Managing Government Like a Business

“As a fiscal ‘nuts-and-bolts’ executive, Mark Warner has been true to the promise of his business background. He continues to squeeze more product out of fewer dollars and has brought notable enthusiasm to the task.”

Daily Press, 7/25/03

VITA has allowed agencies to focus on improved service delivery, improving accountability and transparency, and improved services to citizens, business, and state agencies.

One of VITA’s immediate successes was the elimination of IT project failures. A legislative review of 15 major IT projects started, completed, or terminated between November 2000 and the end of 2001 found that the Commonwealth had wasted at least $75 million in failed development efforts. In addition, VITA’s creation provided significant cost savings through the renegotiation of telecommunication and IT management contracts. This IT reform effort is viewed by other states as a model for state government reform efforts, and it has been repeatedly recognized by Governing magazine and The Center for Digital Government.

Increasing Online Access to Government Services

Virginians currently have access to more than 100 interactive government services through the Commonwealth’s Internet portal. Virginia has broken new ground in e-government, including personalization, real-time election results for all precincts, a wireless portal, free legislative tracking services, and real-time customer service. On-line services available directly to citizens include the purchase of hunting and fishing licenses, boat registration renewals, lawyer inquiry forms, job registrations, and a variety of motor vehicle transactions.

Leveraging the State’s Purchasing Power

Fundamental improvements in Virginia’s electronic procurement system (eVA) and central procurement operations have been repeatedly recognized for their excellence and efficiency. Governor Warner’s leadership in transforming the way the state buys more than $5 billion in goods and services each year resulted in more than $218 million in cumulative savings, including $30 million in cost savings in 2007 alone.

The numbers tell the story. In the fall of 2002, eVA was used by six state agencies and had about 400 registered suppliers. In 2008, more than 500 state and local government agencies use eVA. Almost 33,000 registered suppliers now participate, and many of them are small, woman- or minority-owned. eVA provides real-time procurement opportunities covering five million items. And, in the past five years, eVA has processed 1.5 million orders, and total “spend” is quickly approaching $14 Billion.

More Efficient Collection of Overdue Payments

Bringing modern practices to state government also meant improving collections of money already owed the Commonwealth. Governor Warner added audit and compliance staff, created a collections partnership with the IRS, and implemented a one-time tax amnesty program. Through systematic efforts undertaken over the four years of Governor Warner’s term, overall collections were increased by more than $100 million annually.

Improved Management of Leases and State-owned Real Estate

When Governor Warner took office, each agency or institution managed its own real estate leases and acquisitions. He instituted centralized management of real estate under the supervision of specialized staff. As a result, lease agreements were renegotiated centrally and agencies were actively encouraged to co-locate facilities. This new approach produced over $10 million in cost savings within the first nine months of a two-year implementation plan. Over 10 years, it is estimated that the real estate initiative will save almost $70 million across all agencies and institutions.