Gov. Patrick Morrisey said his administration has identified ways the state could save more than $168 million a year.
With a state general revenue budget of about $5.5 billion, that represents a little less than 3 percent.
The governor said every bit of savings counts.
In this case, he said, the process began with internal reviews across state government that identified several cost-saving possibilities that could save the state about $9.9 million a year.
He said the administration also hired independent auditors to review state agencies starting with the Department of Transportation, the Department of Homeland Security and the Department of Human Services. The cost of audits by the consulting firm BDO, he said during a press conference today, was a little more than a million dollars.
Across the agencies, he said, the audits identified more than $158 million in potential annual savings through improved oversight, operational reforms and modernization of outdated systems.
“On my first day in office, I signed an executive order directing agencies to find waste, cut unnecessary spending, and make government more efficient,” Morrisey said.
“These audits are about keeping a simple promise to taxpayers: their money will be treated with respect. We have to be honest about the challenges we uncover and willing to make responsible decisions to fix them.”
The findings suggest that the state could reduce inefficiency by eliminating unnecessary subscriptions and unused equipment, while also upgrading technology that has grown outdated.
In the Department of Transportation, officials said, contracts management could be improved because the “meter” on payments often started before the completion of preliminary work such as permitting and utility notifications. Improved oversight could save more thann $33 million.
Plus, the outside consultants concluded the transportation department relied heavily on outside consultants for tasks that could be performed more cost-effectively by developing and retaining in-house expertise.
In the homeland security department, the auditors identified significant turnover within the corrections division as a major drain on resources. The state loses the value of its investment in training when employees leave before reaching peak efficiency.
Staffing in corrections has been a state issue for years, so much that Morrisey’s predecessor, Gov. Jim Justice, declared a state of emergency over it.
Meanwhile, the auditors said a lack of body cameras for officers contributed to higher litigation costs. Greater deployment of body cameras is projected to save $1.9 million a year by reducing frivolous claims and improving behavioral transparency, the consultants said.
The audit in the Department of Human Services focused on another longstanding issue in West Virginia: Out-of-state child welfare placement for complex care because of a lack of in-state facilities and workers. The out-of-state cases can cost about $160,000 per person.
Morrisey proposed legislation about the out of state placement issue, but lawmakers had many questions about how it would work in practice.
The Department of Human Services audit also focused on reliance on obsolete technology, saying modernization is expected to save more than $18 million a year.
And the audit identified inefficiencies in Medicaid enrollment verification, grant management and high postage and mail costs.
