Office of Governor JB Pritzker

February 14, 2020

State of Illinois

Governing Efficiently: More Than $225M in FY21 Savings
Initiatives Projected to Save At Least $750M Over Three Years
Governor Pritzker is committed to managing Illinois’ finances responsibly and effectively,
even as he looks to make key investments in the vital services that were hollowed out
under previous administrations.
As part of the State’s annual budget development process, the Office of the Governor and
the Governor’s Office of Management and Budget (GOMB) have been working to identify
opportunities to more efficiently operate state government and save taxpayer resources
without sacrificing programs that are crucial for all Illinoisans.
Collectively, these operational efficiencies, enhanced revenue collections and health care
savings represent over $225 million dollars in budgetary relief for Fiscal Year 2021. This
effort is ongoing and will continue to yield results every year, with the 3-year savings
conservatively projected to exceed $750 million.
The identified efficiencies can be categorized into three main areas: optimizing state
agency operations, consolidating agencies and eliminating duplicative or dormant boards
and commissions.

 Governing Efficiently: More Than $225M in FY21 Savings
OPTIMIZING STATE AGENCY OPERATIONS
Agency directors and staff have been working to rein in costs to ensure that a high quality of services are
delivered as efficiently as possible. The examples below includes budgeted savings and forward-looking
initiatives that will reduce projected state expenditures in Fiscal Year 21 and beyond.
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HEALTH CARE SAVINGS. Reversing years of discord and failed opportunities to negotiate savings, the
Governor prioritized negotiated labor agreements with state workers that were fair for both sides,
reaching a landmark agreement with AFSCME, which represents the majority of state employees. The
Governor’s budget and labor negotiating teams were able to successfully achieve hundreds of
millions of dollars in health care savings through effective bargaining and innovative health care plan
design for state employees and retirees.
o By the end of calendar year 2019, agreements had been signed, ratified or tentatively reached
for 20 of 33 collective bargaining entities. Those agreements included renegotiated health care
for workers with an estimated $650 million in cost savings to taxpayers through fiscal year 2023,
including more than $175 million in Fiscal Year 2021.

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REFINANCING BILLS. The Governor’s Office of Management and Budget (GOMB) worked with the
Comptroller’s Office to identify available interfund borrowing balances to pay $231 million in overdue
medical bills, saving the state $15.7 million in late-payment interest costs in fiscal year 2020 and an
additional $25 million in Fiscal Year 2021.

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CORRECTIONS. The Department of Corrections undertook a number of steps to reduce overall
expenses by more than $25 million, including:
o through increased staff accountability and continuously reviewing the rosters to ensure
appropriate allocation of resources, a reduction of $10 million in expenditures related to
temporary assignments and overtime with respect to the upcoming Fiscal Year 2021 budget;
o conducting a critical analysis of the IT applications being developed by outside sources, and
elected to terminate development of under-performing platforms at a savings to the State of $3
million;
o savings in commodities, travel and other costs of $12.1 million in Fiscal Year 2021.

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REVENUE. The Department of Revenue also took several steps to operate more efficiently, generating
$117 million in anti-fraud efforts in calendar year 2019 through the use of improved technology.
Additional benefits to the State:
o Improvements in audit functionality and the filling of open compliance positions and continued
anti-fraud efforts are expected to generate more than $130 million annually in additional
revenue for the State and local governments. While the full savings of information technology
upgrades in FY 2021 will be achieved in later years, we anticipate realizing $15 million in FY
2021.

Office of Governor JB Pritzker

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 Governing Efficiently: More Than $225M in FY21 Savings
o An expanded virtual audit room will allow agency auditors and taxpayers to securely exchange
information electronically. Use of this technology will enable the department to achieve a
$320,000 (20 percent) reduction in travel expenses and increase auditor productivity and
efficiency by reducing time spent traveling to taxpayer locations.
o Use of a new department-developed travel voucher processing application will automate much of
the process and eliminates many of the mailings between the department and out-of-state staff
auditors. The application paid for itself with improved efficiencies within three months after it
was implemented and will allow the department to save $900,000 annually. The agency is
working with the Department of Innovation and Technology DoIT to expand use of the application
to other state agencies.
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AGING. The Department on Aging’s new use of technology is resulting in improved communication
and training involving the critical events that impact seniors allowing seniors to remain independent
longer – and out of long-term care facilities paid for by the State. The department estimates it can
save approximately $28,000 per year per senior by serving a senior in their own home as compared
to more costly long-term care facilities. Currently 60,000 seniors are in this program; if just an
additional 2 percent remain in their own homes due to the use of this technology, it would represent
a savings of as much as $33 million.

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DOIT. The Department of Innovation and Technology (DoIT) has been reviewing wireless usage history
and transitioning lines to new pricing plans that result in cost savings while continuing to meet the
wireless usage needs of the users. DoIT anticipates the new plans will save the State approximately
$1 million annually.

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PUBLIC SAFETY. The State Police Merit Board certified 61 applicants for admission to the Illinois
State Police fast track cadet class #131, which will train cadets with prior law enforcement
experience in an accelerated training program this calendar year in less than half the time of the
standard 26-week class. This new fast track class will reduce training costs by approximately
$600,000.

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IMPROVED USE OF TECHNOLOGY. Among many examples of moving operations online, using
technology to improve the use of staff time or reduce waste by offering more online services:
o The Illinois Department of Employment Security has begun implementation of the State
Information Data Exchange System (SIDES), an electronic method for employers to receive notice
of claim information and submit protest details involving a UI claim filed by a former employee.
The estimated annualized savings on postage will be $186,900 once the system is operational.
o The Illinois State Fire Marshal is expanding firefighter testing offered online, saving time,
reducing paper use and providing more flexibility for firefighters who take the exams.
o At the Capital Development Board and the Department of Transportation, tablets have been
deployed to field staff enabling project data to be processed in real time at off-site meetings,
ensuring more accurate data collection, reducing staff time and increasing employee
productivity.

Office of Governor JB Pritzker

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 Governing Efficiently: More Than $225M in FY21 Savings
AGENCY CONSOLIDATION
Potential Merger of Illinois Department of Employment Security and Illinois Department of Labor
The Office of the Governor will explore a merger of the Illinois Department of Labor (IDOL) and the Illinois
Department of Employment Security (IDES). The functions of each agency previously were housed in a
singular agency before IDES was separated out by then-Governor James R. Thompson in 1984. The
justifications provided by Governor Thompson for the split may no longer apply, as both agencies receive
significant federal funding from many of the same sources. Further, most other states provide all of the
functions undertaken by IDOL and IDES under a single agency. A consolidation could result in significant
savings and a more effective, unified agency overseeing labor regulation and job-related programs for the
businesses and workers of Illinois.
The review of a potential merger will address any possible obstacles to effectively combing the agencies,
while also determining other potential benefits of consolidation, including:
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The merger would create a one stop shop for employment issues – providing better service to the
public.
With the merging of information under one agency, the State could enhance enforcement of labor
and unemployment laws and more effectively prevent fraud.
“Underground economy” would be easier to track. Consolidation of enforcement capabilities would
streamline information being shared with key personnel, preventing employee misclassification, and
weeding out bad faith employers to create a more level playing field for businesses that follow the
law.
Cross-agency utilization of full data sets would enable a holistic approach to removing barriers in
apprenticeship programs, allowing the agency to target areas of high unemployment more efficiently
and effectively.
By merging the agencies, workers would have the combined strength of the regional offices to
address their concerns. IDOL could leverage IDES’ existing outreach system to better inform the
public about fair labor standards, prevailing wage requirements and other labor laws. Additionally,
regional offices could be equipped to assist the public in filing complaints and resolving labor law
violations, thus enhancing service delivery.
With the broader reach of offices in communities all across Illinois, the combined agency would have
greater ability to act locally to provide assistance to working families and to develop policies that are
more responsive to community needs.

Merging Insurance Anti-Fraud Units
The administration will pursue a merger of the anti-fraud program at the Workers’ Compensation
Commission (WCC) with the anti-fraud unit at the Department of Insurance (DOI). The merger of the two
units eliminates duplicative government administration and allows for the cross training of investigators
for a more comprehensive enforcement program. Consolidation will result in more efficient and
coordinated investigative activities as well as some savings in headcount, equipment and other
administrative costs.
Consolidating Coroner Training Board into the Department of Public Health
The Coroner Training Board, currently a small stand-alone agency, will merge into the Department of Public
Health to provide improved administrative oversight and support, while ensuring that coroner training
programs continue at high standards.
Office of Governor JB Pritzker

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 Governing Efficiently: More Than $225M in FY21 Savings
ELIMINATING DUPLICATIVE OR DORMANT BOARDS AND COMMISSIONS
For the past several months, teams across the Governor’s Office and agencies have identified boards and
commissions, both operational and non-operational, that are duplicative or dormant and could be
eliminated. There are currently more than 700 boards and commissions throughout state government.
Overall, eliminating duplicative, outdated, and dormant boards and commissions will reduce impediments
to progress within agencies, reduce waste, improve the use of staff time and provide direct and indirect
cost savings across state government.
Preliminary examples of boards and commissions to be considered for elimination include the following,
which have outlived their effectiveness, are duplicative or last met many years ago:
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Aquaculture Industry Advisory Committee, an inactive board whose work is no longer up to date

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Board of Licensing for Perfusionists, a board that doesn’t meet because of a lack of business and
has duplicative work that can be accomplished elsewhere

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Consumer Fireworks Review Committee, which exists only in JCAR rules

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Grand Avenue Railroad Relocation Authority, whose work was completed and whose existence was
abolished by executive order but remains in statute

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McCormick Place Advisory Board, an inactive board with no history of appointments and whose work
would be duplicated by the existing governance structure

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NCSL Legislative Summit 2012 Host Committee, which dealt with an event that took place eight
years ago

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Healthcare Worker Task Force, a group that was disbanded

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Racing Quarter Horse Breeders Fund Advisory Board, which was abolished by a previously executive
order, but never removed by statute

Office of Governor JB Pritzker

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