Agency mergers aim for $10M in savings

Gov. Asa Hutchinson said Thursday that his proposal to merge four small state agencies into three other larger agencies could save taxpayers about $10 million over five years.

"It is a small amount year by year, but adds up both to a better delivery of state services, better coordination on economic development as well as savings to the taxpayers," the Republican governor said at a news conference at the Capitol.

Hutchinson said most of the savings would result from attrition and eliminating unfilled positions, while the future of some other positions would be determined if the Republican-controlled Legislature approves legislation authorizing the consolidation of these agencies in the special session starting Tuesday.

Sen. Larry Teague, D-Nashville, co-chairman of the Joint Budget Committee, said that "the devil is in the details" of these proposed mergers of state agencies, but he is "OK" with them.

The potential savings from the governor's plan includes $450,808 a year through the elimination of six vacant positions in the Arkansas Science and Technology Authority, which would be merged into the Arkansas Economic Development Commission, and $416,069 a year from the elimination of nine vacant positions in the Arkansas Building Authority, which would be merged into the state Department of Finance and Administration, according to a summary of the plan.

The governor said Science and Technology Authority Director Tim Atkinson's position would be eliminated under this plan and Atkinson would fill a vacant research and technology post at the state Department of Higher Education. Atkinson's salary at the authority is $107,552 a year.

Under existing law, the Science and Technology Authority has 30 authorized positions in fiscal 2016, which starts July 1, and the Building Authority has 91 authorized positions, according to the finance department. The Economic Development Commission has 100 authorized positions, while the finance department's Management Services Division, where the Building Authority would be placed, has 462 authorized positions.

Other potential savings from Hutchinson's plan includes $175,599 a year from the elimination of two positions at the Arkansas Department of Rural Services, which would be merged into the Economic Development Commission; and $166,880 a year from the elimination of two positions at the Land Survey Division, which would be merged into the Arkansas Geographic Information Office.

Under existing law, the Rural Services Department has six authorized positions in fiscal 2016 while the Land Survey Division has four authorized positions, according to the finance department. The Geographic Information Office has eight authorized positions for the next fiscal year.

The governor's plan says an additional $717,291 a year could be saved through attrition at the Building Authority and an additional $272,464 a year could be saved through attrition at the Science and Technology Authority.

A list of these positions that could be eliminated was not available Thursday through the finance department.

House Speaker Jeremy Gillam, R-Judsonia, said Thursday that Hutchinson's proposed merger of these state agencies will likely be melded into one bill for the House to consider during the special session.

Senate Republican leader Jim Hendren, R-Sulphur Springs, will sponsor a similar bill in the Senate, said Senate President Pro Tempore Jonathan Dismang, R-Searcy.

"This is an effort to do what the governor campaigned on and we [lawmakers] campaigned on" and make state government more efficient, Hendren said.

Teague said the merger of the Rural Services Department into the Economic Development Commission has essentially "already happened" with the department moving a few weeks ago into the Little Rock building where the commission is located.

In addition, Rural Services Department Director Amy Fecher was promoted to a deputy director at the commission and given a pay raise from $90,200 to $119,839 a year on April 26. Alex Johnston was appointed the department's director and given a pay raise from $50,200 to $60,000 on April 27, according to the Office of Personnel Management.

Fecher filled the vacancy created by the retirement of former Deputy Director Michael Gaines on April 10, commission spokesman Scott Hardin said.

Metro on 05/22/2015

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