Higher Ed Exemption Study 10 -11 -2011 Higher

Higher Ed Exemption Study 10 -11 -2011 Higher Ed Exemptions from Modernization Reforms http: //hd 31. org/164

Exemptions • • Financial Services Purchasing Information Technology Consolidation One. Net

Financial Services HB 1207 – SB 541 • In 2007, The Hackett Group conducted a study of Oklahoma financial processes. The study included two Higher Ed institutions. • Hackett Group – 2007: “State of Oklahoma has significantly higher FTEs than NASACT peer group. ”

Purchasing • IBM – 2006: “ 52% of state spending is exempt from CPA because of Higher Ed exemption. ” • IBM – 2006: “By adopting legislation that ensures all state entities work together to combine purchasing power, the state can reap tremendous ongoing savings for years to come. ”

Purchasing • Treya – 2008: “State spends 3. 5 billion / Higher-Ed spends 2. 3 billion. ” • Treya – 2008: “There is no searchable online catalog of products/services provided by state use vendors. ” • Develop an online catalog to facilitate the process of identifying mandatory items. • OSU and DCS develop separate catalogs.

Information Technology / One. Net • Capgemini – 2011: State has limited shared IT services. Reform would “result in significant cost reductions by removing duplicated services and administration. ” • Oklahoma spends 40 million each year that comparable states do not spend. • “The state owns a significant fiber plant. . . However, packets of responsibility and ownership exist (ODOT, Onet. Net, OSF) through the state for the laid fiber, with no single owner and/or authority in place for state-owned fiber. This enables additional purchases of capacity and creates an inefficient use of stateowned capacity. ”

Information Technology / One. Net • Capgemini - 2011: “Establish a single statewide optical backbone using state-owned fiber. The existing One. Net environment should be the basis of this single network. Onenet should be rolled under ISD as a statewide IT service provider for telecommunications. ” • Capgemini – 2011: “It is recommended that the use of One. Net by state agencies be mandatory for all networking services. ”

Results • State and local governments experience $20 M savings as a result of purchasing system reforms. • Department of Education set to experience $600, 000 of savings each year from IT consolidation.

Not Exempt • Payroll – House Bill 1086 – “The Director of the Office of State Finance shall promulgate procedures by which state agencies shall enter into a shared-services arrangement with the Office of State Finance for the provision of payroll processing services. ” • Open Books – Purchase Card Data

Reasons for Exemptions • Lobbying Power / Political Support • Constitutional Provisions • Other

Recommendations - Purchasing • Purchasing savings have been documented and the time is right to include Higher Ed. • State should work with Higher Ed to develop integrated purchasing catalog which allows Higher Ed purchasing officers to order from statewide contracts. • If state and Higher Ed fail to cooperate, the time is right to consider policy changes.

Recommendations Financial Services / IT • If consolidation processes result in savings to state agencies, they should either be expanded to include Higher Ed, or duplicated within the Higher Ed system. • One. Net should be consolidated into the state’s IT infrastructure as soon as possible.