1. AGENCY TOWNHALL Office of Management & Budget August 6, 2014

2. FISCAL INTEGRITY: OMB’S METRICS  Honestly Balanced Budget – limit spending to available revenues  Maintain Adequate Reserves – hold cash reserves equal to at least 12.5% of appropriations  Hold the Line on Spending – hold spending growth beneath 10-year inflation rate  Fund Excellence and the Governor’s Priorities – education, health care, economic development, transportation, quarterly performance grants  Reduce Debt – continue to reduce general fund supported debt  Cut Taxes – return surpluses to taxpayers “Fiscal integrity is the foundation of our prosperity.” Governor Mike Pence

4. TAX RELIEF UNDER GOVERNOR PENCE: 2013-2021

5. PREPARED FOR THE NEXT ECONOMIC DOWNTURN? According to S&P only six states are prepared to weather the next downturn: Indiana, Michigan, Rhode Island, South Carolina, Utah and Wisconsin. S&P uses three measures to determine a state’s progress in its fiscal recovery:  1) whether or not general fund or operating fund balances are equal to or greater than the state forecast for the end of the 2014 fiscal year,  2) whether rainy day fund balances have been restored to at least their 2008 level, and  3) whether a state is funding its actuarially recommended pension contribution. Source: Liz Farmer. Is Your State Prepared for the Next Economic Bust. Governing (April 30, 2014).

6. OMB ORGANIZATIONAL UPDATE  Micah Vincent  New OMB General Counsel and Policy Director  Eric Miller  New Deputy Director for Government Efficiency and Financial Planning (GEFP)  Indiana Office of Technology joins the OMB suite of agencies

7. FY14 RECAP|FY15 UPDATE State Budget Agency

8. FY14 REVENUE General Fund Collections  $13.7 Million|0.1% over December 20, 2013 Forecast General Fund Revenue  $59.8 Million|0.4% below FY13 Revenue  $168.8 Million|1.2% below Budget Plan

9. STATE SPENDING

10. SURPLUS & RESERVES

11. AGENCY BUDGET FY15 Budget FY15 Appropriation minus 4.5% FY16/FY17 Budget FY15 Appropriations minus 3.0%

12. BUDGET SUBMISSION DUE August 29

13. HYPERION UPDATES  System data is backed up two times per day  SBA & GMIS are working to ensure issues are dealt with as quickly as possible  Environment will be shut down and restarted every night  If you notice an issue, please let Jim Adams know as soon as possible, so that steps can be taken to resolve Points of Contact:  SBA Analysts  Jim Adams (jadams@sba.in.gov)

14. MANAGEMENT & PERFORMANCE HUB WWW.IN.GOV/MPH Office of Management & Budget Indiana Office of Technology

15. EXECUTIVE ORDER 14-06 On March 17, 2014, Governor Pence issued Executive Order 2014-06 creating the Governor’s Management & Performance Hub (MPH) The Governor’s Executive Order Requires: OMB to create the MPH as a tool to promote continuous process improvement for the State of Indiana All state agencies to participate in the MPH by providing data, information, system access, or other resources to IOT and OMB upon request OMB, IOT, and state agencies to maintain data as required by law and to execute agreements as necessary to facilitate data access for MPH

16. THE MPH PROGRAM Vision Indiana will have the most effective, efficient, and transparent state government in the country. Mission Develop an industry leading comprehensive enterprise wide data driven management system.

17. WHAT IS AN “ENTERPRISE-WIDE, DATA- DRIVEN MANAGEMENT SYSTEM?” It’s a management tool  Metrics  Key Performance Indicators and Program Measures  Identify Issues and Develop Targeted Solutions  Data-driven decision-making It’s a tool to solve big problems  Infant Mortality  Fraud & Abuse  Recidivism

18. DATA-DRIVEN DECISION CYCLE Analyze DecisionGather Store

19. MPH PROGRESS  Cabinet-Level Agency KPI Automation Project: 98% complete  Infant Mortality/Child Fatality Case Study: 50% complete  Business Analytics Software Selection: 100% complete  MPH Website: Launched

20. NEXT STEPS  OMB and IOT has reached out to several agencies on the KPI Automation Project, Infant Mortality Project & the MPH Website. A big THANK YOU to those agencies.  OMB and IOT will be reaching out to several of you in the near future to collaborate on automating data and dashboard creation.  Roll Out of Visualization Tool  Over next 18 months

21. BUSINESS ANALYTICS If your agency is exploring opportunities in the area of dashboards, business analytics, or business intelligence, please contact OMB. Point of Contact  Sara Marshall (smarshall@gov.in.gov)

22. PROGRAM ASSESSMENT COMPREHENSIVE EVALUATION Government Efficiency and Financial Planning

23. PACE Executive Order 13-02 requires OMB to conduct an evaluation of the overall performance of each agency or instrumentality within the executive department of state government. To achieve this mandate a program performance evaluation form along with step by step instructions was incorporated into the budget instructions and sent to all agency heads and CFO’s on June 16th.

24. EACH AGENCY MUST  Identify and prioritize all of their programs  Define the program purpose, strategy and activities  How the program relates to Governor’s Roadmap goals  How strongly the program fits into the agencies Good to Great Plan  Identify all program funding sources, expenditures, FTE’s  Identify all performance measures associated with each program

25. WHAT WILL PACE ACHIEVE? Pace will allow us to prepare a performance based budgeting report for the OMB Director including a plan for developing a system of performance- based budgeting to be incorporated in the FY 16- 17 biennial budget process.

26. WHAT WILL PACE ACHIEVE? PACE will also allow agencies along with OMB to identify programs that are:  Not a high agency priority  Underperforming  Do not coincide with the Roadmap goals or agency Good to Great Plan  Have insufficient measures associated with them  Duplicative programs PACE will allow agencies to revaluate their programs and make conscious decisions.  Would funds be better applied to a another more viable program over a program that is struggling or a low priority?

27. WHAT HAS BEEN ACCOMPLISHED TO DATE? Program performance evaluations DUE to OMB by August 15 GEFP reaching out to agencies to provide guidance or assist with evaluations Meeting individually with agencies Point of Contact  GEFP Analyst  Kirke Willing (kiwilling@gov.in.gov

28. FLEET MANAGEMENT Indiana Department of Administration

29. FLEET MANAGEMENT Fleet Budget Centralization  Begins with new vehicles purchased after July 1, 2015  Greater Transparency  Allows for increased vehicle lifespan  Allows agencies to focus on their core mission FY 15 Fleet Purchases and Maintenance  No impact; Business as Usual

30. FLEET MANAGEMENT Fleet Needs Assessment  Was due to IDOA by July 25th  Please submit ASAP if you missed the Deadline FY 16-17 Fleet Purchases (State Dollars)  Fleet Needs Assessment response will be utilized  Agencies base budgets will be adjusted accordingly by SBA FY 16-17 Fleet Purchases (Federal Dollars)  Expense will be incurred by IDOA  Once expense occurs, it will be JE’d back to the agency who is utilizing the vehicle

31. UPCOMING VACANCIES State Personnel Department

32. RE-EMPLOYMENT OF RETIREES Must have a separation of employment for at least 30 days If no separation, employee does not receive pension benefit during re- employment. If they return after 30 days, no additional pension service credit is earned and no contributions made to their annuity during re-employment No formal or informal agreement for re-employment in INPRS covered position prior to retirement – result is employee does not receive pension benefit during re-employment.

33. APPROVAL TO FILL RETIREMENT VACANCIES  If a position is necessary and critical for continued operation of agency, submit justification for the position.  If seeking more than one, please prioritize all positions in excel.  If SHC request has previously been submitted and/or approved, include the SHC requisition number and if position has been filled. (May 1- present)

34. APPROVAL TO FILL RETIREMENT VACANCIES  Submit requests to Diana White in SPD  diwhite@spd.in.gov no later than Aug. 20 diwhite@spd.in.gov  SHC will review plan and may schedule a meeting to discuss further For questions call  Anita Samuel 232-4581  Kristi Hall 234-2956

35. Questions?