Joanne Young, Lincoln Journal Star
March 3, 2010

For two sessions now, Omaha Sen. Heath Mello has tried to get the Legislature -- and in particular the Appropriations Committee -- to talk about budget reform.

He has been met with resistance but has continued to push.

On Wednesday, he succeeded in getting the committee to agree to include in its budget bill a proposal requiring the 70-plus state agencies to report to the Legislature plans for becoming more efficient.

It is especially important, Mello said, because of predictions the state could face a budget shortfall in 2011-13 of hundreds of millions of dollars.

The committee is in the process of finalizing and balancing its 2010-11 budget proposal, after the Nebraska Economic Forecasting Advisory Board revised its revenue forecast down by about $30.5 million.

Appropriations Chairman Lavon Heidemann has been pessimistic about the 2011-13 budget, saying it's possible programs in some agencies could be wiped out.

Several members have predicted the Legislature will have to return -- as it did last year -- for a special session to chop the budget.

The efficiency plans would have agencies look at how they could consolidate programs, streamline services and review agency mandates.

The plans would include discussion of reforms that would be needed to reduce the number of employees and managers, and changes to go from five- to four-day workweeks.

Utah became the first state two years ago to mandate a four-day workweek -- 7 a.m. to 6 p.m. Monday through Thursday -- to save money, energy and resources.

Preliminary reports show the majority of Utah residents and the majority of state workers favor the change. Absenteeism is down and overtime has decreased.

Heidemann said he was concerned that requiring agencies to craft efficiency plans would put a burden on already-burdened agencies.

"We know we have to look outside the box to deal with our problems," Mello countered. And it would be better to get ideas from agencies sooner rather than later.

If the agencies are going through their budget process and not thinking about these things, they should be, said Omaha Sen. Jeremy Nordquist.

Omaha Sen. John Nelson questioned whether the Legislature would be overstepping it boundaries and getting too much into management tasks.

But Lincoln Sen. Danielle Conrad said Mello's proposal was the type of leadership needed during tough times. Other states are reforming governments, and this state needs to talk about its priorities, too, she said.

Every budget cycle, agencies are required to show what they could cut if they needed to go down 5 percent or more on their budget.

Conrad said she's seen agencies put their most popular programs on the cut list, knowing the committee would balk at cutting them.

"It inhibits dialogue," she said.