported and worked by employees in the regulatory divisions, and use this data to develop a consistent and defensible algorithm to be used for determining the amount of regulatory expense that will be billed to the Special Insurance Fraud Fund.
12. Georgia statute (OCGA 33-1-17) requires that the Commissioner of Insurance prepare a separate budget request to the General Assembly which sets forth the anticipated cost and expense associated with the investigation and prosecution of insurance fraud for 12 months. The Special Fraud program budget has fulfilled this requirement each year; however, it has not reflected the full costs of investigating and prosecuting insurance fraud because it did not include some costs of investigation occurring in the Insurance Regulation program. Recommendation: Establish Special Fraud as a subprogram within the Insurance Regulation program. This will allow for the agency to continue to report on the budget for the Special Insurance Fraud Fund.

Office of Planning and Budget

146

01/16/2015

Office of the Commissioner of Insurance
ZBB Program: Special Fraud
Key Activities and Alternative Approach

Key Activities (Listed in priority order as determined by Agency)

Activity Fraud Investigation

Description Investigates allegations of insurance fraud and resolves the case by referring for prosecution, referring for administrative action, or deeming the case unfounded.

Authority OCGA 33-1-9, 33-1-17

No. of Positions
9

FY 2015

FY 2015

State Funds Total Budget

$1,044,719

$1,051,195

Zero Based Budget Review (State Funds)

Changes Recommendation

($1,044,719)

$0

Financial Examinations

Investigates and audits the accuracy of the filed statements of

OCGA 33-2-11,

1,820,833

1,820,833 (1,820,833)

0

Georgia domiciled insurers. This activity is also funded through the 33-21-17

Insurance Regulation program.

Regulatory Services

Investigates unfair trade practices and other violations of Georgia OCGA 33-2-1,

1,348,813

1,348,813 (1,348,813)

0

law, and reviews all product offerings for insurance companies

33-2-3, 33-2-11

licensed to transact business in the state in order to ensure

compliance with insurance code, case law, bulletins, and directives.

This activity is also funded through the Insurance Regulation

program.

0

Total

9

$4,214,365

$4,220,841 ($4,214,365)

$0

Alternative (Alternative approach to delivering program services as provided by the agency) No alternative approaches to program services delivery are recommended at this time.

Office of Planning and Budget

147

01/16/2015

Office of the Commissioner of Insurance
ZBB Program: Special Fraud
Financial Summary

Objects of Expenditure Personal Services Regular Operating Expenses Motor Vehicle Purchases Equipment Computer Charges Real Estate Rentals Telecommunications Contractual Services Total Expenditures
Fund Type
State General Funds Federal Funds Total Funds

Expenditures

FY 2013

FY 2014

$3,624,410

$3,434,072

92,476

73,742

7,927 24,423 222,169 33,331 31,004 $4,035,740

145,941 77,177
222,169 23,410 1,500
$3,978,011

FY 2015 Current Budget
$3,520,395 262,644 50,001 17,500 20,301 222,169 21,789 106,042
$4,220,841

Zero Based Budget Review

Changes

Recommendation

($3,520,395)

$0

(262,644)

0

(50,001)

0

(17,500)

0

(20,301)

0

(222,169)

0

(21,789)

0

(106,042)

0

($4,220,841)

$0

$4,029,793

$3,975,880

$4,214,365

($4,214,365)

$0

5,947

2,131

6,476

(6,476)

0

$4,035,740

$3,978,011

$4,220,841

($4,220,841)

$0

Positions* Motor Vehicles

47

42

61

(61)

0

5

5

5

(5)

0

* Position counts shown under expenditures reflect the number of salaried, benefit eligible employees as of June 30 of that fiscal year.

Office of Planning and Budget

148

01/16/2015

Office of the Commissioner of Insurance
ZBB Program: Special Fraud
Performance Measures
Agency Purpose: The Office of the Commissioner of Insurance is accountable for upholding state laws regarding insurance, small loans, fire safety, and manufactured housing.
Program Purpose: The purpose of this program is to identify and take appropriate action to deter insurance fraud, which is funded through an annual Special Fraud Assessment paid by all insurance companies doing business in Georgia.

Performance Measures 1. Number of complaints received 2. Average number of days to resolve a case 3. Percent of complaints reported by the Insurance Regulation program at OCI 4. Percent of complaints received that resulted in a referral to a district attorney for prosecution 5. Percent of complaints received that resulted in administrative penalties or action 6. Percent of complaints received that are closed because the investigator finds that no action is necessary 7. Of cases referred to a district attorney, percent of those cases that resulted in a criminal conviction

FY 2011 267 40 27% 8%
4%
43%
43%

Actuals

FY 2012

FY 2013

533

367

47

62

31%

27%

9%

7%

4%

6%

37%

33%

40%

92%

FY 2014 340 68 34% 11%
5%
41%
31%

Office of Planning and Budget

149

01/16/2015

FY 2016 Zero-Based Budget Analysis
Georgia Bureau of Investigation ZBB Program: Forensic Scientific Services

Office of Planning and Budget

150

01/16/2015

Georgia Bureau of Investigation
ZBB Program: Forensic Scientific Services
FY 2016 Zero-Based Budget Report
Purpose of Review The Forensic Scientific Services program provides forensic analysis of evidence in criminal and death investigations for law enforcement agencies. There are seven labs located throughout the state: one full service lab in Atlanta and six limited service labs in Augusta, Cleveland, Columbus, Macon, Moultrie and Savannah. These labs specialize in toxicology, DNA analysis, drugs, firearms, impressions, latent prints, and forensic biology. The purpose of this review is to assess the performance and cost effectiveness of the Forensics Scientific Services program.
Results of Analysis 1. Statutory Alignment: Program activities are aligned with statutory responsibilities. 2. Staffing Levels: The program has 273 full-time benefit eligible employees. 3. Fleet Management: There are 27 motor vehicles assigned to the program. 4. Performance Measures: OPB worked with the agency to identify metrics for key program activities. The updated measures accurately
reflect the performance of the program. 5. Budget Impact: Increase funds by $480,084 for Medical Examiner recruitment and retention initiatives.
Program Operations: 6. The Forensic Scientific Services program has 273 full-time employees, pproximately 13 of whom are paid with grant funding. The
program released 91,961 reports in FY 2014 for an average of 337 reports per employee. Since FY 2011, the backlog of incomplete reports older than 30 days has decreased from 6,532 to 4,373. The backlog has decreased due to lower scientist turnover that can be attributed to salary adjustments implemented in previous fiscal years. Maintaining staff allows scientists to spend their time working in the lab rather than training new employees. The agency addresses the backlog by prioritizing cases bases on investigative and court needs. Approximately 95% of reports are completed within 90 days of the request for analysis. Despite the reduction in backlog, the agency still faces challenges in completely eliminating the backlog due to limited staffing and increased tasks associated with mandatory quality standards that are linked to the laboratory accreditation. Maintaining accreditation is a requirement for the laboratory to qualify for federal grant funding and continue participation in programs such as the CODIS DNA database. Recommendation: Continue to prioritize backlog to avoid delay in prosecution and remove cases that are not being prosecuted. Utilize grant funding for additional positions to the extent funds are available.

Office of Planning and Budget

151

01/16/2015

Georgia Bureau of Investigation
ZBB Program: Forensic Scientific Services
FY 2016 Zero-Based Budget Report
7. Nearly 45% of the backlog is attributed to requests for latent print analysis or firearms analysis. Scientists within the different functional areas of the laboratory have differing educational requirements and receive extensive training unique to the specific types of analysis that will be performed by each scientist. These specialized education and training requirements make it impractical for the agency to move personnel between the various disciplines. Recommendation: Evaluate staffing needs in latent prints and firearms to address increasing caseloads.
8. The Medical Examiner's Office is accredited by the National Association of Medical Examiners. To maintain accreditation, all caseloads for each medical examiner must remain under 325. The Office's current caseload is 340 per medical examiner, and is expected to increase over the accreditation threshold after the retirement of a medical examiner in FY 2015. Funds were added in the FY 2015 budget for one medical examiner and death investigator to maintain accreditation. Nationally, there is a shortage of forensic pathologists with only approximately 450 boarded forensic pathologists in the United States. Two factors contributing to this shortage are an inadequate supply of newly board certified forensic pathologists entering the workforce and salaries. A 2009 U.S. Bureau of Labor Statistics report showed the national average salary was 32% higher than Georgia's Medical Examiner's Office. Locally, GBI's entry level board certified medical examiner salaries are 16% lower than the Fulton County Medical Examiner's Office. Medical examiner salaries were not included in the pay parity salary adjustments for GBI scientists and agents. GBI's entry level salaries for board certified forensic pathologists limit the potential of the agency to recruit and retain medical examiners from a very limited pool of qualified personnel. Recommendation: Increase funds by $480,084 for personal services for recruitment and retention initiatives for Medical Examiner positions.
9. Accreditation of Medical Examiners is linked to the ability of the laboratory to complete toxicology analysis within specified time frames. According to the accreditation standards for medical examiners, the turnaround time for autopsy reports in homicide investigation should be 60 days or less. In non-homicide death investigations, the number of deaths caused by drug overdose is also increasing as the population increases. During FY 2014, the average turnaround time for postmortem toxicology reports was approximately 46 days, which limits the opportunity of the medical examiner to issue the autopsy report within 60 days since additional information may need to be collected and considered after the toxicology report is completed. The laboratory is utilizing computer simulation modeling to help identify staffing needs in the toxicology unit. Recommendation: Evaluate staffing needs within the laboratory to analyze increasing toxicology caseloads as the population in Georgia grows and drug related deaths increase.

Office of Planning and Budget

152

01/16/2015

Georgia Bureau of Investigation
ZBB Program: Forensic Scientific Services
FY 2016 Zero-Based Budget Report
10. The Forensic Scientific Services program is inundated with open records requests which must be completed within certain time frames. In order to accommodate these requests, the program has repurposed a scientist to help respond to them. A scientist is required because a typical request requires training to retrieve information from various databases. Personal and other sensitive information must be redacted, which adds additional time for the scientist to complete each request. Currently, the agency does not have a method to track the number of open records requests received. Recommendation: Track the number of open records requests received to determine the need to dedicate a staff person to this activity. Evaluate whether training a staff position, similar to how medical administrative assistants are used for coding and pulling patient information, is feasible to handle open records requests for the agency.
11. In FY 2014, the Savannah Crime Lab provided more than 3,913 forensic reports involving drug identification, forensic biology, medical examiner, and firearms analysis. Due to a growing population in the region, GBI expects the caseload to increase to over 6,000 by 2030. Currently the Savannah lab has 22 scientists, medical examiners, and technicians, but the agency will need 30 employees to handle the expected increase in caseload. Space in the Savannah Crime Lab is fully utilized and is inadequate to support additional personnel and instrumentation needed to handle additional cases. For instance, classroom space has already been converted to a firearms analysis area. Recommendation: Request bond funding to add additional space at the Savannah Crime Lab. Following completion of the facility improvements, review staffing levels at the Savannah Crime Lab and fund additional positions as needed to adequately address increasing caseloads.
12. In FY 2014, the Forensic Scientific Services program consolidated the Medical Examiner's Office in Moultrie and the Atlanta morgue. As expected, the caseload for the Atlanta morgue increased due to the move. Current space at the Atlanta morgue is limited and insufficient to meet the needs of the program. Space at the Atlanta morgue is fully utilized and new construction will be needed to increase capacity. As mentioned previously, an additional medical examiner has been added to the program's staff, but space is nonexistent for any additional medical examiners and support staff that will be needed to handle future projected caseload. Recommendation: Request bond funding to add additional morgue space at the Atlanta Headquarters.

Office of Planning and Budget

153

01/16/2015

Georgia Bureau of Investigation
ZBB Program: Forensic Scientific Services
Key Activities and Alternative Approach

Key Activities (Listed in priority order as determined by Agency)

Activity Chemistry

Description

Authority

Provides analysis of evidence in order to determine the presence or OCGA 35-3-151

absence of controlled substances. Chemists provide expert

testimony to the courts, supply the courts and other state agencies

with factual drug information.

No. of Positions
75

FY 2015

FY 2015

State Funds Total Budget

$9,355,007

$9,355,007

Medical Examiner's Trace Evidence Toxicology Firearms ID Impressions
Forensic Biology Operations Support

Provides complete forensic pathology services to 153 of Georgia's 159 counties in deaths which qualify as coroner cases under the Georgia Death Investigation Act.

OCGA 35-3-151

Provides analysis of trace elements such as hair, glass, dust, paints, OCGA 35-3-151 and other small items to determine if there is any evidence linking the item to a crime.

Provides state and local law enforcement officials and medical examiners with vital information about human biological samples and specifically whether drugs, alcohol or poisons may have played a role in the commission of a crime or a death.

OCGA 35-3-151

Tests firearms to determine if a gun was accidentally discharged, if OCGA 35-3-151 ammo found in a crime scene matches a gun, and distance determination.

Conducts all work pertaining to the examination of latent prints on evidence submitted to the GBI Crime Lab. Latent prints are impressions produced by the ridged skin on human fingers, palms, and soles of the feet. Examiners analyze and compare latent prints to known prints of individuals in an effort to make identifications or exclusions.

OCGA 35-3-151

Performs serological and DNA analyses of physiological fluids for the OCGA 35-3-151 purpose of identification and individualization.

Provides laboratory support to crime labs by processing all pieces of OCGA 35-3-151 evidence received and performing other clerical duties.

51

6,124,293

6,348,289

10

1,120,887

1,120,887

52

5,821,166

5,821,166

17

1,789,285

1,789,285

17

1,531,268

1,531,268

51

5,985,136

0

32,825

5,985,136 32,825

Zero Based Budget Review (State Funds)

Changes Recommendation

$0

$9,355,007

480,084 0 0

$6,604,377 $1,120,887 $5,821,166

0

$1,789,285

0

$1,531,268

0

$5,985,136

0

$32,825

Office of Planning and Budget

Total 154

273 $31,759,867 $31,983,863 $480,084

$32,239,951

01/16/2015

Georgia Bureau of Investigation
ZBB Program: Forensic Scientific Services
Key Activities and Alternative Approach

Key Activities (Listed in priority order as determined by Agency)

Activity

Description

Authority

No. of

FY 2015

FY 2015

Positions State Funds Total Budget

Zero Based Budget Review (State Funds)
Changes Recommendation

Alternative (Alternative approach to delivering program services as provided by the agency) No alternative approaches to program services delivery are recommended at this time.

Office of Planning and Budget

155

01/16/2015

Georgia Bureau of Investigation
ZBB Program: Forensic Scientific Services
Financial Summary

Objects of Expenditure Personal Services Regular Operating Expenses Motor Vehicle Purchases Equipment Computer Charges Real Estate Rentals Telecommunications Capital Outlay Contractual Services Total Expenditures
Fund Type
State General Funds Federal Funds Other Funds Total Funds

Expenditures

FY 2013

FY 2014

$22,909,695

$23,598,592

4,073,959

4,555,192

FY 2015 Current Budget
$27,175,246 3,250,978

818,513 456,229

908,179 625,652

15,000 240,424

1,120,335 15,822
120,509 $29,515,061

1,073,370
284,512 $31,045,497

1,246,052
56,163 $31,983,863

Zero Based Budget Review

Changes

Recommendation

$480,084

$27,655,330

0

3,250,978

0

15,000

0

240,424

0

1,246,052

0

56,163

$0

$32,463,947

$26,661,246 2,632,546 221,269
$29,515,061

$28,945,799 1,901,099 198,598
$31,045,497

$31,759,867 66,131
157,865 $31,983,863

$480,084 0 0
$0

$32,239,951 66,131
157,865 $32,463,947

Positions* Motor Vehicles

268

273

273

30

28

27

2

275

0

27

* Position counts shown under expenditures reflect the number of salaried, benefit eligible employees as of June 30 of that fiscal year.

Office of Planning and Budget

156

01/16/2015

Georgia Bureau of Investigation
ZBB Program: Forensic Scientific Services
Performance Measures

Agency Purpose: The Georgia Bureau of Investigation (GBI) is an independent, statewide agency that provides assistance to the state's criminal justice system in the areas of criminal investigations, forensic laboratory services and computerized criminal justice information.

Program Purpose: The purpose of this program is to provide forensic analysis and testimony in the areas of chemistry (drug identification), firearms, digital imaging, forensic biology (serology/DNA), latent prints, pathology, questioned documents, photography, toxicology, implied consent, and trace evidence in support of the criminal justice system; to provide medical examiner (autopsy) services; adn to analyze and enter samples into national databases such as AFIS, CODIS, and NIBIN.

Performance Measures 1. Turnover rate for scientists 2. Backlog of cases 3. Total number of reports released 4. Percentage of reports released in 45 days 5. Combined DNA Index System matches 6. Open records requests received

FY 2011 12%
6,532 85,523
74% 894 N/A

Actuals

FY 2012

FY 2013

9%

7%

5,751

3,046

89,597

95,206

62%

73%

783

941

N/A

N/A

FY 2014 7%
4,373 91,961
79% 1,182
N/A

Office of Planning and Budget

157

01/16/2015

FY 2016 Zero-Based Budget Analysis
Department of Juvenile Justice ZBB Program: Departmental Administration

Office of Planning and Budget

158

01/16/2015

Department of Juvenile Justice
ZBB Program: Departmental Administration
FY 2016 Zero-Based Budget Report
Purpose of Review The Departmental Administration program consists of two primary subprograms, Administration and the Office of Training. The Administration subprogram provides a variety of administrative and support services, including: investigations, engineering, executive operations, financial services, human resources, information technology, general services, and communications. The Office of Training subprogram is responsible for the delivery of basic and specialized instructional programs designed to support the agency's mission of effectively enhancing the safety, security and skills of its employees. The purpose of this review is to evaluate the program's effectiveness and identify any potential operating efficiencies.
Results of Analysis 1. Statutory Alignment: Program activities are aligned with statutory responsibilities. 2. Staffing Levels: The program's full-time benefit eligible employees increased from 137 to 179 since FY 2013. The increase is due to the
agency filling vacant positions within the program. 3. Fleet Management: There are 55 motor vehicles assigned to the program, an increase of 35 from FY 2014. The additional vehicles are
used to facilitate statewide training initiatives. 4. Performance Measures: OPB worked with the agency to identify metrics for key program activities. The agency should continue to
develop relevant and measurable outcomes for its key activities. 5. Budget Impact: Maintain the current funding level.

Office of Planning and Budget

159

01/16/2015

Department of Juvenile Justice
ZBB Program: Departmental Administration
FY 2016 Zero-Based Budget Report
Program Operations: 6. The Office of Engineering developed a Facility Master Plan to outline future construction projects that need to be completed by the
Department of Juvenile Justice (DJJ). The projects are a result of aging facilities, new security standards, such as requirements related to the Prison Rape Elimination Act (PREA), and space deficiencies for educating youth in state facilities. DJJ has five active construction projects that are in various stages of construction (two are in the programming phase, two are in the design phase and one is in the construction phase). DJJ currently uses a private vendor for maintenance of its facilities, but recent facility site visits showed evidence of neglect and numerous deficiencies in and around the facilities. As a result, a long-term maintenance plan is being developed that will address maintenance issues across all DJJ state facilities. The agency has stated that two additional engineers will be needed to improve maintenance operations; however, there is not sufficient data available at this time to support this request since much of the maintenance is privatized. Recommendation: Develop strategies and a staffing plan with supporting data to ensure that facilities are properly maintained to protect state assets and investments. 7. The Office of Information Technology (IT) is engaged in the development of new risk and assessment tools that will support integrative, comprehensive and uniform data collection and reporting. The new assessment tools will guide informed decision-making at various stages in the justice process. In FY 2015, there has been increased turnover in IT. The IT staffing level has been reduced due to the resignations of two full-time DJJ employees and two programmers contracted with Covendis. There are a total of 19 positions allotted under the Convendis contract. Current staffing challenges have created significant impediments, not only to the development of the new assessment tools, but also to the ultimate collection and tracking of outcome measures. The agency has stated that additional staff will be needed to support and maintain IT operations. Recommendation: Develop strategies and a staffing plan with supporting data to ensure stability in the IT office. Reallocate funds from other budgetary programs as necessary to address funding requirements.

Office of Planning and Budget

160

01/16/2015

Department of Juvenile Justice
ZBB Program: Departmental Administration
FY 2016 Zero-Based Budget Report
8. In 2013, the U.S. Department of Justice released the results of the 2012 National Survey of Youth in Custody, which cited four of Georgia's detention centers among the worst in the nation in terms of alleged sexual misconduct of detainees. In response to the survey findings, a special Prison Rate Elimination Act (PREA) unit was established within the Office of Investigations and is currently operating with three investigators and a one field supervisor for the entire state of Georgia. The field supervisor also investigates cases to help maintain workload balance. Each investigator averages approximately seven case files per month, and it takes an average of 17 days to close a case file. DJJ's policy mandates zero tolerance towards all forms of sexual abuse and harassment, and provides guidelines for staff to reduce the risk of sexual abuse within DJJ facilities, programs and offices. The agency has stated that additional training is needed in specialty areas such as forensics, sexual assault, interviewing juveniles, and evidence collection. The agency has stated that an additional PREA investigator is also needed in the Metro Atlanta region. Recommendation: Create a staffing plan, with supporting data for case ratios, to ensure the timely conduct of investigations and develop strategies to eliminate the potential for recurring issues of case backlog. Reallocate funds from other budgetary programs as necessary to address funding requirements.
9. Since FY 2012, the Department has grown to include specialty security units and P.O.S.T. certified officers. Effective July 1, 2014, Senate Bill 324 authorizes the Commissioner to appoint personnel, whose responsibility includes the supervision of delinquent children under intensive supervision in the community, as probation officers. DJJ has 15 P.O.S.T. certified officers who were certified by the Department of Corrections or Pardons and Parole; however, there are over 100 officers still waiting to receive P.O.S.T. training and certification. In September 2014, the Office of Training subprogram began offering the new P.O.S.T. certification and training courses to juvenile probation officers assigned to the High Intensity Team Supervision unit. The agency has stated that additional instructors are needed to ensure the timely and effective delivery of training to specialty units. Recommendation: Reallocate funds from other budgetary programs to address any staffing or contractual services needs to support the Office of Training subprogram. Develop a long-term staffing strategy to address projected training needs due to staff turnover and continuous P.O.S.T. training requirements for existing personnel.

Office of Planning and Budget

161

01/16/2015

Department of Juvenile Justice
ZBB Program: Departmental Administration
FY 2016 Zero-Based Budget Report
10. In FY 2015, DJJ will launch a new Leadership Institute. The new training platform will require mandatory participation from managers and supervisors at all levels of the organization. High attrition and turnover of Correctional Officers has led to a younger, more inexperienced staff. Succession planning will ensure leadership continuity by identifying and preparing employees with leadership potential for future roles. Building a stable workforce that can grow internally is one of DJJ's top priorities. The findings of a 2014 performance audit, conducted by the Georgia Department of Audits and Accounts, have also prompted the agency to set measurable goals to train staff, increase employee satisfaction and reduce turnover by FY 2017. DJJ currently lacks the resources to implement and maintain this training initiative. Recommendation: Reallocate funds from other budgetary programs to address any staffing or contractual services needs to support the Office of Training.

Office of Planning and Budget

162

01/16/2015

Department of Juvenile Justice
ZBB Program: Departmental Administration
Key Activities and Alternative Approach

Key Activities (Listed in priority order as determined by Agency)

Training

Activity

Description
Develops and maintains professional development programs through the delivery of basic and specialized training programs enhancing the department's professional workforce through a comprehensive system of staff development and training learning experiences.

Investigations/Intelligence

Provides internal investigative services in support of DJJ's commitment to protecting the general public, departmental employees, visitors, and the youth in the agency's care.

Engineering

Provides project management services for new construction, renovations, and other capital related projects. Also handles all facility maintenance and capital project planning.

Authority OCGA 49-4A-1; 49-4A-7

No. of Positions
26

FY 2015

FY 2015

State Funds Total Budget

$2,818,180

$2,818,180

OCGA 49-4A-1; 49-4A-7
OCGA 49-4A-1; 49-4A-7

23

1,333,372

1,333,372

6

488,788

488,788

Zero Based Budget Review (State Funds)

Changes Recommendation

$0

$2,818,180

0

1,333,372

0

488,788

Executive Operations

Includes the Office of the Commissioner, Assistant Commissioner OCGA 49-4A-1; (Chief of Staff), Legal Services, and Legislative Liaison. The Office of 49-4A-7 the Commissioner provides leadership and vision for the agency as a whole. Legal Services represents and handles the legal interests of the agency. The Legislative Liaison serves as a link between the agency and the legislative branch and is responsible for agency legislation.

10

1,655,238

1,655,238

0

1,655,238

Financial Services Human Resources Information Technology

Provides financial management and fiscal support to the department. These services include accounting, budget, internal audits, federal revenue, and purchasing.
Supports processes related to the department's employees. The office is also responsible for monitoring the workforce trends and proposing initiatives to address challenges to the department's workforce. Provides technology support for department employees as well as Georgia Enterprise Technology Services (GETS) outsourcing and application management.

OCGA 49-4A-1; 49-4A-7
OCGA 49-4A-1; 49-4A-7
OCGA 49-4A-1; 49-4A-7

32

5,061,479

5,219,225

32

2,129,079

2,144,378

10

6,411,065

6,411,065

0

5,061,479

0

2,129,079

0

6,411,065

Office of Planning and Budget

163

01/16/2015

Department of Juvenile Justice
ZBB Program: Departmental Administration
Key Activities and Alternative Approach

Key Activities (Listed in priority order as determined by Agency)

Activity General Services

Description

Authority

Includes the following administrative units: contracts, grants and OCGA 49-4A-1;

privatization, property management, building services, and strategic 49-4A-7

planning.

Communications/Media

Provides media, marketing and public affairs support for the department. Publishes the agency newsletter, "News and Views." This office is also responsible for handling open records requests from all media outlets.

OCGA 49-4A-1; 49-4A-7

Total

No. of Positions
36
4
179

FY 2015

FY 2015

State Funds Total Budget

2,953,818

3,303,993

385,742

385,742

$23,236,761 $23,759,981

Zero Based Budget Review (State Funds)

Changes Recommendation

0

2,953,818

0

385,742

$0

$23,236,761

Alternative (Alternative approach to delivering program services as provided by the agency) No alternative approaches to program delivery are recommended at this time.

Office of Planning and Budget

164

01/16/2015

Department of Juvenile Justice
ZBB Program: Departmental Administration
Financial Summary

Objects of Expenditure Personal Services Regular Operating Expenses Motor Vehicle Purchases Equipment Computer Charges Real Estate Rentals Telecommunications Contractual Services Service Benefits for Children Utilities Total Expenditures
Fund Type
State General Funds Federal Funds Other Funds Total Funds

Expenditures

FY 2013

FY 2014

$15,769,956

$12,585,220

3,067,631

2,557,113

92,814

946,841

728,919 1,998,594 3,953,989 2,442,306
184,083 187,816 $28,426,107

462,691 2,069,982 3,581,685 2,174,981
19,037 175,374 $24,572,924

FY 2015 Current Budget
$13,258,516 1,989,872 134,520 46,793 680,791 2,150,192 3,297,725 1,989,457
212,115 $23,759,981

Zero Based Budget Review

Changes

Recommendation

$0

$13,258,516

0

1,989,872

0

134,520

0

46,793

0

680,791

0

2,150,192

0

3,297,725

0

1,989,457

0

212,115

$0

$23,759,981

$26,857,330 1,035,697 533,080
$28,426,107

$22,879,788 1,286,884 406,253
$24,572,924

$23,236,761 507,921 15,299
$23,759,981

$0

$23,236,761

0

507,921

0

15,299

$0

$23,759,981

Positions* Motor Vehicles

137

172

179

20

20

55

0

179

0

55

* Position counts shown under expenditures reflect the number of salaried, benefit eligible employees as of June 30 of that fiscal year.

Office of Planning and Budget

165

01/16/2015

Department of Juvenile Justice
ZBB Program: Departmental Administration
Performance Measures

Agency Purpose: The Department of Juvenile Justice (DJJ) protects and serves the citizens of Georgia by holding young offenders accountable for their actions through the delivery of services and sanctions in appropriate settings and by supporting youth in their communities to become productive and law-abiding citizens.
Program Purpose: The purpose of this program is to protect and serve the citizens of Georgia by holding youthful offenders accountable for their actions through the delivery of effective services in appropriate settings.

Performance Measures 1. Percentage of new juvenile correctional officers that successfully completed new hire training 2. Average number of days investigation cases remain open 3. Turnover rate of P.O.S.T. certified employees

FY 2011 75%
633 40%

Actuals

FY 2012

FY 2013

86%

84%

252

99

50%

46%

FY 2014 86%
22 37%

Office of Planning and Budget

166

01/16/2015

FY 2016 Zero-Based Budget Analysis
Department of Natural Resources ZBB Program: Parks, Recreation and Historic Sites

Office of Planning and Budget

167

01/16/2015

Department of Natural Resources
ZBB Program: Parks, Recreation and Historic Sites
FY 2016 Zero-Based Budget Report
Purpose of Review The Parks, Recreation and Historic Sites (PRHS) program oversees 63 state parks, 18 historic sites, and five golf courses. Over the last eight years, the visitation at state parks has continued to decline. The purpose of this review is to evaluate the operations of the PRHS program in order to identify any potential operating efficiencies. This review will also examine strategies the PRHS program is currently implementing to maintain attendance and examine if other methods exist that could be utilized to increase visitation.
Results of Analysis 1. Statutory Alignment: Program activities are aligned with statutory requirements. 2. Staffing Levels: The program has 288 full-time benefit eligible employees.
3. Fleet Management: There are 391 motor vehicles assigned to the program. The program plans to surplus 103 vehicles. 4. Performance Measures: OPB worked with the agency to identify metrics for key program activities. The agency should continue to
develop relevant and measurable outcomes for its key activities. 5. Budget Impact: Maintain the current funding level.
Program Operations: 6. Over the last eight years, the PRHS program has spent an average of $1,314,769 annually on advertising and marketing, which is equal to
three percent of the program budget. This amount has varied only slightly over the last eight years. In 2007, the program spent $940,068, and the highest amount spent annually to date was in 2012, when the program spent $1,583,545. However, visitation to the parks continued to decline over that same period. Therefore, the impact of marketing spending has on overall park attendance is unclear. For example, in 2012, the amount of funds spent on marketing increased by 13%; however, visitation only increased by two percent. To date, the department has not conducted an analysis of the efficacy of their current marketing strategies to determine its impact on park attendance. 7. The PRHS program has a team of volunteers called Friends of the Parks. This group includes over 6,000 citizens that volunteer 77,000 hours annually working at the state parks. Without the volunteers from this organization, the PRHS program would require an additional $1 million to cover the cost of personal services and benefits.

Office of Planning and Budget

168

01/16/2015

Department of Natural Resources
ZBB Program: Parks, Recreation and Historic Sites
FY 2016 Zero-Based Budget Report
8. The PRHS program is currently conducting a survey with the Friends of the Parks group to gather input and ideas on increasing park visitation. However, the survey is only being shared with that group, which is comprised of loyal park supporters. Recommendation: Utilize a portion of the existing marketing budget to design and administer a low-cost, web-based survey, in consultation with a marketing research firm if necessary. Focus the survey on citizens that are not park visitors. Identify key segments of the population and specific marketing strategies to increase the amount of new visitors. Recommendation: Consult with the Department of Economic Development's Tourism program for guidance on tracking return on marketing investment and maximization of marketing expenditures and efforts.
9. Over the last few years, the PRHS program has added new activities to several parks across the state, including kayak and paddleboard rentals, many of which have low implementation and operating costs. For example, the cost to purchase a kayak is $675. With minimal operating costs, the department could recoup its costs in a matter of weeks during busy summer months. Currently, these amenities are only offered at 10 out of the 63 state parks. These 10 parks account for 30% of the entire park visitation total of 7,498,476 and have an average cost recovery of 55%. Since these new amenities were added in 2012, these 10 state parks had an average visitation increase of three percent. The remaining 53 state parks had an average visitation decrease of one percent. Recommendation: Prioritize funding, as available, to offer paddleboard, kayak, bicycle and aqua cycle rentals at additional state parks.
10. The state owns and operates three golf courses in the Atlanta and Athens areas and one in Waycross. These courses are located at Hard Labor Creek, Victoria Bryant, Richard B. Russell, and Laura Walker state parks. On average, 14,988 rounds of golf are played at these courses per year. The average cost to play a round of golf at these courses is $18.50. At this rate of visitation and price, the average return on investment for these parks is about 83%. Other golf courses in these areas charge between $21 and $27 per round of golf. Recommendation: Increase golf fees modestly to increase self-sufficiency while remaining competitive with other public golf courses.
11. The state also owns and operates a golf course at the Gordonia-Altamaha state park. On average, only 6,322 rounds of golf are played here each year. The average cost to play a round of golf is $15. The most recently calculated ROI, from FY 2013, was 58%, though this rate has fluctuated over the past several years, dipping as low as 47%. During these years, DNR and the state subsidized over half the cost to offer recreational golf to the public. The price of a round of golf at the Gordonia-Altamaha course would have to be increased from $15 to $41 to fully recover the cost to operate the golf course. Recommendation: Close the golf course at the Gordonia-Altamaha state park. Explore opportunities to repurpose the land into attractions that will lower operating costs and increase visitation.

Office of Planning and Budget

169

01/16/2015

Department of Natural Resources
ZBB Program: Parks, Recreation and Historic Sites
Key Activities and Alternative Approach

Key Activities (Listed in priority order as determined by Agency)

Activity Park Operations

Description Oversees the day-to-day operations of each park and is responsible for maintaining adequate recreational facilities, educational and outdoor recreation programs.

Authority OCGA 12-3-6

No. of

FY 2015

FY 2015

Positions State Funds Total Budget

275 $12,072,073 $44,896,093

Zero Based Budget Review (State Funds)

Changes Recommendation

$0

$12,072,073

Engineering and Construction

Manages Real Estate purchases, handles inventory management for OCGA 12-3-55,

all real estate, coordinates budgeting of DNR Capital Outlay funding, OCGA 12-3-93,

and manages the expenditures of those funds.

OCGA 12-3-620

13

1,962,790

1,962,790

0

1,962,790

Advertising and Promotion

Performs branding, advertising and promoting of Georgia state parks through maintaining the parks' websites, media campaigns, public relations, and social media with the goal of increasing visitation and driving revenue.

OCGA 12-3-32

Total

675,254

1,175,254

288 $14,710,117 $48,034,137

0

675,254

$0

$14,710,117

Alternative (Alternative approach to delivering program services as provided by the agency.) No alternative approaches to service delivery are recommended at this time.

Office of Planning and Budget

170

01/16/2015

Department of Natural Resources
ZBB Program: Parks, Recreation and Historic Sites
Financial Summary

Objects of Expenditure Personal Services Regular Operating Expenses Motor Vehicle Purchases Equipment Computer Charges Real Estate Rentals Telecommunications Contractual Services Advertising and Promotion Cost of Material for Resale C.O. New Construction Repairs and Maintenance Land and Water Conservation Capital Outlay - Park Pass Transfers Grants - Other Non-Operating Expenses - Other Total Expenditures

Expenditures

FY 2013

FY 2014

$24,313,432

$19,725,897

9,558,785

8,877,447

332,484

282,448

124,691

428,704

54,182

62,510

135,193

46,378

906,430

983,084

1,547,830

1,945,320

1,562,558

1,330,724

2,670,217

1,412,135

46,275

148,726

744,050

984,184

594,580

102,966

3,194,875

3,611,907

193,286

1,601,244

1,722,368

1,100,140

$47,386,826

$42,958,224

FY 2015 Current Budget
$25,096,910 11,048,067
266,626
46,378 1,050,854 1,710,894 1,175,254 2,303,066
548,000 130,000 1,658,088 3,000,000
$48,034,137

Fund Type
State General Funds Federal Funds Other Funds Total Funds
Positions* Motor Vehicles

$13,255,391 2,878,410
31,253,025 $47,386,826
333 391

$13,569,409 2,113,826
27,274,989 $42,958,224
286 391

$14,710,117 1,704,029
31,619,991 $48,034,137
288 391

Zero Based Budget Review

Changes

Recommendation

$0

$25,096,910

0

11,048,067

0

266,626

0

46,378

0

1,050,854

0

1,710,894

0

1,175,254

0

2,303,066

0

130,000

0

1,658,088

0

3,000,000

$0

$47,486,137

$0

$14,710,117

0

1,704,029

0

31,619,991

$0

$48,034,137

0

288

0

391

* Position counts shown under expenditures reflect the number of salaried, benefit eligible employees as of June 30 of that fiscal year.

Office of Planning and Budget

171

01/16/2015

Department of Natural Resources
ZBB Program: Parks, Recreation and Historic Sites
Performance Measures
Agency Purpose: The Department of Natural Resources' purpose is to sustain, enhance, protect and conserve Georgia's natural, historic and cultural resources for present and future generations while recognizing the importance of promoting the development of commerce and industry that utilize sound environmental practices.
Program Purpose: The purpose of this program is to manage, operate, market, and maintain the state's golf courses, parks, lodges, conference centers, and historic sites.

Performance Measures 1. Percentage of customer comments indicating their overall park experience was good, very good, or excellent
2. Number of park, recreation, and historic site visitations 3. Average annual occupancy of cottages 4. Average annual occupancy of campsites and yurts 5. Average annual weekend occupancy for cottages 6. Average annual weekend occupancy for campsites and yurts 7. Number of rounds of golf booked 8. Average return on investment for state parks as a whole 9. Average return of investment for state park golf courses 10. Number of park passes sold

FY 2011 97%

Actuals

FY 2012

FY 2013

93%

93%

FY 2014 94%

8,858,751 42% 39% N/A N/A N/A 64% 70%
690,630

9,013,624 43% 39% N/A N/A
63,155 69% 73%
667,902

8,986,133 40% 37% N/A N/A
67,918 72% 73%
656,246

7,498,476 44% 38% 68% 75%
67,789 75% 73%
644,643

Office of Planning and Budget

172

01/16/2015

FY 2016 Zero-Based Budget Analysis
Georgia Public Defender Standards Council ZBB Program: Georgia Public Defender Standards Council

Office of Planning and Budget

173

01/16/2015

Georgia Public Defender Standards Council
ZBB Program: Georgia Public Defender Standards Council
FY 2016 Zero-Based Budget Report

Purpose of Review The Public Defender Standards Council (PDSC) program consists of four subprograms, Capital Defense, Office of the Mental Health Advocate, Central Office and Conflict Office. This program provides representation to indigent clients charged with a capital felony for which the death penalty is being sought, as well as those who have been found not guilty by reason of insanity or ruled mentally incompetent to stand trial. The purpose of this review is to determine statutory requirements of state funded activities and identify any potential operating efficiencies
Results of Analysis 1. Statutory Alignment: Program activities are aligned with statutory responsibilities. 2. Staffing Levels: The program has 49 full-time benefit eligible employees. This is a decrease of eight employees since FY 2013 due to
attorney and investigator turnover in the Capital Defender Office. 3. Fleet Management: There are 15 motor vehicles assigned to the program used for attorney and investigator travel. 4. Performance Measures: OPB worked with the agency to identify metrics for key program activities. The updated measures accurately
reflect the performance of the program. 5. Budget Impact: Maintain the current funding level.
Program Operations:
6. The Office of the Mental Health Advocate's (OMHA) caseload has increased from 75 to 89 per attorney since FY 2009. When a defendant is found not guilty by reason of insanity (NGRI), or ruled mentally incompetent to stand trial, their case is transferred from the Public Defender's Office to OMHA. The defendants are then committed to a mental health facility under the control and oversight of the Department of Behavioral Health and Disabilities. OMHA is responsible for representing the defendant while they are committed until a judge releases them of their sentence or their commitment to a facility reaches their maximum sentence. OMHA is responsible for visiting their clients once every six months, and each client is allowed one hearing per year in court to have their sentence released. During the recession, paralegal, social worker, and administrative assistant positions were eliminated. PDSC has not restored any administrative positions in OMHA despite the increase in caseload. Currently, attorneys are responsible for their own filings and other clerical duties that are typically performed by support staff in other Public Defenders' offices. Clerical duties now comprise a significant portion of the attorneys' work time.

Office of Planning and Budget

174

01/16/2015

Georgia Public Defender Standards Council
ZBB Program: Georgia Public Defender Standards Council
FY 2016 Zero-Based Budget Report
Recommendation: Analyze funded vacancies and allocate administrative support to the Office of the Mental Health Advocate if existing funding is determined to be available. 7. The agency uses certain criteria and an interview process to select private attorneys to handle conflict cases, but does not have administrative rules for minimum requirements to be a conflict attorney. The lack of an established administrative rule that sets minimum criteria for conflict attorneys gives the appearance that a minimum standard does not exist; however, the agency has stated it has an operational standard it utilizes. Recommendation: Use the current selection process and criteria as the basis for creating administrative rules for conflict attorney selection.

Office of Planning and Budget

175

01/16/2015

Georgia Public Defender Standards Council
ZBB Program: Georgia Public Defender Standards Council
Key Activities and Alternative Approach

Key Activities (Listed in priority order as determined by Agency)

Activity

Description

Capital Defense

Legal representation of indigent defendants charged with a capital felony for which the death penalty is being sought.

No. of

FY 2015

FY 2015

Authority Positions State Funds Total Budget

OCGA 17-12-12

25

$3,899,425

$3,899,425

Zero Based Budget Review (State Funds)

Changes Recommendation

$0

$3,899,425

Mental Health

Legal representation of indigent defendants found not guilty by OCGA 17-12-12

4

739,058

1,079,058

0

reason of insanity or ruled mentally incompetent to stand trial.

739,058

Central Office Conflict Offices

Provides administrative support to the agency by performing finance and budget, purchasing, HR and payroll, case assignment and training.

OCGA 17-12-12

Selects and manages contracts of private attorneys handling conflict OCGA 17-12-12 cases for the agency.

Total

16

1,479,675

1,479,675

4

446,701

446,701

49

$6,564,859

$6,904,859

0

1,479,675

0

446,701

$0

$6,564,859

Alternative (Alternative approach to delivering program services as provided by the agency) No alternative approaches to program service delivery are recommended at this time.

Office of Planning and Budget

176

01/16/2015

Georgia Public Defender Standards Council
ZBB Program: Georgia Public Defender Standards Council
Financial Summary

Objects of Expenditure Personal Services Regular Operating Expenses Motor Vehicle Purchases Equipment Computer Charges Real Estate Rentals Telecommunications Contractual Services Grants and Benefits Total Expenditures
Fund Type
State General Funds Federal Funds Other Funds Total Funds
Positions Motor Vehicles

Expenditures

FY 2013

FY 2014

$5,450,647

$5,385,003

586,363

492,697

17,470

11,318

230,222

539,715

385,806

262,216

64,085

68,987

1,277,827

1,007,185

5,565

$8,000,514

$7,784,590

FY 2015 Current Budget
$5,931,253 270,600
26,275 187,331
52,100 437,300
$6,904,859

Zero Based Budget Review

Changes

Recommendation

$0

$5,931,253

0

270,600

0

26,275

0

187,331

0

52,100

0

437,300

$0

$6,904,859

$5,953,567 77,295
1,969,652 $8,000,514
57 15

$6,375,874 59,812
1,348,904 $7,784,590
49 15

$6,564,859
340,000 $6,904,859
49 15

$0

$6,564,859

0

340,000

$0

$6,904,859

0

49

0

15

Office of Planning and Budget

177

01/16/2015

Georgia Public Defender Standards Council
ZBB Program: Georgia Public Defender Standards Council
Performance Measures
Agency Purpose: The Georgia Public Defender Standards Council ensures, independently of political considerations or private interests, that each client whose cause has been entrusted to a circuit public defender receives zealous, adequate, effective, timely and ethical legal representation, consistent with the Constitution of Georgia and the United States. Program Purpose: The purpose of this program is to provide representation to indigent clients charged with a capital felony for which the death penalty is being sought and for indigent defendants found not guilty by reason of insanity or ruled mentally incompetent to stand trial.

Performance Measures 1. Employee turnover rate 2. Number of audit findings 3. Number of trainings offered 4. Percentage of clients contacted at least once per month 5. Capital cases per attorney 6. Mental health cases per attorney

FY 2011 16% 1 13 N/A N/A N/A

Actuals

FY 2012

FY 2013

16%

18%

0

0

14

20

99.3%

93.4%

N/A

N/A

N/A

N/A

FY 2014 17% 0 17
94.0% 6
89

Office of Planning and Budget

178

01/16/2015

FY 2016 Zero-Based Budget Analysis
Department of Public Health ZBB Program: Departmental Administration

Office of Planning and Budget

179

01/16/2015

Department of Public Health
ZBB Program: Departmental Administration
FY 2016 Zero-Based Budget Report
Purpose of Review The Department of Public Health (DPH) has centralized finance services and facilities and maintenance within its Departmental Administration program. Overall, the program supports the agency's many services and activities. Since becoming an independent agency in FY 2012, the Department has been working to right-size its staff and establish competitive career paths. Several areas within the Departmental Administration program have undergone extensive reorganizations. The purpose of this review is to analyze the efficiency and effectiveness of activities in the Departmental Administration program. Additionally, a personnel analysis will be conducted to ensure positions are allocated appropriately for expense purposes.
Results of Analysis 1. Statutory Alignment: Program activities are aligned with statutory responsibilities. 2. Staffing Levels: The program has 200 full-time benefit eligible employees. See specific recommendations below. 3. Fleet Management: There are 67 vehicles assigned to the program; however, the vehicle number is inaccurate. See specific
recommendation below. 4. Performance Measures: OPB worked with the agency to identify metrics for key program activities. The updated measures accurately
reflect the performance of the program. 5. Budget Impact: Reduce the program budget by $365,487 to reflect transfers of positions to other programs within the Department. See
specific recommendations below.
Program Operations: 6. The budget by object classes does not reflect historical spend patterns.
Recommendation: Realign the budget to reflect projected expenditures by object classes. 7. The program's budgeted fleet did not accurately reflect the number of vehicles associated with this program until the fleet inventory was
reviewed and reconciled. In total, the agency has 50 vehicles, and there are only five vehicles assigned to this program. Based on the reconciliation, 43 vehicles will be moved to the Public Health Formula Grants to Counties program, and two vehicles will be moved to the Emergency Preparedness/Trauma System Improvement program.

Office of Planning and Budget

180

01/16/2015

Department of Public Health
ZBB Program: Departmental Administration
FY 2016 Zero-Based Budget Report
Recommendation: Perform an annual review of fleet inventory to ensure they are linked to the appropriate program for budget and expense purposes. 8. One laboratory position is expensed from this program, but it should be allocated to a program associated with laboratory operations. Recommendation: Transfer one position and $138,215 in state funds to the newly established Public Health Laboratory Services program to associate the position with the appropriate laboratory activity. 9. Two positions are expensed from this program, but the responsibilities of the staff are all programmatic. Similar staff with programmatic responsibilities are expensed from the program most closely associated with their responsibilities. Recommendation: Transfer two positions and $227,272 in state funds to the newly established Infant and Child Health Services program to associate the positions with the appropriate function and to maintain consistency with the way other programmatic positions are expensed. 10. While the DPH has worked diligently to restructure its workforce, more work is needed to ensure resources are used efficiently. Recommendation: Continue with the reorganization process within the Departmental Administration program. Human Resources and Financial Management have undergone this reorganization, but there are still several other areas that could benefit from restructuring. 11. The Office of the State Inspector General (OIG) is not the central reporting agency for all matters of fraud, waste, and abuse within the state of Georgia. Several state agencies, to include the Department of Human Services, the Department of Community Health, and the Department of Public Health, each have internal investigative divisions established to examine, investigate, and report fraud, waste, and abuse. Without a centralized reporting system or procedure, the depiction of fraud within Georgia's state agencies could often be distorted if solely based on figures presented by the OIG. Recommendation: Evaluate the feasibility of a centralized reporting portal to track the number of complaints and investigations involving fraud, waste, and abuse within the state of Georgia.

Office of Planning and Budget

181

01/16/2015

Department of Public Health
ZBB Program: Departmental Administration
Key Activities and Alternative Approach

Key Activities (Listed in priority order as determined by Agency)

No. of

FY 2015

FY 2015

Activity Executive Leadership

Description Executive leadership establishes public health policy within the state. The Public Health Board, legislative affairs, and special projects are also included in this activity.

Authority Positions

OCGA 31-2A-1;

19

31-2A-2; 31-2A-

4; 31-2A-15

State Funds Total Budget

$1,559,667

$4,094,315

District and County Operations Supports the programmatic and operational responsibilities of the OCGA 31-2A-4;

local county boards of health.

31-2A-8; 31-3-1

69

11,452,453

17,057,351

Financial Management

This activity involves managing the financial resources of the

OCGA 31-2A-4;

Department. It includes budgeting, payroll services, revenue, grants 31-2A-8

management, and accounting.

33

3,528,657

5,255,602

Human Resources

Human resources manages the recruitment and retention of staff, OCGA 31-2A-4;

workforce development, and training.

31-2A-7

14

718,500

1,070,138

Information Technology

Maintains the Department's electronic systems, programs, and technological infrastructure.

OCGA 31-2A-4

12

737,443

1,098,352

Communications

Provides internal and external communications, ensuring consistent OCGA 31-2A-4 messaging to general audiences and stakeholders.

9

328,154

488,754

Zero Based Budget Review (State Funds)

Changes Recommendation

($167,076)

$1,392,591

0

11,452,453

0

3,528,657

0

718,500

0

737,443

0

328,154

Compliance

This activity includes the Office of the General Counsel, the Office of OCGA 31-2A-4; Audits, and the Office of the Inspector General. It provides legal 31-2A-9 support services for the Department and ensures compliance with
all applicable state and federal regulations.

19

1,164,179

1,733,935

0

1,164,179

Operations

Operations includes offices that support the program's

OCGA 31-2A-4

administrative functions, including responsibilities such as contracts

and procurement, facilities, and fleet management.

Total

25

2,327,269

3,466,248 (198,411)

200 $21,816,322 $34,264,695 (365,487)

2,128,858 $21,450,835

Alternative (Alternative approach to delivering program services as provided by the agency) The Department currently has centralized functions, like Financial Management, and these functions could be decentralized and reallocated to programs; however, this alternative would likely cost more.

Office of Planning and Budget

182

01/16/2015

Department of Public Health
ZBB Program: Departmental Administration
Financial Summary

Objects of Expenditure Personal Services Regular Operating Expenses Equipment Computer Charges Real Estate Rentals Telecommunications Contractual Services Grants and Benefits Total Expenditures
Fund Type
State General Funds Federal Funds Tobacco Funds Other Funds Total Funds

Expenditures

FY 2013

FY 2014

$22,844,565

$23,000,892

986,079

1,490,009

(34,030)

962,086

2,370,748

2,674,077

3,254,662

6,325,712

3,498,098

1,723,675

3,472,081

1,412,329

1,331,779

$36,894,493

$38,418,268

FY 2015 Current Budget
$23,818,429 1,683,989
1,228,727 3,081,134 2,296,222
800,201 1,355,993 $34,264,695

Zero Based Budget Review

Changes

Recommendation

($365,487)

$23,452,942

0

1,683,989

0 0 0 0 0 ($365,487)

1,228,727 3,081,134 2,296,222
800,201 1,355,993 $33,899,208

$21,075,582 11,931,748 131,795 3,755,368
$36,894,493

$22,004,470 10,263,984 131,795 6,018,018
$38,418,268

$21,684,527 8,503,373 131,795 3,945,000
$34,264,695

($365,487) 0 0 0
($365,487)

$21,319,040 8,503,373 131,795 3,945,000
$33,899,208

Positions* Motor Vehicles

196

200

200

(3)

197

67

67

67

(62)

5

* Position counts shown under expenditures reflect the number of salaried, benefit eligible employees as of June 30 of that fiscal year.

Office of Planning and Budget

183

01/16/2015

Department of Public Health
ZBB Program: Departmental Administration
Performance Measures
Agency Purpose: The Department of Public Health prevents disease, injury, and disability; promotes health and well-being; and prepares for and responds to disasters.
Program Purpose: The purpose of this program is to provide administrative support to all departmental programs

Performance Measures 1. Number of payments processed 2. Percentage of payments processed electronically 3. Average number of days to process payments 4. Number of audit findings 5. Agency turnover rate 6. Average number of business days to execute a contract 7. Average number of days to complete onboarding of a new hire

FY 2011* N/A N/A N/A N/A N/A N/A N/A

Actuals

FY 2012

FY 2013

70,928

58,590

41%

39%

25

35

6

0

N/A

16

40

35

N/A

N/A

*The Department of Public Health was established as an independent agency beginning in FY 2012, so there is no data available prior to that time.

FY 2014 55,921 71% 41 N/A N/A 35 5

Office of Planning and Budget

184

01/16/2015

FY 2016 Zero-Based Budget Analysis
Department of Public Health ZBB Program: Infant and Child Essential Health Treatment Services

Office of Planning and Budget

185

01/16/2015

Department of Public Health
ZBB Program: Infant and Child Essential Health Treatment Services
FY 2016 Zero-Based Budget Report

Purpose of Review The purpose of this review is to assess whether any consolidation of functions should occur to achieve efficiencies between this program and the Infant and Child Health Promotion program, since both of these programs involve intervention services for infants and children.

Results of Analysis 1. Statutory Alignment: Program activities are aligned with statutory responsibilities.
2. Staffing Levels: The program has 25 full-time benefit eligible employees. See specific recommendations below. 3. Fleet Management: There are no motor vehicles assigned to the program.
4. Performance Measures: OPB worked with the agency to identify metrics for key program activities. The updated measures accurately reflect the performance of the program.
5. Budget Impact: Transfer the program budget, including $20,750,225 in state funds (Total Funds: $43,580,606) to reflect the alignment of functional activities. See specific recommendation below.
Program Operations:
6. Both the Infant and Child Health Promotion (ICHP) program and Infant and Child Essential Health Treatment Services (ICEHTS) program provide services along a continuum for infants and children. For example, at-risk infants and children are identified through the Children 1st program in the ICHP program, and they are referred to an appropriate intervention program such as Babies Can't Wait, Children's Medical Services, or the Universal Newborn Hearing Screening and Intervention program. Two of the three services are in the ICEHTS program. The overlap creates financial and process inefficiencies. Recommendation: To better represent the integral nature of these services, consolidate the two current child health programs into one program: Infant and Child Health Services. Transfer 25 positions and $20,750,225 in state funds (Total Funds: $43,580,606) from the Infant and Child Essential Health Treatment Services program to the Infant and Child Health Promotion program. Rename the Infant and Child Health Promotion program as the "Infant and Child Health Services" program, and establish new subprograms as appropriate.
7. The budget by object classes does not reflect historical spending patterns.

Office of Planning and Budget

186

01/16/2015

Department of Public Health
ZBB Program: Infant and Child Essential Health Treatment Services
FY 2016 Zero-Based Budget Report
Recommendation: Realign the budget to reflect projected expenditures by object classes. 8. At the time of this analysis, there was one Women, Infants, and Children (WIC) employee reflected in the Perinatal Health Program rather
than the WIC program. Recommendation: The agency initiated the process to transition this employee to the WIC program, so the individual is properly expensed going forward. WIC funds will no longer have to be budgeted in the Perinatal Health Program area for this WIC employee. 9. Children's Medical Services, a program administered by the Department, indicated one of its services to be care coordination, which is also a service performed by Care Management Organizations (CMOs) for children who are insured through Medicaid or low-income families on PeachCare. Since CMOs are already responsible for providing care coordination, it is duplicative for the Department to also provide this service for clients who are insured. Recommendation: Evaluate the need for care coordination services, especially for clients that are insured. As appropriate, redirect funds supporting care coordination to other direct services.

Office of Planning and Budget

187

01/16/2015

Department of Public Health
ZBB Program: Infant and Child Essential Health Treatment Services
Key Activities and Alternative Approach

Key Activities (Listed in priority order as determined by Agency)

Activity Children's Intervention Services

Description
Children's intervention services provides: 1) Early screening, identification, and intervention/service coordination of children with developmental conditions; 2) care coordination and health support services to children with chronic health conditions; and 3) evaluation, diagnosis, treatment, disease management, and counseling to children with genetic conditions.

No. of

Authority Positions

OCGA 31-2A-4;

10

31-12-5; 31-12-

6; 31-12-7; Part

C, Individuals

with Disabilities

Education Act

(IDEA)

Zero Based Budget Review (State

Funds)

FY 2015

FY 2015

State Funds Total Budget Changes Recommendation

$17,149,160 $37,956,571 (17,149,160)

$0

Perinatal Health Program

The Perinatal health program serves to improve birth outcomes as OCGA 31-2A-4

3

1,578,326

2,846,113

(1,578,326)

0

well as the health of women and infants by assisting them in

accessing risk appropriate, comprehensive, quality perinatal

services. The program also seeks to identify issues to help reduce

health disparities among maternal and child health populations

within Georgia.

Oral Health Prevention Program The OHPP services vulnerable populations without access to oral OCGA 31-2A-4

12

2,022,739

2,777,922

(2,022,739)

0

(OHPP)

health preventive treatment and oral health literacy education in

local health districts within Georgia.

Total

25 $20,750,225 $43,580,606 (20,750,225)

$0

Alternative (Alternative approach to delivering program services as provided by the agency)
The agency is exploring how to utilize teleheath/telemedicine capabilities to deliver some of the services in this program. Due to insurance reimbursement issues, it has not been a fiscally viable option up to this point; however, the agency is continuing to collaborate with other governmental entities to resolve the reimbursement constraints. If this alternative option becomes viable, it would increase access to services in the state and offer a new reimbursement pathway for providers.

Office of Planning and Budget

188

01/16/2015

Department of Public Health
ZBB Program: Infant and Child Essential Health Treatment Services
Financial Summary

Objects of Expenditure Personal Services Regular Operating Expenses Equipment Computer Charges Real Estate Rentals Telecommunications Contractual Services Grants and Benefits Other Total Expenditures
Fund Type
State General Funds Federal Funds Other Funds Total Funds

Expenditures

FY 2013

FY 2014

$2,780,546

$2,358,490

232,004

127,621

19,782

20,226

390

2,441,390

10,050,309

7,870,821

36,334,744

32,127,013

200,000

$49,417,829

$45,145,507

FY 2015 Current Budget
$2,848,510 408,829
5,000
26,824 7,786,732 32,504,711
$43,580,606

Zero Based Budget Review

Changes

Recommendation

($2,848,510)

$0

(408,829)

0

0

0

(5,000)

0

0

0

(26,824)

0

(7,786,732)

0

(32,504,711)

0

0

0

($43,580,606)

$0

$20,204,483

$20,694,871

$20,750,225

($20,750,225)

$0

28,766,490

24,349,692

22,745,978

(22,745,978)

0

446,856

100,945

84,403

(84,403)

0

$49,417,829

$45,145,507

$43,580,606

($43,580,606)

$0

Positions*

26

25

25

(25)

0

* Position counts shown under expenditures reflect the number of salaried, benefit eligible employees as of June 30 of that fiscal year.

Office of Planning and Budget

189

01/16/2015

Department of Public Health
ZBB Program: Infant and Child Essential Health Treatment Services
Performance Measures
Agency Purpose: The Department of Public Health prevents disease, injuries, and disabilities; promotes health and well-being; and prepares for and responds to disasters.
Program Purpose: The purpose of this program is to avoid unnecessary health problems in later life by providing comprehensive health services to infants and children.

Performance Measures 1. Number of children who received services from the Babies Can't Wait program 2. Number of children who received services from the Children's Medical Services program 3. Percentage of very low birth weight infants (<1500 grams) delivered at facilities for high-risk deliveries and neonates 4. Percentage of third grade children who have received protective sealant on at least one permanent molar tooth

FY 2011 6,015 8,925 73.5% 39.0%

Actuals

FY 2012

FY 2013

6,082

7,519

8,990

10,983

72.5%

77.1%

37.4%

37.4%

FY 2014 8,185 8,325 N/A 37.4%

Office of Planning and Budget

190

01/16/2015

FY 2016 Zero-Based Budget Analysis
Department of Public Health ZBB Program: Infant and Child Health Promotion

Office of Planning and Budget

191

01/16/2015

Department of Public Health
ZBB Program: Infant and Child Health Promotion
FY 2016 Zero-Based Budget Report
Purpose of Review The purpose of this review is to assess whether any consolidation of functions should occur to achieve efficiencies between this program and the Infant and Child Essential Health Treatment Services program since both of these programs involve services for infants and children. Additionally, this analysis will include a review of the use of funds provided by the Legislature for Autism intervention activities.
Results of Analysis 1. Statutory Alignment: Program activities are aligned with statutory responsibilities. 2. Staffing Levels: The program has 127 full-time benefit eligible employees. See specific recommendations below. 3. Fleet Management: There are no motor vehicles assigned to the program. 4. Performance Measures: OPB worked with the agency to identify metrics for key program activities. The updated measures accurately
reflect the performance of the program. 5. Budget Impact: The program budget will increase by $15,412,835 in state funds but will decrease overall (Total Funds: ($217,806,703))
due to several transfers to and from this program. See specific recommendations below.
Program Operations: 6. The budget by object classes does not reflect historical spending patterns.
Recommendation: Realign the budget to reflect projected expenditures by the classes. 7. Both the Infant and Child Health Promotion (ICHP) program and Infant and Child Essential Health Treatment Services (ICEHTS) program
provide services along a continuum for infants and children. For example, at-risk infants and children are identified through the Children 1st program in the ICHP program, and they are referred to an appropriate intervention program such as Babies Can't Wait, Children's Medical Services, or the Universal Newborn Hearing Screening and Intervention program. Two of the three services are in the ICEHTS program. The overlap creates financial and process inefficiencies.

Office of Planning and Budget

192

01/16/2015

Department of Public Health
ZBB Program: Infant and Child Health Promotion
FY 2016 Zero-Based Budget Report
Recommendation: To better represent the integral nature of these services, consolidate the two current child health programs into one program: Infant and Child Health Services. Transfer 25 positions and $20,750,225 in state funds (Total Funds: $43,580,606) from the Infant and Child Essential Health Treatment Services program to the Infant and Child Health Promotion program. Rename the Infant and Child Health Promotion program as the "Infant and Child Health Services" program, and establish new subprograms as appropriate. 8. Laboratory services are currently separated into four different budgetary programs, which is financially inefficient. Recommendation: Consolidate the laboratory services into a newly established, stand-alone laboratory program called "Public Health Laboratory Services." Establish new subprograms as appropriate. Transfer $5,564,662 in state funds (Total Funds: $5,574,512) to the Public Health Laboratory Services program. 9. There are 199 Women, Infants, and Children (WIC) clinics in the state, while there are only 159 counties, indicating that there are multiple WIC clinics in certain counties. Recommendation: Determine if the clinic sites are strategically located based on client volume, need, and geographic accessibility. Evaluate if this many clinic locations are needed and if it would be more beneficial to redistribute the funding to services. 10. During ZBB discussions, program staff indicated they would like to develop and administer a satisfaction survey for WIC clients. The surveys would assist the program in determining satisfaction with service delivery and if program processes need to be modified. Recommendation: Proceed with the development and administration of a survey to WIC clients on an annual basis to evaluate program success. 11. The Legislature provided DPH with $490,000 in FY 2015 to support early autism intervention providers with early detection and diagnosis of autism in children as well as supporting families receiving early intervention services. DPH is using the funding to provide families with positive behavior and visual supports training. Additionally, providers will receive developmental screening training as well as access to online training developed by the Marcus Autism Institute. Recommendation: Establish an interagency task force to coordinate these early intervention services since several other agencies work on early intervention initiatives for this population. Additionally, establish a lead agency for autism initiatives. 12. At the time of this analysis, there were eight WIC personnel reflected in the Comprehensive Child Health area rather than the WIC program. Recommendation: The agency initiated the process to transition those eight employees to the WIC program, so they are properly expensed going forward. WIC funds will no longer have to be budgeted in the Comprehensive Child Health area for these WIC employees.

Office of Planning and Budget

193

01/16/2015

Department of Public Health
ZBB Program: Infant and Child Health Promotion
FY 2016 Zero-Based Budget Report
13. At the time of this analysis, there was one WIC employee reflected in the Infant and Child Essential Health Treatment Services Program, in the Perinatal Health Program, rather than the Infant and Child Health Promotion program, which includes the WIC program. Recommendation: The agency initiated the process to transition this employee to the WIC program, so the individual is properly expensed going forward. WIC funds will no longer have to be budgeted in the Perinatal Health Program area for this WIC employee.
14. Two positions expensed from the Departmental Administration program need to be moved to this program since the responsibilities of the staff are all programmatic. Similar staff with programmatic responsibilities are expensed from the program most closely associated with their responsibilities. Recommendation: Transfer two positions and $227,272 in state funds to the newly established Infant and Child Health Services program to associate the positions with the appropriate function and to maintain consistency with the way other programmatic positions are expensed.
15. In consolidating ICHP and ICEHTS into the new "Infant and Child Health Services" program, WIC activities should be placed in their own stand-alone program since WIC activities are nutrition services as opposed to traditional health services. Recommendation: Transfer 71 positions and $255,990,932 in federal funds (Total funds: $256,040,069) to the newly established "Women, Infants, and Children Nutrition Services" program.
16. The Healthy, Hunger-Free Kids Act of 2010 requires all states to fully implement electronic benefits transfer (EBT) systems for WIC benefits by October 1, 2020. In a recent issue brief from Federal Funds Information for States, Georgia was one of only two states indicated as making "no progress" toward the WIC EBT system. Additionally, Georgia's WIC program has not applied for WIC EBT technology grant opportunities through the USDA's Food and Nutrition Service, funding that is specifically for EBT system planning and implementation. Recommendation: Establish planning documents for Georgia's WIC EBT system, so DPH can apply for future grant opportunities to support the large scale WIC EBT system project. The Department has also initiated a capital request for a centralized clinical management system, which will not only improve internal billing processes, but it will be a critical component of the WIC EBT system project.

Office of Planning and Budget

194

01/16/2015

Department of Public Health
ZBB Program: Infant and Child Health Promotion
Key Activities and Alternative Approach

Key Activities (Listed in priority order as determined by Agency)

Activity Newborn Laboratory Screening

Description
The Georgia Public Health Laboratory (GPHL) plays a critical role in Georgia's Newborn Screening Program. The GPHL performs laboratory testing to screen every infant in the state of Georgia for 28 genetic disorders in support of public health's comprehensive, coordinated, statewide screening and referral system. Newborn Screening is currently implementing laboratory testing for Severe Combined Immunodeficiency (SCID). This activity promotes screening and appropriate follow-up for all newborns through education, technical assistance, and training.

No. of

Authority Positions

OCGA 31-2A-4;

19

31-12-6; 31-12-7

FY 2015

FY 2015

State Funds Total Budget

$5,564,662

$5,574,512

Zero Based Budget Review (State Funds)

Changes Recommendation

(5,564,662)

$0

Comprehensive Child Health Children 1st

Coordinated screening and follow-up system for newborns, and infants at risk for severe heritable conditions and hearing impairment.

OCGA 31-2A-4; 31-1-3; 31-12-6; 31-12-7

Early identification system that serves as the single point of entry for public health and intervention based programs and services. Newborns, infants, and children identified through program screening or external screening are referred to appropriate intervention based programs and services.

OCGA 31-2A-4; 31-12-6

37

3,268,124

10,934,038

3,927,277

3,927,277

227,272 0

3,495,396 3,927,277

WIC Voucher Issuance

Vouchers are issued to clients to buy healthy foods from WIC

Code of Federal

3

authorized vendors.

Regulations, 7

C.F.R. Part 246

233,169,605

0

0

WIC Nutrition Services

As a requirement of the WIC program, clients must participate in Code of Federal

1

nutrition education. Both group and individual nutrition education Regulations, 7

classes are offered. Additionally, the nutrition portion of WIC must C.F.R. Part 246

be reviewed every two years as part of overall program monitoring.

3,572,888

0

0

Office of Planning and Budget

195

01/16/2015

Department of Public Health
ZBB Program: Infant and Child Health Promotion
Key Activities and Alternative Approach

Key Activities (Listed in priority order as determined by Agency)

Activity WIC Vendor Management

Description Vendor Management includes all of the activities involved in becoming and remaining a WIC-authorized vendor.

No. of

Authority Positions

Code of Federal

12

Regulations, 7

C.F.R. Part 249

FY 2015 State Funds

FY 2015 Total Budget
1,178,333

Zero Based Budget Review (State Funds)

Changes Recommendation

0

0

WIC Quality Assurance (QA)/Fraud Prevention

In an effort to reduce fraud, this activity includes compliance

Code of Federal

32

investigators and quality assurance specialists working to

Regulations, 7

investigate complaints against WIC vendors.

C.F.R. Part 248

2,456,932

0

0

WIC Administration

WIC Administration includes key personnel and operations,

Code of Federal

23

ensuring oversight of the program's activities.

Regulations, 7

C.F.R. Part 245

15,662,311

0

0

Transfers from the Infant and Child Essential Health Treatment Services program*

Children's Intervention Services Perinatal Health Program

Children's intervention services provides: 1) Early screening, identification, and intervention/service coordination of children with developmental conditions; 2) care coordination and health support services to children with chronic health conditions; and 3) evaluation, diagnosis, treatment, disease management, and counseling to children with genetic conditions.
The Perinatal health program serves to improve birth outcomes as well as the health of women and infants by assisting them in accessing risk appropriate, comprehensive, quality perinatal services. The program also seeks to identify issues to help reduce health disparities among maternal and child health populations within Georgia.

OCGA 31-2A-4; 31-12-5; 31-126; 31-12-7; Part C, Individuals with Disabilities Education Act (IDEA)
OCGA 31-2A-4

17,149,160

17,149,160

1,578,326

1,578,326

Office of Planning and Budget

196

01/16/2015

Department of Public Health
ZBB Program: Infant and Child Health Promotion
Key Activities and Alternative Approach

Key Activities (Listed in priority order as determined by Agency)

Activity Oral Health Prevention Program (OHPP)

Description The OHPP services vulnerable populations without access to oral health preventive treatment and oral health literacy education in local health districts within Georgia.

Authority OCGA 31-2A-4

No. of Positions

FY 2015 State Funds

FY 2015 Total Budget

Zero Based Budget Review (State Funds)

Changes Recommendation

2,022,739

2,022,739

Total

127 $12,760,063 $276,475,896

$15,412,835

$28,172,898

Alternative (Alternative approach to delivering program services as provided by the agency) Contract out services like educational activities and follow-up services, although the cost may be the same or higher. Contracting out services may also diminish the quality of service provided.

*The key activities reflected are from the Infant and Child Essential Health Treatment Services program. As part of the ZBB recommendation, this program is being consolidated with Infant and Child Health Promotion and will be renamed "Infant and Child Health Services."

Office of Planning and Budget

197

01/16/2015

Department of Public Health
ZBB Program: Infant and Child Health Promotion
Financial Summary

Objects of Expenditure Personal Services Regular Operating Expenses Equipment Computer Charges Real Estate Rentals Telecommunications Contractual Services Grants and Benefits Total Expenditures
Fund Type
State General Funds Federal Funds Other Funds Total Funds

Expenditures

FY 2013 $9,503,696 5,741,685 71,049 245,490
1,086,464 12,140,515 290,489,630 $319,278,529

FY 2014 $10,390,139
6,000,812 162,064 277,617 12,678
1,075,735 8,903,825 260,622,559 $287,445,429

FY 2015
Current Budget $12,773,442 5,934,985 161,260 722,307 3,132 334,500 14,846,761 241,699,509
$276,475,896

Zero Based Budget Review

Changes ($5,769,282)
(4,712,412) (161,260) (678,617) 0 (283,358)
(2,609,941) (203,591,833) ($217,806,703)

Recommendation $7,004,160 1,222,573 0 43,690 3,132 51,142 12,236,820 38,107,676
$58,669,193

$12,175,843 254,337,219
52,765,467 $319,278,529

$12,192,488 204,081,041
71,171,899 $287,445,429

$12,760,063 263,629,246
86,587 $276,475,896

$15,412,835 (233,254,804)
35,266 ($217,806,703)

$28,172,898 30,374,442 121,853
$58,669,193

Positions*

117

127

127

(63)

64

* Position counts shown under expenditures reflect the number of salaried, benefit eligible employees as of June 30 of that fiscal year. Notes related to recommended changes: (1) Consolidate the Infant and Child Essential Health Treatment Services program with the Infant and Child Health Promotion program, and rename the program the "Infant and Child Health Services" program. Transfer funds and 25 positions from the Infant and Child Essential Health Treatment Services program to align program functions (Total funds: $43,580,606). (2) Establish a new Public Health Laboratory Services program, and transfer funds and 19 positions to align program functions (Total funds: ($5,574,512)). (3) Transfer funds and two positions to the Infant and Child Health Services program to align program functions (Total funds: ($227,272)). (4) Establish a new Women, Infants, and Children Nutrition Services program, and transfer funds and 71 positions to align program functions (Total funds: ($256,040,069)).

Office of Planning and Budget

198

01/16/2015

Department of Public Health
ZBB Program: Infant and Child Health Promotion
Performance Measures
Agency Purpose: The Department of Public Health prevents disease, injury, and disability; promotes health and well-being; and prepares for and responds to disasters.
Program Purpose: The purpose of this program is to provide education and services to promote health and nutrition for infants and children.

Performance Measures 1. Number of newborn screenings performed 2. Average laboratory turnaround time for newborn screening (in days) 3. Amount of laboratory revenue collected for newborn screenings and remitted to Treasury 4. Percentage of newborn screenings referred to follow-up 5. Percentage of newborns who received a hearing screening 6. Number of children who received assessment from Children's 1st program 7. Number of pregnant women, infants, and children served by the Women, Infants, and Children (WIC) program (per federal fiscal year) 8. Percentage of WIC program infants who were ever breastfed (per federal fiscal year) 9. Average food package cost per WIC participant (per federal fiscal year) 10. Percentage of WIC program children with a healthy body mass index (per federal fiscal year) 11. Percentage of WIC program children with a body mass index categorized as overweight or obese (per federal fiscal year)

FY 2011 150,593 N/A
$6,716,534
5.2% 73% 14,938 305,298
56.66%
$61.88 64.40%
32.22%

Actuals

FY 2012

FY 2013

147,501

144,681

3

2.4

$7,448,067 $7,191,768

5.5% 91% 12,590 303,875

5.2% 95% 8,740 289,524

57.19%

57.80%

$56.06 65.14%

$45.47 63.30%

31.43%

30.84%

FY 2014 146,982 2.4
$7,114,733
4.9% 91% 7,613 N/A
N/A
N/A N/A
N/A

Office of Planning and Budget

199

01/16/2015

FY 2016 Zero-Based Budget Analysis
Department of Public Safety ZBB Program: Aviation

Office of Planning and Budget

200

01/16/2015

Department of Public Safety
ZBB Program: Aviation
FY 2016 Zero-Based Budget Report
Purpose of Review In 2009, Senate Bill 85 consolidated the aviation assets of the Department of Public Safety (DPS), Department of Transportation, Georgia Forestry Commission, and the Department of Natural Resources under the Georgia Aviation Authority with the intent to increase efficiency by reducing staff and fleet size. In 2011, House Bill 414 transferred aviation assets back to DPS, after having found that a centralized fleet hindered public safety missions. The Aviation program assists state and local authorities in search and rescue missions, fugitive apprehension, aerial photography, surveillance and observation, marijuana eradication, high speed pursuits, fire suppression, and transport flights to conduct state business. The purpose of this review is to evaluate the cost-effectiveness of the key activities of the Georgia State Patrol's (GSP) Aviation program and recommend operational changes that will promote efficiency.
Results of Analysis 1. Statutory Alignment: Program activities are aligned with statutory responsibilities. 2. Staffing Levels: The program has 21 full-time benefit eligible employees. 3. Fleet Management: There are 38 motor vehicles assigned to the program, which includes: six Bell 407 helicopters, one Bell 429
helicopter, one Bell 206 helicopter, five Bell OH-58 helicopters, and one Cessna 182 airplane. 4. Performance Measures: OPB worked with the agency to identify metrics for key program activities. The updated measures accurately
reflect the performance of the program. 5. Budget Impact: Maintain the current funding level.

Office of Planning and Budget

201

01/16/2015

Department of Public Safety
ZBB Program: Aviation
FY 2016 Zero-Based Budget Report
Program Operations:
6. DPS maintains six hangers with multiple helicopters to provide 24/7 service for both state and local authorities. Historically, GSP did not have a standardized fleet, which limited the capabilities of each hanger. The program has recently moved toward a standardized fleet by having a minimum of one Bell 407 and one Bell OH-58 at each hanger. The Bell 407 helicopters are multifunctional and capable of executing search and rescue missions, fugitive apprehension missions, surveillance, aerial photography, marijuana eradication, fire suppression, SWAT missions, and transport flights to conduct state business. Bell OH-58 helicopters were received from military surplus and are primarily used for marijuana eradication and surveillance missions. Additionally, GSP has recently purchased a Bell 429 helicopter which is a larger twin engine model. It will replace the Bell 407 in a South Georgia hanger due to its ability to carry large amounts of water for fire suppression missions. It will also provide the same functionality of a 407 and provide a means for SWAT team deployment due to its larger and more versatile cabin. Recommendation: Maintain the current fleet structure as it has resulted in the most efficient use of program resources.
7. The program currently contracts for OH-58 helicopter turbine repairs to private vendors, although program mechanics have the knowledge, skills, and tools to repair turbines at lower costs to the program. Contracting for repairs can cost over $100,000 and can take over a month to return the helicopter to active duty, while an in-house repair could restore the aircraft in one to two days. Recommendation: Evaluate the cost-benefit of making turbine repairs in-house compared to contracting out repairs to a private vendor. Agency concurs with this recommendation and shall request bond funding for one spare OH-58 helicopter turbine.
8. Tactical flight officers' (TFO) primary functions are providing ground support for pilots, managing the radio, and operating forward looking infrared (FLIR) cameras and spotlights to search for missing persons and fugitives. Currently, each region has designated personnel who are on-call to serve as TFOs for missions requiring flight support. The program is considering converting five troopers into full-time TFOs, placing one at each hanger. A review of flight activity suggests that full-time TFOs may not be the most efficient use of personnel and resources. In the Northern region, the Kennesaw and Gainesville hangers conduct 90% of searches, while in the Southern region the Perry and Reidsville hangers conduct 84% of searches. Meanwhile, the Albany and Augusta hangers account for less than 20% of all search related missions in their respective regions. The state invests a substantial amount of resources into training troopers for highway enforcement. It takes approximately one year for a trooper to be trained for their responsibilities. Therefore it is not warranted to utilize experienced troopers as TFOs. Recommendation: Evaluate flight volume to justify the costs of adding five P.O.S.T. mandated officers (non-Troopers) as full-time TFOs compared to the current method of having troopers and auxillary personnel on-call to fulfill TFO responsibilities.

Office of Planning and Budget

202

01/16/2015

Department of Public Safety
ZBB Program: Aviation
Key Activities and Alternative Approach

Key Activities (Listed in priority order as determined by Agency)

No. of

Activity

Description

Authority Positions

Public Safety

Enforces the laws of the State of Georgia and provides public safety OCGA 35-2-140

10

services through search and apprehension missions, search and

rescue missions, emergency medical transport, and transport flights

to conduct state business.

Aircraft Maintenance

Maintains and repairs all aviation assets assigned to the Department OCGA 35-2-140

5

of Public Safety.

Administration

Provides clerical and organizational support for the program.

OCGA 35-2-140

1

Governor's Task Force

Works to eradicate domestic marijuana within the State of Georgia OCGA 35-2-140

5

and to gather intelligence relating to its manufacture and

cultivation.

FY 2015

FY 2015

State Funds Total Budget

$2,315,992

$5,035,230

1,271,324
270,440 41,043

1,275,234
272,689 338,681

Zero Based Budget Review (State Funds)

Changes Recommendation

$0

$2,315,992

0

1,271,324

0

270,440

0

41,043

Total

21

$3,898,799

$6,921,833

$0

$3,898,799

Alternative (Alternative approach to delivering program services as provided by the agency) No alternative approaches to program service delivery are recommended at this time.

Office of Planning and Budget

203

01/16/2015

Department of Public Safety
ZBB Program: Aviation
Financial Summary

Objects of Expenditure Personal Services Regular Operating Expenses Motor Vehicle Purchases Equipment Computer Charges Real Estate Rentals Telecommunications Contractual Services Troop and Post Repairs Total Expenditures

Expenditures

FY 2013

FY 2014

$2,101,577

$2,056,912

1,516,868

1,782,357

4,800,000

2,680,000

5,472

9,955

10,891

48,518

44,933

62,006

34,981

50,375

2,234

742

7,658

$8,592,864

$6,622,616

FY 2015 Current Budget
$4,073,821 126,389
2,680,000
546
41,077
$6,921,833

Zero Based Budget Review

Changes

Recommendation

$0

$4,073,821

0

126,389

0

2,680,000

0

546

0

41,077

$0

$6,921,833

Fund Type State General Funds Federal Funds Other Funds Total Funds

$3,115,034 249,884
5,227,946 $8,592,864

$3,272,917 145,492
3,204,207 $6,622,616

$3,898,799 243,034
2,780,000 $6,921,833

Positions* Motor Vehicles

20

21

21

37

37

38

* Position counts shown under expenditures reflect the number of salaried, benefit eligible employees as of June 30 of that fiscal year.

$0

$3,898,799

0

243,034

0

2,780,000

$0

$6,921,833

0

21

0

38

Office of Planning and Budget

204

01/16/2015

Department of Public Safety
ZBB Program: Aviation
Performance Measures

Agency Purpose: The Georgia Department of Public Safety (DPS) is the parent agency of the Georgia State Patrol (GSP). Its responsibilities include patrolling public roads and highways and investigating traffic accidents within the State of Georgia, thereby safeguarding the lives and property of the public. The Department's troopers work to reduce accidents and injuries by enforcing traffic laws, encouraging seat belt use, and targeting drivers under the influence of drugs and alcohol. In addition, the Department provides law enforcement assistance to other local and state agencies of the criminal justice community in areas such as specialty units, fugitive apprehension, and Homeland Security.

Program Purpose: The purpose of this program is to provide aerial support for search and rescue missions and search and apprehension missions in criminal pursuits within the State of Georgia; to provide transport flights to conduct state business, for emergency medical transport, and to support local and federal agencies in public safety efforts with aerial surveillance and observation.

Performance Measures 1. Number of missions flown 2. Percentage of individuals found through general searches (both criminal and
search and rescue combined) 3. Total flight hours for training 4. Total flight hours for Governor's Task Force 5. Total flight hours for general searches (both criminal and search and rescue
combined) 6. Total flight hours for property search and surveillance 7. Total flight hours for aerial photography 8. Average response time of missions in minutes

FY 2011 N/A
N/A
323 866
503
288 116 N/A

Actuals

FY 2012

FY 2013

1,388

1,451

52%

55%

296

344

919

886

546

453

212

145

89

86

N/A

N/A

FY 2014 1,622
60%
407 580
483
146 135
45

Office of Planning and Budget

205

01/16/2015

FY 2016 Zero-Based Budget Analysis
Department of Public Safety ZBB Program: Motor Carrier Compliance Division

Office of Planning and Budget

206

01/16/2015

Department of Public Safety
ZBB Program: Motor Carrier Compliance Division
FY 2016 Zero-Based Budget Report

Purpose of Review In 2005, House Bill 501 dissolved the Department of Motor Vehicles and transferred law enforcement authority, including the Motor Carrier Compliance Division (MCCD), to the Department of Public Safety (DPS). In 2013, House Bill 323 transferred regulation and enforcement of laws related to limousine carriers, movers of household goods, and non-consensual towing from the Public Service Commission to the Department of Public Safety's MCCD program. The purpose of this review is to evaluate the cost-effectiveness of the key activities of the Motor Carrier Compliance Division program and recommend operational changes that will promote efficiency.
Results of Analysis 1. Statutory Alignment: Program activities are aligned with statutory responsibilities. 2. Staffing Levels: The program has 324 full-time benefit eligible employees. 3. Fleet Management: There are 240 motor vehicles assigned to the program. 4. Performance Measures: OPB worked with the agency to identify metrics for key program activities. The updated measures accurately
reflect the performance of the program. 5. Budget Impact: Maintain the current funding level.
Program Operations:
6. Currently, weigh stations in Catoosa, Columbia, and Monroe counties have the highest levels of Commercial Motor Vehicle (CMV) volume and produce the most citation revenue in the state. However, these weigh stations have the lowest number of weighmasters compared to the rest of the state. Recommendation: Evaluate staffing retention for weighmasters over the next year in areas of high CMV volume. The evaluation result shall determine if additional measures for recruitment and retention are necessary to maximize weigh station operating hours in high traffic areas.
7. Georgia's growth as the economic hub of the southeast has substantially increased CMV volume at the Bryan, Chatham, Columbia, and Monroe county weigh stations, but these weigh stations lack the personnel to provide adequate coverage for the increase in traffic. In addition, this corridor is expected to experience increased CMV volume with the expansion of the Port of Savannah. Recommendation: Continue to develop a staffing plan to prepare for the increase of CMVs due to economic growth and the expansion of the Port of Savannah.

Office of Planning and Budget

207

01/16/2015

Department of Public Safety
ZBB Program: Motor Carrier Compliance Division
FY 2016 Zero-Based Budget Report
8. The Georgia Department of Transportation (GDOT) owns each of the 19 weigh stations in the state. This ownership, in conjunction with the previous inclusion of MCCD enforcement in GDOT, provided GDOT the responsibility of entering into agreements for electronic clearance system (ECS) contracts. Since 2006, GDOT has maintained an agreement with a non-profit organization that allows registered transponder-equipped commercial vehicles to bypass designated weigh stations. GDOT establishes screening criteria used to determine which trucking companies are eligible to enroll in the clearance program, while the non-profit organization (NPO) maintains a database of registered companies and their corresponding safety ratings. In addition, the NPO furnishes transponders, transponder reading systems, and services all of its equipment in Georgia. This agreement places a substantial emphasis on mainline Weigh In Motion Scales (WIMS), which the state intended to, but did not, install due to the economic downturn during the recession. Without WIMS, the program cannot operate as intended and prevents registered officers from weighing and inspecting non-compliant vehicles. DPS is now the primary law enforcement provider since the statutory change in 2005. Recently, MCCD has conducted specialized enforcement details which required all trucks to be weighed and found that 36% of overweight vehicles and 70% of safety violations were bypass approved carriers. Recommendation: Transfer sole authority to negotiate ECS contracts from GDOT to DPS. DPS shall be the sole authority for entering into ECS contracts due to their law enforcement responsibility of motor carriers. DPS shall evaluate current ECS providers to determine if the state should renew the agreements, or if the state should pursue an alternative ECS that does not require mainline WIMS. Recently, DPS has entered into an agreement with another ECS provider that accomplishes the same goal but gives enforcement officers greater discretion in determining which trucks need to be weighed compared to GDOT's provider. DPS shall consider using their alternate system as the primary ECS for commercial motor vehicles.
9. The Governor's Severe Weather Warning and Preparedness Task Force recommended MCCD consider the following initiatives: develop reciprocal agreements on weigh station waivers with neighboring states for use during restoration events; undertake periodic, concentrated patrols to enforce CMV restrictions inside the I-285 perimeter; and maintain a command center for housing equipment, supplies, and a staging area for law enforcement personnel. Recommendation: Implement the recommendations of the Governor's Severe Weather Warning and Preparedness Task Force.

Office of Planning and Budget

208

01/16/2015

Department of Public Safety
ZBB Program: Motor Carrier Compliance Division
Key Activities and Alternative Approach

Key Activities (Listed in priority order as determined by Agency)

No. of

Activity

Description

Authority Positions

Inspection

Conducts safety inspections and enforces regulations and laws

OCGA 35-2-101;

124

related to commercial motor carriers, shipments of hazardous

40-1-8; 40-1-

materials, and overweight and oversized loads. This activity is

101

funded primarily through State General Funds, Motor Carrier Safety

Assistance Program federal funds, Unified Carrier Registration

revenue, and high priority federal grants.

FY 2015

FY 2015

State Funds Total Budget

$4,919,499 $12,485,186

Zero Based Budget Review (State Funds)

Changes Recommendation

$0

$4,919,499

Weigh Stations Administration

Enforces noncriminal and criminal provisions relating to commercial OCGA 35-2-102 motor vehicle safety, weight, registration, size, and load and assesses a civil penalty for a violation of such provisions. This activity is funded primarily through GDOT permit funds and State General

Funds.

Manages budget, finance, legal issues, policy development, program OCGA 35-2-

management, project management, customer service, IT

101; 40-1-8; 40-

management, and departmental coordination. This activity is funded 1-101

primarily through miscellaneous revenue, asset forfeiture, and State

General Funds.

87

2,103,872

3,574,561

70

2,639,734

6,308,252

0

2,103,872

0

2,639,734

Regulatory Compliance

Issues certification and collects fines and fees related to motor

OCGA 35-2-

carriers of household goods, tow trucks, and passenger carriers. This 101; 40-1-8; 40-

activity is funded primarily through State General Funds and Non- 1-101; 40-1-

Consensual Towing fees.

112; 40-1-154

High Occupancy Vehicle

Provides enforcement and support for State Regional Transportation OCGA 35-2-

(HOV)/High Occupancy Toll (HOT) Authority (SRTA) HOT and HOV lanes. This activity is funded

101; 40-1-8; 40-

Lane Enforcement

primarily through GDOT permit funds and SRTA funds.

1-101

10

250,473

313,779

15

0

348,831

0

250,473

0

0

New Entrant Safety Audits

Conducts safety inspections, audits, and training of new entrant OCGA 35-2-

15

0

1,391,151

0

0

motor carriers to ensure compliance with state and federal

101; 40-1-8; 40-

regulations. This activity is funded primarily through Federal New 1-101

Entrant grants.

Office of Planning and Budget

209

01/16/2015

Department of Public Safety
ZBB Program: Motor Carrier Compliance Division
Key Activities and Alternative Approach

Key Activities (Listed in priority order as determined by Agency)

No. of

Activity

Description

Authority Positions

School Buses

Issues certification and enforces regulations related to school buses. OCGA 35-2-

3

This activity is funded primarily through GDOT permit funds.

101; 40-1-8; 40-

1-101

Total

324

FY 2015

FY 2015

State Funds Total Budget

0

134,576

$9,913,578 $24,556,336

Zero Based Budget Review (State Funds)

Changes Recommendation

0

0

$0

$9,913,578

Alternative (Alternative approach to delivering program services as provided by the agency) No alternative approaches to program service delivery are recommended at this time.

Office of Planning and Budget

210

01/16/2015

Department of Public Safety
ZBB Program: Motor Carrier Compliance Division
Financial Summary

Objects of Expenditure Personal Services Regular Operating Expenses Motor Vehicle Purchases Equipment Computer Charges Real Estate Rentals Telecommunications Contractual Services Troop and Post Repairs Total Expenditures

Expenditures

FY 2013

FY 2014

$21,274,270

$21,122,098

2,815,069

2,974,794

652,765

146,577

708,219

174,446

689,962

678,662

116,845

57,919

370,447

301,512

175,339

164,862

2,436

$26,802,916

$25,623,308

FY 2015 Current Budget
$24,108,198 163,068 124,956 5,850 26,720 2,400 98,644 26,500
$24,556,336

Zero Based Budget Review

Changes

Recommendation

$0

$24,108,198

0

163,068

0

124,956

0

5,850

0

26,720

0

2,400

0

98,644

0

26,500

$0

$24,556,336

Fund Type State General Funds Federal Funds Other Funds Total Funds

$3,912,323 7,911,355
14,979,238 $26,802,916

$8,697,945 9,208,663 7,716,700
$25,623,308

$9,913,578 3,827,142
10,815,616 $24,556,336

$0

$9,913,578

0

3,827,142

0

10,815,616

$0

$24,556,336

Positions* Motor Vehicles

310

324

324

240

240

240

0

324

0

240

* Position counts shown under expenditures reflect the number of salaried, benefit eligible employees as of June 30 of that fiscal year.

Office of Planning and Budget

211

01/16/2015

Department of Public Safety
ZBB Program: Motor Carrier Compliance Division
Performance Measures

Agency Purpose: The Georgia Department of Public Safety (DPS) is the parent agency of the Georgia State Patrol (GSP). Its responsibilities include patrolling public roads and highways and investigating traffic accidents within the State of Georgia, thereby safeguarding the lives and property of the public. The Department's troopers work to reduce accidents and injuries by enforcing traffic laws, encouraging seat belt use, and targeting drivers under the influence of drugs and alcohol. In addition, the Department provides law enforcement assistance to other local and state agencies of the criminal justice community in areas such as specialty units, fugitive apprehension, and Homeland Security.

Program Purpose: The purpose of this program is to provide inspection, regulation, and enforcement for size, weight, and safety standards as well as traffic and criminal laws for commercial motor carriers, limousines, non-consensual tow trucks, household goods movers, all buses, and large passenger vehicles as well as providing High Occupancy Vehicle and High Occupancy Toll lane use restriction enforcement.

Performance Measures 1. Number of commercial vehicle inspections 2. Total inspection violations written 3. Percentage of school buses found to have serious defects as a result of inspections 4. Number of vehicles weighed 5. Number of overweight citations written 6. Number of HOV/HOT Lane violations written 7. Percentage of time weigh stations are open

FY 2011 100,877 246,736
14%
6,827,375 38,523 7,986 40%

Actuals

FY 2012

FY 2013

85,768

80,869

164,554

133,510

13.35%

17%

8,083,469 42,798 6,405 43%

14,259,670 50,773 1,593 60%

FY 2014 82,499
161,383
12%
13,050,385 41,852 2,992 52%

Office of Planning and Budget

212

01/16/2015

FY 2016 Zero-Based Budget Analysis
Public Service Commission ZBB Program: Commission Administration

Office of Planning and Budget

213

01/16/2015

Public Service Commission
ZBB Program: Commission Administration
FY 2016 Zero-Based Budget Report
Purpose of Review The Commission Administration program provides internal support to the Public Service Commission (PSC) including personnel management, financial management, scheduling, and recording Commission proceedings, and public, media, and legislative relations. The purpose of this review is to evaluate the effectiveness and efficiency of activities performed in the Commission Administration program.
Results of Analysis 1. Statutory Alignment: Program activities are aligned with statutory requirements. 2. Staffing Levels: The program has 11 full-time benefit eligible employees. 3. Fleet Management: There are no motor vehicles assigned to the program. 4. Performance Measures: OPB worked with the agency to identify metrics for key program activities. The agency should continue to report
the data for the metrics in a timely manner. 5. Budget Impact: Maintain the current funding level.
Program Operations: 6. The Commission Administration program budget includes funding from state, federal, and other fund sources. State funds are reported in
the appropriation bill; however, the agency typically amends federal and other funds to the budget in the third and fourth quarters of the fiscal year. To more accurately reflect budget and expenditures throughout the fiscal year, the Commission should update the Annual Operating Budget (AOB) each quarter. Recommendation: Comply with the Office of Planning and Budget's AOB instructions and submit quarterly amendments to more accurately reflect federal and other funds. 7. The PSC is one of a few state agencies that is not on the statewide accounting system known as TeamWorks Financials and must maintain and perform upkeep on its current system. The State Accounting Office (SAO) provides training and guidance for the TeamWorks Financials application, which processes transactions for 87 agencies. The Financials application provides the state the ability to monitor and verify agency expenditures. The agency currently has two budget staff with minimal TeamWorks Financials experience. Recommendation: Given the current project workload at the SAO, begin the PSC's migration to the TeamWorks Financials System in FY 2017. At that time, increase funds by $100,000 to add one position for the migration of all budget and accounting activities to the TeamWorks Financials System with the SAO.

Office of Planning and Budget

214

01/16/2015

Public Service Commission
ZBB Program: Commission Administration
Key Activities and Alternative Approach

Key Activities (Listed in priority order as determined by Agency)

Activity Executive Management

Description

Authority

Manage key activities and business functions to ensure the agency's OCGA 46-2 et

ability to fulfill responsibilities, including planning, directing,

seq.

organizing, and controlling.

Public Information and Government Affairs

Responsible for the dissemination of information via press releases, advisories and other formats via web site, email, or mail. They are also responsible for assisting legislators and other governmental entities with formal and informal requests for information and interacting with the media, general public, and trade associations.

OCGA 46-2 et seq.

No. of

FY 2015

FY 2015

Positions State Funds Total Budget

1

$177,445

$190,158

Zero Based Budget Review (State Funds)

Changes Recommendation

$0

$177,445

2

237,174

254,159

0

237,174

Budget and Fiscal Affairs Human Resource Management

Manage fiscal and fiduciary matters, including budget requests and OCGA 46-2 et

management, cash management, internal accounting,

seq.

administrative controls, and interacting with governmental auditors

and budget offices.

Responsible for benefits and payroll, hiring, workforce planning, and OCGA 46-2 et

other personnel matters.

seq.

Records and Case Management

Responsible for scheduling, noticing and managing the PSC hearings, OCGA 46-2 et

processing and electronically maintaining all docket filings,

seq.

processing orders, maintaining electronic access to records, and

agency-specific applications.

Asset and Systems Management Responsible for procurement, risk management, fleet and facilities OCGA 46-2 et management, system and physical security, and system operations seq. and user support.
Total

2

235,746

252,628

1

78,896

84,546

3

300,452

321,886

2

137,344

147,180

11

$1,167,057

$1,250,557

0

235,746

0

78,896

0

300,452

0

137,344

$0

$1,167,057

Alternative (Alternative approach to delivering program services as provided by the agency) No alternative approaches to program service delivery are recommended at this time.

Office of Planning and Budget

215

01/16/2015

Public Service Commission
ZBB Program: Commission Administration
Financial Summary

Objects of Expenditure Personal Services Regular Operating Expenses Motor Vehicle Purchases Equipment Computer Charges Real Estate Rentals Telecommunications Contractual Services Total Expenditures
Fund Type
State General Funds Federal Funds Other Funds Total Funds

Expenditures

FY 2013

FY 2014

$1,080,515

$1,120,966

14,803

19,085

FY 2015 Current Budget
$1,158,659 14,803

8,975 96,510 13,877
527 $1,215,207

520 6,448 44,832 13,142
$1,204,993

8,975 54,226 13,894
$1,250,557

Zero Based Budget Review

Changes

Recommendation

$0

$1,158,659

0

14,803

0

8,975

0

54,226

0

13,894

$0

$1,250,557

$1,112,226 96,420 6,561
$1,215,207

$1,136,759 65,996 2,238
$1,204,993

$1,167,057 83,500
$1,250,557

$0

$1,167,057

0

83,500

$0

$1,250,557

Positions* Motor Vehicles

11

11

11

0

11

* Position counts shown under expenditures reflect the number of salaried, benefit eligible employees as of June 30 of that fiscal year.

Office of Planning and Budget

216

01/16/2015

Public Service Commission
ZBB Program: Commission Administration
Performance Measures
Agency Purpose: TheGeorgia Public Service Commission serves to exercise its authority and influence to ensure that consumers receive safe, reliable, and reasonably priced telecommunications, electric, and natural gas services from financially viable and technically competent companies.
Program Purpose: The purpose of the Commission Administration program is to assist the Commissioners and staff in achieving the agency's goals.

Performance Measures 1. Agency turnover rate 2. Number of audit findings

FY 2011 5% 1

Actuals

FY 2012

FY 2013

3%

9%

0

0

FY 2014 4% N/A

Office of Planning and Budget

217

01/16/2015

FY 2016 Zero-Based Budget Analysis
Board of Regents of the University System of Georgia ZBB Program: Marine Institute

Office of Planning and Budget

218

01/16/2015

Board of Regents of the University System of Georgia
ZBB Program: Marine Institute
FY 2016 Zero-Based Budget Report
Purpose of Review Located on Sapelo Island, the University of Georgia Marine Institute (UGAMI) is a world-renowned field destination that supports research and instruction in coastal ecosystems. Although it has long hosted visiting researchers and university classes (graduate and undergraduate), UGAMI was previously focused on academic research produced by resident faculty. The Institute refocused its purpose in FY 2013 as a field station and no longer has UGAMI resident faculty members. The purpose of this review is to analyze the effectiveness of UGAMI in providing a research and instructional support environment for the University of Georgia, University System entities, and other universities and organizations.
Results of Analysis 1. Statutory Alignment: Program activities are aligned with statutory responsibilities. 2. Staffing Levels: There are 21 authorized positions and 14 full-time benefit eligible positions in the program. See recommendation below. 3. Fleet Management: There are 35 motor vehicles and five boats assigned to the program. See recommendation below. 4. Performance Measures: OPB worked with the agency to identify metrics for key program activities. The updated measures accurately
reflect the performance of the program. 5. Budget Impact: Maintain the current funding level for this program. Increase state funds in the Teaching program by $169,569 for
maintenance and operations for UGAMI's 30,403 square feet of instructional space. See recommendation below.
Program Operations: 6. The program revitalized long-term scientific research space to accommodate instructional space for undergraduate and graduate classes,
as well as visiting graduate students and scholars. Instructional square footage includes state owned space in the University System of Georgia used to provide instruction to students and is included in the Teaching program's formula at a rate of $5.58 per square foot. Instructional square footage at UGAMI is not included in the Teaching program's formula which indicates inconsistencies in the Board of Regents' policy for defining instructional square footage for inclusion in the formula. Recommendation: Include UGAMI's 30,403 instructional square feet as part of the funding formula in the Teaching program ($169,569 in state funds) and develop a clear and consistent policy for defining and including instructional square footage in the formula for the entire University System of Georgia.

Office of Planning and Budget

219

01/16/2015

Board of Regents of the University System of Georgia
ZBB Program: Marine Institute
FY 2016 Zero-Based Budget Report

7. UGAMI has a widely recognized presence in the academic community on a national and international level. However, with the realignment of UGAMI's role on research support, educational support, and outreach, little emphasis has been placed on public engagement of local industry leaders, academic stakeholders, student alumni, and mission aligned organizations. Recommendation: Cultivate student alumni as well as a strong UGAMI social media presence. Engage stakeholders in a strategic planning committee that focuses on corporate industry engagement, long-term financial planning and investment strategies, academic outreach to institutions, and public awareness of the resources UGAMI offers the scientific, educational, and business communities.
8. Approximately 35% of housing space at UGAMI are single occupancy homes and trailers. Trailers are difficult to keep in working condition and are not a long-term investment. They limit the number of instructional groups that are able to stay at the institute. Recommendation: Design a housing plan with the Board of Regents which focuses on developing "permanent" housing options that align with UGAMI's strategic goals to incorporate long-term instructional opportunities for university classes.
9. The Institute provides vital work space for faculty to collect samples, data, and conduct basic biological analysis. In FY 2014, UGAMI collected data from researchers in the UGA Department of Marine Science on whether the presence of UGAMI as a resource was considered "critical, important, or minor" to their grants. The survey found that the grants that recognized UGAMI resources as "critical" for research totaled over $1.53M. The Institute currently is unable to collect Indirect Cost Recoveries (IDC) from these grants. IDC funds are a portion of the total grant that covers operating and administrative costs of research. Recommendation: Collaborate with the University of Georgia in order to receive a portion of indirect cost funds from research grants that are critically dependent on UGAMI resources.
10. In FY 2014, fees collected from facility usage consisted of 75% of other funds. The fee structure for facility use at UGAMI is limited to collection for housing unit use (nights spent in the facilities). No fees are currently assessed for use of a particular instructional space or lab space. Georgia students are charged the same fee as external users such as marine science organizations or students and researchers from out of state. Recommendation: Implement a multi-tiered fee structure by facility use and user type.
11. Three employees of the Department of Natural Resources are funded in the UGAMI budget for administrative purposes. These positions provide operational support to the Reynold's Mansion. Prior years expenditures averaged $115,000 over the last three years for these positions.
12. The current budget incorrectly reflects 21 authorized positions. Recommendation: Amend the current budget by seven to accurately reflect 14 authorized positions.
13. The current budget incorrectly reflects zero authorized motor vehicles. Recommendation: Amend the current budget by 35 to accurately reflect 35 authorized motor vehicles.

Office of Planning and Budget

220

01/16/2015

Board of Regents of the University System of Georgia
ZBB Program: Marine Institute
Key Activities and Alternative Approach

Key Activities (Listed in priority order as determined by Agency)

Activity

Description

Research Support

The Institute hosts both long-term researchers and short-term researchers. UGAMI must accommodate the basic field and laboratory requirements of these researchers, who are primarily natural scientists. The staff provides the necessary support to enhance the success of research projects conducted on the GA coast, while also promoting new interdisciplinary investigations.

Authority OCGA 20-12-2

No. of

FY 2015

FY 2015

Positions State Funds Total Budget

10.5

$364,316

$611,569

Zero Based Budget Review (State Funds)

Changes Recommendation

$0

$364,316

Educational Support for

UGAMI serves as a field trip destination for university courses.

OCGA 20-12-2

7.0

255,021

351,126

0

Undergraduates and Graduate UGAMI and many of the individual research projects also sponsor

Students

undergraduate internships. Educational support seeks to establish

programs that will allow students to be in residence for longer

periods, providing deeper opportunities for experiential education

and research.

Furthering Partnerships and

UGAMI serves as a host site for training workshops for teachers, OCGA 20-12-2

3.5

109,295

252,218

0

Engagement

environmental educators, post-doctoral researchers, and county

agents. The Institute is also used for small meetings and professional

societies. UGAMI is a regular stop for tours conducted by the Sapelo

Island National Estuarine Research Reserve, which brings

Kindergarten through 12th grade (K-12) students, elderhostel

groups, and the general public to the Island.

255,021 109,295

Total

21.0

$728,632

$1,214,913

$0

$728,632

Alternative (Alternative approach to delivering program services as provided by the agency) No alternative approaches to program services delivery are recommended at this time.

Office of Planning and Budget

221

01/16/2015

Board of Regents of the University System of Georgia
ZBB Program: Marine Institute
Financial Summary

Objects of Expenditure Personal Services Operating Expenses Motor Vehicle Purchases Equipment Computer Charges Real Estate Rentals Telecommunications Contractual Services Operating Expense - General and Departmental OE -Sponsored Operations Total Expenditures
Fund Type
State General Funds Other Funds Total Funds
Positions Motor Vehicles

Expenditures

FY 2013

FY 2014

$817,989

$750,987

FY 2015 Current Budget
$799,848

Zero Based Budget Review

Changes

Recommendation

$0

$799,848

453,024
41,823 $1,312,836
$707,566 605,270
$1,312,836
13

363,217
29,072 $1,143,276
$714,567 428,709
$1,143,276
11

390,065
25,000 $1,214,913
$728,632 486,281
$1,214,913
21 0

0

390,065

0

25,000

$0

$1,214,913

$0

$728,632

0

486,281

$0

$1,214,913

(7)

14

35

35

Total funds includes Department of Natural Resources (DNR) employees administratively processed through UGAMI (Totals: FY 2013 - $107,125, FY 2014 - $115,926, FY 2015 - $120,563). Position counts shown under expenditures reflect the number of salaried, benefit eligible employees as of June 30 of that fiscal year and do not include restricted research staff or DNR employees.

Office of Planning and Budget

222

01/16/2015

Board of Regents of the University System of Georgia
ZBB Program: Marine Institute
Performance Measures

Agency Purpose: The University System of Georgia (USG), through its 31 public colleges and universities, is charged with providing a higher education system. USG works to create a more educated Georgia through its core missions of instruction, research, and public service.

Program Purpose: The purpose of the University of Georgia Marine Institute is to provide exceptional opportunities for scientists and other scholars to conduct cutting edge field research and to provide an instructional support environment for graduate classes, undergraduate classes, and other visitors to have transformative educational experiences in the unique ecosystems of the Georgia coast.

Performance Measures 1. Total income from all facility fees and Indirect Cost Recovery 2. Number of peer reviewed publications stemming from UGAMI-based research 3. Number of students receiving instructional time at UGAMI 4. Number of people who visit UGAMI as part of a guided tour 5. Number of beds occupied by instructional and research participants 6. Annualized dollars leveraged for the University of Georgia through grants requiring use of UGAMI facilities

FY 2011
$179,721
41
N/A N/A 4,548 $1,926,254

Actuals

FY 2012

FY 2013

$199,460

$153,333

45

35

641 N/A 4,765 $1,553,368

617 N/A 4,014 $1,396,409

FY 2014 $169,267 42
785 N/A 4,904 $1,526,768

Office of Planning and Budget

223

01/16/2015

FY 2016 Zero-Based Budget Analysis
Board of Regents of the University System of Georgia ZBB Program: Marine Resources Extension Center

Office of Planning and Budget

224

01/16/2015

Board of Regents of the University System of Georgia
ZBB Program: Marine Resources Extension Center
FY 2016 Zero-Based Budget Report

Purpose of Review The Marine Resources Extension Center (MAREX) provides research-based information, educational programs, and technology development to promote environmental and economic health in coastal Georgia by helping improve public resource policy, encouraging far-sighted economic and fisheries decisions, anticipating vulnerabilities to change, and educating citizens on the coastal environment. The purpose of this review is to analyze the effectiveness of the MAREX program in providing outreach, education, and research to enhance coastal environmental and economic sustainability.
Results of Analysis 1. Statutory Alignment: Program activities are aligned with statutory responsibilities. 2. Staffing Levels: The program has 17 authorized positions and 18 full-time benefit eligible positions. See recommendation below. 3. Fleet Management: There are 17 motor vehicles and 13 boats assigned to the program. See recommendation below. 4. Performance Measures: OPB worked with the agency to identify metrics for key program activities. However, data for certain metrics
were not available. The agency should track and record data to ensure accurate reporting of performance data in the future. 5. Budget Impact: Maintain the current funding level.
Program Operations: 6. In FY 2014, the program received approximately 26% of its total budget ($641,845) from the Georgia Sea Grant (GASG). GASG is part of
the National Oceanic and Atmospheric Administration's (NOAA) grant program to support sustainable economic and population growth on the coast, provide tools to guide efficient use of coastal resources, build a strong partnership between metro Atlanta and Georgia's coast, help create a robust state seafood industry, and assist developers in adopting sustainable building practices. MAREX provides the service delivery infrastructure for GASG's goals. Every four years the GASG-MAREX partnership is evaluated by the national program. In the FY 2010 evaluation, the National Sea Grant Office designated the GASG as a Best Management Practice for the entire Sea Grant Network. 7. MAREX provides professional development opportunities to Kindergarten through 12th grade teachers as well as environmental education programs for students. In FY 2014, the program collected $11,000 in fees to provide professional development opportunities to 450 teachers and collected $388,498 in fees to provide environmental educational programing to over 4,800 students from Georgia and the southeast region.

Office of Planning and Budget

225

01/16/2015

Board of Regents of the University System of Georgia
ZBB Program: Marine Resources Extension Center
FY 2016 Zero-Based Budget Report
8. MAREX assists coastal municipalities in earning federal flood insurance grants available in Georgia through the Federal Emergency Management Agency's Community Rating System, which rewards local governments for taking steps to prepare for and prevent flooding. In federal fiscal year 2013, MAREX helped Tybee Island residents save $500,000 annually in flood insurance discounts. The program supports other coastal communities through training and workshops on flood resiliency planning, climate adaptation, and navigating the Community Rating System.
9. The current budget incorrectly reflects 17 authorized positions. Recommendation: Amend the current budget by one to accurately reflect 18 authorized positions.
10. The current budget incorrectly reflects zero authorized motor vehicles. Recommendation: Amend the current budget by 17 to accurately reflect 17 authorized motor vehicles.
11. In FY 2014, $30,107 was spent on vehicle repair, routine maintenance, and fuel for an aging fleet where 25% of the program's motor vehicles are over 20 years old. Recommendation: Surplus aging motor vehicles to reduce motor vehicle repair costs.

Office of Planning and Budget

226

01/16/2015

Board of Regents of the University System of Georgia
ZBB Program: Marine Resources Extension Center
Key Activities and Alternative Approach

Key Activities (Listed in priority order as determined by Agency)

Activity Applied Research and Economic Development

Description

Authority

Applied research is designed to develop best practices and technical OCGA 20-12-2

support to communities and stakeholders regarding sustainable

coastal development, hazard resilience in coastal communities,

healthy coastal ecosystems, sustainable fisheries and aquaculture,

environmental literacy and workforce development. These focus

areas are both state and federally funded, and highly aligned with

industry needs and issues that result in direct economic impacts.

No. of

FY 2015

FY 2015

Positions State Funds Total Budget

6

$497,950

$1,049,616

Zero Based Budget Review (State Funds)

Changes Recommendation

$0

$497,950

Youth Education Policy and Outreach

MAREX offers ocean literacy programs for students from Pre-

OCGA 20-12-2

Kindergarten through high school that connect children to the coast

in school classrooms, island summer camps, and in MAREX's coastal

facilities. This activity includes programs for K-12 educators to learn

how to use environmental and ocean literacy principles in their

classrooms. Education programs are open to both students and

families.

MAREX helps communities and governments understand the value OCGA 20-12-2 of sustainable land use practices by developing tools, best practices, model ordinances and information sources that facilitate the adoption of research based sustainable practices at a multitude of levels. This includes addressing hazard resiliency of coastal communities, healthy coastal ecosystems, sustainable fisheries and aquaculture, environmental literacy and workforce development.

Total

10

522,240

1,100,817

2

194,321

409,607

18

$1,214,511

$2,560,040

0

522,240

0

194,321

$0

$1,214,511

Alternative (Alternative approach to delivering program services as provided by the agency) No alternative approaches to program services delivery are recommended at this time.

Office of Planning and Budget

227

01/16/2015

Board of Regents of the University System of Georgia
ZBB Program: Marine Resources Extension Center
Financial Summary

Objects of Expenditure Personal Services Operating Expenses Capital Outlay Motor Vehicle Purchases Equipment Computer Charges Real Estate Rentals Telecommunications Contractual Services Operating Expenses - General and Departmental OE - Sponsored Operations Total Expenditures
Fund Type
State General Funds Other Funds Total Funds

Expenditures

FY 2013

FY 2014

$1,829,763

$1,758,075

FY 2015 Current Budget
$2,169,900

Zero Based Budget Review

Changes

Recommendation

$0

$2,169,900

651,671
408,345 $2,889,779
$1,163,146 1,726,633
$2,889,779

532,508
211,959 $2,502,542
$1,179,252 1,323,290
$2,502,542

220,140
170,000 $2,560,040
$1,214,511 1,345,529
$2,560,040

0

220,140

0

170,000

$0

$2,560,040

$0

$1,214,511

0

1,345,529

$0

$2,560,040

Positions* Motor Vehicles

22

22

17

1

18

18

18

0

17

17

* Position counts shown under expenditures reflect the number of salaried, benefit eligible employees as of June 30 of that fiscal year.

Office of Planning and Budget

228

01/16/2015

Board of Regents of the University System of Georgia
ZBB Program: Marine Resources Extension Center
Performance Measures
Agency Purpose: The University System of Georgia (USG), through its 31 public colleges and universities, is charged with providing a higher education system. USG works to create a more educated Georgia through its core missions of instruction, research, and public service.
Program Purpose: The purpose of this program is to fund outreach, education, and research to enhance coastal environmental and economic sustainability.

Performance Measures 1. Number of consultations with Marine Extension coastal marine constituents 2. Number of individuals trained by Marine Extension in a Hazard Analysis Critical Control Point (HACCP) course for the safe processing and handling of seafood 3. Total dollars generated from commercial aquaculture operations including hard clams and oysters 4. Number of local governments assisted 5. Number of K-12 students reached through educational programming

FY 2011 23,239 40
$1,466,003
N/A 5,167

Actuals

FY 2012

FY 2013

51,417

45,778

40

42

$1,668,649
N/A 4,181

$1,728,456
N/A 4,151

FY 2014 59,205 57
$1,140,283
N/A 4,833

Office of Planning and Budget

229

01/16/2015

FY 2016 Zero-Based Budget Analysis
Board of Regents of the University System of Georgia ZBB Program: Skidaway Institute of Oceanography

Office of Planning and Budget

230

01/16/2015

Board of Regents of the University System of Georgia
ZBB Program: Skidaway Institute of Oceanography
FY 2016 Zero-Based Budget Report
Purpose of Review The Skidaway Institute of Oceanography (SKIO) is a multidisciplinary research institution within the University System of Georgia dedicated to advancing the understanding of coastal and marine environments. The program is an established international leader in interdisciplinary ocean research, developing and promoting collaborations in science, education, policy, and public service. The purpose of this review is to analyze the effectiveness of the SKIO in producing research and educational programs regarding marine and ocean science and aquatic environments. The review will also examine SKIO's funding sources which include both instructional formula funding and program budget appropriations.
Results of Analysis 1. Statutory Alignment: Program activities are aligned with statutory responsibilities. 2. Staffing Levels: The program has 40 full-time benefit eligible employees. There are also 13 resident faculty members of the University of
Georgia working at the Institute. 3. Fleet Management: There are 14 motor vehicles in the program and four boats. See recommendation below. 4. Performance Measures: OPB worked with the program to identify metrics for key program activities. However, data for certain measures
were not available. The agency should track and record data to ensure accurate reporting of performance data in the future. 5. Budget Impact: Maintain the current funding level.
Program Operations: 6. In FY 2014, SKIO began reporting to the Provost at the University of Georgia and was no longer considered an independent entity of the
Board of Regents. SKIO has since leveraged its partnership with the University of Georgia by increasing its emphasis on educational planning and development. Recommendation: Create a plan for long term academic and instructional opportunities for students from the University of Georgia and other state universities, with priority placed on Science, Technology, Engineering, and Mathematics (STEM) subjects and coastal engineering co-ops. The programs should award course credit and contribute to degree completion. Programs should provide six-week to full semester opportunities for students and should incorporate hands-on learning in STEM fields applicable to industries in Georgia.

Office of Planning and Budget

231

01/16/2015

Board of Regents of the University System of Georgia
ZBB Program: Skidaway Institute of Oceanography
FY 2016 Zero-Based Budget Report
7. Skidaway provides outreach and consulting for marine constituents, government agencies, academia, and private organizations which is not documented. This outreach is a significant portion of the services the state provides in addition to research and educational programs. Recommendation: Continue to develop the internal method initiated during the FY 2016 ZBB process that tracks the scope of outreach and counsel activities of the program.
8. In addition to the program's state funds appropriations, Skidaway receives state funds from the Teaching program's funding formula for research and maintenance and operations for instructional square footage. Instructional square footage includes state owned space in the University System of Georgia used to provide instruction to students and is included in the Teaching program's formula at a rate of $5.58 per square foot. On average, Skidaway receives $1.6M from the Teaching program each year. Approximately 35% of the funds received from square footage included in the Teaching program are used for maintenance and operations, while the remaining funds go to support personal services expenditures. Skidaway's instructional square footage is included in the Teaching program's formula. During the FY 2016 ZBB process, it was determined that there are inconsistencies across institutions for defining instructional square footage for inclusion in the Teaching formula. Recommendation: Board of Regents should develop a clear and consistent policy for defining and including instructional square footage in the formula for the entire University System of Georgia.
9. Procurement of competitive faculty at SKIO is directly correlated with the program's ability to bring in other funds and awards from research grants. In FY 2014, SKIO received 75% of its total funds ($3,687,589 in other funds) from federal research grants and contracts, while 62% of its expenditures were in personal services. Recommendation: Continue to prioritize recruiting and retaining innovative scientists.
10. The current budget incorrectly reflects zero authorized motor vehicles. Recommendation: Amend the current budget by 14 to accurately reflect 14 authorized motor vehicles.

Office of Planning and Budget

232

01/16/2015

Board of Regents of the University System of Georgia
ZBB Program: Skidaway Institute of Oceanography
Key Activities and Alternative Approach

Key Activities (Listed in priority order as determined by Board of Regents of the University System of Georgi No. of

Activity

Description

Authority Positions

Research

Develops and supports research programs across a broad range of OCGA 20-12-2

29

sub-disciplines including: physical oceanography, chemical

oceanography, geological oceanography, and biological

oceanography.

Education and Instruction

Faculty members at Skidaway Institute serve as mentors and

OCGA 20-12-2

3

advisors for undergraduate and graduate students, supervise the

research and training of students from all over the world, offer

instruction on the latest in research findings, and offer hands-on

research opportunities for students through the institute's

laboratories.

Outreach and Counsel

Skidaway Institute scientists serve on advisory boards and as

OCGA 20-12-2

8

resources to local, state, and national governmental, business, and

environmental groups and agencies. Some of SKIO's regular contacts

include state agencies such as the Georgia Department of Natural

Resources, local entities, regional agencies such as the Governors'

South Atlantic Alliance, and federal agencies such as the

Environmental Protection Agency and the National Science

Foundation.

Total

40

FY 2015

FY 2015

State Funds Total Budget

$1,044,450

$4,046,944

78,532

278,063

117,185

715,780

$1,240,167

$5,040,787

Zero Based Budget Review (State Funds)

Changes Recommendation

$0

$1,044,450

0

78,532

0

117,185

$0

$1,240,167

Alternative (Alternative approach to delivering program services as provided by the agency) No alternative approaches to program service delivery are recommended at this time.
i The 13 research faculty members are not included in the position count.

Office of Planning and Budget

233

01/16/2015

Board of Regents of the University System of Georgia
ZBB Program: Skidaway Institute of Oceanography
Financial Summary

Objects of Expenditure Personal Services Operating Expenses Motor Vehicle Purchases Equipment Computer Charges Real Estate Rentals Telecommunications Contractual Services Operating Expenses - General and Departmental Sponsored Operations Total Expenditures
Fund Type
State General Funds Other Funds Total Funds

Expenditures s of the University S FY 2014
$3,017,085

FY 2015 Current Budget
$3,652,212

Zero Based Budget Review

Changes

Recommendation

$0

$3,652,212

1,463,070
1,039,927 $2,502,997
$1,192,426 4,831,606
$6,024,032

1,385,210
500,163 $4,902,458
$1,214,869 3,687,589
$4,902,458

531,039
857,536 $5,040,787
$1,240,167 3,800,620
$5,040,787

0

531,039

0

857,536

$0

$5,040,787

$0

$1,240,167

0

3,800,620

$0

$5,040,787

Positions Motor Vehicles

55

41

40

40

0

14

14

State General Funds do not include state funding from the Teaching program: FY 2013 ($1,200,707); FY 2014 ($1,588,581); FY 2015 ($1,639,545) Position counts shown under expenditures reflect the number of salaried, benefit eligible employees as of June 30 of that fiscal year. Position count in FY 2013 includes resident faculty.

Office of Planning and Budget

234

01/16/2015

Board of Regents of the University System of Georgia
ZBB Program: Skidaway Institute of Oceanography
Performance Measures
Agency Purpose: The University System of Georgia (USG), through its 31 public colleges and universities, is charged with providing a higher education system. USG works to create a more educated Georgia through its core missions of instruction, research, and public service.
Program Purpose: The purpose of this program is to produce research and educational programs regarding marine and ocean science and aquatic environments.

Performance Measures 1. Number of peer reviewed articles published annually 2. Average sponsored dollars generated per state appropriated dollar 3. Average research dollars generated per faculty member 4. Percentage of beds occupied by instructional program participants (32 beds available year-round) 5. Number of consultations or external counseling presentations 6. Students receiving full days of research based instruction

FY 2011 31
$3.00 $390,287
9.7%
N/A N/A

Actuals

FY 2012

FY 2013

29

30

$3.00

$3.80

$390,579

$392,080

8.2%

9.0%

N/A

N/A

N/A

N/A

FY 2014 35
$2.57 $303,564
23.5%
N/A N/A

Office of Planning and Budget

235

01/16/2015

FY 2016 Zero-Based Budget Analysis
Department of Revenue (DOR)
ZBB Program: Local Tax Officials Retirement and FICA

Office of Planning and Budget

236

01/16/2015

Department of Revenue (DOR)
ZBB Program: Local Tax Officials Retirement and FICA
FY 2016 Zero-Based Budget Report
Purpose of Review The Department of Revenue (DOR) is responsible for administering the state's tax laws, and collecting and processing state revenue. By law, local tax officials and their staff are considered employees of the Department of Revenue and are eligible to participate in the state Employees' Retirement System (ERS). The Local Tax Officials Retirement and FICA program provides state retirement benefits and the employer share of the Federal Insurance Contributions Act (FICA) tax to local tax officials. The purpose of this review is to evaluate the program's effectiveness in providing timely payments to ERS for state retirement benefits and the employer share of FICA to participating counties. Results of Analysis 1. Statutory Alignment: Program activities are aligned with statutory responsibilities. 2. Staffing Levels: There are no positions funded in this program. 3. Fleet Management: There are no motor vehicles assigned to the program. 4. Performance Measures: OPB worked with the agency to identify metrics for key program activities. The updated measures accurately
reflect the performance of the program. 5. Budget Impact: Reduce funds by $1,036,853 for the liability on local tax officials' retirement benefits to meet projected expenditures.
Program Operations: 6. The Local Tax Officials Retirement and FICA program provides for the distribution of funds to local tax officials who are eligible to
participate in the state Employees' Retirement System (ERS). The Department is required to pay the employer's share of the retirement contributions for such positions. ERS provides to OPB the total required amount to be included in the Governor's budget each year. Retirement benefits have been provided to local tax officials since 1958. Local tax office employees hired on or after July 1, 2012 are not eligible for ERS membership unless the county elects to pay the employer contribution. As a result, DOR's liability in this program will decrease.
7. The Department receives monthly invoices for employer contribution payments from ERS that are processed by five full-time positions in the Administration program. This processing accounts for approximately one percent of each position's responsibilities.
8. In FY 2014, the program expended $12,875,394 for ERS employer contributions, $681,314 for FICA contributions, and $67,614 for Georgia Deferred Compensation (401K) contributions. Recommendation: Reduce funds by $1,036,853 for the liability on local tax officials' retirement benefits to meet projected expenditures.

Office of Planning and Budget

237

01/16/2015

Department of Revenue (DOR)
ZBB Program: Local Tax Officials Retirement and FICA
Key Activities and Alternative Approach

Key Activities (Listed in priority order as determined by Agency)

No. of

Activity

Description

Authority Positions

Local Tax Officials Retirement and Pays the retirement to the Employees' Retirement System and 401K OCGA 47-2-292,

FICA

to the Georgia Deferred Compensation Group Trust on behalf of the 350

employer of local tax officials and distributes employer share of FICA

to participating counties.

FY 2015

FY 2015

State Funds Total Budget

$12,859,059 $12,859,059

Zero Based Budget Review (State Funds)

Changes Recommendation

($1,036,853)

$11,822,206

Total

0 $12,859,059 $12,859,059 ($1,036,853)

$11,822,206

Alternative (Alternative approach to delivering program services as provided by the agency) No alternative approaches to program service delivery are recommended at this time.

Office of Planning and Budget

238

01/16/2015

Department of Revenue (DOR)
ZBB Program: Local Tax Officials Retirement and FICA
Financial Summary

Objects of Expenditure Personal Services Regular Operating Expenses Motor Vehicle Purchases Equipment Computer Charges Real Estate Rentals Telecommunications Contractual Services Local County Tax Officials Retirement and FICA Total Expenditures
Fund Type
State General Funds Total Funds

Expenditures

FY 2013

FY 2014

FY 2015 Current Budget

Zero Based Budget Review

Changes

Recommendation

$9,232,474 $9,232,474

$13,624,322 $13,624,322

$12,859,059 $12,859,059

($1,036,853) ($1,036,853)

$9,232,474 $9,232,474

$13,624,322 $13,624,322

$12,859,059 $12,859,059

($1,036,853) ($1,036,853)

$11,822,206 $11,822,206
$11,822,206 $11,822,206

Office of Planning and Budget

239

01/16/2015

Department of Revenue (DOR)
ZBB Program: Local Tax Officials Retirement and FICA
Performance Measures
Agency Purpose: The Department of Revenue administers and enforces the revenue tax laws of the State of Georgia fairly and efficiently in order to promote public confidence and compliance while providing excellent customer service.
Program Purpose: The purpose of this program is to provide state retirement benefits and employer share of FICA to local tax officials.

Performance Measures 1. Amount of employer contributions paid for local tax officials and their staff participating in the state Employees' Retirement System
2. Number of local tax officials and their staff participating in the state Employees' Retirement System
3. Amount of FICA paid for local tax officials and their staff

FY 2011 $6,886,593

Actuals

FY 2012

FY 2013

$5,752,520 $11,365,918

FY 2014 $8,716,466

1,283 N/A

1,185 N/A

1,260 N/A

1,145 $681,314

Office of Planning and Budget

240

01/16/2015

FY 2016 Zero-Based Budget Analysis
Secretary of State ZBB Program: Corporations

Office of Planning and Budget

241

01/16/2015

Secretary of State
ZBB Program: Corporations
FY 2016 Zero-Based Budget Report

Purpose of Review The Corporations program provides assistance in the creation and registration of business organizations and maintains corporation filings and records. The program also provides services for trademark registrations, service of process, video franchising, and development authority filings. The purpose of this review is to evaluate whether program activities are aligned with statutory requirements and to ensure that performance measures track the progress of the Corporation program's goal of facilitating the growth of Georgia businesses.
Results of Analysis 1. Statutory Alignment: Program activities are aligned with statutory requirements. 2. Staffing Levels: The program has 26 full-time benefit eligible employees.
3. Fleet Management: There are no motor vehicles assigned to the program. 4. Performance Measures: OPB worked with the agency to identify metrics for key program activities. The updated measures accurately
reflect the performance of the program. 5. Budget Impact: Increase state funds by $873,351. See specific recommendations listed below.
Program Operations: 6. The Secretary of State's office has one call center that handles calls for all programs. There are currently 24 call center agents, with eight
of those staff members budgeted in the Corporations program. Customer service levels have improved over the past two fiscal years, even though call volume continues to increase. However, the FY 2014 average speed to answer a call of five minutes and the abandonment rate of 31% are still well above industry standards of 30 seconds and 7%, respectively. The agency routinely hires temporary staff during peak season months to assist with call volume. The agency is working on procuring a new phone system that should assist with handling calls. Current call center metrics and data do not exist or are not available to fully evaluate the effectiveness of the call center. Recommendation: Procure and implement call center software that allows for additional and more complete tracking of standard call center metrics. Consult with GTA and other state agencies for assistance in optimizing call center performance. Share updated metrics and data with OPB to determine if additional resources are warranted.

Office of Planning and Budget

242

01/16/2015

Secretary of State
ZBB Program: Corporations
FY 2016 Zero-Based Budget Report
7. The Corporations program is responsible for processing applications of entities that seek to do business in the state. Currently, customer service representatives do not have the ability to process corporations' filings over the telephone. Representatives provide guidance to applicants to complete the process online. This procedure increases telephone hold times for other customers. Recommendation: Evaluate the cost to implement technology that will allow customer service representatives to process filings and accept payments from customers over the telephone.
8. Records for the Corporations program prior to 2000 are not digitized. The records are stored in a basement room prone to flooding. If the records are damaged during a flood event, there are no digital back-ups on file. Such files are routinely requested when a corporation or business changes ownership or goes through dissolution proceedings. Corporations' records are required to be kept on file in accordance with the state's records retention policy. Recommendation: Prioritize funding to the extent possible, secure necessary equipment and staff, and begin digitization of corporations filings in accordance with the state's record retention policy.
9. The agency's current Annual Operating Budget (AOB) does not accurately reflect anticipated expenditures. Historically, program expenditures have averaged $2.5 million per year. However, the current FY 2015 AOB is only $780,026. Recommendation: Continue to submit operating budgets to OPB that more accurately reflect projected expenditures.
10. Over the past several fiscal years, the agency has collected other funds throughout the fiscal year from miscellaneous service charges, which are not required to be immediately remitted to the state treasury. However, rather than utilizing these funds towards program operations, the program reserved the funds as retained revenue at the end of the fiscal year. The FY 2015 budget reduces the program's state funds appropriation by $1,226,291 and directs the program to utilize reserve funds for operations. The program is projected to collect $2,503,010 in miscellaneous service charges in FY 2016. However, program expenditures are projected to exceed funds available and all other prior year reserve funds have been expended. Recommendation: Increase state funds by $873,351 to cover projected program expenditures. Reduce other funds by $1,272,086 to align other funds with projected collections. In accordance with the state's policy on fund source spending order, the program should use other funds earned during the fiscal year, and not otherwise currently remitted to Treasury, for program expenditures prior to the use of state funds. Additionally, any state or other funds remaining unexpensed at fiscal year end should be remitted to the state treasury.

Office of Planning and Budget

243

01/16/2015

Secretary of State
ZBB Program: Corporations
Key Activities and Alternative Approach

Key Activities (Listed in priority order as determined by Agency)

Activity
Incorporation of Georgia businesses, non-profits, and limited liability companies; Register Trademarks, Service Marks and Foreign Charters; Regulated Merger and Share Exchanges

Description

Authority

Provides a distinguishable name for filing purposes from the names OCGA 14-2-1 et

of other entities on the records of the Corporations Division. Renews seq.

or suspends the filings of corporations, non-profits, and LLCs within

the state; has the authority to register trademarks or service marks

to be used to distinguish services from the services of others.

Responsible for the creation, registration and subsequent filings of

foreign corporations; regulates all corporations whose charters have

been granted by the Secretary of State and ensures compliance

with provisions relating to mergers or share exchanges.

No. of Positions
14

FY 2015

FY 2015

State Funds Total Budget

$40,514

$2,359,041

Customer Service and Information Requests

Provides the public with knowledge about Corporations upon

OCGA 10-1-447

7

request to allow for the request, renewal, creation, or dissolution of

a corporation.

0

891,813

Application Intake

Collects fees for all entities, applications for certificates of authority, OGCA 14-2-120;

5

annual registration, address change applications, applications for 14-4-183

reinstatement, certificates of conversation, and any other

documents related to Corporations.

0

564,756

Zero Based Budget Review (State Funds)

Changes Recommendation

$539,959

$580,473

204,126 129,266

204,126 129,266

Total

26

$40,514

$3,815,610 $873,351

$913,865

Alternative (Alternative approach to delivering program services as provided by the agency) No alternative approaches to program service delivery are recommended at this time.

Office of Planning and Budget

244

01/16/2015

Secretary of State
ZBB Program: Corporations
Financial Summary

Objects of Expenditure Personal Services Regular Operating Expenses Motor Vehicle Purchases Equipment Computer Charges Real Estate Rentals Telecommunications Contractual Services Total Expenditures
Fund Type
State General Funds Other Funds Total Funds

Expenditures

FY 2013

FY 2014

$1,487,608

$1,929,437

64,645

536,095

FY 2015 Current Budget
$2,711,536 261,165

4,714 237,788 120,831 117,334
1,795 $2,034,715

7,754 1,231,425
140,367 97,061
827,145 $4,769,283

475,680 247,149 119,978
102 $3,815,610

Zero Based Budget Review

Changes

Recommendation

($398,735)

$2,312,801

0

261,165

0 0 0 0 ($398,735)

475,680 247,149 119,978
102 $3,416,875

$854,560 1,180,155 $2,034,715

$1,266,737 3,502,546
$4,769,283

$40,514 3,775,096 $3,815,610

$873,351 (1,272,086) ($398,735)

$913,865 2,503,010 $3,416,875

Positions* Motor Vehicles

24

27

26

0

26

1

* Position counts shown under expenditures reflect the number of salaried, benefit eligible employees as of June 30 of that fiscal year.

Office of Planning and Budget

245

01/16/2015

Secretary of State
ZBB Program: Corporations
Performance Measures
Agency Purpose: The Secretary of State serves as the custodian of the state flag and keeper of the Great Seal of Georgia. The office provides services to state citizens, agencies, local governments, and businesses. The services provided include the registration of voters, and the investigation, inspection, and enforcement of professional licenses, election activities, and securities regulations. Program Purpose: The purpose of this program is to accept and review filings made pursuant to statutes; to issue certifications of records on file; and to provide general information to the public on all filed entities.

Performance Measures 1. Number of total corporation filings processed 2. Number of new corporations filings completed 3. Number of corporations call center calls offered 4. Number of corporations call center calls answered 5. Percentage of corporations call center calls abandoned 6. Average speed of corporations call center calls answered in minutes

FY 2011 915,174 89,183 N/A N/A N/A N/A

Actuals

FY 2012

FY 2013

853,281

729,465

96,071

95,477

210,770

318,256

179,652

155,354

15%

51%

3:25

15:23

FY 2014 742,114 96,034 479,489 329,486 31% 5:01

Office of Planning and Budget

246

01/16/2015

FY 2016 Zero-Based Budget Analysis
Secretary of State ZBB Program: Elections

Office of Planning and Budget

247

01/16/2015

Secretary of State
ZBB Program: Elections
FY 2016 Zero-Based Budget Report
Purpose of Review The Elections program organizes and oversees election activity including voter registration and municipal, county, state, and federal election administration. The program's staff also certifies election results and qualifies federal and state candidates. The program maintains and updates the statewide voter registration database to keep it current with the number of eligible registered voters. In addition to the election administration duties, the program provides Great Seal certification for authentication of public documents for foreign use. The purpose of this review is to evaluate and analyze the activities of the Elections program to ensure key activities are being performed effectively and efficiently.
Results of Analysis 1. Statutory Alignment: Program activities are aligned with statutory requirements. 2. Staffing Levels: The program has 20 full-time benefit eligible employees.
3. Fleet Management: There are two motor vehicles assigned to the program. 4. Performance Measures: OPB worked with the agency to identify metrics for key program activities. The updated measures accurately
reflect the performance of the program. 5. Budget Impact: Maintain the current funding level.
Program Operations: 6. There are three election liaisons who work directly with local election officials to advise them on issues related to various election policies
and procedures. One liaison is assigned 51 Atlanta metro counties and the other two liaisons are assigned counties east and south of the metro area. Each group of counties represents the same population size of approximately two million registered voters. The agency has expressed concern that during high volume election cycles, liaisons cannot respond to all inquiries and issues in a timely and efficient manner. Approximately 80% of issues that liaisons handle are county related election concerns and the remaining 20% are educational and technical issues. Recommendation: Monitor and track the workload of the election liaisons to determine current service levels and, if additional resources are warranted, submit the findings to OPB.

Office of Planning and Budget

248

01/16/2015

Secretary of State
ZBB Program: Elections
FY 2016 Zero-Based Budget Report
7. During conferences and trainings offered by the Secretary of State, packets of paper training materials are printed for election officials from counties with representatives in attendance. These trainings occur five to ten times per year, but the agency does not have an estimate for the cost of printing and providing the materials. Recommendation: Begin tracking the cost of providing paper training materials to counties and explore opportunities to provide such materials electronically.
8. Over the past several fiscal years, the agency has collected other funds throughout the fiscal year from miscellaneous service charges, which are not required to be immediately remitted to the state treasury. However, rather than utilizing these funds towards program operations, the program reserved the funds as retained revenue at the end of the fiscal year. Recommendation: In accordance with the state's policy on fund source spending order, the program should use other funds earned during the fiscal year, and not otherwise currently remitted to Treasury, for program expenditures prior to the use of state funds. Additionally, any state or other funds remaining unexpensed at fiscal year end should be remitted to the state treasury.

Office of Planning and Budget

249

01/16/2015

Secretary of State
ZBB Program: Elections
Key Activities and Alternative Approach

Key Activities (Listed in priority order as determined by Agency)

Activity Voter Registration

Description

Authority

Establishes and maintains the official list of all eligible and qualified OCGA 21-2-50

registered electors in the state.

No. of

FY 2015

FY 2015

Positions State Funds Total Budget

4.9

$1,537,474

$1,577,190

Zero Based Budget Review (State Funds)

Changes Recommendation

$0

$1,537,474

Election Results Certification

Certifies that all election results are valid and validates provisional OCGA 21-2-419;

1.9

490,317

502,983

0

ballots.

21-2-499; 21-2-

324

Election Official

Provides and administers a certification program for all county and OCGA 21-2-99;

2.8

817,256

838,367

0

Training

municipal election superintendents, or in the case of a combined 21-2-100

board, the designee of such board.

490,317 817,256

Election Administration

Determines forms of nomination, petition, ballots, and other forms the Secretary of State is required to certify. Receives the returns of primaries and elections and canvasses and computes the votes cast for candidates. Responds to inquiries from the public and election officials.

OCGA 21-2-50; 21-2-280; 21-2283;

6.8

1,434,892

1,471,958

0

1,434,892

State Election Board Administration

Formulates, adopts, and investigates violations, and promulgates OCGA 21-2-30;

1.9

502,323

515,299

0

rules and regulations related to election laws. The Board may hold 21-2-31; 21-2-

hearings to examine matters in connection with the proper

32; 21-2-33; 21-

discharge of the Board's duties.

2-33.1

502,323

Candidate Qualification

Determines if a candidate is qualified to seek and hold a public office OCGA 21-2-5;

1.7

443,894

455,361

0

for which such candidate is offering. Upon his or her own motion, a 21-2-6; 21-2-50

candidate may challenge the qualification of any candidate at any

time prior to the election of such candidate.

443,894

Total

20.0

$5,226,157

$5,361,157

$0

$5,226,157

Alternative (Alternative approach to delivering program services as provided by the agency) No alternative approaches to program service delivery are recommended at this time.

Office of Planning and Budget

250

01/16/2015

Secretary of State
ZBB Program: Elections
Financial Summary

Objects of Expenditure Personal Services Regular Operating Expenses Motor Vehicle Purchases Equipment Computer Charges Real Estate Rentals Telecommunications Contractual Services Election Expenses Grants and Benefits Total Expenditures
Fund Type
State General Funds Federal Funds Other Funds Total Funds

Expenditures

FY 2013

FY 2014

$1,546,044

$1,555,521

532,697

404,405

21,109

9,428

5,515

188,840

1,006,286

132,470

136,845

2,692,753

4,148,645

2,229,733

2,701,742

309,949

299,455

27,499

165,767

$7,669,413

$10,445,291

FY 2015 Current Budget
$1,720,771 702,230
30,311 124,805 1,086,223 1,296,817 400,000
$5,361,157

Zero Based Budget Review

Changes

Recommendation

$0

$1,720,771

0

702,230

0

30,311

0

124,805

0

1,086,223

0

1,296,817

0

400,000

$0

$5,361,157

$6,230,630 1,395,821 42,962
$7,669,413

$8,562,327 1,882,532
433 $10,445,291

$5,226,157 85,000 50,000
$5,361,157

$0

$5,226,157

0

85,000

0

50,000

$0

$5,361,157

Positions* Motor Vehicles

17

19

20

0

20

1

2

2

0

2

* Position counts shown under expenditures reflect the number of salaried, benefit eligible employees as of June 30 of that fiscal year.

Office of Planning and Budget

251

01/16/2015

Secretary of State
ZBB Program: Elections
Performance Measures

Agency Purpose: The Secretary of State serves as the custodian of the state flag and keeper of the Great Seal of Georgia. The office provides services to state citizens, agencies, local governments, and businesses. The services provided include the registration of voters, and the investigation, inspection, and enforcement of professional licenses, election activities, and securities regulations.
Program Purpose: The purpose of this program is to administer all duties imposed upon the Secretary of State by providing all required filing and public information services, performing all certification and commissioning duties required by law, and assisting candidates, local governments, and citizens in interpreting and complying with all election, voter registration, and financial disclosure laws.

Performance Measures 1. Number of elections 2. Number of registered voters 3. Number of training classes offered online through E-Learn system 4. Number of E-Learn users trained 5. Number of State Election Board cases

FY 2011 650
5,696,083 41
1,266 N/A

Actuals

FY 2012

FY 2013

536

528

5,904,789

6,175,037

41

64

1,381

1,464

172

166

FY 2014 725
5,949,652 32
1,482 131

Office of Planning and Budget

252

01/16/2015

FY 2016 Zero-Based Budget Analysis
Secretary of State ZBB Program: Office Administration

Office of Planning and Budget

253

01/16/2015

Secretary of State
ZBB Program: Office Administration
FY 2016 Zero-Based Budget Report
Purpose of Review The Office Administration program provides support services for the Secretary of State's office including accounting, budgeting, human resources, information technology, press relations, and legislative affairs. The Investigations subprogram and the Georgia Athletic and Entertainment Commission are also budgeted in the program and do not serve as agency administrative functions. The purpose of this review is to evaluate the key activities and statutory requirements of the Office Administration program and identify the most cost effective means to carry out these functions. Results of Analysis 1. Statutory Alignment: Program activities are aligned with statutory requirements.
2. Staffing Levels: The program has 59 full-time benefit eligible employees. 3. Fleet Management: There are 45 motor vehicles assigned to the program. 4. Performance Measures: OPB worked with the agency to identify metrics for key program activities. The agency should continue to
develop relevant and measurable outcomes for its key activities 5. Budget Impact: Transfer $2,710,892 in state funds to other programs. See specific recommendations listed below.
Program Operations: 6. The Office Administration program budget includes funding from state, federal, and other fund sources. State funds are reported in the
appropriation bill; however, the agency typically amends federal and other funds into the budget in the third and fourth quarters of the fiscal year. To more accurately reflect budget and expenditures throughout the fiscal year, the department should amend the Annual Operating Budget (AOB) each quarter. Recommendation: Comply with the Office of Planning and Budget's AOB instructions, and submit quarterly amendments to more accurately reflect federal and other funds. 7. The Investigations subprogram accounts for 43% of the total Office Administration program budget and is responsible for enforcing rules and regulations related to professional licensing, corporations, elections, and securities. The subprogram consists of 18 POST-certified Criminal Investigators who receive complaints and investigate violations of Georgia regulations, 15 Complaint/Compliance Inspectors who conduct inspections of licensing applicants and existing license holders, and one general office support position. The Investigations subprogram services the entire agency and functions separately from the Administration subprogram's support services. Due to the law enforcement functions of the subprogram, it would be beneficial to create a separate Investigations program to provide more transparency and monitoring of the budget impact of the investigative section of the budget.

Office of Planning and Budget

254

01/16/2015

Secretary of State
ZBB Program: Office Administration
FY 2016 Zero-Based Budget Report
Recommendation: Transfer 34 positions, 37 motor vehicles, and $2,615,612 in state funds from the Office Administration program and create the Investigations program to function independently from the Office Administration program. 8. The Georgia Athletic and Entertainment Commission is currently budgeted in the Office Administration program. The Commission is responsible for regulating boxing, mixed martial arts, wrestling, and ticket brokers in Georgia. One person in the Administration program provides support for the Commission. In FY 2014, the Commission spent approximately $14,845 on total operating expenses. Other Professional Licensing Board programs are budgeted in the Professional Licensing Boards program and are administered by executive directors and other Board support personnel.
Recommendation: Transfer one position, $95,280 in state funds, and the Georgia Athletic and Entertainment Commission from the Office Administration program to the Professional Licensing Boards program. 9. Over the past several fiscal years, the agency has collected other funds throughout the fiscal year from miscellaneous service charges, which are not required to be immediately remitted to the state treasury. However, rather than utilizing these funds towards program operations, the program reserved the funds as retained revenue at the end of the fiscal year. Recommendation: In accordance with the state's policy on fund source spending order, the program should use other funds earned during the fiscal year, and not otherwise currently remitted to Treasury, for program expenditures prior to the use of state funds. Additionally, any state or other funds remaining unexpensed at fiscal year end should be remitted to the state treasury. 10. State agencies that collect fees and other revenue report the prior year collections into the User Fee Tracking System (UFTS) administered by OPB. The data is self-reported by the agencies to include the amount of collections, authority to collect the revenue, and information on whether the revenue was retained by the agency or remitted to Treasury. Data in the UFTS for the Secretary of State contains discrepancies and does not match general ledger records. Recommendation: Report accurate fee collections into the UFTS.

Office of Planning and Budget

255

01/16/2015

Secretary of State
ZBB Program: Office Administration
Key Activities and Alternative Approach

Key Activities (Listed in priority order as determined by Agency)

Activity Investigations and Inspections

Description

Authority

Enforces the laws pertaining to elections, professional licensing, and OCGA 10-1-1 et

securities. Receives complaints and investigates potential violations seq; 21-1-1 et

of Georgia regulations. Works with other local, state, and federal seq; 43-1-1 et

agencies in criminal matters. Conducts inspections for licensing

seq

applicants and existing license holders.

No. of Positions
34

FY 2015 State Funds
$2,615,612

FY 2015 Total Budget
$2,615,612

Zero Based Budget Review (State Funds)

Changes Recommendation

($2,615,612)

$0

Public Information and Agency Establishes policies and procedures necessary for the management OCGA 50-4-3;

3

782,625

785,702

0

Policies and Procedures

of agency operations. Supplies the public with the summary of

50-13-3

general amendments to the Constitution of Georgia to be printed

after the summary has been prepared. Maintains current maps of all

surveys, harbors, swamps, or land, and the official directory of state

and county officers.

782,625

Information Technology

Handles all information technology needs for the agency including: OCGA 50-4-3;

4

717,145

719,962

0

website development, licensing and certification IT support,

50-4-6;

elections IT monitoring, and daily IT support needs.

717,145

Administrative Support

Provides legal assistance, procurement, human resources, contract authority, accounting, budgeting, agency mail services, and other support services. Enters accounting, procurement, human resources, and budget information into statewide systems as requested by attached agencies.

OCGA 50-4-3; 50-4-6;

13

1,237,376

1,244,105

0

1,237,376

Press and Public Relations

Handles press items related to the Office of the Secretary of State as OCGA 50-4-3;

4

532,667

534,759

0

well as all relations with elected officials, capitol hill staff, and the 50-4-6;

public.

532,667

Office of Planning and Budget

256

01/16/2015

Secretary of State
ZBB Program: Office Administration
Key Activities and Alternative Approach

Key Activities (Listed in priority order as determined by Agency)

Activity

Description

Georgia Athletic and Entertainment Commission

Regulates all boxing, mixed martial arts, wrestling, and ticket brokers in Georgia.

Authority OCGA 43-4B-4; 43-4B-5; 43-4B7; 43-4B-50

No. of Positions
1

FY 2015 State Funds
95,280

FY 2015 Total Budget
95,655

Zero Based Budget Review (State Funds)

Changes Recommendation

(95,280)

0

Total

59

$5,980,705

$5,995,795 ($2,710,892)

$3,269,813

Alternative (Alternative approach to delivering program services as provided by the agency) No alternative approaches to program service delivery are recommended at this time.

Office of Planning and Budget

257

01/16/2015

Secretary of State
ZBB Program: Office Administration
Financial Summary

Objects of Expenditure Personal Services Regular Operating Expenses Motor Vehicle Purchases Equipment Computer Charges Real Estate Rentals Telecommunications Contractual Services Total Expenditures
Fund Type
State General Funds Other Funds Total Funds

Expenditures

FY 2013

FY 2014

$4,978,853

$4,834,207

287,998

339,297

FY 2015 Current Budget
$5,388,618 288,564

11,046 91,157 149,610 170,253 100,942 $5,789,859

170,852 140,659 137,207 233,507 $5,855,728

1,271 43,593 138,755 132,619
2,285 $5,995,705

Zero Based Budget Review

Changes

Recommendation

($2,382,780)

$3,005,838

(189,343)

99,221

0 (26,034) (58,195) (54,540)
0 ($2,710,892)

1,271 17,559 80,560 78,079
2,285 $3,284,813

$5,770,437 19,422
$5,789,859

$5,855,728 $5,855,728

$5,980,705 15,000
$5,995,705

($2,710,892) 0
($2,710,892)

$3,269,813 15,000
$3,284,813

Positions* Motor Vehicles

59

56

59

(35)

24

54

45

45

(37)

8

* Position counts shown under expenditures reflect the number of salaried, benefit eligible employees as of June 30 of that fiscal year.

Office of Planning and Budget

258

01/16/2015

Secretary of State
ZBB Program: Office Administration
Performance Measures
Agency Purpose: The Secretary of State serves as the custodian of the state flag and keeper of the Great Seal of Georgia. The office provides services to state citizens, agencies, local governments, and businesses. The services provided include the registration of voters, and the investigation, inspection, and enforcement of professional licenses, election activities, and securities regulations. Program Purpose: The purpose of this program is to provide adminstrative support to the Office of Secretary of State and its attached agencies.

Performance Measures 1. Number of completed investigations 2. Number of regular inspections 3. Fines collected 4. Number of audit findings 5. Agency turnover rate

FY 2011 1,309 9,459
$1,375,142 1
N/A

Actuals

FY 2012

FY 2013

1,355

1,087

8,866

12,907

$1,434,482 $2,664,550

1

1

N/A

N/A

FY 2014 988
11,258 $1,754,200
N/A N/A

Office of Planning and Budget

259

01/16/2015

FY 2016 Zero-Based Budget Analysis
Secretary of State ZBB Program: Professional Licensing Boards

Office of Planning and Budget

260

01/16/2015

Secretary of State
ZBB Program: Professional Licensing Boards
FY 2016 Zero-Based Budget Report
Purpose of Review The Professional Licensing Boards program provides administrative support to the various state licensing and regulation boards in carrying out their regulatory functions. The program works in conjunction with agency investigators and inspectors to ensure license holders are in compliance with rules and regulations governing their profession. The purpose of this review is to examine the most cost effective means in carrying out the statutory requirements of the program.
Results of Analysis 1. Statutory Alignment: Program activities are aligned with statutory requirements. 2. Staffing Levels: The program has 96 full-time benefit eligible employees. 3. Fleet Management: There are four motor vehicles assigned to the program. 4. Performance Measures: OPB worked with the agency to identify metrics for key program activities. The updated measures accurately
reflect the performance of the program. 5. Budget Impact: Increase state funds by $765,748. See specific recommendations listed below.
Program Operations: 6. The Secretary of State's office has one call center that handles calls for all programs. There are currently 24 total call center agents, with
16 of those staff members accounted for in the Professional Licensing Boards program. Customer service levels have improved over the past two fiscal years, even though call volume continues to increase. However, the FY 2014 average speed of answer of 13 minutes and the abandonment rate of 46% remain well above industry standards of 30 seconds and 7%, respectively. The agency routinely hires temporary staff during peak season months to assist with call volume. The agency is working on procuring a new phone system that should assist with handling calls. Current call center metrics and data do not exist or are not available to fully evaluate the effectiveness of the call center. Recommendation: Procure and implement call center software that allows for additional and more complete tracking of standard call center metrics. Consult with the Georgia Technology Authority and other state agencies for assistance in optimizing call center performance. Share updated metrics and data with OPB to determine if additional resources are warranted.

Office of Planning and Budget

261

01/16/2015

Secretary of State
ZBB Program: Professional Licensing Boards
FY 2016 Zero-Based Budget Report
7. The Professional Licensing Boards program processes licenses on behalf of boards for various professions regulated by the state. Currently, customer service representatives do not have the ability to process professional license applications over the telephone. Representatives provide guidance to applicants to complete the process online. Following this procedure increases telephone hold times for other customers. Recommendation: Evaluate the cost to implement technology that will allow customer service representatives to process licenses and accept payments from customers over the telephone.
8. Professional Licensing Board application records prior to 2008 are not digitized. The records are stored in a basement room prone to flooding. If the records are damaged during a flood event, there is no digital back up on file. Such records are requested from individuals seeking to reinstate expired licenses or during court proceedings. Application records are required to be kept on file in accordance with the state's records retention policy.
Recommendation: Prioritize funding to the extent possible, secure necessary equipment and staff, and begin digitization of corporations filings in accordance with the state's record retention policy. 9. The Georgia Athletic and Entertainment Commission is currently under the purview of the Office Administration program. The Board is responsible for regulating boxing, mixed martial arts, wrestling, and ticket brokers in Georgia. One person in the Administration program provides support for the Commission. In FY 2014, the Commission spent approximately $14,845 on operating expenses. Other professional licensing boards are located in the Professional Licensing Boards program and are collectively administered by several executive directors and other board support personnel. Recommendation: Transfer one position, $95,280 in state funds and the Georgia Athletic and Entertainment Commission from the Office Administration program to the Professional Licensing Boards program.

Office of Planning and Budget

262

01/16/2015

Secretary of State
ZBB Program: Professional Licensing Boards
FY 2016 Zero-Based Budget Report
10. Over the past several fiscal years, the agency has collected other funds throughout the fiscal year from miscellaneous service charges, which are not required to be immediately remitted to the state treasury. However, rather than utilizing these funds towards program operations, the program reserved the funds as retained revenue at the end of the fiscal year. The FY 2015 budget reduces the program's state funds appropriation by $373,717 and directs the program to utilize reserve funds for operations. The program is projected to collect approximately $440,398 in miscellaneous service charges in FY 2016. However, program expenditures are projected to exceed funds available, and all other prior year reserve funds have been expended. Recommendation: Increase state funds by $670,468 to cover projected program expenditures. Decrease other funds by ($373,355) to align budget with projected collections. In accordance with the state's policy on fund source spending order, the program should use other funds earned during the fiscal year, and not otherwise currently remitted to Treasury, for program expenditures prior to the use of state funds. Additionally, any state or other funds remaining unexpensed at fiscal year end should be remitted to the state treasury.

Office of Planning and Budget

263

01/16/2015

Secretary of State
ZBB Program: Professional Licensing Boards
Key Activities and Alternative Approach

Key Activities (Listed in priority order as determined by Agency)

Activity Application Processing and Administration

Description

Authority

Processes all applications for professional licensing. Reviews

OCGA 50-36-1;

applications, administers examinations, provides licenses to

43-1-19

qualified applicants, and regulates the professional practice licenses

throughout the state.

No. of

FY 2015

FY 2015

Positions State Funds Total Budget

61.7

$4,576,559

$5,122,721

Zero Based Budget Review (State Funds)

Changes Recommendation

$513,942

$5,090,501

Customer Service

Provides the public with knowledge about professional licensing upon request to allow for the request or renewal of licensing.

OCGA 50-36-1; 43-1-19

18.6

1,187,563

1,329,284

133,362

1,320,925

Application Intake

Receive and intake initial and renewal applications for professional OCGA 43-1-2;

licenses.

43-1-8

15.7

1,054,725

1,180,595

118,444

1,173,169

Total

96

$6,818,847

$7,632,600 $765,748

$7,584,595

Alternative (Alternative approach to delivering program services as provided by the agency) No alternative approaches to program service delivery are recommended at this time.

Office of Planning and Budget

264

01/16/2015

Secretary of State
ZBB Program: Professional Licensing Boards
Financial Summary

Objects of Expenditure Personal Services Regular Operating Expenses Motor Vehicle Purchases Equipment Computer Charges Real Estate Rentals Telecommunications Contractual Services Total Expenditures
Fund Type
State General Funds Other Funds Total Funds

Expenditures

FY 2013

FY 2014

$5,039,891

$5,383,510

724,635

744,886

FY 2015 Current Budget
$5,793,220 807,418

198,178 951,125 132,704
28,539 $7,075,073

19,675 344,109 965,392 119,833 281,064 $7,858,469

293,989 535,758 172,415
29,800 $7,632,600

Zero Based Budget Review

Changes

Recommendation

$65,768

$5,858,988

326,625

1,134,043

0 0 0 0 $392,393

293,989 535,758 172,415
29,800 $8,024,993

$6,919,106 155,967
$7,075,073

$7,188,275 670,194
$7,858,469

$6,818,847 813,753
$7,632,600

$765,748 (373,355) $392,393

$7,584,595 440,398
$8,024,993

Positions* Motor Vehicles

87

88

96

1

97

10

1

4

0

4

* Position counts shown under expenditures reflect the number of salaried, benefit eligible employees as of June 30 of that fiscal year.

Office of Planning and Budget

265

01/16/2015

Secretary of State
ZBB Program: Professional Licensing Boards
Performance Measures
Agency Purpose: The Secretary of State serves as the custodian of the state flag and keeper of the Great Seal of Georgia. The office provides services to state citizens, agencies, local governments, and businesses. The services provided include the registration of voters, and the investigation, inspection, and enforcement of professional licenses, election activities, and securities regulations. Program Purpose: The purpose of this program is to protect the public health and welfare by supporting all operations of boards which license professions.

Performance Measures 1. Number of licensed professionals regulated 2. Number of license renewals processed 3. Number of new applications processed 4. Board meeting expense (per diem and mileage) 5. Average number of days to process new applications 6. Average number of days to process renewal applications 7. Number of licenses renewed online 8. Percentage of licenses renewed online 9. Percentage of new applications approved 10. Total number of license revocations 11. Number of PLB call center calls offered 12. Number of PLB call center calls answered 13. Percentage of PLB call center calls abandoned 14. Average speed of PLB call center calls answered in minutes

FY 2011 1,121,905 187,873 58,871 $266,547
57
6 187,694
96% 83%
11 N/A N/A N/A N/A

Actuals

FY 2012

FY 2013

1,147,033

1,167,746

204,095

192,446

57,920

56,255

$248,022

$249,988

69

93

15

22

191,105

178,768

94%

93%

89%

75%

49

28

480,209

491,107

344,762

272,891

28%

44%

5:51

21:16

FY 2014 1,004,909 207,898 37,220 $271,706 21 20 190,283 92% 73% 9 760,441 413,430 46% 13:40

Office of Planning and Budget

266

01/16/2015

FY 2016 Zero-Based Budget Analysis
Secretary of State ZBB Program: Securities

Office of Planning and Budget

267

01/16/2015

Secretary of State
ZBB Program: Securities
FY 2016 Zero-Based Budget Report
Purpose of Review The Securities program administers and enforces the Georgia Uniform Securities Act of 2008. The program regulates all participants in the securities industry in the state, including individuals and firms selling securities and providing investment advice to the public. The purpose of this review is to evaluate the program's activities required by statute, in addition to the activities performed that are not required, in order to analyze the effectiveness of performing such activities.
Results of Analysis 1. Statutory Alignment: Program activities are aligned with statutory requirements. There are certain program activities that are performed
which are not statutorily required. 2. Staffing Levels: The program has eight full-time benefit eligible employees. 3. Fleet Management: There are no motor vehicles assigned to the program. 4. Performance Measures: OPB worked with the agency to identify metrics for key program activities. The updated measures accurately
reflect the performance of the program. 5. Budget Impact: Increase state funds by $121,210. See specific recommendations listed below.
Program Operations: 6. The Securities program is responsible for administering and enforcing the Georgia Securities Act. There are two auditors in the program
who are responsible for securities compliance audits and inspections of approximately 2,334 investment advisor firms and 13,247 investment advisors. Due to the complex nature of the audits, the auditors complete, on average, two audits a month. The auditors are required to complete an audit in less than 90 days, with a target goal of finishing in 60 days. Additionally, they must maintain a caseload of at least six audits at all times, focused more on large asset firms. The auditors have been instructed to write brief, concise audit reports and escalate any issues to the Securities program director involving firms that may prevent the timely completion of audits. Recommendation: Monitor and track the workload of the auditors to determine the need for additional resources, and submit the plan to OPB.

Office of Planning and Budget

268

01/16/2015

Secretary of State
ZBB Program: Securities
FY 2016 Zero-Based Budget Report
7. Over the past several fiscal years, the agency has collected other funds throughout the fiscal year from miscellaneous service charges, which are not required to be immediately remitted to the state treasury. However, rather than utilizing these funds towards program operations, the program reserved the funds as retained revenue at the end of the fiscal year. The FY 2015 budget reduced the program's state funds appropriation by $164,727 and directed the program to utilize reserve funds for operations. The program is projected to collect approximately $50,000 in miscellaneous service charges and settlements from federal securities cases in FY 2016. However, program expenditures are projected to exceed funds available, and all other prior year reserve funds have been expended. Recommendation: Increase state funds by $121,210 to cover projected program expenditures. In accordance with the state's policy on fund source spending order, the program should use other funds earned during the fiscal year, and not otherwise currently remitted to Treasury, for program expenditures prior to the use of state funds. Additionally, any state or other funds remaining unexpensed at fiscal year end should be remitted to the state treasury.
8. The Invest Georgia Exemption was adopted by the Secretary of State in December 2011. The exemption allows Georgia-based businesses to request an exemption in securities registration requirements. With the exemption, small businesses may issue securities to investors and raise up to $1 million, though no more than $10,000 may be invested by any single securities purchaser. In essence, small businesses can raise capital by issuing securities or ownership interest in their companies with minimal regulatory requirements and without going through a formal securities process. This process of raising funds is often referred to as "crowdfunding." Georgia is currently one of only six states with either a regulatory exemption or law allowing such an exemption. To date, 35 businesses have filed to receive the exemption. This exemption may serve as a valuable tool for new and small businesses. However, the Secretary of State's office does not require that companies disclose how much money was raised from the solicitation of funds, nor does the Secretary of State's office currently audit the businesses and funds raised. Recommendation: Conduct a program review to determine the outcomes of the program, including total invested dollars, current business positions, and investment outcomes.

Office of Planning and Budget

269

01/16/2015

Secretary of State
ZBB Program: Securities
FY 2016 Zero-Based Budget Report
9. The Secretary of State is designated as the Commissioner of Securities and the Secretary of State's office is charged with administering the Uniform Securities Act by Georgia law. The program is responsible for registering and inspecting financial advisors, firms, brokers, dealers, agents, cemeteries, and charities. Key activities of the program include processing registrations from financial institutions and maintaining a publicly accessible database and inspecting financial institutions to ensure compliance with state and federal laws and regulations. In similar fashion, the Department of Banking and Finance currently inspects banks, credit unions, mortgage entities, and money service businesses and establishes rules and regulations for the operation of such. The Department inspects banks and financial institutions at least once a year and has enforcement powers to impose fines, require corrective actions, and close banks when necessary. Consolidating the registration, regulation, and inspection of investment firms could create efficiencies and improve oversight. Recommendation: Investigate the feasibility of transferring the Securities program from the Secretary of State's office to the Department of Banking and Finance.

Office of Planning and Budget

270

01/16/2015

Secretary of State
ZBB Program: Securities
Key Activities and Alternative Approach

Key Activities (Listed in priority order as determined by Agency)

Authority

Activity

Description

Securities Administration

Processes initial registrations and renewals of broker-dealer firms OCGA 10-5-30

and agents, adviser firms and representatives, and federally covered et seq; 10-5-70

investment advisors, mutual funds, securities, and "private

et seq

placements" sold pursuant to SEC rule 506.

No. of

FY 2015

FY 2015

Positions State Funds Total Budget

3.30

$215,845

$244,111

Zero Based Budget Review (State Funds)

Changes Recommendation

$43,283

$259,128

Inspections and Investigations Reviews broker-dealer investment adviser records to ensure

OCGA 10-5-71

2.00

178,000

182,311

35,694

compliance with the Georgia Securities Act.

Fairness Hearings

Holds hearings for issuers of securities that are found to have violated the Georgia Securities Act.

OCGA 10-511(9)

0.35

47,462

51,389

9,517

213,694 56,979

Compliance Audits and Exams

Administers audits and exams of investment firms registered with OCGA 10-5-

2.00

115,689

125,259

23,199

the Commissioner to ensure compliance with the Georgia Securities 40(d); GA

Act.

Securities Rule

590-4-4-14(5)

138,888

Investor Education

Provides educational initiatives developed by the Securities

OCGA 10-5-70

0.35

Commissioner to inform the public about investing in securities and et seq

protecting against securities fraud.

47,462

51,388

9,517

56,979

Total
Alternative (Alternative approach to delivering program services as provided by the agency) No alternative approaches to program service delivery are recommended at this time.

8.00

$604,458

$654,458 $121,210

$725,668

Office of Planning and Budget

271

01/16/2015

Secretary of State
ZBB Program: Securities
Financial Summary

Objects of Expenditure Personal Services Regular Operating Expenses Motor Vehicle Purchases Equipment Computer Charges Real Estate Rentals Telecommunications Contractual Services Total Expenditures
Fund Type
State General Funds Other Funds Total Funds

Expenditures

FY 2013

FY 2014

$670,690

$562,391

32,538

83,278

FY 2015 Current Budget
$587,825 38,664

38,275 31,039
3,156 8,375 $784,073

7,506 35,755 35,451
3,950 46,014 $774,345

3,593
9,376 15,000 $654,458

Zero Based Budget Review

Changes

Recommendation

$0

$587,825

121,210

159,874

0
0 0 $121,210

3,593 0
9,376 15,000 $775,668

$765,236 18,837
$784,073

$767,484 5,861
$773,345

$604,458 50,000
$654,458

$121,210 0
$121,210

$725,668 50,000
$775,668

Positions* Motor Vehicles

20

8

8

0

8

7

* Position counts shown under expenditures reflect the number of salaried, benefit eligible employees as of June 30 of that fiscal year.

Office of Planning and Budget

272

01/16/2015

Secretary of State
ZBB Program: Securities
Performance Measures

Agency Purpose: The Secretary of State serves as the custodian of the state flag and keeper of the Great Seal of Georgia. The office provides services to state citizens, agencies, local governments, and businesses. The services provided include the registration of voters, and the investigation, inspection, and enforcement of professional licenses, election activities, and securities regulations.
Program Purpose: The purpose of this program is to provide for the administration and enforcement of the Georgia Securities Act, the Georgia Charitable Solicitations Act, and the Georgia Cemetery Act. Functions under each act include registration, examinations, investigations, and administrative enforcement actions.

Performance Measures 1. Fines collected 2. Number of securities offerings processed 3. Number of charities filings 4. Number of registered broker-dealers 5. Number of broker-dealer agents 6. Number of registered investment advisor firms 7. Number of registered investment advisor representatives 8. Number of securities investigations closed 9. Number of completed examinations of registered investment advisor firms 10. Average number of examinations conducted per auditor 11. Number of administrative orders issued

FY 2011 $3,000 N/A 4,012 2,266
149,240 2,232
10,291 N/A 29 14.5 N/A

Actuals

FY 2012

FY 2013

$5,321,132

$252,016

4,050

4,581

3,145

3,006

2,333

2,190

163,239

195,345

2,234

2,324

12,861

13,247

146

95

62

73

20.67

24

31

20

FY 2014 $190,999 3,014 4,604 2,046 166,351 2,292 11,377 63 73 24 21

Office of Planning and Budget

273

01/16/2015

FY 2016 Zero-Based Budget Analysis
Georgia Student Finance Commission ZBB Program: Engineer Scholarship

Office of Planning and Budget

274

01/16/2015

Georgia Student Finance Commission
ZBB Program: Engineer Scholarship
FY 2016 Zero-Based Budget Report
Purpose of Review The Engineer Scholarship provides service cancellable loans to students studying engineering at Mercer University in the amount of $1,750 a semester with a maximum borrow amount of $17,500. The program incentivizes students to study and work in engineering in the state of Georgia. The program aligns with the Governor's goal to increase student proficiency in science, technology, engineering, and mathematics (STEM) and encourage careers in related fields within the state. Originally a lottery funded program created in FY 1998, this program shifted to state general funds in FY 2012. The purpose of this review is to ensure the program is effective in meeting the needs of Georgia's students and encouraging economic development within the state.
Results of Analysis 1. Statutory Alignment: Program activities are aligned with statutory responsibilities. 2. Staffing Levels: There are no positions funded in this program. 3. Fleet Management: There are no motor vehicles assigned to the program. 4. Performance Measures: OPB worked with the agency to identify metrics for key program activities. The updated measures accurately
reflect the performance of the program. 5. Budget Impact: Reduce state funds by $105,000 to eliminate the program through attrition.
Program Operations: 6. Personal services and operating expenditures are funded through income received by the Georgia Student Finance Authority (GSFA)
($175,475 in other funds). 7. GSFA is responsible for managing and monitoring loan repayment and service cancellation. GSFA's current policy assumes approximately
80% of all service cancellable loans will be cancelled through service and 20% through cash repayment. This policy applies to all service cancellable loans GSFA administers and is not reflective of recent trends for the Engineer Scholarship. Recommendation: Adjust the policy for the Engineer Scholarship to better reflect assets and income from cash repayment for service cancellable loans.

Office of Planning and Budget

275

01/16/2015

Georgia Student Finance Commission
ZBB Program: Engineer Scholarship
FY 2016 Zero-Based Budget Report
8. When the Engineer Scholarship program started in 1997, only two public institutions, the University of Georgia and the Georgia Institute of Technology, offered undergraduate engineering programs. At that time, Mercer University was the only higher education institution in middle or south Georgia offering engineering programs. As of FY 2015, two additional public universities, Georgia Southern University and Southern Polytechnic State University, offer undergraduate engineering programs. Located in southeast Georgia, Georgia Southern University offers four engineering programs providing options for residents in middle and south Georgia. There are a total of 31 engineering programs offered at public institutions in Georgia compared to 12 in 1997.
9. The percentage of students repaying the engineer scholarship loan through service decreased by 14% from FY 2010 to FY 2014 to 33%. The percentage of students in cash repayment increased by 4% to 42%, and the percentage of students in forbearance or deferment increased by 8% to 25% over the same period of time. As of June 30, 2014, 132 students are in cash repayment, 104 in service cancellation, and 78 in forbearance or deferment totaling 314 outstanding loans. These rates indicate students are not using the program for its intended purpose. The eligible student population has alternative financing options available including the Low Interest Loans, HOPE Private Scholarship, and the Tuition Equalization Grant programs. Recommendation: Eliminate the Engineer Scholarship program through attrition by continuing to fund only current scholarship recipients. Reduce funds in FY 2016 by $105,000 for the 30 current recipients expected to graduate in FY 2015 and transfer funds to the Tuition Equalization Grant program. The final cohort funded by this program entered in FY 2015.

Office of Planning and Budget

276

01/16/2015

Georgia Student Finance Commission
ZBB Program: Engineer Scholarship
Key Activities and Alternative Approach

Key Activities (Listed in priority order as determined by Agency)

No. of

Activity

Description

Authority Positions

Scholarship for

Created in FY 1998, SEE loans of up to $1,750 per semester are

OCGA 20-3-313,

Engineering Education

awarded to undergraduate Georgia resident students in an

20-3-316

(SEE) Service

engineering-related field at Mercer University (Macon campus).

Cancelable Loans

Eligible students, who must maintain a 2.5 GPA, may receive a

maximum of $17,500 in SEE loans and can apply the funds to

tuition, fees, room and board, and other educational expenses. Loan amounts are canceled at a rate of $3,000 for each year worked in an engineering-related field. Any amounts not canceled through service are paid in cash plus interest. GSFC transfers the funding for

this program to Georgia Student Finance Authority, which services

the loans.

FY 2015

FY 2015

State Funds Total Budget

$785,250

$785,250

Zero Based Budget Review (State Funds)

Changes Recommendation

($105,000)

$680,250

Total

0

$785,250

$785,250 ($105,000)

$680,250

Alternative (Alternative approach to delivering program services as provided by the agency) Increase the HOPE and Zell Miller Scholarship award amounts to cover the cost. This would not cost less, but would be more efficient in processing one award.

Office of Planning and Budget

277

01/16/2015

Georgia Student Finance Commission
ZBB Program: Engineer Scholarship
Financial Summary

Objects of Expenditure Personal Services Regular Operating Expenses Motor Vehicle Purchases Equipment Computer Charges Real Estate Rentals Telecommunications Contractual Services Financial Aid- State Total Expenditures
Fund Type
State General Funds Total Funds

Expenditures

FY 2013

FY 2014

FY 2015 Current Budget

Zero Based Budget Review

Changes

Recommendation

$701,750 $701,750
$701,750 $701,750

$785,250 $785,250
$785,250 $785,250

$785,250 $785,250
$785,250 $785,250

($105,000) ($105,000)
($105,000) ($105,000)

$680,250 $680,250
$680,250 $680,250

Positions* Motor Vehicles
* Position counts shown under expenditures reflect the number of salaried, benefit eligible employees as of June 30 of that fiscal year.

Office of Planning and Budget

278

01/16/2015

Georgia Student Finance Commission
ZBB Program: Engineer Scholarship
Performance Measures
Agency Purpose: The Georgia Student Finance Commission (GSFC) administers state and lottery funded scholarship and grant programs. The mission of GSFC is to promote and increase access to education beyond high school for Georgia residents.
Program Purpose: The purpose of this appropriation is to provide forgivable loans to Georgia residents who are engineering students at Mercer University (Macon campus), and retain those students as engineers in the state.

Performance Measures 1. Number of students awarded forgivable loans per year 2. Average dollar amount per award 3. Percentage of students repaying loans through service 4. Number of recipient graduates per year

FY 2011 172
$3,266 44% N/A

Actuals

FY 2012

FY 2013

172

204

$3,205

$3,431

40%

33%

N/A

32

FY 2014 238
$3,234 33% 30

Office of Planning and Budget

279

01/16/2015

FY 2016 Zero-Based Budget Analysis
Georgia Student Finance Commission ZBB Program: Tuition Equalization Grants

Office of Planning and Budget

280

01/16/2015

Georgia Student Finance Commission
ZBB Program: Tuition Equalization Grants
FY 2016 Zero-Based Budget Report
Purpose of Review Established in 1973, Tuition Equalization Grant (TEG) is one of the state's longest operating student grant programs. The program provides grants to Georgia residents opting to attend eligible private postsecondary institutions in the state and supports the Governor's goal of increasing the percentage of Georgia residents who hold a postsecondary credential. The current grant amount is $350 a semester and $233 a quarter. An eligible student may receive three semester awards or four quarter awards a year for up to 127 semester hours or 190 quarter hours. The typical student receives two semester awards a year. As a result, the annual award amount refers to the award amount for two semesters, currently at $700. The original annual award amount in 1973 was $400 and the peak annual award amount was $1,200 in FY 2009. The purpose of this review is to ensure the efficient operation of the program and its continued success in encouraging Georgia residents to attend eligible private colleges in Georgia through grant assistance.
Results of Analysis 1. Statutory Alignment: Program activities are aligned with statutory responsibilities. 2. Staffing Levels: There are no positions funded in the program. 3. Fleet Management: There are no motor vehicles assigned to the program. 4. Performance Measures: OPB worked with the agency to identify metrics for key program activities. The updated measures accurately
reflect the performance of the program. 5. Budget Impact: Increase funds by $105,000 in order to increase the TEG award amount from $700 to $900 per year.

Office of Planning and Budget

281

01/16/2015

Georgia Student Finance Commission
ZBB Program: Tuition Equalization Grants
FY 2016 Zero-Based Budget Report
Program Operations: 6. The annual award amount has been $700 since FY 2012. Not adjusting for inflation, this is the lowest award amount since FY 1984. As
tuition rates have risen over the life of the program, the award amount has not increased proportionately. The number of grants awarded decreased by 3.7% in FY 2014. The Georgia Student Finance Authority (GSFA) granted $18.8M in awards in FY 2014, which was $2.4M below the FY 2014 budget. GSFA has the authority to defer state general funds received into the following fiscal year to fund other programs. In FY 2015, 76% of FY 2014's deferred revenue funded growth in the Accel program. Projections based on the current award amount of $700 per year predict a 3% decrease in the number of awards for FY 2015 and FY 2016 further decreasing the amount granted to students. Recommendation: Transfer funds from the Engineer Scholarship program ($105,000) and utilize any deferred revenue remaining after FY 2015 to increase the award amount from $700 to $900 a year (Total Funds: $2,626,328) to provide additional support for students.

Office of Planning and Budget

282

01/16/2015

Georgia Student Finance Commission
ZBB Program: Tuition Equalization Grants
Key Activities and Alternative Approach

Key Activities (Listed in priority order as determined by Agency)

Activity

Description

Tuition Equalization Grants

TEG provides grants of $350 per semester or $233 per quarter to Georgia resident students attending eligible private postsecondary institutions. With limited exceptions, students must be undergraduate students and enrolled full-time. There are no financial or merit requirements. Eligible institutions include both private not-for-profit and private for-profit institutions in Georgia.

No. of
Authority Positions OCGA 20-3-231, 20-3-410

FY 2015

FY 2015

State Funds Total Budget

$21,119,952 $21,119,952

Zero Based Budget Review (State Funds)

Changes Recommendation

$105,000

$21,119,952

Total

0 $21,119,952 $21,119,952 $105,000

$21,119,952

Alternative (Alternative approach to delivering program services as provided by the agency) The funds could be provided directly to the private institutions with sole discretion in awarding students; however, there would be no additional cost savings from this change.

Office of Planning and Budget

283

01/16/2015

Georgia Student Finance Commission
ZBB Program: Tuition Equalization Grants
Financial Summary

Objects of Expenditure Personal Services Regular Operating Expenses Motor Vehicle Purchases Equipment Computer Charges Real Estate Rentals Telecommunications Contractual Services Financial Aid-State Total Expenditures
Fund Type
State General Funds Other Funds Total Funds

Expenditures

FY 2013

FY 2014

FY 2015 Current Budget

Zero Based Budget Review

Changes

Recommendation

$20,176,108 $20,176,108
$20,176,108 529,727
$20,705,835

$21,119,952 $21,119,952
$21,119,952 $21,119,952

$21,119,952 $21,119,952
$21,119,952 $21,119,952

$105,000 $105,000
$105,000 $105,000

$21,224,952 $21,224,952
$21,224,952 $21,224,952

Positions* Motor Vehicles
* Position counts shown under expenditures reflect the number of salaried, benefit eligible employees as of June 30 of that fiscal year.

Office of Planning and Budget

284

01/16/2015

Georgia Student Finance Commission
ZBB Program: Tuition Equalization Grants
Performance Measures
Agency Purpose: The Georgia Student Finance Commission (GSFC) administers state and lottery funded scholarship and grant programs. GSFC's mission is to promote and increase access to education beyond high school for Georgia residents.
Program Purpose: The purpose of this program is to promote the private segment of higher education in Georgia by providing non-repayable grant aid to Georgia residents who attend eligible private postsecondary institutions.

Performance Measures 1. Number of awards granted per year 2. Average dollar amount per award 3. Number of students receiving the Tuition Equalization Grant

FY 2011 71,230 $324 36,537

Actuals

FY 2012

FY 2013

68,342

64,816

$302

$301

34,903

33,279

FY 2014 62,405 $302 31,843

Office of Planning and Budget

285

01/16/2015

FY 2016 Zero-Based Budget Analysis
Technical College System of Georgia ZBB Program: Quick Start and Customized Services

Office of Planning and Budget

286

01/16/2015

Technical College System of Georgia
ZBB Program: Quick Start and Customized Services
FY 2016 Zero-Based Budget Report
Purpose of Review The Quick Start and Customized Services program works with the Georgia Department of Economic Development to provide workforce development incentives to new and expanding businesses in the state. Quick Start's customized training, designed to meet each employer's needs, is nationally recognized as a unique incentive to attract new businesses and jobs to Georgia. Quick Start's Customized Services subprogram provides customized workforce training to existing businesses through the state's technical colleges for a fee. The purpose of this review is to analyze the program's effectiveness as an economic development tool for the state.
Results of Analysis 1. Statutory Alignment: Program activities are aligned with statutory responsibilities. 2. Staffing Levels: The program has 147 authorized positions and 131 full-time benefit eligible positions. See recommendation below. 3. Fleet Management: There are 4 vehicles assigned to the program. See recommendation below. 4. Performance Measures: OPB worked with the agency to identify metrics for key program activities. However, data for certain measures
were not available. The agency should track and record data to ensure accurate reporting of performance data in the future. 5. Budget Impact: Maintain the current funding level.
Program Operations: 6. Georgia Quick Start and Customized Services offers workforce development and training to businesses looking to relocate or expand
within Georgia with a focus on Georgia's strategic industries in biotech/healthcare, advanced manufacturing, logistics, agribusiness, automotive, and service sectors. The central office is co-located with the Department of Economic Development in order to better coordinate business recruitment strategies statewide. The program also has two regional offices in LaGrange and Savannah to meet workforce needs across the state. Quick Start separately manages three regional training centers for new and expanding industries in West Point, Athens, and Social Circle, and Vice Presidents of Economic Development oversee delivery of customized training programs at each of the state's 24 technical colleges.

Office of Planning and Budget

287

01/16/2015

Technical College System of Georgia
ZBB Program: Quick Start and Customized Services
FY 2016 Zero-Based Budget Report
Recommendation: Quick Start has relocated regional offices when necessary to meet changing business and economic needs across the state. By coordinating outreach to the business community at the state, regional, and local levels, Quick Start is able to quickly respond and adapt to technical training needs for large and small businesses across the state as a whole. In regions of the state with higher unemployment rates, Quick Start should continue to work with the Department of Economic Development and other partners to develop regional strategic plans to attract and retain businesses and support economic growth. 7. In FY 2015, Quick Start received a $1,225,000 bond for equipment for strategic project needs across the state. Historically, Quick Start has not received bond funding to meet broader training needs statewide, but instead has only received bonds for specific economic development projects. As a result, the program has no dedicated funding source that it can utilize to respond quickly to economic development project needs. Because Quick Start activities are targeted to assisting the external business community, the Technical College System is restricted in using other System general obligation (GO) bond proceeds for Quick Start projects or equipment as these GO bonds have historically been issued as tax-exempt debt and cannot be used to benefit a private entity. Recommendation: Provide an annual capital appropriation for the Quick Start program for equipment and infrastructure needs in order to establish an available source of project funding that could be used in conjunction with the Regional Economic Business Assistance (REBA) program and OneGeorgia grant and loan programs to attract and retain businesses to Georgia. Also, issue all general obligation debt for TCSG as taxable when feasible in order to allow the System maximum flexibility in utilizing proceeds to benefit economic development projects at System institutions. 8. TCSG currently receives two sources of federal funding that flow through the Quick Start and Customized Services program, representing 1.9% of total program funding. TCSG receives a Federal Mine Health and Safety Training block grant each year that supports annual training on mine and quarry safety and Occupational Safety and Health Administration (OSHA) standards at Oconee Fall Line Technical College and Chattahoochee Technical College. In addition, Georgia Northwestern Technical College, in conjunction with community and business leaders, received a WIA (Workforce Investment Act) 503 Incentive Grant beginning in state FY 2014 to provide resources to protect the regional flooring industry in Northwest Georgia. This grant is being used to develop training for skilled workers in critical needs areas such as Advanced Manufacturing, providing opportunities for professional growth and new jobs. Recommendation: Vice Presidents of Economic Development, who oversee the Customized Services program at each college, should work closely with local community and business leaders in their regions to identify and compete for Federal and nonprofit grants for which they qualify to support local workforce needs and foster job growth. 9. The authorized motor vehicle count of zero does not reflect the actual number of motor vehicles. Recommendation: Amend the current budget by four to accurately reflect four authorized motor vehicles.

Office of Planning and Budget

288

01/16/2015

Technical College System of Georgia
ZBB Program: Quick Start and Customized Services
FY 2016 Zero-Based Budget Report
10. The number of authorized positions does not reflect the actual number of positions. Recommendation: Amend the current budget by 16 to accurately reflect 131 authorized positions.

Office of Planning and Budget

289

01/16/2015

Technical College System of Georgia
ZBB Program: Quick Start and Customized Services
Key Activities and Alternative Approach

Key Activities (Listed in priority order as determined by Agency)

Activity

Description

Authority

Regional Operations - (Northern, Quick Start maintains regional operations to deliver services across OCGA 20-4-40

Western, and Eastern Regional the state. Regional centers, located in Atlanta, LaGrange, and

Offices)

Savannah coordinate and oversee delivery of workforce training for

businesses in their respective regions. Quick Start also operates

additional training centers to meet specific needs of new and

expanding industry; currently training centers are located in West

Point, Athens, and Social Circle.

No. of

FY 2015

FY 2015

Positions State Funds Total Budget

40

$5,950,000

$5,986,444

Zero Based Budget Review (State Funds)

Changes Recommendation

$0

$5,950,000

Project Support Operations

Provides information technology, equipment delivery, classroom set OCGA 20-4-42 up, maintenance and repair, telecommunications, mail and copier services, facility rental and storage, insurance, vehicle support, utilities, and administration to project activities and centers statewide.

5

2,760,300

2,760,300

0

2,760,300

Performance Tech Operations

Develops and delivers customized training designed to meet the specific organizational development needs of each individual client. The core of the educational and curriculum work of Quick Start is provided to produce highly-skilled workers and ensure that employers' workforce needs are met.

OCGA 20-4-41

Creative Services and Media Production

Designs and produces a wide range of materials and products required for the day-to-day operational needs of Quick Start. The creative team utilizes various media and technology to develop engaging materials such as job aids, manuals, presentations, technical illustrations, animations, videos, and 3-D products.

OCGA 20-4-42

9

1,880,500

1,880,500

12

1,542,600

1,542,600

0

1,880,500

0

1,542,600

Office of Planning and Budget

290

01/16/2015

Technical College System of Georgia
ZBB Program: Quick Start and Customized Services
Key Activities and Alternative Approach

Key Activities (Listed in priority order as determined by Agency)

Activity

Description

Marketing/Communications

Meets with prospective new businesses to describe the program's services to client companies. This team works strategically to incentivize businesses to invest in Georgia and create jobs in the state.

Authority OCGA 20-4-42

No. of

FY 2015

FY 2015

Positions State Funds Total Budget

3

448,400

448,400

Zero Based Budget Review (State Funds)

Changes Recommendation

0

448,400

Customized Business and Industry Training

Customized corporate contract training is delivered by individual OCGA 20-4-47 technical colleges for a fee. The technical colleges analyze company needs, design, develop, and deliver customized training for existing Georgia businesses. The funds generated by this service support the local economic development activities undertaken by the individual technical colleges.
Total

62

261,282

10,455,997

131 $12,843,082 $23,074,241

0

261,282

$0

$12,843,082

Alternative (Alternative approach to delivering program services as provided by the agency) No alternative approaches to program service delivery are recommended at this time.

Office of Planning and Budget

291

01/16/2015

Technical College System of Georgia
ZBB Program: Quick Start and Customized Services
Financial Summary

Objects of Expenditure Personal Services Regular Operating Expenses Motor Vehicle Purchases Equipment Computer Charges Real Estate Rentals Telecommunications Contractual Services Total Expenditures
Fund Type
State General Funds Federal Funds Other Funds Total Funds

Expenditures

FY 2013

FY 2014

$11,794,857

12,324,278

3,066,158

2,726,483

17,887

72,618

211,945

852,037

223,723

375,961

696,310

701,584

170,151

150,829

3,069,798

2,904,560

$19,250,830

20,108,350

FY 2015 Current Budget
$13,174,241 4,550,000 75,000 850,000 475,000 725,000 155,000 3,070,000
$23,074,241

Zero Based Budget Review

Changes

Recommendation

$0

$13,174,241

0

4,550,000

0

75,000

0

850,000

0

475,000

0

725,000

0

155,000

0

3,070,000

$0

$23,074,241

$12,207,005 113,713
6,930,113 $19,250,830

12,662,243 176,080
7,270,027 20,108,350

$12,843,082 441,458
9,789,701 $23,074,241

$0

$12,843,082

0

441,458

0

9,789,701

$0

$23,074,241

Positions* Motor Vehicles

117

128

147

(16)

131

0

4

4

* Position counts shown under expenditures reflect the number of salaried, benefit eligible employees as of June 30 of that fiscal year.

Office of Planning and Budget

292

01/16/2015

Technical College System of Georgia
ZBB Program: Quick Start and Customized Services
Performance Measures

Agency Purpose: The Technical College System of Georgia provides technical, academic, and adult education and training focused on building a well-educated, globally competitive workforce for Georgia.

Program Purpose: The purpose of this program is to promote job creation and retention by developing and delivering customized workforce training for Georgia businesses during start-up, expansion, or when they make capital investments in new technology, processes, or product lines in order to remain competitive in the global marketplace.

Performance Measures 1. Number of Quick Start projects delivered 2. Number of jobs created in Georgia with the assistance of Quick Start 3. Number of individuals successfully trained by Quick Start 4. Number of completed training-related materials produced 5. Average number of jobs created per project 6. Average support cost per project 7. Number of meetings and presentations to prospect companies and representatives 8. Number of informational marketing/communications materials developed and distributed 9. Number of unique companies served through customized business and industry training at technical colleges

FY 2011 168
9,507 98,544*
N/A 57
$16,149 N/A
N/A
2,445

Actuals

FY 2012

FY 2013

161

133

8,622

9,431

57,993

60,155

N/A

N/A

54

71

$18,568

$16,844

N/A

N/A

N/A

N/A

2,844

2,932

FY 2014 123
6,928 53,316
N/A 56
$17,123 68
13,690
3,172

* FY 2011 includes training services provided for a large scale manufacturing operation.

Office of Planning and Budget

293

01/16/2015

FY 2016 Zero-Based Budget Analysis
Department of Transportation ZBB Program: Intermodal

Office of Planning and Budget

294

01/16/2015

Department of Transportation
ZBB Program: Intermodal
FY 2016 Zero-Based Budget Report
Purpose of Review The Department of Transportation plans, constructs, maintains, and improves the state's roads and bridges, and provides planning and financial support for other modes of transportation. The purpose of this review is to evaluate the program's effectiveness and efficiency in achieving its overall goal of supporting the planning, development, and maintenance of Georgia's Airports, Rail, Transit, Ports, and Waterways.
Results of Analysis 1. Statutory Alignment: Program activities are aligned with statutory responsibilities. 2. Staffing Levels: The program has 27 full-time benefit eligible employees. 3. Fleet Management: There are 54 authorized motor vehicles and 56 actual motor vehicles assigned to the program. 12 motor vehicles are
used by program staff, eight transit vehicles are available for local governments to short-term lease, and 36 buses are under long-term leases with bus lines to provide intercity bus service. See specific recommendation below. 4. Performance Measures: OPB worked with the agency to identify metrics for key program activities. The updated measures accurately reflect the performance of the program. 5. Budget Impact: Reduce funds by $5,351,719.
Program Operations: 6. In 1999, the federal government and the Georgia Department of Transportation (GDOT) entered into an agreement in which GDOT would
act as the non-federal sponsor for construction of the existing navigation channel in the Port of Savannah and Port of Brunswick. Per this agreement, GDOT is responsible for 35% of total construction costs related to dredged material disposal facilities for the Port of Savannah and Port of Brunswick. The US Army Corps of Engineers (USACE) is responsible for the remaining 65% of construction costs, as well as 100% of operation and maintenance costs associated with the continuous dredging of material. Material dredged from the Savannah River is contained in Dredged Material Containment Areas (DMCA's), which are located on land owned by GDOT. USACE determines when the areas are at capacity and the dikes surrounding the area need to be raised. As a result, GDOT has been notified by USACE that there will be costs associated with dike raising projects in FY 2016.
Recommendation: Provide $4,664,450 in General Obligation bonds to fund the Savannah Harbor dike raising project.

Office of Planning and Budget

295

01/16/2015

Department of Transportation
ZBB Program: Intermodal
FY 2016 Zero-Based Budget Report
7. The Intermodal program updates the State Rail Plan approximately every five years. The plan, last updated in 2009, documents the existing passenger and freight rail network, identifies deficiencies, and provides policy recommendations. The next update will be completed in December 2014. The State Rail Plan is an effort to comply with federal mandates required by the Passenger Rail Investment and Improvement Act of 2008. The Rail priority project list is updated annually and should take into consideration the analysis performed in the plan; projects should be funded according to the priority list. Recommendation: Annually update the Rail priority project list and the status of current projects, and provide to OPB as part of the annual budget submission.
8. The Intermodal program updates the Statewide Aviation System Plan approximately every ten years. The Statewide Aviation System Plan, last updated in 2003, consists of an overview of the existing airport system, an analysis of the current service and passenger demand, deficiencies in service, maintenance needs, and estimated costs associated with recommended improvements. The next Aviation System Plan update should be published in 2015. The Airport Aid priority project list is updated annually and should take into consideration the analysis performed in the plan; projects should be funded according to the priority list.
Recommendation: Update annually the Airport Aid priority project list and the status of current projects, and provide to OPB upon notification of federal eligibility. 9. The FY 2014 budget included $8,000,000 in the Intermodal program for regional airport projects. These funds were used to fund runway extension projects in Hinesville and Tifton that were not eligible for federal funding. Recommendation: Reduce funds for grants and benefits by $5,351,719. 10. The Intermodal program assists local governments in completing airport maintenance and capital improvement projects. GDOT's rules and regulations suggest that the agency should provide no more than 50% in state funds towards the non-federal share of project costs for airport capital improvement projects. In FY 2015, the agency provided 75% in state general funds towards the non-federal share of project costs for airport capital improvement projects. Recommendation: Revise current practices to coincide with agency rules regarding the maximum contribution of state funds for airport capital improvement projects. 11. The program's budgeted fleet does not accurately reflect the number of vehicles associated with this program. There are 54 authorized motor vehicles, but there are actually 56 motor vehicles budgeted in the program. Recommendation: Perform an annual review of fleet inventory to ensure they are linked to the appropriate program for budget and expense purposes. Amend the authorized motor vehicle count to reflect the correct number of vehicles budgeted in the program.

Office of Planning and Budget

296

01/16/2015

Department of Transportation
ZBB Program: Intermodal
Key Activities and Alternative Approach

Key Activities (Listed in priority order as determined by Agency)

Activity Airport Aid
Ports and Waterways

Description

Authority

Performs biennial safety inspections and assesses a $100 per

OCGA 32-2-2,

runway licensing fee; conducts annual statewide planning studies in 32-9-7, 32-9-8

order to catalog and assess individual airports and recommend

improvements; awards federal and state grants to publicly owned

local airports for maintenance and improvement projects;

Administers the Federal Aviation Administration's State Block Grant Program; publishes state aeronautical chart every odd numbered year; publishes state airport directory every even numbered year;

maintains the Statewide Aviation System Plan.

Serves as the state sponsor for the US Army Corps of Engineers dike OCGA 32-2-2 raising/port deepening projects, and manages the Dredged Material Containment Areas near the Port of Savannah and the Port of Brunswick.

Rail

Produces the State Rail Plan, generates rail planning studies, and OCGA 32-9-6,

manages rail leases.

46-9-291

Transit

Administers state and federal formula grant programs for 15

OCGA 32-2-2,

Metropolitan Planning Organizations (MPO) and 122 Rural and Small 32-9-10

Urban Transit Systems; administers the Federal Transit Authority's

(FTA) Intercity bus program and rural training assistance program;

conducts statewide transit planning systems and data collection;

coordinates rural human services transportation with other state

agencies including the Department of Human Services (DHS) and the

Department of Community Health (DCH); and administers FTA State

Safety Oversight program for fixed guideway rail.

No. of

FY 2015

FY 2015

Zero Based Budget Review (State Funds)

Positions State Funds Total Budget Changes Recommendation

5 $10,598,291 $46,141,643 ($5,351,719)

$5,246,572

1

856,243

856,243

2

363,590

451,829

19

3,210,353

34,540,720

0

856,243

0

363,590

0

3,210,353

Total
Alternative (Alternative approach to delivering program services as provided by the agency) No alternative approaches to program service delivery are recommended at this time.

27 $15,028,477 $81,990,435 ($5,351,719)

$9,676,758

Office of Planning and Budget

297

01/16/2015

Department of Transportation
ZBB Program: Intermodal
Financial Summary

Objects of Expenditure Personal Services Regular Operating Expenses Motor Vehicle Purchases Equipment Computer Charges Real Estate Rentals Telecommunications Contractual Services Capital Outlay Grants and Benefits Indirect Costs Total Expenditures
Fund Type
State General Funds Federal Funds Federal Recovery Funds Other Funds Total Funds

Expenditures

FY 2013

FY 2014

$2,228,616

$2,453,873

1,095,163

1,491,371

161,300

FY 2015 Current Budget
$2,683,522 1,516,915

72,892 82

11,190 7,068

22,567

1,299,864 9,441,477 79,341,498
2,009 $93,642,901

4,950,878 5,487,516 61,879,107
382 $76,281,385

865,000 76,902,431 $81,990,435

Zero Based Budget Review

Changes

Recommendation

$0

$2,683,522

0

1,516,915

0

22,567

0 (5,351,719) ($5,351,719)

865,000 71,550,712 $76,638,716

$5,975,596 67,078,575
9,542,212 11,046,518 $93,642,901

$7,256,544 59,138,357
83,180 9,803,304 $76,281,385

$15,028,477 66,861,369
100,589 $81,990,435

($5,351,719) 0
0 ($5,351,719)

$9,676,758 66,861,369
100,589 $76,638,716

Positions* Motor Vehicles

31

31

27

0

27

166

54

54

0

54

* Position counts shown under expenditures reflect the number of salaried, benefit eligible employees as of June 30 of that fiscal year.

Office of Planning and Budget

298

01/16/2015

Department of Transportation
ZBB Program: Intermodal
Performance Measures
Agency Purpose: The Department of Transportation plans, constructs, maintains, and improves the state's roads and bridges and provides planning and financial support for other modes of transportation.

Program Purpose: The purpose of this program is to support the planning, development, and maintenance of Georgia's Airports, Rail, Transit, and Ports and Waterways to facilitate a complete, connected, and seamless statewide transportation system.

Performance Measures 1. Percentage of airports meeting state licensing requirements (target 95%) 2. Percentage of airports with instrument approaches (target 95%) 3. Percentage of airports with runway lengths meeting system plan development goals (target 95%)
4. Number of transit contracts provided to sub recipients 5. Percentage of counties covered by transit contracts 6. Number of days occurring between the receipt of Federal Transit Authority
funds and the execution of Local Transit contracts
7. Number of track miles rehabilitated 8. Percentage of state funds used to leverage federal matching dollars for
airport maintenance and improvement projects 9. Value of state funded grant awards for airport maintenance and
improvement projects

FY 2011 89% 85%
81%

Actuals

FY 2012

FY 2013

88%

87%

87%

87%

82%

84%

FY 2014 85% 87%
85%

278

370

279

187

N/A

N/A

70%

77%

N/A

N/A

30

30

N/A

N/A

26

38

100%

100%

88%

91%

$1,087,899 $1,470,952 $1,472,174 $2,178,795

Office of Planning and Budget

299

01/16/2015

FY 2016 Zero-Based Budget Analysis
Department of Transportation ZBB Program: Local Maintenance and Improvement Grants

Office of Planning and Budget

300

01/16/2015

Department of Transportation
ZBB Program: Local Maintenance and Improvement Grants
FY 2016 Zero-Based Budget Report
Purpose of Review The Local Maintenance and Improvement Grants (LMIG) program assists local governments with funding local transportation projects and provides local governments with the resources needed for engineering and construction. The purpose of this review is to evaluate the operations of this program in order to identify any potential operating efficiencies.
Results of Analysis 1. Statutory Alignment: Program activities are aligned with statutory responsibilities. 2. Staffing Levels: There are no positions funded in this program.
3. Fleet Management: There are no motor vehicles assigned to the program. 4. Performance Measures: OPB worked with the agency to identify metrics for key program activities. The updated measures accurately
reflect the performance of the program. 5. Budget Impact: Maintain the current funding level.
Program Operations: 6. State law requires the Georgia Department of Transportation (GDOT) to provide 10% to 20% of annual state motor fuel collections to
Georgia's 159 counties and 532 city governments through the Local Maintenance and Improvement Grants (LMIG) program. By state law, Motor Fuel Funds can only be used for roadway and bridge projects. Grant awards are determined by a formula based on the city's or county's road miles and population. In May of each year, local governments receive notification of their grant award for the upcoming fiscal year. The local governments must submit an application for approval of projects to the Local Grants Office by the beginning of each fiscal year. Each region's local government must provide a 30% match, or a 10% match for the Transportation Investment Act (TIA) regions. As a result of the allocation formula, the median grant award a county received in FY 2014 was $432,296 and the median grant award a city received was $25,060. Approximately 80% of the projects approved in FY 2014 were road resurfacing projects. Other projects included bridge rehabilitations, road striping, and intersection improvements. 7. Grants are processed by 13 positions, including engineers and business operations generalists, funded in the Construction Administration program. These positions also administer grant funds for the Local Road Assistance Administration program. Applications are reviewed to ensure cost estimates are reasonable, projects are in compliance with Motor Fuel Funds use, and applications are in compliance with the State Audit Act and Service Delivery Act. The Department also provides guidance and technical support to locals when developing their project lists.

Office of Planning and Budget

301

01/16/2015

Department of Transportation
ZBB Program: Local Maintenance and Improvement Grants
FY 2016 Zero-Based Budget Report
8. GDOT has very little oversight on projects once an application is approved and the grant is awarded. Local governments are responsible for all preliminary engineering, right of way, and construction activities. Projects are audited at completion to ensure that they are complete, there are no premature deficiencies, and they match the approved project list. No standardized requirements exist related to project completion timeframe. Recommendation: Continue to monitor projects for completion and create benchmarks for the completion of projects. Consider including these benchmarks as standards for future fiscal year awards and projects.

Office of Planning and Budget

302

01/16/2015

Department of Transportation
ZBB Program: Local Maintenance and Improvement Grants
Key Activities and Alternative Approach

Key Activities (Listed in priority order as determined by Agency)

Activity

Description

Authority

Local Maintenance and Improvement Grants

Formula-based grants to provide funding for capital outlay to local OCGA 32-5-27 governments for local road and bridge projects, which could include striping, resurfacing, and intersection improvements.

No. of Positions

FY 2015

FY 2015

State Funds Total Budget

$122,470,000 $122,470,000

Zero Based Budget Review (State Funds)

Changes Recommendation

$0

$122,470,000

Total

0 $122,470,000 $122,470,000

$0

$122,470,000

Alternative (Alternative approach to delivering program services as provided by the agency) No alternative approaches to program service delivery are recommended at this time.

Office of Planning and Budget

303

01/16/2015

Department of Transportation
ZBB Program: Local Maintenance and Improvement Grants
Financial Summary

Objects of Expenditure Personal Services Regular Operating Expenses Motor Vehicle Purchases Equipment Computer Charges Real Estate Rentals Telecommunications Contractual Services Capital Outlay Grants and Benefits Total Expenditures
Fund Type
Motor Fuel Funds Prior Year Motor Fuel Funds Total Funds
Positions Motor Vehicles

Expenditures

FY 2013

FY 2014

FY 2015 Current Budget

Zero Based Budget Review

Changes

Recommendation

$1,398,767 153,627,195 $155,025,962

$3,056,990 125,635,389 $128,692,379

$122,470,000 $122,470,000

$109,988,081 45,037,881
$155,025,962

$121,353,229 7,339,150
$128,692,379

$122,470,000 $122,470,000

$0

$122,470,000

$0

$122,470,000

$0

$122,470,000

$0

$122,470,000

Office of Planning and Budget

304

01/16/2015

Department of Transportation
ZBB Program: Local Maintenance and Improvement Grants
Performance Measures
Agency Purpose: The Department of Transportation plans, constructs, maintains, and improves the state's roads and bridges, and provides planning and financial support for other modes of transportation.

Program Purpose: The purpose of this program is to assist local governments with funding local transportation projects and providing local governments with the resources needed for engineering and construction.

Performance Measures 1. Total number of projects funded

FY 2011 563

Actuals

FY 2012

FY 2013

561

592

FY 2014 609

Office of Planning and Budget

305

01/16/2015

FY 2016 Zero-Based Budget Analysis
State Board of Workers' Compensation ZBB Program: Board Administration

Office of Planning and Budget

306

01/16/2015

State Board of Workers' Compensation
Board Administration
FY 2016 Zero-Based Budget Report
Purpose of Review The purpose of this review is to identify areas of cost savings for the Board Administration program and to better align funding.
Results of Analysis 1. Statutory Alignment: Program activities are aligned with statutory responsibilities. 2. Staffing Levels: The program has 19 full-time benefit eligible employees. 3. Fleet Management: There is one motor vehicle assigned to the program. 4. Performance Measures: OPB worked with the agency to identify metrics for key program activities. The updated measures accurately
reflect the performance of the program. 5. Budget Impact: Reduce funds by $725,427. See recommendations below.
Program Operations: 6. This program is funded entirely by assessments of the insurance companies and self-insured companies of Georgia. This amount is
remitted to Treasury, and is then appropriated by the legislature to the agency for operations. 7. In FY 2014 the telecommunications budget was increased by $449,429 to reflect an adjustment in expenses. However, expenses were not
as large as anticipated. Recommendation: Reduce telecommunications by $150,000. 8 The payment to the State Treasury was originally set-up on a temporary basis when budgets were being cut due to revenue shortfalls. Now that across the board cuts have expired, the same should happen to the payments to State Treasury. In the FY 2015 budget, the payment to the State Treasury was decreased by $575,427; from $5,303,747 to $4,728,320. Recommendation: Reduce payment by $575,427 and evaluate the need for further reductions. Recommendation: Any year where there is a payment to the State Treasury to be made, OPB should not allot a portion of the appropriation equal to that payment until the final period. This will allow the state to earn more interest.

Office of Planning and Budget

307

01/16/2015

State Board of Workers' Compensation
Board Administration
Key Activities and Alternative Approach

Key Activities (Listed in priority order as determined by Agency)

Activity Executive Management

Description

Authority

Oversees the day-to-day operations of the State Board of Workers' OCGA 34-9-40

Compensation which includes, but not limited to, the Administration et.seq

Program.

No. of

FY 2015

FY 2015

Positions State Funds Total Budget

2.0

$533,032

$533,032

Zero Based Budget Review (State Funds)

Changes Recommendation

$0

$533,032

Accounting

Maintains and accounts for all income and expenditures, which

OCGA 34-9-40

1.0

291,827

291,827

0

includes the processing of vendor invoices on a daily basis. Audits et.seq

employee travel expenses and processes ACH payments. Reconciles

all TeamWorks financial transactions within subsidiary modules on a

monthly basis.

291,827

Budgeting

Prepares the Annual Operating Budget and submits all allotments OCGA 34-9-40

1.0

234,360

434,360

0

and amendments to the budget.

et.seq

234,360

Purchasing

Purchases all supplies and equipment and maintains adequate

OCGA 34-9-40

1.0

192,763

192,763

0

inventory levels.

et.seq

192,763

Human Resources Billing Assessment

Is responsible for traditional HR Services, including payroll

OCGA 34-9-40

2.0

449,903

449,903

0

processing, recruitment of qualified individuals, retention of

et.seq

valuable employees, training, development and education to

promote individual success, provide a safe and healthful working

environment, and provide an effective communication and feedback

environment.

Prepares and mails invoices on a daily basis for file copies as

OCGA 34-9-40

1.0

136,208

201,687

0

requested by attorney offices representing clients involved in

et.seq

Workers' Compensation injury claims. Collects and deposits funds

received for payment of said invoices and monitors collection

activities to ensure all accounts are paid within 30-60 days.

Assesses over 800 insurance companies and self-insurers for the OCGA 34-9-63

1.5

155,698

155,698

0

Board's operational funds. The assessment process includes

et.seq

underwriting a premium calculation for approximately 400 self-

insurers.

449,903 136,208 155,698

Office of Planning and Budget

308

01/16/2015

State Board of Workers' Compensation
Board Administration
Key Activities and Alternative Approach

Key Activities (Listed in priority order as determined by Agency)

Activity Stakeholder Training

Description

Authority

Responsible for the development of quality educational programs OCGA 34-9-40

and reference materials for all parties affected by the Georgia

et.seq

Workers' Compensation Law. Currently, one large conference is held

annually with six regional seminars held throughout the state.

No. of

FY 2015

FY 2015

Positions State Funds Total Budget

1.5

$221,418

$221,418

Zero Based Budget Review (State Funds)

Changes Recommendation

$0

$221,418

Informational Technology
Payments to State Treasury

The IT staff provides the support for all the Boards applications and OCGA 34-9-40

functions, including ICMS, email, fax scanning, telephone, and

et.seq

network connectivity. Helpdesk support, security, and backup are

maintained in our on-site data center. The team is currently focused

on upgrading ICMS I for improvements in stability and efficiency to

ICMS II.

Funding to cover percentage decreases in budget and for payments for various state services.

8.0

3,600,365

3,600,365 (150,000)

0.0

4,728,320

4,728,320 (575,427)

3,450,365 4,152,893

19 $10,543,894 $10,809,373 ($725,427)

$9,818,467

Alternative (Alternative approach to delivering program services as provided by the agency) No alternative approaches to program services delivery are recommended at this time.

Office of Planning and Budget

309

01/16/2015

State Board of Workers' Compensation
Board Administration
Financial Summary

Objects of Expenditure Personal Services Regular Operating Expenses Motor Vehicle Purchases Equipment Computer Charges Real Estate Rentals Telecommunications Contractual Services Payment to State Treasury Total Expenditures
Fund Type
State General Funds Other Funds Total Funds

Expenditures

FY 2013

FY 2014

$2,166,254

$1,792,229

371,479

338,012

FY 2015 Current Budget
$1,912,928 399,086

17,169 389,461 1,273,496 304,050 1,126,395 5,303,747 $10,952,052

20,163 479,361 1,304,233 285,190 1,573,801 5,303,747 $11,096,736

244,212 1,319,591
476,222 1,529,014 4,728,320 $10,609,373

Zero Based Budget Review

Changes

Recommendation

$0

$1,912,928

0

399,086

0 0 (150,000) 0 (575,427) ($725,427)

244,212 1,319,591
326,222 1,529,014 4,152,893 $9,883,946

$10,662,573 289,479
$10,952,052

$11,031,257 65,479
$11,096,736

$10,543,894 65,479
$10,609,373

($725,427) 0
($725,427)

$9,818,467 65,479
$9,883,946

Positions* Motor Vehicles

19

19

19

1

1

1

0

19

0

1

* Position counts shown under expenditures reflect the number of salaried, benefit eligible employees as of June 30 of that fiscal year.

Office of Planning and Budget

310

01/16/2015

State Board of Workers' Compensation
Board Administration
Performance Measures
Agency Purpose: To administer the workers' compensation law under Title 34-9-40 of the State of Georgia.
Program Purpose: The purpose of this program is to provide the administrative functions for the State Board of Workers' Compensation.

Performance Measures 1. Total payments processed 2. Number of audit findings 3. Employee turnover rate 4. Average days to make a payment 5. Percentage of payments made electronically

FY 2011 1,771 N/A 0% 1.5 6%

Actuals

FY 2012

FY 2013

1,784

1,796

N/A

N/A

0%

21%

1.5

1.5

7%

63%

FY 2014 1,626 N/A 16% 1.5 83%

Office of Planning and Budget

311

01/16/2015

Governor's O ce of
PLANNING AND BUDGET
THE STA TE OF GEORGI A
#2 CAPITOL SQUARE | ATLANTA, GA 30334 | 404.656.3820 | OPB.GEORGIA.GOV