AGENCY TOWNHALLOffice of Management & BudgetAugust 6, 2014

FISCAL INTEGRITY: OMB’S METRICSHonestly Balanced Budget – limit spending to available revenuesMaintain Adequate Reserves – hold cash reserves equal to at least 12.5% of appropriationsHold the Line on Spending – hold spending growth beneath 10-year inflation rateFund Excellence and the Governor’s Priorities – education, health care, economic development, transportation, quarterly performance grantsReduce Debt – continue to reduce general fund supported debtCut Taxes – return surpluses to taxpayers

“Fiscal integrity is the foundation of our prosperity.”

Governor Mike Pence

TAX RELIEF UNDER GOVERNOR PENCE: 2013-2021

FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 $-

$100

$200

$300

$400

$500

$600

$700

Financial Institutions Tax

Inheritance Tax

Corporate Income Tax

Individual Income Tax

Source: Indiana Office of Management and Budget

PREPARED FOR THE NEXT ECONOMIC DOWNTURN? According to S&P only six states are prepared to weather the next downturn: Indiana, Michigan, Rhode Island, South Carolina, Utah and Wisconsin.

S&P uses three measures to determine a state’s progress in its fiscal recovery: 1) whether or not general fund or operating fund balances are equal to or greater than the state forecast for the end of the 2014 fiscal year,

2) whether rainy day fund balances have been restored to at least their 2008 level, and

3) whether a state is funding its actuarially recommended pension contribution.

Source: Liz Farmer. Is Your State Prepared for the Next Economic Bust. Governing (April 30, 2014).

OMB ORGANIZATIONAL UPDATEMicah VincentNew OMB General Counsel and Policy Director

Eric MillerNew Deputy Director for Government Efficiency and Financial Planning (GEFP)

Indiana Office of Technology joins the OMB suite of agencies

FY14 RECAP|FY15 UPDATE

State Budget Agency

FY14 REVENUE

General Fund Collections $13.7 Million|0.1% over December 20, 2013 Forecast

General Fund Revenue$59.8 Million|0.4% below FY13 Revenue$168.8 Million|1.2% below Budget Plan

STATE SPENDING

FY11 FY12 FY13 FY14$12,000.0

$12,500.0

$13,000.0

$13,500.0

$14,000.0

$14,500.0

$15,000.0

$13,037.1

$13,733.6

$14,247.3

$14,553.1

(In M

illio

ns)

SURPLUS & RESERVES

FY11 FY12 FY13 FY14

($500.0)

$0.0

$500.0

$1,000.0

$1,500.0

$2,000.0

$2,500.0

($136.5)

$572.1 $482.6

$106.8

$1,320.7

$2,154.9

$1,943.0 $2,005.3

Surplus Reserves

(In M

illions)

AGENCY BUDGETFY15 Budget

• FY15 Appropriation minus 4.5%

FY16/FY17 Budget

• FY15 Appropriations minus 3.0%

BUDGET SUBMISSION DUE

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August 29

HYPERION UPDATESSystem data is backed up two times per day

SBA & GMIS are working to ensure issues are dealt with as quickly as possible

Environment will be shut down and restarted every night

If you notice an issue, please let Jim Adams know as soon as possible, so that steps can be taken to resolve

Points of Contact:SBA Analysts

Jim Adams (jadams@sba.in.gov)

MANAGEMENT & PERFORMANCE HUB

WWW.IN.GOV/MPH

Office of Management & BudgetIndiana Office of Technology

EXECUTIVE ORDER 14-06 On March 17, 2014, Governor Pence issued Executive Order 2014-06 creating the Governor’s Management & Performance Hub (MPH)

The Governor’s Executive Order Requires:•OMB to create the MPH as a tool to promote continuous process improvement for the State of Indiana•All state agencies to participate in the MPH by providing data, information, system access, or other resources to IOT and OMB upon request•OMB, IOT, and state agencies to maintain data as required by law and to execute agreements as necessary to facilitate data access for MPH

THE MPH PROGRAM

Vision Indiana will have the most effective, efficient, and transparent state government in the country.

Mission Develop an industry leading comprehensive enterprise wide data driven management system.

WHAT IS AN “ENTERPRISE-WIDE, DATA-DRIVEN MANAGEMENT SYSTEM?”

It’s a management toolMetrics Key Performance Indicators and Program Measures

Identify Issues and Develop Targeted SolutionsData-driven decision-making

It’s a tool to solve big problemsInfant MortalityFraud & AbuseRecidivism

DATA-DRIVEN DECISION CYCLE

Analyze

Decision

Gather

Store

MPH PROGRESSCabinet-Level Agency KPI Automation Project: 98% complete

Infant Mortality/Child Fatality Case Study: 50% complete

Business Analytics Software Selection: 100% complete

MPH Website: Launched

NEXT STEPSOMB and IOT has reached out to several agencies on the KPI Automation Project, Infant Mortality Project & the MPH Website. A big THANK YOU to those agencies.OMB and IOT will be reaching out to several of you in the near future to collaborate on automating data and dashboard creation.Roll Out of Visualization ToolOver next 18 months

BUSINESS ANALYTICS

If your agency is exploring opportunities in the area of dashboards, business analytics, or business intelligence, please contact OMB. Point of ContactSara Marshall (smarshall@gov.in.gov)

PROGRAM ASSESSMENT

COMPREHENSIVE EVALUATION

Government Efficiency and Financial Planning

PACE Executive Order 13-02 requires OMB to conduct an evaluation of the overall performance of each agency or instrumentality within the executive department of state government.

To achieve this mandate a program performance evaluation form along with step by step instructions was incorporated into the budget instructions and sent to all agency heads and CFO’s on June 16th.

EACH AGENCY MUSTIdentify and prioritize all of their programsDefine the program purpose, strategy and activitiesHow the program relates to Governor’s Roadmap goalsHow strongly the program fits into the agencies Good to Great PlanIdentify all program funding sources, expenditures, FTE’s Identify all performance measures associated with each program

WHAT WILL PACE ACHIEVE? Pace will allow us to prepare a performance based budgeting report for the OMB Director including a plan for developing a system of performance-based budgeting to be incorporated in the FY 16-17 biennial budget process.

WHAT WILL PACE ACHIEVE? PACE will also allow agencies along with OMB to identify programs that are: Not a high agency priority Underperforming Do not coincide with the Roadmap goals or agency Good to Great Plan Have insufficient measures associated with them Duplicative programs 

PACE will allow agencies to revaluate their programs and make conscious decisions. Would funds be better applied to a another more viable program over a program that is struggling or a low priority?

WHAT HAS BEEN ACCOMPLISHED TO DATE? Program performance evaluations DUE to OMB by August 15 GEFP reaching out to agencies to provide guidance or assist with evaluations Meeting individually with agencies Point of ContactGEFP AnalystKirke Willing (kiwilling@gov.in.gov

FLEET MANAGEMENT Indiana Department of Administration

FLEET MANAGEMENT

Fleet Budget Centralization Begins with new vehicles purchased after July 1, 2015Greater TransparencyAllows for increased vehicle lifespanAllows agencies to focus on their core mission

FY 15 Fleet Purchases and MaintenanceNo impact; Business as Usual

FLEET MANAGEMENT

Fleet Needs Assessment Was due to IDOA by July 25th Please submit ASAP if you missed the Deadline

FY 16-17 Fleet Purchases (State Dollars) Fleet Needs Assessment response will be utilized Agencies base budgets will be adjusted accordingly by SBA

FY 16-17 Fleet Purchases (Federal Dollars) Expense will be incurred by IDOA Once expense occurs, it will be JE’d back to the agency who is utilizing the vehicle

UPCOMING VACANCIES

State Personnel Department

RE-EMPLOYMENT OF RETIREES Must have a separation of employment for at least 30 days

If no separation, employee does not receive pension benefit during re-employment.

If they return after 30 days, no additional pension service credit is earned and no contributions made to their annuity during re-employment

No formal or informal agreement for re-employment in INPRS covered position prior to retirement – result is employee does not receive pension benefit during re-employment.

APPROVAL TO FILL RETIREMENT VACANCIESIf a position is necessary and critical for continued operation of agency, submit justification for the position.If seeking more than one, please prioritize all positions in excel.If SHC request has previously been submitted and/or approved, include the SHC requisition number and if position has been filled. (May 1- present)

APPROVAL TO FILL RETIREMENT VACANCIESSubmit requests to Diana White in SPD diwhite@spd.in.gov no later than Aug. 20

SHC will review plan and may schedule a meeting to discuss further For questions callAnita Samuel 232-4581 Kristi Hall 234-2956

Questions?