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July 8, 2003
GovPro E-Newsletter
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Tuesday, July 8, 2003 Volume 2, Issue 26
Welcome to the GovPro Newsletter brought to you by the Penton Government Media Group. Look forward to news, resources, product and supplier information, and links relating to the government market.
If this message was sent in error or you wish to unsubscribe, see the unsubscribe information below.
Sponsored by Screenflex
CONTENTS City Saves with Sole Source Supplier States Face Tight Fiscal Conditions States Court Boeing Funds Foster Urban Forests States Miss Budget Deadlines News of the Weird
FEATURES
SEATTLE WINS WITH STRATEGIC PARTNERSHIPS
The City of Seattles progressive procurement practices allow purchasing officials to implement contract strategies that save money and meet the communitys goals of environmental stewardship and social equity.
In mid-1999, Seattle, WA, adopted Copernicus, a commodity team-based procurement approach. With the new contract strategies in place, the city re-engineered procurement practices to accommodate the uniqueness of each commodity area.
Annually, the Purchasing Services Division of the Department of Executive Administration presents an analysis of what money was saved and what process efficiencies, environmental stewardship, and social equity successes were achieved in the past year.
For the last few years weve been happy to say that weve saved the city more than $2.5 million per year in better pricing along with many qualitative wins as well, says Melody Mociulski, Seattles Purchasing Services Director.
Better pricing is due in part to strategic partnerships that the city holds with vendors. These successful partnerships have allowed purchasing services to create long-term, stable relationships with suppliers that reduce the cost of products and services. In some cases, the partnerships have created access to additional services that involve significant supplier investment. In all cases, the partnerships assure preferred service from key suppliers. For full text and graphics visit: http://www.govpro.com/GPRONewsletter/Article/27679/
Tough Economic Times Remain for States
As the fiscal year closed, states continued to struggle with declining revenues amidst an uncertain economy, with most states unable to protect their highest priority programs from budget reductions according to budget data released by the National Governors Association (NGA) and National Association of State Budget Officers (NASBO).
According to the latest Fiscal Survey of the States, based on state budget data collected during spring 2003 by NASBO, most governors chose spending reductions coupled with revenue increases and drawing down their remaining reserve funds to balance budgets amidst ongoing tight fiscal conditions.
Fiscal 2003, which ended June 30, was a grueling year for the majority of the nation's governors. Thirty-seven states were forced to reduce already enacted budgets by nearly $14.5 billion - the largest spending cut in the history of the 27-year-old Fiscal Survey.
"In this report we find the fiscal condition in the states has not improved; balancing state budgets continues to be a difficult exercise," said Scott Pattison, NASBO's executive director.
Governors in 29 states recommended tax and fee increases in fiscal 2004, resulting in a net increase of $17.5 billion - the largest since 1979. Furthermore, state spending growth was cut to only 0.3 percent in fiscal 2003 and is expected to decline 0.1 percent in fiscal 2004.
According to the survey, the strategy has remained the same in almost every state -- across-the-board, targeted reductions to programs. Few states have succeeded in exempting high priority programs such as K-12 education, Medicaid, higher education, public safety, or aid to towns and cities.
"If economic conditions remain stagnant or worsen and if budget shortfalls continue next year, the states will have exhausted many of their options for countering a weak economy. The future of these programs, which represent the highest priorities for states, could be in greater jeopardy," said Pattison.
Facts from the survey indicate that governors used a wide variety of budget management tactics in an attempt to balance their budgets in fiscal year 2003: --28 states used across-the-board cuts; --22 states drew down their rainy day funds; --17 states laid off employees; --8 states offered early retirement; and --10 states reorganized agencies and programs.
A variety of other measures were used in 29 states, including refinancing state debt, hiring freezes, tobacco settlement securitization, deferred payments, and fund transfers.
"Governors have reigned in spending over the past two fiscal years, with most states reporting growth rates less than the previous years. The trend will continue next year a record high 19 states have proposed negative growth budgets," said NGA Executive Director Ray Scheppach.
Governors in 29 states have proposed revenue increases by raising taxes and fees, while three states proposed decreases. The revenue increase data for fiscal year 2003 indicate the following: --15 states proposed sales tax changes, for a net increase of $6.2 billion-with California accounting for $4.4 billion of the net amount; --10 states will modify their personal income taxes, totaling $5 billion; --11 states will adjust corporate income taxes, totaling $759 million by closing loopholes and eliminating credits; --14 states raised so-called "sin taxes" on cigarettes, tobacco and alcohol; --Alaska and Michigan will increase motor fuel taxes; and --17 states chose other methods, such as gaming taxes, nursing home surcharges; and hotel occupancy taxes.
Perhaps the greatest indicator of fiscal pain is the near total decimation of state reserve funds. These funds represent ending balances and "rainy day" funds typically used by governors to respond to unforeseen circumstances. Total balances peaked in fiscal 2000 at $48.8 billion. However, by fiscal 2003 total balances are estimated at only $6.3 billion.
Total balances for actual fiscal 2002, estimated fiscal 2003, and recommended fiscal 2004 all fall below levels considered to be an acceptable fiscal cushion.
The Fiscal Survey of States is the most accurate gauge of the health of states' budgets. It assembles data self-reported by states on their general fund budgets. General fund budgets are the current, operational plans that states use to finance most broad-based state programs and services and thus are the most important element in determining states' overall fiscal health. General funds are about one-half of state expenditures. States also make expenditures from other dedicated state funds (such as for education or transportation), from bonds, and from federal grants-in-aid. Budgets reflect states' policies, revenue estimates and planned spending for the coming fiscal year as agreed to by governors and legislatures.
SCREENFLEX
Facility managers around the globe use Screenflex Portable Partitions to make better use of their available space. Create instant training rooms, portable bulleting boards, meeting or processing areas in seconds, with easy to use, easy to store, economical Portable Partitions! To learn more, please visit us at http://www.screenflex.com
NEWS
States Court Boeing For Airliner Project
State governments across the country are aggressively courting the Boeing Co. as the countrys largest airplane builder shops around for an assembly site for its proposed new commercial airliner, the 7E7 Dreamliner. Amid a crippling budget crisis, the states are cobbling together incentive packages to win the jobs, tax revenue and prestige that a big Boeing project can bring.
The winning state stands to gain 800 to 1,200 well-paying jobs, said Mary Hanson, a Boeing spokeswoman. That figure does not include thousands of potential spin-off jobs, industry experts said.
Urban, Community Forest Projects Win $1 Million
Federal grants worth $1,047,000 have been awarded to 15 organizations for urban and community forests, Agriculture Secretary Ann Veneman announced.
The organizations will match those funds with an additional $1,374,000 for research and education projects for urban forests.
The grants fund projects in four categories - urban and community forestry for and with minority and underserved populations, promoting livable communities, communication programs, and research and technology development.
"These grants will help fund programs to promote the importance of urban and community forestry," Veneman said.
"Enhancing forests in urban areas will help improve the quality of the environment and the quality of life in our urban communities." Source: Environment News Service (ENS).
Six States Miss Budget Deadlines
California, Connecticut, Nevada, New Hampshire, Oregon and Rhode Island all missed budget deadlines as of 12:01 AM Tuesday July 1 because of partisan bickering over taxing and spending. In California, state political leaders will start missing paychecks because of it.
A handful of other states, including Missouri, New Jersey and North Carolina, flirted with blown deadlines but reached budget agreements before July 1, the dawn of the new fiscal year in all but four states.
e-Procurement study seeks participants
The Institute for eCommerce at Carnegie Mellon University is conducting a study on e-procurement initiatives in government. The projects authors aim to improve the understanding of barriers and facilitators that affect government organizations ability to adopt and disseminate successful e-procurement applications.
To participate in the online survey, which takes less than 15 minutes to complete, visit: http://epro.gsia.cmu.edu/gov
NEWS OF THE WEIRD: Bizarre but true stories about real people. http://www.govpro.com/GPRONewsletter/Article/28042/
LINKS
ORIX Public Finance, a leading provider of innovative financing for state and local municipalities, offers flexible terms, expedient processing and time-tested expertise. Let an ORIX professional help you today. http://www.orixfin.com
Federal Signal will accelerate your response time with electronic and mechanical outdoor warning sirens, software, and the Informer tone-alert radio. http://www.federalwarningsystems.com
PPI Modular Structures Inc. is a construction company that provides modular and pre-manufactured buildings. Custom applications are our specialty! http://www.ppimod.com
OLYMPIA! The only name you need to know for your office machine requirements! Paper Shredders, Typewriters, Calculators, Paper Handling Equipment. http://www.olympia.to
As a global leader in office furniture, Haworth offers a comprehensive line of furniture and service solutions for any office. http://www.haworth.com
Dawn Enterprises, a long time GSA choice for ultra-secure trashcans, planters, benches and bollards manufactured in either concrete or stone, in the colors of your choice. http://www.trashcans.com
GEM is the zero-emission transportation solution for your fleet needs. This Low Speed Vehicle is ideal for those everyday short distance trips. http://www.gemcar.com/gsa
John Deere. Better macines, greater choices. Lower prices, fewer hassles. Our complete online catalog brings the John Deere showroom right to you. http://www.JohnDeere.com/GovSales
Newark InOne is the only electronics distributor to have a catalog-wide GSA Schedule (GS-06F-0044M) exclusively for the supply of over 150,000 electronic components and supplies. Visit http://www.teamgov.com or contact 1.800.TEAM.GOV (832.6468) for a FREE catalog or to place your next order.
SimplexGrinnell: Your OneStop* provider for integrated fire, security and communications. Serving you via the GSA Schedule. To learn more, visit: http://www.simplexgrinnell.com/gsa
Utility Metals manufactures outdoor lighting products. Lighting poles and brackets are available for immediate shipment. Custom fabrication provides unique solutions for one-of-a-kind applications. Call 800-627-8276 for free catalog or visit: http://www.utilitymetals.com
Crown Equipment designs, manufactures, distributes, services, and supports material handling products that provide customers with superior value. Visit: http://www.crown.com
Safety Storage, the first choice for custom and pre-fabricated hazardous storage buildings. http://www.safetystorage.com
C & H Distributors provide a fast, efficient way to purchase shelving, cabinets, packaging and shipping products, or office furniture. Visit: http://www.chdist.com
You may qualify for a FREE Magazine Subscription
Complimentary subscriptions to Government Product News, a product-driven resource, and Government PROcurement, editorial targeting the public sector purchasing professional are available to those who qualify. To subscribe to Government Product News visit: http://www.submag.com/sub/gn To subscribe to Government Procurement visit: http://www.submag.com/sub/gp
Copyright 2003 Penton Media, Inc.
Welcome to the GovPro Newsletter brought to you by the Penton Government Media Group. Look forward to news, resources, product and supplier information, and links relating to the government market.
If this message was sent in error or you wish to unsubscribe, see the unsubscribe information below.
Sponsored by Screenflex
CONTENTS City Saves with Sole Source Supplier States Face Tight Fiscal Conditions States Court Boeing Funds Foster Urban Forests States Miss Budget Deadlines News of the Weird
FEATURES
SEATTLE WINS WITH STRATEGIC PARTNERSHIPS
The City of Seattles progressive procurement practices allow purchasing officials to implement contract strategies that save money and meet the communitys goals of environmental stewardship and social equity.
In mid-1999, Seattle, WA, adopted Copernicus, a commodity team-based procurement approach. With the new contract strategies in place, the city re-engineered procurement practices to accommodate the uniqueness of each commodity area.
Annually, the Purchasing Services Division of the Department of Executive Administration presents an analysis of what money was saved and what process efficiencies, environmental stewardship, and social equity successes were achieved in the past year.
For the last few years weve been happy to say that weve saved the city more than $2.5 million per year in better pricing along with many qualitative wins as well, says Melody Mociulski, Seattles Purchasing Services Director.
Better pricing is due in part to strategic partnerships that the city holds with vendors. These successful partnerships have allowed purchasing services to create long-term, stable relationships with suppliers that reduce the cost of products and services. In some cases, the partnerships have created access to additional services that involve significant supplier investment. In all cases, the partnerships assure preferred service from key suppliers. For full text and graphics visit: http://www.govpro.com/GPRONewsletter/Article/27679/
Tough Economic Times Remain for States
As the fiscal year closed, states continued to struggle with declining revenues amidst an uncertain economy, with most states unable to protect their highest priority programs from budget reductions according to budget data released by the National Governors Association (NGA) and National Association of State Budget Officers (NASBO).
According to the latest Fiscal Survey of the States, based on state budget data collected during spring 2003 by NASBO, most governors chose spending reductions coupled with revenue increases and drawing down their remaining reserve funds to balance budgets amidst ongoing tight fiscal conditions.
Fiscal 2003, which ended June 30, was a grueling year for the majority of the nation's governors. Thirty-seven states were forced to reduce already enacted budgets by nearly $14.5 billion - the largest spending cut in the history of the 27-year-old Fiscal Survey.
"In this report we find the fiscal condition in the states has not improved; balancing state budgets continues to be a difficult exercise," said Scott Pattison, NASBO's executive director.
Governors in 29 states recommended tax and fee increases in fiscal 2004, resulting in a net increase of $17.5 billion - the largest since 1979. Furthermore, state spending growth was cut to only 0.3 percent in fiscal 2003 and is expected to decline 0.1 percent in fiscal 2004.
According to the survey, the strategy has remained the same in almost every state -- across-the-board, targeted reductions to programs. Few states have succeeded in exempting high priority programs such as K-12 education, Medicaid, higher education, public safety, or aid to towns and cities.
"If economic conditions remain stagnant or worsen and if budget shortfalls continue next year, the states will have exhausted many of their options for countering a weak economy. The future of these programs, which represent the highest priorities for states, could be in greater jeopardy," said Pattison.
Facts from the survey indicate that governors used a wide variety of budget management tactics in an attempt to balance their budgets in fiscal year 2003: --28 states used across-the-board cuts; --22 states drew down their rainy day funds; --17 states laid off employees; --8 states offered early retirement; and --10 states reorganized agencies and programs.
A variety of other measures were used in 29 states, including refinancing state debt, hiring freezes, tobacco settlement securitization, deferred payments, and fund transfers.
"Governors have reigned in spending over the past two fiscal years, with most states reporting growth rates less than the previous years. The trend will continue next year a record high 19 states have proposed negative growth budgets," said NGA Executive Director Ray Scheppach.
Governors in 29 states have proposed revenue increases by raising taxes and fees, while three states proposed decreases. The revenue increase data for fiscal year 2003 indicate the following: --15 states proposed sales tax changes, for a net increase of $6.2 billion-with California accounting for $4.4 billion of the net amount; --10 states will modify their personal income taxes, totaling $5 billion; --11 states will adjust corporate income taxes, totaling $759 million by closing loopholes and eliminating credits; --14 states raised so-called "sin taxes" on cigarettes, tobacco and alcohol; --Alaska and Michigan will increase motor fuel taxes; and --17 states chose other methods, such as gaming taxes, nursing home surcharges; and hotel occupancy taxes.
Perhaps the greatest indicator of fiscal pain is the near total decimation of state reserve funds. These funds represent ending balances and "rainy day" funds typically used by governors to respond to unforeseen circumstances. Total balances peaked in fiscal 2000 at $48.8 billion. However, by fiscal 2003 total balances are estimated at only $6.3 billion.
Total balances for actual fiscal 2002, estimated fiscal 2003, and recommended fiscal 2004 all fall below levels considered to be an acceptable fiscal cushion.
The Fiscal Survey of States is the most accurate gauge of the health of states' budgets. It assembles data self-reported by states on their general fund budgets. General fund budgets are the current, operational plans that states use to finance most broad-based state programs and services and thus are the most important element in determining states' overall fiscal health. General funds are about one-half of state expenditures. States also make expenditures from other dedicated state funds (such as for education or transportation), from bonds, and from federal grants-in-aid. Budgets reflect states' policies, revenue estimates and planned spending for the coming fiscal year as agreed to by governors and legislatures.
SCREENFLEX
Facility managers around the globe use Screenflex Portable Partitions to make better use of their available space. Create instant training rooms, portable bulleting boards, meeting or processing areas in seconds, with easy to use, easy to store, economical Portable Partitions! To learn more, please visit us at http://www.screenflex.com
NEWS
States Court Boeing For Airliner Project
State governments across the country are aggressively courting the Boeing Co. as the countrys largest airplane builder shops around for an assembly site for its proposed new commercial airliner, the 7E7 Dreamliner. Amid a crippling budget crisis, the states are cobbling together incentive packages to win the jobs, tax revenue and prestige that a big Boeing project can bring.
The winning state stands to gain 800 to 1,200 well-paying jobs, said Mary Hanson, a Boeing spokeswoman. That figure does not include thousands of potential spin-off jobs, industry experts said.
Urban, Community Forest Projects Win $1 Million
Federal grants worth $1,047,000 have been awarded to 15 organizations for urban and community forests, Agriculture Secretary Ann Veneman announced.
The organizations will match those funds with an additional $1,374,000 for research and education projects for urban forests.
The grants fund projects in four categories - urban and community forestry for and with minority and underserved populations, promoting livable communities, communication programs, and research and technology development.
"These grants will help fund programs to promote the importance of urban and community forestry," Veneman said.
"Enhancing forests in urban areas will help improve the quality of the environment and the quality of life in our urban communities." Source: Environment News Service (ENS).
Six States Miss Budget Deadlines
California, Connecticut, Nevada, New Hampshire, Oregon and Rhode Island all missed budget deadlines as of 12:01 AM Tuesday July 1 because of partisan bickering over taxing and spending. In California, state political leaders will start missing paychecks because of it.
A handful of other states, including Missouri, New Jersey and North Carolina, flirted with blown deadlines but reached budget agreements before July 1, the dawn of the new fiscal year in all but four states.
e-Procurement study seeks participants
The Institute for eCommerce at Carnegie Mellon University is conducting a study on e-procurement initiatives in government. The projects authors aim to improve the understanding of barriers and facilitators that affect government organizations ability to adopt and disseminate successful e-procurement applications.
To participate in the online survey, which takes less than 15 minutes to complete, visit: http://epro.gsia.cmu.edu/gov
NEWS OF THE WEIRD: Bizarre but true stories about real people. http://www.govpro.com/GPRONewsletter/Article/28042/
LINKS
ORIX Public Finance, a leading provider of innovative financing for state and local municipalities, offers flexible terms, expedient processing and time-tested expertise. Let an ORIX professional help you today. http://www.orixfin.com
Federal Signal will accelerate your response time with electronic and mechanical outdoor warning sirens, software, and the Informer tone-alert radio. http://www.federalwarningsystems.com
PPI Modular Structures Inc. is a construction company that provides modular and pre-manufactured buildings. Custom applications are our specialty! http://www.ppimod.com
OLYMPIA! The only name you need to know for your office machine requirements! Paper Shredders, Typewriters, Calculators, Paper Handling Equipment. http://www.olympia.to
As a global leader in office furniture, Haworth offers a comprehensive line of furniture and service solutions for any office. http://www.haworth.com
Dawn Enterprises, a long time GSA choice for ultra-secure trashcans, planters, benches and bollards manufactured in either concrete or stone, in the colors of your choice. http://www.trashcans.com
GEM is the zero-emission transportation solution for your fleet needs. This Low Speed Vehicle is ideal for those everyday short distance trips. http://www.gemcar.com/gsa
John Deere. Better macines, greater choices. Lower prices, fewer hassles. Our complete online catalog brings the John Deere showroom right to you. http://www.JohnDeere.com/GovSales
Newark InOne is the only electronics distributor to have a catalog-wide GSA Schedule (GS-06F-0044M) exclusively for the supply of over 150,000 electronic components and supplies. Visit http://www.teamgov.com or contact 1.800.TEAM.GOV (832.6468) for a FREE catalog or to place your next order.
SimplexGrinnell: Your OneStop* provider for integrated fire, security and communications. Serving you via the GSA Schedule. To learn more, visit: http://www.simplexgrinnell.com/gsa
Utility Metals manufactures outdoor lighting products. Lighting poles and brackets are available for immediate shipment. Custom fabrication provides unique solutions for one-of-a-kind applications. Call 800-627-8276 for free catalog or visit: http://www.utilitymetals.com
Crown Equipment designs, manufactures, distributes, services, and supports material handling products that provide customers with superior value. Visit: http://www.crown.com
Safety Storage, the first choice for custom and pre-fabricated hazardous storage buildings. http://www.safetystorage.com
C & H Distributors provide a fast, efficient way to purchase shelving, cabinets, packaging and shipping products, or office furniture. Visit: http://www.chdist.com
You may qualify for a FREE Magazine Subscription
Complimentary subscriptions to Government Product News, a product-driven resource, and Government PROcurement, editorial targeting the public sector purchasing professional are available to those who qualify. To subscribe to Government Product News visit: http://www.submag.com/sub/gn To subscribe to Government Procurement visit: http://www.submag.com/sub/gp
Copyright 2003 Penton Media, Inc.
