THE GOVERNMENT PERFORMANCE PROJECTReport Card: Nebraska FINANCIAL MANAGEMENT: B+ Financial affairs in Nebraska are safe, sound and solid, with revenues and expenditures in line, budgets approved on time and a reasonable fiscal-notes process in place. With the exception of revenue bonds for highways and water conservation and management, the state has a constitutional debt limit of $100,000 (less debt than many of the state's middle-class homeowners have taken on). At a quick glance, expenditures appear to be higher than revenues in the current fiscal year, but that is only because of the legislature's decision to cut the sales tax temporarily by half a penny, a decision the state could easily afford by dipping into a well-stocked cash reserve fund. Nebraska may be faulted for over-conservatism in some respects. A pre-audit section of the accounting division reviews all travel expenses and other payments over $250. Believe it or not, this is an improvement from a few years ago, when every expense was reviewed, no matter how trivial. "We hope to have legislation advanced that would raise that level. We're asking for $1,500," says Wes Mohling, acting accounting division administrator. CAPITAL MANAGEMENT: A- Nebraska's approach to overseeing capital projects, with an overall four-year plan and a broad-based committee to set priorities, is a model for other states. It is also brand new: The very first plan arrived on the governor's desk only in November. Time will tell whether the approach is as good as it looks. The state also has a comprehensive process for tracking and managing projects. New construction is monitored quarterly with design reviews, reports of construction progress and on-site visits by the staff of the Department of Administrative Services. Cost estimates are closely followed. All of this means that projects rarely encounter cost overruns. The state has used $13 million from cigarette-tax funds to almost quadruple its maintenance spending, and has begun to catch up on a growing backlog. Maintenance funding began to be centralized in 1995, when state leaders realized that agencies were cutting back on this category when they needed a little extra cash. "It was always the first to take a hit," observes one budget official. HUMAN RESOURCES: B- The state still has 1,500 job classifications, deemed too many by personnel director Mollie Anderson, who hopes to reduce the number to 900. Although the application process in Nebraska is centralized, hiring is up to the agencies and can usually be accomplished quickly. Virtually no rigid testing or formal lists impede the process. Job applications are now online, and an applicant tracking system will be installed in the next six months. To deal with specialty shortages in certain jobs, the state has embarked on a small "grow your own" program, in which state workers are tested for technology aptitude, placed in an intensive training program and then shifted to a high-tech job. More generalized training, however, appears to be a low priority in agencies strapped for cash. Workforce planning has been weak, but the state is beginning to do some research that may help get the process started. Unfortunately, until the state's personnel system is upgraded, any sophisticated analysis will be little more than a pipe dream. MANAGING FOR RESULTS: B- In the 1997-99 biennium, for the first time, Nebraska plunged into performance measurement by requiring results-based budgeting in all agencies. This includes developing outputs and outcomes and tying those measures to objectives and results. Some training has been provided to ease this complicated process, and it's off to a very good start. But given the historically rough road states have in this area, it's difficult to give the state a much higher grade until it has some proven results. As of now, no formal process has been set up for validating data used in the measures. On the strategic-planning side, agencies are encouraged to prepare their own plans, which are expected to be consistent with statewide goals. In some areas, interagency meetings are held to encourage cooperation and the pursuit of common goals and objectives. INFORMATION TECHNOLOGY: C+ The biggest problem with Nebraska information technology is its human resources system. The system tells virtually nothing about state employees other than their official leave status. State leaders have been advised to implement a fully integrated information system, including human resources, accounting, purchasing and budgeting, but in a state known for fiscal caution, don't bet on its chances. Meanwhile, the state has just acquired, free of charge from South Dakota, the application framework for a budgeting system developed to permit some scenario-building for budgeters. Unfortunately, it isn't integrated into other systems. Nebraska hasn't made much of an effort to standardize IT procurements, though it has operated a single mainframe data center for some 31 years (upgrading technology over time, of course), in order to avoid the costs associated with the proliferation of multiple single-purpose computing environments. Though agencies are required to submit an Information Management and Technology Plan that extends through the biennium and beyond, the state itself has no strategic IT plan. That may change, however, with the arrival of its first chief information officer. The state does an excellent job at sharing information electronically, statewide. AVERAGE GRADE: B
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