Study Could Save Millions, Legislators Told

From The State House ~ Oklahoma could save $70 million a year and nearly three quarters of a billion dollars over the next decade if the state implements simple reforms recommended by an IBM study two years ago, lawmakers learned Tuesday.

"Two years have already been wasted since this study was released, so the state has blown $140 million of taxpayers' money. It's clear the state can see substantial savings for taxpayers by implementing IBM's recommendations," said Speaker Lance Cargill, R-Harrah. "This IBM report has been gathering dust on a shelf for two years while tens of millions of dollars are at stake every year. $70 million is more than the annual budget of most state agencies."

IBM analysts studied Oklahoma's purchasing practices two years ago. They found the state largely had not adopted electronic purchasing practices that are common in today's marketplace -- such as online bidding -- which could save the state money and make purchasing more efficient.

"There are potentially huge savings that could be returned to taxpayers or reinvested in real priorities for the state, like education and transportation," said Rep. Ken Miller, R-Edmond, vice chairman of the House Appropriations and Budget Committee. "I think we need to see some results. This study is two years old. It's time to get moving."

Department of Central Services Director John Richard testified two weeks ago that he was working to implement some, but not all, of IBM's recommendations.

The IBM experts testified Tuesday at the third in a series of House hearings on government modernization and efficiency -- a top priority for Speaker Cargill in the coming year.

Lawmakers also heard testimony from an expert with Cisco Systems, who told lawmakers about savings that could be achieved using new mobile and wireless technologies in state government. The Cisco expert also testified about cost-effective ways the state could implement "interoperability" among law enforcement and public safety entities, enabling various agencies to more easily talk to each other on radios during emergencies.

David Blatt, director of public policy for the Tulsa-based Community Action Project, also testified about the bipartisan nature of government modernization.

Cargill also pointed out that the state's surplus storage practices are an additional concern. The state leases some 20 separate agency warehouses storing massive amounts of surplus items, and even outright junk in some cases.

"The state needs a basic central inventory system, and it's concerning that we don't have one," said Cargill. "These hearings have shown there are many areas where we could be saving taxpayers money right now, simply by updating government practices for the 21st century."

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