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September 2008   October 2008   December 2008   January 2009  



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Case Studies

 
Performance Contracts

Over recent weeks, I have said time and time again that I believe these difficult economic times provide our state with a unique opportunity: reducing the size of state government. To successfully navigate through these difficult economic times we, as state leaders, now have to ask ourselves: "How can I streamline this agency or department and make them more efficient?"

Below is the first installment of what I believe can be a refreshing dialogue on what we can do to help run government more efficiently.

Cutwaste.org Government Savings Initiative: Performance Contracts

Performance contracts represent one of the most effective tools the private sector has devised for increasing the energy efficiency of buildings and providing energy at much lower costs.

Often, state agencies are located in buildings that are old and in desperate need of repairs, upgrades, and new construction that could dramatically lower annual operational costs, saving money immediately. However, agencies are often short funds to make these changes and incur energy costs that are far too high year after year. As a result, the taxpayers pay millions in unneeded energy expenses caused by old systems, inefficient lighting, leaky pipes and other issues. Most other states have been able to solve this problem by bringing in outside contractors who do the energy saving upgrade work at no cost to the state, and are paid only from the funds saved as a result of the changes. This is a great solution because it saves energy, uprgrades state buildings and doesn’t cost the state a dime. The contractor literally agrees to write a check to the state if costs of a project are greater than the amount of money it saves.

For example, Johnson Controls recently used performance contracts in South Carolina to build a clean energy biomass plant that generates steam and electricity (enough to power 800 to 1000 homes) using only bark and other waste from a nearby paper plant. The new facility was built on a performance contract and is predicted to save the State of South Carolina up to $2 million per year when it is operational. Plus, the environmentally sound facility just a few blocks from the statehouse includes a classroom inside the structure where students can learn about environmental energy.

Unfortunately, highly technical legal issues make it difficult for agencies in Georgia to sign multi-year performance contracts even as other states are taking advantage of them left and right.

Based on information received through cutwaste.org, our staff has begun reviewing this issue and looking for the best way to remove legal obstacles so that Georgia can begin using performance contracts to leverage private capital to save taxpayer dollars and protect our natural resources.


5 Comments:

This is an awesome idea. As an architect, I know that it takes a commitment to consider what type of light bulbs you buy and whether the thermostats are controlled and whether motion detectors can save power. Often, the bureacracy is focused on their mission and not these "little" things that can have significant savings - particularly statewide.

By Anonymous Eric Johnson, at September 25, 2008 8:28 AM  

And while we are cutting waste, let's commit to stop growing the size of government by creating additional layers and new authorities.

After all, more new government creates more expenses!

Great idea for a website, LG. When the audit and disclosure provisions of the amended SB300 are enacted, we will all see where our state tax money goes.

By Anonymous Jill Chambers, at September 25, 2008 1:02 PM  

The power of government is enormous and has the ability to impact our lives in either a positive or negative way.

All too often the apparatus that is supposed to promote the general welfare becomes the rope that hangs us.

Waste, fraud and abuse within government is rampant at all levels of government, local, state and federal. I hope we are serious about rooting out these abuses of the public trust.

I am certainly prepared to lob my own bricks at some of our local and state abuses. Hopefully, at some point we will become a government of the people.

By Blogger Maurice Atkinson, at September 25, 2008 10:11 PM  

"The bureaucracy is expanding to meet the needs of the expanding bureaucracy." -- Unknown

IAMLUSK.com

By Anonymous LUSK, at October 3, 2008 6:00 PM  

Mr. LG while it is important to cut waste, it is also important not to forget what made the Great State of Georgia GREAT. The ability to bring new businesses to Georgia. That will keep our citizens employed in Ga.
New Businesses are looking for Land (no Problem) Tax Breaks(Can be done) and Good Roads and infrastructure( this is a PROBLEM).
YOU seem to want to cut the Ga. Department of Transportation to the bone. Thus not having a good road system. We need good roads to attract good businessesto our state.
A Concerned Citizen

By Anonymous Anonymous, at January 12, 2009 3:00 PM  

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A Message from Lt. Governor Casey Cagle:

Thank you for visiting cutwaste.org. I decided to launch this website as we began the process earlier this summer of slashing spending from the state budget.

Unlike the federal government, Georgia is required to constitutionally balance its budget. This means when the economy slows, we can't borrow money to avoid cuts like the federal government can. This is a great feature of our state constitution because it forces state elected officials to make hard decisions when tax collections drop in a slow economy.

However, as you might imagine, cutting millions in state spending is never an easy process. Many things we spend money on -- such as prisons, roads, colleges, schools, and law enforcement -- are absolutely critical to public safety and our future, and can't be cut too deeply. This means we critically need to find specific ways to do more for less with taxpayer dollars.

This may mean finding a more efficient way to perform the basic functions that government must accomplish. Governor Sonny Perdue has done a great job in this area, particularly through his Commission for New Georgia, which uses leading citizens to make government agencies find private-sector style efficiencies to save money.

In other cases, government may simply be wasting funds on programs that have no purpose or on activities that aren't tied to any useful program at all. This kind of waste should be located, spotlighted, and slashed from the budget as quickly as possible.

What I want to ask you to do is play a role in achieving one or both of these goals. Georgia's citizens are our best assets for spotlighting government waste at the federal, state, and local level. Please join the fight.


3 Comments:

You said: "What I want to ask you to do is play a role in achieving one or both of these goals. Georgia's citizens are our best assets for spotlighting government waste at the federal, state, and local level. Please join the fight."

You're joking, right?

Governor Perdue can't cut out the waste I told him about because he gets campaign funding from those who waste funding in the first place.

I saved his email to me. I followed the money, and the very ones I complained about to him are the very ones who help fund his campaign (along with their lawyers).

If you want Georgians to get involved, then hear our voices when we point out the problems. I don't expect that will happen when the politicians take PAC money and corporate "donations". Do you?

SharkGirl
www.facingthesharks.com
A Non-lawyer vs. Robins AFB

By Blogger Shark Girl, at September 25, 2008 5:59 PM  

Thanks for taking on this challenge, I hope you can make a difference. Your work environment, along with our friends in Washington, is worse than the folks who work in our sewers. I hope you can shower often enough to keep the filth off of you.

By Anonymous Anonymous, at November 19, 2008 1:32 PM  

I am thrilled to hear that Georgians are taking action for our State's money usage! As a public school teacher and having a husband in law enforcement-our family really knows that some things must be provided. When your child comes to my class- you should know that I am drug free, of good moral values and am responsible for the most important treasures we have-our children-our future. My husband should also met those standards- I think that random drug testing- continued background checks, etc. are not only a must but when you call 911- you should know that all levels of our public safety groups are above reproach. To have quality people in jobs like ours- we must demand quality personal-that means we also must pay them a realistic wages. Do you know that my children don't qualify for Peach Care because we are considered Government Employees- do you know that we can't get a Government discount when staying at a hotel? The system is not working. There has to be a way to unite and bring Georgia to the front of the economic states. We don't want it for free- we just want it to be realistic. Hold us to a higher standard- we should be-but don't leave us out of the loop. My class can't take field trips this year because gas costs too much...
Public safety personal take life threatening situations on many times in a day to weekly basis and we pay them about half of the price of other professions in the community that demand protection but don't want to spend the tax money for their salary.
This is just my 2 cents worth on the topic- I don't just teach students- I teach future doctors, lawyers, political officials and so many other work force personel... does that make my job more important? Every child should be the most important- that is not the norm- that is the exception. Next time you call 911 and get someone who has look through a manual to find out how to help you because the really expert personal have had to take other jobs to pay for the daily needs of their families. Think about it. What is important to you?
Let's get it together Georgia.

By Anonymous Anonymous, at January 12, 2009 4:06 PM  

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