Saving money

Gov. Matt Blunt and Office of Administration director Mike Keathley have saved state taxpayers $30.2 million through implementation of executive orders and replacing a major contract while (in most of the decisions) improving citizen services.

As I understand it, last fall Keathley, who headed up Blunt's transition team, noted a one-bidder contract up for renewal to a St. Louis firm that charged the state $40.4 million the previous year for non-emergency medical transportation services.

Keathley put the bid on hold, improved the bid's required services, opened up the bidding and received requests to bid from seven companies and four bids.

When the current contract expired, Keathley awarded the new contract to LogistiCare at a savings over last year of $14.8 million.

In an Oct. 5 press release, Keathley said: "This is a win-win for taxpayers and Missourians who depend on these services. Under Governor Blunt's direction we have secured a contract that maximizes the use of taxpayer dollars and enhances customer service."

Keathley said the new contract will also secure a better Medicaid reimbursement rate from the federal government, which will help offset state costs. Under the old contract, the state did not receive the maximum amount of federal funds available due to the payment method used.

LogistiCare will operate a call center in Kansas City with provider support staff there and in St. Louis. It also will fill approximately 63 administrative positions in Missouri to manage services. The call center will be staffed 24 hours a day, seven days a week, all year long.

Other highlights of the new contract include reduced request time for services, reduced pickup window for clients, voice-answered phones and reduced wait time for service calls.

LogistiCare has over 60 contracts nationwide to provide non-emergency medical transportation services.

The previous administration approved the previous, more expensive contract which Keathley terminated due to concerns over cost controls and the impact it was having on the state's tepid budget.

Also, an investigation by the attorney general's office after Keathley brought last year's bid to light generated a return of $2.4 million to the state as an agreement to settle irregularities.

Other executive order savings (as listed in a news release):

Restrictions on lease and purchase of non-emergency vehicles ($1 million).

Restrictions on lease and purchase of office space ($1.2 million).

Closing the state's Washington, D.C. office ($164,000)

Consolidating the Office of Information Technology and the Office of Administration's Division of Information Services ($2.4 million).

Consolidating the Division of Design and Construction into the Division of Facilities Management, Design and Construction ($80,000).

Transferring the State Board of Mediation to the Labor and Industrial Relations Commission ($63,825).

Privatization of janitorial and security services in the Office of Administration ($1.6 million).

Consolidation of inmate education services in the Department of Corrections ($1.4 million).

Consolidation of offender substance abuse services in the Department of Corrections and Department of Mental Health ($250,000).

Transition of branch offices to contract agent offices in the Department of Revenue ($7 million).

Elimination of erectile dysfunction drugs to Medicaid recipients ($200,000).

Total savings by executive order: $15.4 million. Total savings on the new medical transportation bid $14.8 million. Grand total savings for Missouri's taxpayers: $30.2 million).

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I continue to disagree with the simplistic statistics used to rate Missouri state employees as the lowest paid (the study cited was average pay, excluding fringe benefits, and didn't take into account our 28th ranking of total state employees per 10,000 population).

Only two states with greater populations than Missouri -- Washington, which ran 22nd in state population (6,203,788), and Virginia, which ranks 25th (7,459,827), have more employees per 10,000 population than Missouri (5,754,618). I'll provide more on this later after I receive all of the information I've requested.

Generally, the lower a state's population, the higher it ranks in full-time equivalent state government employment per 10,000 residents.

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Look for the first of several special reports on the Missouri State Government Review Commission's recommendations in Sunday's Southeast Missourian.

It is not the critic that counts; not the man who points out how the strong man stumbles, or where the doer of deeds could have done better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood; who strives valiantly, who errs, and comes short again and again, because there is no effort without error and shortcoming; but who does actually strive to do the deeds. -- Teddy Roosevelt

Gary Rust is chairman of Rust Communications.