February 5, 2015

Wolf Directs New Office Of Innovation To Generate $150 Million In Cost Savings

Gov. Tom Wolf Thursday signed Executive Order 2015-04 establishing the Governor's Office of Transformation, Innovation, Management and Efficiency, which will coordinate efforts driven by agency heads with input from state employees.
Gov. Wolf's executive order also directs state agencies to immediately generate $150 million in cost savings for the 2015-2016 fiscal year to help address Pennsylvania's $2.3 billion deficit.
"Pennsylvania is facing a $2.3 billion deficit and tackling that starts with state government finding innovative ways to increase efficiencies and streamline management," said Gov. Wolf. "As a business owner, I had to constantly look for both savings through efficiency and ways to be innovative to better serve my customers. I did this, first and foremost, by getting input from my employees, which is exactly what we will now do in state government. Every day, workers on the front lines see inefficiencies and ways to improve efforts. If this is done right, the Commonwealth will see an immediate savings of $150 million and a long-term savings of hundreds of millions."
"In the coming weeks, we will announce even more plans for specific savings and innovations that will help us face our dire fiscal situation head-on," Gov. Wolf continued. "These plans will return money to the taxpayers, help reduce our deficit, and more efficiently deliver services to Pennsylvania's hardworking taxpayers."
The Governor's Office of Transformation, Innovation, Management and Efficiency will leverage inter-agency coordination and collaboration to maximize efficiency, modernize state government operations, and provide the highest quality services.
In addition to better coordinating and broadening employee input, the initiatives also will include pursuing new opportunities to partner with the private sector and better leveraging collective buying and purchasing power.
The executive order forms a steering committee led by the Secretary of Administration and calls for agency heads to solicit employee input and identify key staff to form innovation teams, enhances inter-agency coordination, and emphasizes public-private partnerships in an effort to find an immediate $150 million in cost savings.
The new Order rescinds Gov. Corbett’s Executive Order 2012-4 creating the Governor’s Innovation Office.
A copy of the Executive Order is available online.