PROVIDENCE – The R.I. Department of Administration Friday afternoon released a summary of its plan to achieve $25 million in savings as part of its directive in the fiscal 2018 budget.
The plan is estimated to cut 13 percent of the original $237 million deficit in fiscal 2019 to $205.5 million, about $31.5 million.
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The cost-reduction plan involves $15.1 million in personnel savings including $6.5 million in the form of a buyout and $8.5 million in unspecified “Full Time Equivalency reductions.”
The $6.5 million in buyout savings will come from a one-time offer of a capped $40,000 incentivized retirement option for which 940 state employees are eligible.
Department of Administration spokeswoman Brenna McCabe said there are no layoffs planned at this time. She added that FTE reductions will come in various methods, including leaving vacant positions open and reworking overtime policies according to census data, among other efficiency tactics.
The department also announced $4.9 million in contract and grant cuts. These cuts include:
- Eliminating state-only funded services that do not have federal Centers for Medicare and Medicaid Services approval and federal matched funds.
- Retiring the Care Transformation Collaborative pilot program.
- Utilization of the Perry-Sullivan Act appropriation by using existing funds to pay for pre-planned home care worker raises.
- Reduction of the Clean Diesel Program grant by $500,000. Appropriation for the CDP in fiscal 2018 was originally $1 million.
The department also announced a $5 million saving in the form of government efficiency streamlining. Efficiency methods expected to be used:
- Recouping overpayments to the Workers’ Compensation Administrative Fund
- Establishing internal service funds
- Renegotiating energy contracts
- Leveraging restricted receipt revenue for the Division of Planning
- Streamlining water utility regulation
- Streamlining and reorganizing certain licensing and permitting functions
- Higher education efficiencies at the Postsecondary Commissioner’s Office and Shepard Building
- Reducing R.I. Commerce Corp. overhead costs
“We have made some difficult decisions, but this is the responsible path forward, and we will continue to look for ways to maximize efficiencies as we head into a difficult budget year,” said Department of Administration Director Michael DiBiase in prepared remarks. “This is not a plan built on one-time scoops. There is no silver bullet. Every decision was carefully weighed and considered. We need to take actions that do not compromise the short- and long-term investments the state has made in recent history. These savings are tied to good policy and structural efficiencies, which will help us cut down on the looming $237 million projected deficit for Fiscal Year 2019.”
Chris Bergenheim is the PBN web editor.
