Hutchinson orders agencies to help private foundation conduct state ‘Efficiency’ study (Updated)

Editor’s note: Story updated to include more information about the efficiency study and a review of the Arkansas Department of Human Services.

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Gov. Asa Hutchinson (R) onThursday (Dec. 17) ordered all state agency directors to assist the Arkansas Policy Foundation in a review of state government, an effort it is calling the Efficiency Project.

Also, Hutchinson announced he is undertaking an organizational review of the Department of Human Services led by Lt. Governor Tim Griffin.

Hutchinson said he was approached by the foundation about the Efficiency Project. Agency directors will appoint a person to coordinate with the work, which will make recommendations to streamline state government and make it more cost-effective.

“I actually expect the report to come back with two-thirds of the items are items that we ought to do,” he said in announcing the effort at the Little Rock Club. “Maybe one-third of them are things that we can politically do. And maybe one-third will be ideas that really are not right for this time. And so it doesn’t mean that all of the ideas that will be presented will be adopted, but it means that all of the ideas that are presented should be considered, and many of them will be adopted.”

The foundation conducted a study of state government in the 1990s, the Murphy Commission, that was led by oilman Madison Murphy.

Greg Kaza, executive director of the Arkansas Policy Foundation, said the foundation hopes to issue its report by fall 2016. He said about a dozen volunteers have begun researching state government and about two dozen eventually will be involved. The volunteers, who will write the reports, have backgrounds in the private sector, think tanks and academia. The goal, he said, is “to identify efficiencies in Arkansas state government.”

He said the foundation is reaching out to people inside and outside government and will have a place on its website for people to make comments.

Hutchinson said his own reforms have included a hiring freeze that has resulted in 300 fewer state employees, and a reorganization of four state agencies, saving $25 million over 10 years.

Meanwhile, Hutchinson has asked Griffin to review the organizational structure of DHS and look for duplicative services, find greater efficiencies, and look for areas that might lack sufficient resources. The review is to be completed by March 1 as the next DHS director starts work.

Hutchinson said he hoped to have a decision for replacing the current DHS director, John Selig, by the end of January, “but it could slide a little bit.” He said Selig has agreed to stay in the job until the new director is in place. He has not interviewed anyone for the position yet.

In a press release, Hutchinson said Griffin will not review information technology or contracts, which instead will be reviewed separately by the governor’s office and the Legislature.