JOURNAL TRIBUNE WEEKEND
Guest Column Janice Lachance
FEDS ARE SAVING MONEY
Happy New Year! If that seems premature, remember that the federal government's 1998 fiscal year began Oct. 1 and runs through Sept. 30, 1998. And thanks to the efforts of the U.S. Office of Personnel Management (OPM), America's taxpayers have reason to be happy.
In this first full fiscal year of Presidents Clinton's second term, his reinvention of government effort is providing its value in cold cash and hard fact. While more controversial topics command media attention, downsizing and increasing federal government efficiency continue.
Today, 1.9 million federal civil servants - the smallest executive branch civilian work force in three decades - go about the task of making America's government work better.
As head of the executive branch's personnel office, I can report unqualified success on OPM's efforts to conserve taxpayer dollars.
But talk is cheap. Here's the proof. Since 1993:
- OPM has reduced the size of its work force by 48 percent.
- Our budget has been slashed from $118.4 million per year to $85 million, a 36 percent reduction is constant dollars.
- OPM's careful stewardship of the Federal Employees Health Benefits Program - the 350 plus health care plans offered to federal employees - has recovered $300 million in fraudulent payments and disallowed costs.
- OPM's creation of the first full privatization of a government function created $20 million in value to taxpayers during its first year, and is on track to replicate or better that performance every year.
I would like to briefly expand on some of these innovations that could serve as models for other agencies.
In July 1996, OPM privatized much of its investigations unit, which provides background checks of prospective federal employees. While OPM retains control of the data and the process so we can safeguard individuals' privacy and the system's security, most of the data-gathering field work can be done by private-sector investigators. We helped some 700 former federal employees create an employee stock ownership plan corporation (ESOP) to carry this out.
The privatization has worked so well that the cost of a top-of-the-line investigation has dropped by $570 or 14 percent. Overall, reduced investigative costs equal about $6.5 million annually. As I said at the outset, Happy New Year!
The privatization also relieved the federal government of personnel costs and generated new tax revenues worth a combined $14 million annually. And, most important to me, it is providing equal pay and benefits for the former federal employees.
Another essential task for any government entity is to reorganize to do a better job with its core missions. Over decades and even centuries, in large part due to legislative mandates and changing circumstances, agencies have acquired tasks that may have little current necessity or may duplicate efforts of other offices. At OPM, we reorganized and slimmed down to doing what must be done to support federal employees.
Doing those core tasks with excellence allowed our Retirement and Insurance Service and Office of the Inspector General to combat waste, fraud and abuse in the federal health care system to the tune of $300 million.
OPM has led the government in downsizing and set an example for others in making the hard decisions necessary to operate within dramatically reduced funding levels while continuing to successfully carry out its mission.
That good news doesn't get much attention. But the public deserves to know how we are evolving and improving their service.
Janice Lachance, a native of Biddeford, is awaiting Senate confirmation as director of the U.S. Office of Personnel Management, She's been with the agency since 1993.
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