GOVERNORS
Ruth Ann Minner (Democrat, elected 2000)
Thomas R. Carper (Democrat, 1993-2001)
LEGISLATURE
House — 26 Republicans, 15 Democrats
Senate — 13 Democrats, 8 Republicans
FINANCIAL MANAGEMENT: A-
Delaware’s basic financial management policies and practices are all very good. The state stands out in its debt management, with good oversight and careful attention to maintaining a reasonable debt burden. Its pensions are generously funded, and the rainy day fund, which has never been touched, is at its 5 percent maximum.
The process for predicting the fiscal impact of legislation is a careful one, and the Controller General’s Office contributes useful information by estimating the cost of accepting federal funds that require a state match. That’s something other states could learn from.
The Delaware Economic and Financial Advisory Council puts together long- and short-term revenue forecasts. They have generally been on the money. A similar body projects Medicaid costs, but this one ran into trouble last fiscal year when spending came in 11.4 percent over budget. Another small twitch in this well-managed state has been delayed enactment of the capital budget, an integral part of the state’s overall financial planning. Passage came one month late for fiscal year 2000 and two months late for 2001.
Unfortunate experiences with vendors in the past — the result of a rigid low-bid policy — has led to a more flexible procurement system in which agencies are allowed to consider the vendor’s track record in addition to the dollar amount.
CAPITAL MANAGEMENT: B+
Delaware’s agencies submit their capital project requests annually to the state budget office. Their detailed submissions include full project descriptions, project justifications and cost breakdowns. But the governor and his advisers are the crucial players; in recent years, the legislature has approved a minimum of 90 percent of the governor’s recommendations. Last year, the legislature was considerably more active than usual, adding $142 million to the governor’s $440 million plan.
The transportation department has shifted its construction focus from expansion to preservation. “We’ve realized that you can’t build yourself out of traffic congestion,” says the agency’s budget director.
HUMAN RESOURCES: B
You wouldn’t think they could fit this many unions into such a small state. With some 15,000 employees, Delaware has 45 bargaining units and 35 separate labor agreements. This is because unions are organized by agencies, by sub-agencies and even by individual state hospitals. “It’s insane,” says Thomas LoFaro, deputy director of employee relations. “It takes as much time to negotiate a contract for 50 people as for a thousand.”
Despite these obstacles — and an ongoing problem reaching agreement with its correctional officers — the state has made improvements to the grievance process, reducing the number of steps required and settling many more problems in a timely way, without formal arbitration.
Hiring has been streamlined here; those formal tests that remain are computerized and offered on a walk-in basis at several locations. Scores are available in 24 hours. Once applicants are registered in the computerized tracking system, they automatically receive notice of job openings.
Training is a particular source of pride here, and recent governors have emphasized its importance through executive orders. Officials report that 86.7 percent of employees took advantage of training and development services last year. Not only is the number impressive but the very fact that the state tracks it may be an even clearer sign of good management.
MANAGING FOR RESULTS: B
Delaware doesn’t have a statewide strategic plan, preferring to handle its goal setting on an agency-by-agency basis. Overall, the quality of the agency plans has gotten better over time. Not surprisingly, the ones with the most vocal constituent groups — such as Services for Children, Youth and Family — have the most focused documents.
The skill in utilizing performance measurement — and especially outcome measurement — varies from one department to another. But the system is improving. In years past, managers were inclined to set easy targets they were guaranteed to achieve. More recently, the legislature has begun challenging those targets that aren’t aimed at driving real improvement.
Like other small states, Delaware doesn’t stand out in its formal efforts to obtain citizen input. But, as one official points out, “citizens know their legislators’ phone numbers and don’t hesitate to use them... Even the governor’s home phone number is published.”
INFORMATION TECHNOLOGY: B
A new financial management information system is scheduled for rollout this summer. It will replace an old mainframe that has made it difficult for managers to get the information they need. The state’s relatively new human resources information system seems to be satisfying customers. A benefits administration module will be added in the next few months.
The state’s Web site is well thought-out and extremely easy to navigate. Its energy and transportation sections are particularly strong, with live radio and video feeds. Internet-based transactions are still in the early stages of development, although the state does offer income-tax filing online.
After a history of somewhat lax IT project management, Delaware has begun using a combination of performance measures to make sure new projects deliver promised benefits. One initiative aimed at helping police get information into statewide databanks is being judged by whether the information can be placed online within 12 hours.
There is one notable IT weakness: a very lengthy procurement process, which can require six months to a year to bring on a major project. “Procurement is fairly manually intensive,” explains one IT official. Efforts are under way to deal with this problem by placing communication with vendors on an electronic basis.
AVERAGE GRADE: B+
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