Guidehouse - Final Report

Government
Alignment
Project
State of Iowa
Final Report
1
DRAFT
Table of Contents
01 Alignment Overview 3
02 The Case for Change 7
03 Benchmarking Support 11
04 Cost Savings Opportunities 16
05 Future State Departments 53
©2022 Guidehouse Inc. All rights reserved. Proprietary and competition sensitive. For internal use only.
2
DRAFT
SECTION I
Alignment Overview
3
DRAFT
State of Iowa Alignment: Current State
OPPORTUNITY:
Today, the Governor of Iowa
has 37 direct reports, more
than four times that of Fortune
500 CEOs, making the
organization one that is difficult
to manage efficiently. The
number of direct reports to the
Governor exceeds all Midwest
neighboring states as well as
all states with similar budget
expenditures or population.
The current structure of

Executive Branch under the
control of the Governor
presents a rich opportunity to
realign and streamline the
organization to better serve the
people of Iowa and continue
excellent stewardship of
taxpayer dollars.
4
DRAFT
State of Iowa Alignment: Vision & Principles
ALIGNMENT VISION:
Governor Reynolds needs a structure that meets her leadership vision embracing the 2020's and beyond, not one based on historical precedent and outdated
assumptions. A realigned state government will enable the Governor to continue to prioritize a government that is efficient and effective; responsive and
accountable; citizen-focused; built on leading practices and data-driven decision making; ensuring Iowa's economic prosperity.
GUIDING PRINCIPLES FOR ALIGNMENT:
CREATE AN ACCOUNTABLE ORGANIZATIONAL STRUCTURE

Tie the Governor’s accountability to Iowans to an executive branch organizational structure where services to Iowans are directly accountable to the
Governor and direct oversight is strengthened
ELEVATE DATA-DRIVEN DECISION MAKING

In validating the future-state structure, leverage benchmarking and leading practices around organizational structure across peer states to understand
how best to achieve desired outcomes
SIMPLIFY REPORTING & APPOINTMENTS

Establish all future state cabinet directors as gubernatorial appointees with authority to select their division directors and bureau chiefs (with some
limited exceptions) and streamline reporting so that no gubernatorial appointees are reporting to non-gubernatorial appointed positions
EXPAND THE RESPONSIBILITY OF DIRECT REPORTS

Empower direct reports to the Governor with significant responsibility in terms of the organizational size, budget, and scope of services over which they
have purview and direction
KEEP PEOPLE AT THE CENTER

Approach alignment implementation through a people-centered lens, leveraging organizational change management and communication strategies to
understand the impact of change and the probability of success for each proposed alignment
5
DRAFT
State of Iowa Alignment: Proposed Future-State
The implementation of the proposed alignment to the executive branch will result in a change from 37 direct reports to 16: a smaller,
more efficient organization that limits bureaucracy and increases efficiency, while continuing excellent service and programming to
the people and businesses of Iowa.
Governor
Kim Reynolds
NON-CABINET LEVEL
Lt. Governor Law Enforcement Public Employees’

Academy Retirement System
Adam Gregg Vacant Greg Samorajski
Communications Department for the

Department of Dept of Administrative Department of Health Department of Network Blind
Management Services and Human Services Corrections Randy Goddard Emily Wharton
Kraig Paulsen Adam Steen Kelly Garcia Dr. Beth Skinner
Boards and
Department of
Department of Department of Department of Commissions
Insurance and
Education Revenue Financial Services Transportation
Ann Lebo Kraig Paulsen Doug Ommen Scott Marler
Iowa Workforce Department of Department of Public Homeland Security

Development Veterans Affairs Defense and Emergency Mgmt
Beth Townsend Todd Jacobus Benjamin Corell John Benson
Dept of Inspections Econ Development Department of Department of Public

and Appeals Authority/IFA Natural Resources Safety
Larry Johnson, Jr. Debi Durham Kayla Lyon Stephan Bayens
6
DRAFT
SECTION II
The Case for Change
7
DRAFT
Case for Change: Overview
PREPARING FOR THE FUTURE
1 Iowa has not undertaken a comprehensive review of the executive branch in nearly 40 years, which has led to outdated practices
that could evolve to better serve current and future generations of Iowans
LEVERAGING SYNERGIES
2 Natural synergies exist across the 30+ departments that can and should be leveraged to minimize overlap in priorities and
responsibilities and to make necessary improvements to citizen services as well as internal working processes
MAXIMIZING TAXPAYER DOLLARS

3 As stewards of taxpayer dollars, it is the responsibility of State Government to operate with greater effectiveness and efficiency in
the delivery of government services to maximize taxpayer dollars and ensure Iowa's long-term prosperity
ACHIEVING PRIORITIES
4 Greater efficiency and collaboration through this alignment will be necessary to support Governor Reynolds’ ambitious priorities
which includes improving education in Iowa and fueling the State’s economic growth
ELEVATING EFFICIENCY EFFORTS

5 The Governor’s Economic Recovery Advisory Board released a 2021 report that found through extensive research that pursuing
government efficiency initiatives will be key to recovering from the Covid-19 pandemic and paving the way for future growth
8
DRAFT
Case for Change: Leading Practices
Benchmarked States: Number of Cabinet Members & Expenditures per Capita
Iowa has the highest number of cabinet Iowa has 3rd highest expenditures per capita
members of benchmarked states of all benchmarked states
23
$7.5K 17
14
20
$5.5K $8.8K $6.2K
37
28 12
$8.2K 26
24 $6.6K
$6.1K $5.5K
$5.5K 13 16
$6.6K
$4.4K
30 $5.2K
15
15
$6.3K
$9.2K 15 23
KEY:
$6.7K $6.3K Neighboring
Similar Pop/Expenditures
$4
Other Top Performing
.0K
States
Note: Florida Cabinet is historically unique in structure and was excluded for comparability.
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DRAFT
Case for Change: Internal Efficiency Opportunities
Internal assessment shows there are several efficiency opportunities that would not only lead to cost savings for the state but would also
support better collaboration, reporting, and operations for internal teams and entities.
BUDGET INFORMATION TECHNOLOGY REAL ESTATE
$9.5B $323.7M 22.1M Sq. ft Owned // 2.3M Sq. ft Leased

FY 2023 Adopted Budget Appropriations FY 2023 IT Budget State Real Estate
A better coordinated and streamlined budget A more consistent OCIO presence across Increased visibility into the State’s real estate
process could help maximize funding and simplify Departments would increase the value of centralized portfolio would allow for more comprehensive and
internal processes. services and lead to cost savings. regular reviews of real estate needs and spending
AREAS OF OPPORTUNITY: AREAS OF OPPORTUNITY: AREAS OF OPPORTUNITY:

• Standardize Department and state budget reports • Increase OCIO insight and control of statewide IT • Decrease reliance on self-reported data to address
spending, procurement, asset inventories, and IT issues of incomplete or inconsistent data
• Identify federal and other funding sources to better
workforce • Establish a formal annual process for collecting and
leverage for statewide use
• Expand resource availability and capability to analyzing real estate data
• Develop a comprehensive view of human capital
deliver value added, modern services, and support • Increase understanding of specialty uses (e.g., labs,
(budgeted, filled, vacant positions and headcount)
raised floor, climate controlled) to consolidate and
with statewide salary/position management policy • Increase governance over agencies to coordinate
relocate to better suited facilities
technical standards and modernization planning
• Better coordinate and leverage DAS and • Explore comprehensive asset review conducted by
DOM budget, FTE, financial systems, and • Optimize IT through consolidation to improve professional facility planners
information business processes and governance
10
DRAFT
SECTION III
Benchmarking Support
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DRAFT
Benchmarking Overview
Benchmarking of other States has been key to developing and validating the proposed alignment. Insights and learnings from leading
states, as well as those comparable to Iowa, have provided support and use cases for the most impactful proposed changes.
Benchmarking Approach
1. Identify Key Performance Indicators
(KPIs)
2. Identify leading practice states that
excel across the KPIs for each of the
primary functional areas
3. Compare Organizational Structures in
Leading States
4. Identify key takeaways and leading
practices for those States
5. Conduct additional research on an as
needed basis to support unique
KEY: requests or functions for Iowa
Neighboring
Similar Pop/Expenditures
Other Top Performing
States
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DRAFT
Benchmarking Key Support
Department of Corrections
Department of Inspections, Appeals, and Licensing (DIAL)
(DOC)
Proposed Change: Align Division of Labor to DIAL Proposed Change: Align Community
Based Corrections to DOC
› Division of Labor: Across key benchmarked states like Utah and Idaho, the labor focused agency is
responsible for and aligned to industry regulation activity as well as civil rights management › Community Based Corrections
Examples: Oklahoma and South Carolina
Proposed Change: Align Iowa Civil Rights Commission to DIAL have given administrative authority of CBCs
to the Department of Corrections, which has
› Civil Rights: No leading benchmarked states have an independent civil rights entity. Instead, the civil rights enabled cohesive strategies for lower
services are housed within the entity that oversees labor and employment issues recidivism rates and the application of
evidence-based practices
Proposed Change: Align licensure functions from DPS, IDOB, and DHHS under DIAL
› Licensing Consolidation: Seven of the benchmarked states regulate professional licensure under a single
entity. Four have standalone regulatory entities, and three have regulatory entities under a larger agency.
› Fire Extinguishing Systems and Inspectors: Of the seven states, Wisconsin and Michigan have chosen
to include the regulation of fire extinguishing systems and inspectors under their single licensing entities.
Proposed Change: Align workers’ compensation from IWD to DIAL
› Workers Compensation Examples: In Idaho and Minnesota, both workers comp and industry regulation
sit under the state’s administrative court which has a role similar to that of Iowa’s DIA. In Minnesota, this
entity also oversees professional licensing.
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DRAFT
Department of Health & Human Iowa Workforce Development
Department of Education (DOE)
Services (DHHS) (IWD)
Proposed Change: Align College Student Aid Proposed Change: Align Iowa Department of Proposed Change: Align IVRS from the
Commission to DOE Aging to DHHS Department of Education into IWD
› College Aid: Florida, ranked #1 for higher › Aging: Typically, states do not have an › Vocational Rehab: Utah and Minnesota,
education by U.S. News, houses their aid independent agency for older populations, and which have the highest labor participation
commission under the education agency. instead integrate these targeted services rates and STEM jobs of benchmarked states,
Other leading education states, Idaho and within the department overseeing health and house Voc Rehab in workforce development.
Delaware, do the same. human services. Only 8 states in the country house Voc Rehab
within the department of education.
Proposed Change: Align STEM Advisory Proposed Change: Align Department of
Council to DOE Human Rights to DHHS Proposed Change: Align all four WIOA Title
programs into IWD
› STEM Education: Leading states in › Human Rights Education and Advocacy:
education such as Minnesota, Nebraska, and Unlike Iowa, most states do not have an › WIOA: Streamlining WIOA funding through
Wisconsin have integrated STEM initiatives independent human rights agency. Advocacy one entity has allowed Texas and Michigan,
into the Department of Education. and education around human rights is instead leaders in workforce development, to create
integrated into the human services agency or one-stop shops for workforce training needs.
taken up by private non-profit organizations. This has improved employer engagement and
enabled both States to target high growth
industries through stronger partnerships
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DRAFT
Department of Veterans Affairs Department of Public Safety
Department of Revenue (DOR)
(DVA) (DPS)
Proposed Change: Align Alcohol Beverage Proposed Change: Merge Iowa Veterans Proposed Change: Align Office of Drug
Division to DOR Homes and IDVA Control Policy into DPS
› Alcohol Beverage Division: Most states with › Veterans Affairs: Across almost all leading › Drug Control Policy: Across all leading
stand-alone alcohol regulation entities states, Veterans’ Affairs and Veteran Homes states, drug control is integrated into a larger
typically engage in retail sales, which Iowa are housed under a single department. department like Public Safety, Health and
does not. Several states, including Colorado Human Services, or Safety and Professional
and Mississippi house their alcohol control Service
entities within the Department of Revenue.
Proposed Change: Transition MVE to DPS
Department of Cultural Affairs Department of Insurance and › MVE Oversight: Across benchmarked states
(DCA) Financial Services (DIFS) MVE sits either in DOT or DPS, but most
commonly DPS is the lead agency over MVE
Proposed Change: Divide DCA functions Proposed Change: Merge DOB, DCU, DOI
between IEDA and DAS under an umbrella financial services agency
› State Archives, Museums, and Records: › Insurance Division: In some states,

No benchmarked states keep records, including New York, regulation of insurance is
archives, or museums within a separate housed within an overarching department that
cultural affairs agency. Instead, these oversees a wide breadth of financial services
functions typically sit in administrative including, banks, insurance, and regulation
agencies or state departments.
15
DRAFT
SECTION IV
Cost Savings Opportunities
16
DRAFT
Overview of Top Ten Opportunities
COST SAVINGS EFFICIENCIES

Several cost savings opportunities were identified as part of the In addition to potential savings, three recommendations emerged
proposed alignment that will have implications for state spending as opportunities to enhance State shared services, governance
and efficiency. and oversight.
1. Strategic Personnel Alignment: Review of all positions and related 3. Procurement Reform
vacancies based on the newly aligned Departments • Increase Visibility and Transparency Around Vendor Spend
2. Reduce Office Space Footprint: Office space optimization analysis • Expand Access to Cooperative Purchasing Agreements
based on future state departments • Expand Authorization of Limitations
5. Consolidate Common Technology: Enterprise approach to of Liability
consolidation of common technology software systems and services 4. Consolidate IT Licenses and Contracts
6. Recover Medicaid Matching Funds: Maximize federal matching funds • Consolidation of state-wide IT licenses and contracts under a
(e.g., drug rebates) dedicated OCIO Technology Procurement Office
7. DOC Medical Cost Capture: Pursue Medicaid waiver opportunities for 10. Strengthen DOM Governance and Operating Model
inmates prior to reentry • Establish Performance Results Office
8. Community Based Corrections • Strengthen state budget operations
• Contract and Procurement Consolidation • Conduct quarterly operational reviews
9. Land Sales: Evaluation of the sale of owned land, including among • Enhance Federal Block Grant Management
others, and land owned by the Department of Corrections Prison
Industries
DRAFT 17
Additional Cost Savings
In addition to the alignment related cost savings, there are a number of additional opportunities that the State of Iowa may want to
explore in the future that would help capture additional revenue and savings for the State
These savings are a natural continuation of the DOM efficiency
initiatives proposed with alignment
1. DEBT AND FEES 2. PRIVATIZATION 3. FEDERAL FUNDING 4. SUNSETTING

COLLECTION EVALUATION PROGRAMS
The State may choose to evaluate the Privatization of government services is Maximizing Federal funds to deliver Once formal program evaluation processes
current system of collecting delinquent court another way some states have uncovered programs and services creates the have been established, the State has an
debt to identify opportunities to increase cost savings. Privatization of these services opportunity to provide core benefits to opportunity to establish protocol around
overall recurring General Fund revenues. can help get specialized skills that are not Iowans at the lowest cost to State taxpayers sunsetting programs that are under
feasible to bring in house, employ flexible performing or not achieving their intended
Current State
staffing to better meet fluctuating needs, and A comprehensive review of this funding outcomes or ROIs.
• Delinquent court debt is money owed to provide services in a more cost-effective would ensure:
the State that is 30 days past date of the manner.
• Current personnel and operational costs
fine or due date of an installment
of administering federal programs are
payment In Iowa, the following services may be a
fully cost allocated to and paid from
good fit for privatization: Iowa PBS, ICN,
• If a county files a notice of full federal funds
State Historical Museum, and Volunteer
commitment to collect delinquent court
Iowa • Federal funds are considered and fully
debt and a memorandum of
maximized, where applicable, ahead of
understanding with the Clerk of the
new state funding investments
District Court, debt is assigned to the
county. Otherwise, debt is assigned to a • State and Federal cost sharing is
designated private debt collector. proportionately budgeted and earned
within the fiscal year
• Counties can retain up to 28% or 33% of
collections (based on established • Additional opportunities for Medicaid
collections thresholds), with the State funding are captured through waivers
receiving the remainder (See Appendix)
The State may also choose to sell old debt to
achieve a one-time General Fund revenue
opportunity.
18
DRAFT
One-time Ongoing
Cost Savings Opportunities

Key
benefit benefit
The summary below provides the estimated total budget savings for each opportunity. Savings are computed using agency budget
data which, in total, is funded from state, federal and other funds. The state will need to quantify the savings specifically attributable to
General Fund Appropriations and Other State Appropriations based on how each of these items is budgeted and paid for by the
State. Some of the revenue opportunities identified generate funds to offset the need for General Fund Appropriations.
Total Potential Cost Savings Year One: $75.6 M

Strategic Personnel Alignment DOC Medical Cost Capture
1.0
$19.1 M 7.0
$0.5 M
Reduce Office Space Footprint $13 M 8.0 Community Based Corrections

2.0 $4.6 M
Consolidate Common Technology Land Sales2 $ 17.6 M

5.0 $ 15.3 M 9.0
6.0 Recover Medicaid Matching Funds1 $5.5 M
1 Medicaid savings are 100% State funds

2 One-time land sales: depending on the buyer, if it were to become a taxable
entity it would have a recurring benefit to the State
19
DRAFT
Four-Year Cost Savings Opportunities
Opportunity Year 1 Year 2 Year 3 Year 4 Total
1.0 Strategic Personnel Alignment $18.6 M $19 M $19.4 M $19.8 M $76.8 M
2.0 Reduce Office Space Footprint $13 M $3.5 M $3.5 M $3.5 M $23.5 M
5.0 Consolidate Common Technology $15.3 M $15.3 M $15.3 M $15.3 M $61.2 M
6.0 Recover Medicaid Matching Funds $5.5 M $0.3 M $0.3 M $0.3 M $6.4 M
7.0 DOC Medical Cost Capture $0.5 M $0.5 M $0.5 M $0.5 M $2 M
8.0 Community Based Corrections $3 M $3 M $3 M $3M $12 M
9.0 Land Sales $17.6 M - $15.1 M - $32.7 M
Total $73.5 M $41.6 M $57.1 M $42.4 M $214.6 M
20
DRAFT
1.0 Strategic Personnel Alignment (1/2)
DESCRIPTION METHODOLOGY NEXT STEPS
Review of all budgeted positions to identify • Using the Table of Organization, Guidehouse
vacancies and redundant roles and remove created a roster of all positions (filled and vacant) • Effective date to be established by legislature in
Timeline
non-critical positions to generate within each future state department bill
FY24 budget savings. • Provided with the future state roster, each
department selected vacant positions for • Further refine funding sources aligned with each
potential removal Pre-Legislation position being eliminated
Introduction • Incorporate reductions into their FY24 Budget
• The total budget benefit was calculated by finding
requests
the sum of the total cost (salary + benefits) for each
position title selected for potential removal
Pending • Finalize FY24 Budget
$78.6 M Moderate • To compute potential total budget Legislative
• Approve FY24 Budget
savings, Guidehouse used the minimum total cost Approval
for each position title
• NOTE: This methodology does not consider how Resources & • DOM Budget Analyst
Potential these positions are funded or the net impact to Responsibilities
Estimated • Department Directors
Budget Benefit appropriations
Over Four Years Ease
LEVERS AUTHORIZATION CONSIDERATIONS
Executive • DOM will need to conduct a cost allocation analysis to quantify the impact to appropriations
Efficiency
• Generates immediate FY24 budget savings by eliminating vacant positions and associated salaries and benefits
• Reduces existing redundant positions and reflects efficiencies resulting from alignment
Cost Savings Legislature • Has limited impact on state personnel and existing services
• Realignment may reveal new positions needs or additional redundancies
Department • Regular reviews of existing budgeted vacancies will help ongoing evaluation of their necessity
Leadership
DRAFT 21
Equation for Estimated Total Budget Benefit = Number of Eliminated Positions x Minimum Position Cost
(with an assumed 2% COLA/promotion in Years 2-4)
DAS HHS DIAL DIFS DNR DOC DOE DOM DOR DOT DPS DVA HSEMD IEDA IWD Total
Year 1 $0.0 M $6.4 M $1.5 M $0.0 M $0.0 M $0.0 M $0.4 M $2.8 M $1.9 M $0.8 M $0.0 M $0.2 M $0.0 M $0.5 M $4.2 M $18.6 M
Year 2 $0.0 M $6.6 M $1.5 M $0.0 M $0.0 M $0.0 M $0.4 M $2.9 M $2.0 M $0.8 M $0.0 M $0.2 M $0.0 M $0.5 M $4.2 M $19 M
Year 3 $0.0 M $6.7 M $1.6 M $0.0 M $0.0 M $0.0 M $0.4 M $2.9 M $2.0 M $0.8 M $0.0 M $0.2 M $0.0 M $0.5 M $4.3 M $19.4 M2
Year 4 $0.0 M $6.8 M $1.6 M $0.0 M $0.0 M $0.0 M $0.4 M $3.0 M $2.0 M $0.9 M $0.0 M $0.2 M $0.0 M $0.5 M $4.4 M $19.8 M2
Total Budget
Benefit
$0.0 M $26.5 M $6.2 M1 $0.0 M $0.0 M $0.0 M $1.6 M2 $11.6 M1 $7.9 M $3.3 M $0.0 M $0.8 M $0.0 M $2.0 M $17.1 M2 $78.2 M2
$76.8
1 Sum of rounded amounts greater than total.

2 Sum of rounded amounts less than total.
DETERMINATION ASSUMPTIONS
• To establish a conservative estimate of position cost savings, Guidehouse used the minimum cost per each position title
• The Table of Organization, which was used to create department rosters and identify filled or vacant positions, is up to date as of September 2022
• Recurring savings are achieved when positions and funding are eliminated from the total budget. Retaining positions will diminish expected savings
• This methodology does not consider how these positions are funded or the net impact to appropriations
• Savings should increase each year due to reduced costs brought on by cost-of-living adjustments or promotions, which are conservatively estimated at 2% annually
• Savings accrued from assumed cost-of-living adjustments in Years 2 to 4 are due to cost avoidance rather than direct savings
• Not all savings are tied to the General Fund
• Not all of the positions eliminated are currently funded
DRAFT 22
Department of Administrative Services (DAS) Department of Insurance & Financial Services (DIFS)
Current Total FTE Efficiencies Future Current Total FTE Efficiencies Future
Cost Avoidance Cost Avoidance
State FTEs Identified State FTEs State FTEs Identified State FTEs
DAS 264 2 262 $90,571 Insurance 130 3 127 $175,863
State Library 33 0 33 $0 Banking 88 0 88 $0
DCA Historical
50 0 50 $0 Credit Unions 18 1 17 $75,143
Division
Totals 347 2 345 $90,571 Totals 236 4 232 $251,006
Department of Natural Resources (DNR) Department of Corrections (DOC)

Current Total FTE Efficiencies Future Current Total FTE Efficiencies Future
Cost Avoidance Cost Avoidance
State FTEs Identified State FTEs State FTEs Identified State FTEs
DNR 902 9* 893 $394,894 DOC 2778 4 2774 $236,102
Totals 902 9* 893 $394,894 CBCs 1114 0 1114 $0
*3 positions outsourced
Totals 2787 4 2783 $236,102
DRAFT 23
Department of Health & Human Services (HHS) Department of Inspections, Appeals, & Licensing (DIAL)
Current Total FTE Efficiencies Future Anticipated Current Total FTE Efficiencies Future Anticipated
State FTEs Identified State FTEs Savings State FTEs Identified State FTEs Savings
DIA 531 16 515 $305,991
HHS 5287 248 5039 $6,235,263
ALJs 18 3 15 $295,707
IDA 73 18 55 $60,165 Civil Rights 27 0 27 $0
PLB 10 0 10 $0
DHR 55 2 53 $150,286
Division of
94 0 94 $0
Labor
DIA - CAB 29 0 29 $0 Workers
27 0 27 $0
Compensation
DOM - ECI 2 0 2 $0 DPS – Fire

Prevention 17 0 17 $0
Bureau
Volunteer Iowa 18 1 17 $0 DPS – Electrical
Licensing and
23 0 23 $0
Inspection
Totals 5464 269 5195 $6,445,714* Bureau
DPS – Building
Code and 11 0 11 $0
*$2,014,533 in General Fund savings
Fireworks
HHS –
106 11 95 $860,421
Licensing
Totals 864 30 834 $1,623,580*
*$161,461 in General Fund savings

DRAFT 24
Department of Education (DOE)
Department of Management (DOM)
Current Total FTE Efficiencies Future Anticipated
State FTEs Identified State FTEs Savings Current Total FTE Efficiencies Future Anticipated
State FTEs Identified State FTEs Savings
DOE 322 5 317 $342,312
DOM 20 0 20 $0
College Aid 43 3 40 $75,143

OCIO 145 31 114 $2,795,119
BOEE 16 0 16 $0
Totals 165 31 134 $2,795,119
STEM 7 0 7 $0
Department of Revenue (IDR)

ISD/IESBVI 175 0 175 $0 Current Total FTE Efficiencies Future Anticipated
State FTEs Identified State FTEs Savings
Totals 563 8 555 $417,455*

Revenue 348 24* 324 $77,079
Department of Transportation (DOT) Lottery 112 11* 101 $488,392

State FTEs Identified State FTEs Savings ABD 88 26 62 $1,406,361
DOT 2809 11 2798 $808,399

Totals 548 61 487 $1,925,100**
Totals 2809 11 2798 $808,399 *23 Revenue and 2 Lottery positions are being outsourced
**$77,079 in General Fund savings
DRAFT 25
Iowa Workforce Development (IWD) IEDA|IFA
Current Total FTE Efficiencies Future Anticipated Current Total FTE Efficiencies Future Anticipated
State FTEs Identified State FTEs Savings State FTEs Identified State FTEs Savings
IWD 694 39 655 $2,863,447 IEDA/IFA 235 14 221 $139,930
DOE – Voc
471 25 446 $1,230,189 DCA 30 5 25 $356,418
Rehab
DOE – Adult
4 0 4 $0 Totals 265 19 246 $496,348*
Education
IEDA – 260 &
3 3 0 $72,201
STEM Intern
Totals 1172 67 1105 $4,165,837

Department of Veterans Affairs (IDVA)
Homeland Security & Emergency Management (HSEM) State FTEs Identified State FTEs Savings
Current Total FTE Efficiencies Future IDVA 19 3 16 $193,316

Cost Avoidance
State FTEs Identified State FTEs
HSEM 112 23 89 $1,708,641 IVH 794 0 794 $0
Totals 112 23 89 $1,708,641 Totals 813 3 810 $193,316*
DRAFT 26
2.0 Reduce Office Footprint in Des Moines (1/2)
End leases, sell properties, and • To calculate excess office square feet (SF) in Des • Effective date to be established by legislature in bill
consolidate facilities footprint in Des Moines for future state departments, Guidehouse Timeline • Note: Oct. 2023 expiration of 200 E. Grand Ave lease and
Moines to reduce office space square derived each department’s current office space 8/31/2031 latest final expiration date for leases
SF/FTE using the DAS survey and master lease
footage to align with efficient industry • Determine precise amounts of expendable office space
data and subtracted from it the most efficient use through inventorying process
standards and generate cost savings.
of space by a future state department of 169 • Determine feasibility of facility sales and exiting leases
SF/FTE Pre-Legislation and proceed where possible
Introduction • Verify headcount, space allocation, special usages, and
• The potential budget benefit of the excess office layout real estate partnership
space is based on ending leases of under-utilized • Determine if legislative or Executive Council approval is
office space, average incurred overhead for needed (Iowa Code §8A.3211)
$33.6 M Low owned real estate vacated, and estimated current
• Establish interdepartmental space efficiency plan and
market value of state-owned office space, minus Pending
change management plan
relocation and renovation expenses for the Legislative
• Employees move according to new plan and agencies
retained space Approval sell / end leases on excess properties
Potential Budget Benefit Estimated
Over Ease • See calculation on the following slides for details
Resources &
Four Years • Lead and task force to analyze the opportunity (DAS)
Responsibilities
LEVERS AUTHORIZATION
CONSIDERATIONS
Efficiency Executive • Square footage and FTE count data utilized in this analysis were reported by agencies and may differ from actuals.
Limited data constrained the scope of the analysis to Des Moines. Guidehouse recommends that the State partner with a
commercial real estate firm to gain precise insight into the State’s property usage and market trends
Cost Savings Legislature • Agencies can best maximize office space by adopting teleworking policies. The cost of reconfiguring or renovation of
spaces to maximize the efficiency of the resultant work processes will vary widely and may be greater than estimate
• Any facilities purchased using Federal dollars may require returning a percentage of the proceeds
Department
Leadership • Headcount reductions are not built into calculations
• Costs consist of relocation plus renovation costs to adapt workspaces to teleworking processes
• More efficiency may allow the State to reduce office space in Des Moines by 439,904 SF
• Run Rate / Start Date: 10/1/23 (or when agencies can begin ending leases and selling properties)
DRAFT 27
1This section establishes requirements for real property transactions by DAS. Other Iowa Code sections concerning real property transactions by other departments may also apply
2.0 Reduce Office Footprint in Des Moines (2/2)
The state agencies own or lease a large amount of office space in Des Moines. Based on a high-level analysis of the future state agencies, there is an
estimated 0.5M SF of excess office space that could help the State generate additional revenue if sold or cost savings related to reduced rent expense.
Potential Net Budget Benefit = (Office Space in Excess of Benchmark x Cost of Office Space) – Relocation Costs
IEDA/IFA DIAL DHHS DNR DOE DOC DIFS Other1 Total

Total
Budget $5.9 M $5.2 M $4.1 M $3.7 M $3.0 M $1.1 M $0.1 M $5.4 M $28.5 M
Benefit
Relocation
-$0.1 M -$0.0 M -$0.1 M -$0.1 M -$0.0 M -$0.0 M -$0.0 M -$0.2 M -$0.5 M
Cost
Renovation
-$0.5 M -$0.5 M -$0.8 M -$0.6 M -$0.4 M -$0.1 M -$0.0 M -$1.6 M -$4.5 M
Cost
Net Budget
$5.3 M $4.7 M $3.2 M $3.0 M $2.6 M $1.0 M $0.1 M $3.6 M $23.5 M
Benefit2
• Calculations are based on the DAS 2022 structure and property survey, the 2022 DAS Capitol Complex survey, and the DAS Master Lease database. As such, square feet and FTE counts may not be
accurate and the State should complete a thorough, singular inventory of all state-owned and leased assets with data collected at the tenant level rather than by structure
• Target usage rate of 169 SF/FTE based on best calculated utilization rate at the Capitol Complex, Sales Price is based on a 2019 acquisition, and Rent Costs are the Gross Rent Amount recorded by
DAS
• Guidehouse normalized office space usage by labeling across all data sources based on all available information
• FTE counts were self reported by current state agencies and not provided for all facilities, possibly impacting the accuracy of the above calculations
• Overhead costs are based on applying the average amount for Des Moines office space leases managed by DAS to the calculated excess owned office space. There is no available overhead data for
owned property
• Relocation Cost / FTE of $154.06 is based on the average costs reported by DAS for office space moves by DPS, Refugee Services, and the Child Support Recovery Unit
• Renovation cost is estimated at $9.09/SF based on the tenant improvement cost for CSRU, the highest amount reported by DAS
• Reoccurring annual savings projection of $5,314,509 equals the sum of the reduction in lease costs and the overhead saved from selling excess office space.
1 Other: DOT is <$0.1 M; DIFS relocation costs eliminate benefit; DOR and DAS exceeds utilization target 28
2 Totals is of rounded numbers. + or -$0.0 M is rounding from a non-zero number.
DRAFT
3.0 Procurement Reform
Data analysis and leading practice benchmarking has revealed three key recommendations for procurement that have the potential to
lead to long-term cost savings and increase governance:
INCREASE VISIBILITY AND TRANSPARENCY AROUND VENDOR IMPLEMENTATION STEPS

3.1 SPEND:
Analysis of current vendor spending across the enterprise suggests the need to establish regular In order to evaluate and implement the
reviews of General Accounting Expenditure (GAX) only spending, and spending to IT vendors to recommendations the following are priority:
increase oversight and insight into state expenditures, optimize usage of existing contracts, and
capture additional revenue from administrative fees 1. Establish process for regular GAX review
(e.g., ownership, cadence, department
EXPAND ACCESS TO COOPERATIVE PURCHASING AGREEMENTS:
3.2 Looking to leading class states like Michigan and Texas reveals an opportunity for DAS to
formalize an expanded cooperative purchasing program that would expand access to political
expectations)
2. Conduct demand and market analysis for

and public subdivisions across the State and beyond state borders to help improve efficiency for cooperative purchasing program (e.g., market
local entities and generate revenue for the Department
size, contract needs)
29
DRAFT
3.1 Increase Visibility and Transparency

CURRENT STATE:
• Vendor spending from 2022 shows significant payments to CONTRACT SPENDING BY THE NUMBERS*
vendors that are not tagged to a contract or contract order;
e.g., decentralized spend (GAX).
TOTAL
Decentralized spend (non-contract):
• Analysis of IT coded spending also shows that in many cases
agencies are making payments to IT vendors that are not $58.1 M Close to a quarter of all vendor spending 24% $20.8 M
across the State is not tagged to an Total Percentage Total Decentralized
coded as IT object class existing contract Spend to Spending by Top 3
OPPORTUNITY AND RECOMMENDATION: Decentralized Spend Departments
• Decentralized spend spending may indicate that contracts are

not being optimized and DAS isn’t capturing all potential BIGGEST SPENDERS BY PERCENTAGE: BIGGEST SPENDERS BY DOLLAR AMOUNT:
admin fees
Agencies with highest percentage of payments to Agencies with highest spend to Decentralized Spend:
• Potentially miscoded IT prevents the State from getting an Decentralized Spend:
accurate picture of, making it difficult to identify opportunities
for savings 97% 88% 77% $8.9 M $7.6 M $4.3 M
• DAS and DOM (OCIO) should establish regular reviews of College Student Department Econ Development Alcoholic Department of College Student
Aid Commission on Aging Authority / IFA Public Health Aid Commission
decentralized spend payments to ensure contracts are being Beverage Division
utilized and coded properly
POTENTIAL BENEFITS: The biggest spenders to decentralized spend also happen to be grant making entities like IEDA and CSAC
• Increased revenue generation from administrative fees

• Strengthened DAS and DOM (OCIO) governance of
procurement
• Greater utilization of contracts for better pricing
POTENTIAL NEXT STEPS:
Establish process for

regular decentralized Develop reporting
spend review (e.g., process to measure
ownership, cadence, impact over time
*The following Departments are excluded from these numbers because they are exempt from DAS-CP services:
department expectations) DOT, Regents, IDOB, Iowa Lottery, DHS, and State Fair 30
DRAFT
3.2 Expand Access to Cooperative Purchasing

CURRENT STATE:
• DAS manages Master Agreements (MAs) for public contracts that are CASE STUDY: MICHIGAN
easily and readily available to departments for use
• Michigan is lauded as having the most sophisticated procurement in the nation
• While political subdivisions (e.g., cities, counties, schools) are authorized to
• MiDEAL is an extended purchasing program that allows cities, counties, K-12,
access many of DAS’s MAs, the process is not formalized or well
publicized, with entities needing to submit a request for access universities, and nonprofit hospitals to use MI contracts, including entities outside MI
• There are approximately 500 contracts available to MiDEAL members
OPPORTUNITY AND RECOMMENDATION: • Members pay a nominal annual fee to support program management and advertising
• Without a formalized program for MAs across entities, DAS misses out on • Michigan’s Department of Technology, Management, and Budget, which oversees
the opportunity to provide enhanced customer experience (CX) for local MiDeal, also collects a 1% admin fee on each contract payment
entities and capture administrative fees
• Explore the possibility of formalizing and expanding access to cooperative Gold Winner: NASPO’s 2022 George Cronin Awards for Procurement Excellence
spending agreements to political subdivisions and other public entities
POTENTIAL BENEFITS:
• Increased revenue generation from administrative fees
• Greater efficiency for eligible entities by reducing need to process bids CASE STUDY: TEXAS DBITS
• Strengthened relationships with vendor communities • The DBITs (Deliverables-Based IT Services) contracting vehicle for state agencies (and
• Expansion and diversification of portfolio of vendors other governmental entities) is a list of pre-approved vendor/contracts, based on
experience and references that provide deliverables based IT services
• Texas DBITs is available to state agencies, local governments, and entities outside the
State of Texas
• DBITs contract process allows agencies to solicit quotes for a fixed price project based
Conduct demand Identify contracts and Develop pilot program on a statement of work for projects expected to be less than $10 million.
analysis for expanded with broad-appeal to capture feedback • Utilizing a DBITS contract from DIR has led to shortened lead times in procuring and
purchasing program across local entities and adjust contracting, reduced cost, and flexibility to meet individual customer needs
31
DRAFT
4.0 Consolidate IT Licenses and Contracts
Consolidation of statewide IT licenses and contracts under a dedicated OCIO Technology Procurement Office:
INCREASE VISIBILITY AND TRANSPARENCY AROUND DEPARTMENT

4.1 SOFTWARE LICENSING AND CONTRACTS:
Analysis of statewide IT spending suggests the need to establish and maintain a complete and
IMPLEMENTATION STEPS
accurate inventory of all department IT assets (Business Applications, SaaS Services and Tools) In order to evaluate and implement the
to reflect an accurate view of IT spend. recommendations the following are priority:
1. Conduct statewide license and contract

inventory analysis
EXPAND INFORMATION TECHNOLOGY PROCUREMENT VEHICLES:
4.2 Leading IT procurement practice should be examined to identify opportunities to streamline IT
procurement, create procurement process efficiency, and reduce procurement timelines and
2. Establish and fully staff an IT Procurement
office and align with State Procurement Office
administrative overhead costs.
3. Prioritize identified consolidation/renegotiation
opportunities
4. Establish service level requirements and

IMPROVE STATEWIDE GOVERNANCE OF INFORMATION
4.3 TECHNOLOGY SPENDING:
Departments operate as siloed organizations without central oversight or a centralized
begin vendor engagement for renegotiation
Governance body empowered with the authority to effectively coordinate and govern IT
procurement and spending.
32
DRAFT
4.1 Increase Visibility and Transparency around

Department Software Licensing and Contracts
CURRENT STATE:
• Iowa Office of Chief Information Officer (OCIO) has very limited insight, visibility or control into statewide IT spending, business
software asset inventory or IT software license and contract utilization across the state Conduct a detailed
• Analysis of IT coded spending shows that in many cases departments are making payments to IT vendors that are not coded as Department IT Asset
Inventory
IT object class and/or are not tagged to a contract or contract order; e.g., Decentralized IT Spend
OPPORTUNITY AND RECOMMENDATION:
• Departments should track and report data on all technology and technology related purchases to substantially improve insight into
state expenditures, optimize usage of existing contracts and capture opportunity to leverage economies of scale Develop a reporting and
auditing process to
• Department IT spend on licenses and services can leverage economies of scale, realized through common technology measure impact over
procurement practices and license purchases within a centralized purchasing program time
• Detailed understanding and availability of accurate data on current and future IT assets and spending enables strategic
investment planning, cost reduction initiatives and modernization needs
• Potentially miscoded IT prevents the State from getting an accurate picture of IT spending, making it difficult to identify
opportunities for savings
POTENTIAL BENEFITS:
• Reduction in cost associated with duplicative technology implementation and support
• Enables IT investment planning and strategic decision making to reduce cost
• Reduction in overhead administrative burden of duplicative contracts and license management
• Leverages economies of scale for cost reduction
33
DRAFT
4.1 Deep Dive: Platforms
EMAIL PLATFORM INCONSISTENCIES: G SUITE MICROSOFT OFFICE 365

• Board of Parole • Department for the Blind
Use of email platforms within departments • Board of Educational Examiners • Iowa Finance Authority
and offices is inconsistent across the State • Dept. of Commerce (ABD, IDOB, IDCU, IID, • Office of the Governor
IUB) • Department of Human Services*
enterprise. The majority of departments • Dept. of Administrative Services • Dept. of Transportation*
use the Google platform for their email, but • Dept. of Cultural Affairs • Dept. of Public Safety*
there is a significant number of • Dept. of Human Rights • Dept. of Agriculture*
departments that use Microsoft. Even • Dept. of Inspections and Appeals • Economic Development Authority*
• Dept. of Natural Resources • Public Employees’ Retirement System*
within those departments that are primarily • Dept. of Corrections • Iowa Workforce Development*
leveraging Microsoft, there are still active • Dept. of Education • Public Employees’ Relations Board*
Gmail licenses. • Dept. of Management
• Dept. of Public Defense
• Voc. Rehab Services
The alignment presents an opportunity to • HSEMD *Department primarily uses O365, but has at
create consistent email platforms across • Iowa Communications Network least one active Gmail license as well
the enterprise – particularly as departments • Civil Rights Commission
• Iowa Student Aid Commission
on different platforms are coming together. • Dept. of Revenue
This not only presents efficiency • Dept. of Veterans Affairs
opportunities but also potential cost • Iowa Law Enforcement Academy
savings. • Iowa PBS
• Iowa Veterans Home
• Iowa Lottery Authority
• Office of Drug Control Policy
• Office of Chief Information Officer 34
DRAFT
4.2 Expand Information Technology Procurement Vehicles

CURRENT STATE:
• Department IT leadership reports in interviews and surveys that current IT
procurement process takes too long, requires burdensome processes and
Peer-State DBITS Programs
does not offer the breadth or flexibility to acquire modern technologies that
meet rapid innovation demand
Ohio DBITS Oklahoma DBITS
• Streamline IT procurement and create efficiency opportunities using pre-
qualified DBITs (Deliverables-Based IT Services) type contracting vehicles
for state agencies (and other governmental entities)
• Establish and publish minimum standards for mandatory technical
requirements that are incorporated into procurement solicitations to easily Texas DBITS
evaluate proposals and accelerate acquisition timelines
• Create a technology modernization office or center of excellence that
provides peer-to-peer advisory services, collaborative insights, lessons
learned, best practices, and tools and content for integrating and
modernizing department legacy applications with emerging technologies
(AI, RPA, Low-Code, No-code)
• Establish and appropriately staff an IT Procurement Services office to
provide department solicitation assistance throughout the procurement life-
cycle Evaluate peer state, Establish minimum
best-in-class Pilot limited DBITS technical requirements
POTENTIAL BENEFITS: procurement vehicle contract vehicle for common
opportunities technologies
• Greater efficiency for eligible entities by reducing need to process bids
• Strengthened relationships with vendor communities
• Expansion and diversification of portfolio of vendors
• Greater utilization of contracts for better pricing
35
DRAFT
4.3 Improve Statewide Governance of Information

Technology Spending IT VENDOR SPENDING BY THE NUMBERS
CURRENT STATE: Potentially miscoded IT prevents the State from getting an accurate picture of IT
• Incomplete visibility on IT procurement spending leaves the OCIO without the data and spending, making it difficult to identify opportunities for savings.
insights to set, manage, and maintain standards or technical consistency to reduce cost,
improve efficiency, and manage a responsive IT environment statewide
Looking at vendors identified as IT providers, analysis showed
• Analysis of IT coded spending shows that in many cases departments are making payments that about $44.9 million of payments made to these vendors was
to IT vendors that are not coded as IT object class and/or are not tagged to a contract or $44.9 M not coded under an IT object class. While some of these
vendors may also provide non-IT services, it suggests a need to
contract order; e.g., General Accounting Expenditure (GAX)
better monitor how IT spend is coded across the board.
Total Non-IT Coded
• Establish an IT Procurement Governance body with the authority and resources to manage Spend to IT Vendors
and control IT spending, ensure compliance with IT mandatory requirements for common
technology, support strategic IT modernization initiatives, and promote collaborative
investment to enable cost saving measures, process efficiency, and system sustainability For example, Insight Public Sector, OCIO’s biggest contract, saw over $1.1
million of spend not coded as IT.
• Eliminate the existing Waiver process for exemption from IT Spending Governance Policies
Non-IT Coded Spend for Prominent IT Vendors:
• Establish and actively monitor and enforce spending controls, pricing models, Service Level
Agreements, and contract and vendor management discipline necessary to renegotiate and
take advantage of lowest cost/best fit market opportunities $1.1 M $0.9 M $0.3 M
• Require all departments to track and report all technology and technology related purchases Insight Public Siemens Industry Computer Aid
Sector Inc. Inc.
to substantially improve insight into state expenditures, optimize usage of existing contracts,
and capture opportunity to leverage economies of scale
*The following Departments are excluded from these numbers because they are exempt
from DAS-CP services: DOT, Regents, IDOB, Iowa Lottery, DHS, and State Fair
POTENTIAL BENEFITS: POTENTIAL NEXT STEPS:

• Reduction in cost associated with duplicative technology implementation and support
• Enables IT investment planning and strategic decision making to reduce cost Implement agency
Develop IT Spending Establish IT Spending
• Leverages economies of scale for cost reduction reporting and auditing
Governance Model Controls
• Strengthened OCIO governance of procurement processes
• Greater utilization of contracts for better pricing 36
DRAFT
5.0 Consolidate Common Technology (1/4)
Implement a centralized enterprise approach • Performed comparative cost research using Iowa Timeline Q1 2023 – Q1 2027
to consolidate all future technology systems 2022 IT expenditures data showing provider
• Conduct statewide IT asset inventory to identify
and services. commonality for software solutions
and prioritize common technology needs across all
• Conducted gap analysis of contractual and non- departments
contractual transactions and estimated the potential
• Define department requirements and Current State
savings from bundling to a single provider and technical landscape
Next Steps
eliminating other similar service providers to attain cost • Align and analyze requirements against market
savings
• Select/procure common solution
• Analysis results identified a potential 21% saving from
• Remediate legacy data
bundling with one provider = $15.3 M (figure reflects a
$61.2 M Moderate
50% reduction of total amount spent on other providers
• Implement migration and integration
(actual savings will be negotiated and could be more or • OCIO PMO

less, depending on the agreements made) • Shared governance group
Potential Budget Resources &
Estimated Responsibilities • Department business/product owners
Benefit Over • Legacy technical staff (developers, administrators,
Ease
Four Years and support)
CONSIDERATIONS
Efficiency Executive
• Implementation costs will include orchestration, coordination, change management, and implementation support
Cost Savings
• Significant maintenance and operational efficiencies gained
Legislature
• Cross-department collaboration better aligning and equipping of IT professionals to meet future technology needs
• Demonstrable improvements to the operation of state government as enabled by innovative redeployment of IT assets
Department
Leadership • Potential outsourcing of implementation/ maintenance of common technology platforms and services may increase
cost savings in some cases
37
DRAFT
This graph displays IT Vendor expenditures tied to negotiated (Pre-Negotiated Contracts) and other undefined purchasing; 13% of total payments are
outside of the Pre-Negotiated Contracts spend category. There is significant opportunity to reduce the $17M in decentralized IT spend, resulting in
efficiencies on contracts and the administrative cost surrounding contracts.
Decentralized IT Spend Pre-Negotiated Contracts
The column headings represent spending classifications – everything with "Pre-Negotiated Contracts" is spending tied to the negotiated
38
contract, whereas anything with “Decentralized IT Spend" is spend that could have been tied to the negotiated contract or occurred
DRAFT
outside of the negotiated contract but is unknown as the agency didn’t have a purchase order in the system when OCIO received the
This slide continues to build further on showing the source data for findings related to savings for common IT software and services. By using pre-
negotiated contracts the State will receive a lower cost for services through volume purchasing. Resulting in consistency in services and competitive
reductions.
Legal Name Decentralized Pre-Negotiated Grand Total
IT Spend Contracts 50% Savings
Insight Public Sector $3,481,237 $40,435,676 $43,916,913 $ 15,372,737.92
Sirius Computer $3,717,842 $6,073,557 $9,791,399
Systems
International $121,768 $7,729,163 $7,850,931
Business M
Carahsoft $142,962 $4,064,863 $4,207,825
Technology Cor
One Neck IT $940,353 $2,711,768 $3,652,121
Solutions LLC
DLT Solutions LLC $6,411 $2,911,607 $2,918,018
CGI Technologies & $730,033 $1,595,149 $2,325,182
Solutions LLC
TOTAL $9,140,607 $65,521,783 $74,662,390
Percentage 12.45% 87.76%
The column headings represent spending classifications – everything with "Pre-Negotiated Contracts" is spending tied to the negotiated
contract, whereas anything with “Decentralized IT Spend" is spend that could have been tied to the negotiated contract or occurred
outside of the negotiated contract but is unknown as the agency didn’t have a purchase order in the system when OCIO received the
invoice 39
DRAFT
5.0 Consolidate Common Technology: OCIO Waivers (4/4)
40 waivers approved by OCIO since 2009 grant exceptions for purchases and IT oversight policies across the five main categories below. Waivers were
most often approved for DHHS, DOE, and DAS. We recommend the waiver process be replaced with a specific use case process, resulting in a lower
number of waivers and increased savings across departments.
Computer Purchases Contract Limits Applications & Software

• 21 waivers were approved for the • 8 waivers were approved to allow contract • 5 waivers were approved across 4 entities
purchase of desktop or laptop computers term extensions, particularly those beyond for the purchase of software that deviated
across 12 entities the default six-year limitation imposed by from enterprise standards
• Purchases were approved from multiple DAS Administrative Rule 11–118.11(3)
• Purchases included Microsoft 365,
vendors, including Dell, Apple, and • Contract extensions were most often security training, and web content
Chromebook manufacturers granted to OCIO and DHHS management software
KEY TAKEAWAYS: OCIO WAIVERS

IT Services & Management Procurement Approval
• 40 waivers were documented as approved
• 4 waivers were approved to modify • 2 waivers were approved to modify across 19 current state departments, most
oversight or regulation of technology procurement approval processes or often for computer purchases
services policies set by OCIO
• 70% of waivers were granted to just 7
• Approvals were granted to permit intra- • Waivers focused on approval of systems agencies, primarily DHHS (8) and DOE (7)
departmental agreements for IT services purchases (for Iowa PBS) and
or permit full compliance with divergent requirements to use in-house vendors (IA • Excluding the 21 waivers for computer
federal requirements (e.g., for Medicaid) Communications Network) purchases, DHHS was granted the most
waivers (6), primarily for contract limits
40
DRAFT
6.0 Recover Medicaid Matching Funds
6.1 Recover Medicaid Prescription Drug Rebates

Recover additional Medicaid Federal Medical • The Medicaid Program pays claims for prescription • ASAP – 12/31/22
Assistance Percentage (FMAP) funds by drugs and subsequently receives manufacturer rebates Timeline • Note: Rebates are subject to a two-year filing time
allocating drug rebates to prior periods to requirement
• Iowa Medicaid reports and returns the federal share of
achieve a funding opportunity of ~$3 million. drug rebates at the current quarter FMAP rate, rather
than at the FMAP rate in effect when the drugs were
purchased Pre-Legislation • Claims are filed timely to receive prior period
Introduction adjustments
• By analyzing data from the State's CMS 64 federal
expenditure reports for Medicaid fee-for-service (FFS),
and using a CMS approved allocation method, rebates
can be allocated to the prior period FMAP rates for eight Pending
• Iowa Medicaid uses the updated process and tool
federal fiscal quarters resulting in the opportunity to Legislative
$3.0 M High recover $100K in state funds on FFS claims Approval
provided for CMS quarterly filing moving forward
• Managed care drug spending is 35 times greater than • Obtain additional managed care data
fee for service and is estimated that allocating rebates to Resources & • Identify appropriate internal personnel or third party
Potential One-Time Estimated prior period FMAP will create a one-time savings with a Responsibilities responsible for CMS-64 filings and determine path
Budget Benefit Ease most likely benefit of $3 million in state funds forward for correcting the filing methodology

• The Guidehouse team has built a tool to capture and link together CMS reporting forms and data to (1) recover fee for
service prior period drug rebates identified in this opportunity and (2) leave with Iowa Medicaid Finance to use in perpetuity
• FFS drug rebate payments from Iowa Medicaid to CMS for the eight quarters in federal fiscal years (FFYs) 2021 and 2022
Cost Savings Legislature totaled $17.6M, with the opportunity to recover $100,000, or 0.6%
• Iowa patient-level Medicaid claims and encounter data is needed to validate the managed care opportunity, for which drug
Department
rebate payments to CMS over the same eight quarters in FFYs 2021 and 2022 totaled $626.8M.
Leadership • Drug rebate claiming at the correct FMAP rate creates a one-time savings, creates better alignment of state drug costs with
drug rebates
• Administrative time and effort is required to correctly re-file CMS 64 reports
41
DRAFT
6.0 Recover Medicaid Matching Funds
6.2 Additional Medicaid Funding

Analyze historical Medicaid fee-for-service • Additional Medicaid funding services qualify for
(FFS) claims and managed care organizations enhanced FMAP of 90%
Timeline • January 2023 – 60-90 days following start date
(MCO) encounter data to identify costs eligible • Review of certified Q3 Federal FY22 (quarter
for claiming Medicaid services to realize full ending 6/30/2022) CMS-64 federal expenditure
federal reimbursement. data for Iowa and the MCO ratios developed in Pre-Legislation
• None identified
similar projects indicate that there are additional Introduction
Medicaid claims eligible for enhanced FMAP
Pending
• Evaluation of expenditures eligible to earn the 90% • DHHS uses the updated methodology to earn additional
Legislative
FMAP rate could yield an estimated $2.5 million Medicaid FMAP on all eligible costs going forward
Approval
through re-filing eight federal fiscal quarters with
$3.4 M Moderate the federal government and an incremental • Identify appropriate internal personnel who can
increase annually estimated at $300 thousand provide necessary claims and encounter data
Resources & • Identify appropriate internal and third-party
based on initial analysis, with combined one-time
Responsibilities individuals responsible for filing claims adjustment
and recurring savings of $3.4M over four years and determine strategy for adjusting claiming
Potential Budget Estimated methodology going forward
Benefit Over Ease
Four Year

• Iowa patient-level Medicaid claims and encounter data is needed to validate the current estimate, which is based on
small set of Iowa fee for service claims data and experience in other states
• Savings identified are based on the re-filing eight federal fiscal quarters and are captured when the State re-
Cost Savings Legislature files expenditures on the CMS 64 report, which requires administrative effort
• Iowa will need to work with MCO actuaries to refine rate cells and ensure a higher percentage is built into managed
Department care rates moving forward
Leadership
• Captures comprehensive claiming of additional Medicaid services and full federal reimbursement
42
DRAFT
7.0 DOC Medical Costs Capture: Prior to and Upon Release
Eleven states are seeking Sec. 1115 waivers • Iowa can design and submit to CMS an application
from the Centers for Medicare & Medicaid for a Section 1115 Demonstration waiver that, if
Timeline • Jan. – Mar. 2023 thru Oct. – Dec. 2023 (estimate)
Services (CMS) for coverage of medical, approved, would capture Iowa’s FMAP percentage
behavioral health, and pharmacy costs for (64.13% projected for FY24 without COVID add-on)
• Pre-submission requirements are governed by federal
inmates in the 30-day period prior to and 30 for medical, pharmaceutical, and behavioral health
regulations and include: (i) two public hearings held at
days upon release. If Iowa secured this costs for inmates in the period 30 days prior to least 20 days prior to submitting application; (ii)
Pre-Legislation
waiver, it could receive its Federal Medical release opportunity for notice and 30 days public comment; (iii)
Introduction preparation of a waiver application that includes
Assistance Percentage (FMAP) federal share • CMS is considering 11 such waiver requests that
summary of all public input and budget neutrality
for eligible medical costs for that period. have been filed* calculation by actuary
• As a demonstration waiver, Iowa has flexibility on
what costs it wishes to include in the waiver. Some Pending
• CMS will determine completeness and potentially hold
states have also sought similar costs in the 30-day Legislative
$0.5 M Moderate Approval
federal notice and comment period
period post release
• 1115 Waivers require public hearing, notice and • Identification of person(s) within Iowa HHS and Iowa
comment prior to submission. Approval could take Resources &
Medicaid to lead waiver application process. DOC to
Responsibilities support
Potential Budget Estimated up to one year after CMS determination of
Benefit Over One Year Ease completeness of Iowa’s waiver application
Efficiency Executive • The principal risk of the effort to secure federal funding is approval by CMS. To date, CMS is considering these
waivers but has not yet issued an approval
• Implementation Costs consist of staff time at both Medicaid and DOC to undertake required public transparency
Cost Savings Legislature requirements, collect all needed supporting DOC medical cost data, and prepare application. In addition, there will be
cost of preparing required budget neutrality calculation for waiver by Iowa Medicaid actuary
• The 64.1% of Medicaid costs represents the capture of Iowa’s FMAP federal share of eligible inmate medical expenses
Department
Leadership (acute care, labs, diagnostic, pharmacy, behavioral health) for the 30-day period prior to release and the 30-day supply
of prescriptions provided at release, excluding inmate medical costs incurred in connection with inpatient admissions
for more than 24 hours, which are already claimed
• There is a cost associated with applying for 1115 Waivers due to an evaluation and annual reporting component 43
DRAFT *Note: Arizona, California, Kentucky, Massachusetts, Montana, New Jersey New York, Oregon, Utah,
Vermont, and Washington recently shared their Section 1115 demonstration requests with CMS.
8.0 Community Based Corrections
Community Based Corrections (CBC) is • CBC Districts receive most revenue from General
• Effective date to be established by legislature in
broken into eight judicial districts and are Fund appropriations, but only report back to DOM Timeline
bill
actuals across broad fund categories. As such, the
majority funded through a General Fund
Guidehouse team reviewed actual expenditures to Pre-Legislation
appropriation ($115 million in 2021) in determine what efficiencies could be realized as a • None identified
Introduction
which human capital account for 88% of result of alignment (operations, professional
actual costs reported. If CBCs are services, procurement) and estimate a 20% cost • Legislative action (Iowa Code §905.1) to centralize
centralized, cost savings can be realized in savings per year once absorbed, or $1.3 million authority over CBCs to DOC
Pending
personnel, operations, facilities reduction • Consistent application of standards across CBCs is • Reevaluate job classifications of CBC personnel to
Legislative
and reduction in recidivism. projected save $1.3 million per year align with DOC model
Approval
• DOC projects saving $400,000 to operations by • Retrain and onboard CBC staff to DAS accounting
reducing the parole eligible inmate backlog in state and procurement
prisons
$12 M Low • DAS lead the integration and training of CBC
finance staff,
Resources & • DAS review CBC position classification
Responsibilities • DOC and DAS lead facility evaluation
Potential Estimated • DOC review residential facility policy and capacity
Budget Benefit Ease to reduce parole backlog
Over Four Years
CONSIDERATIONS
Efficiency Executive • CBC residential facilities currently have $8.2 million in deferred maintenance costs
• Each CBC utilizes its own finance and procurement systems; centralization will add time / costs to the transition
• The full scope of avoidable costs and operational efficiencies across CBCs could be understated due to lack of
Cost Savings Legislature financial oversight and the use of state-wide procurement contracts
• Reduction in recidivism through program reinvestment and policy will reduce costs over time and is estimated at a
Department
savings of $3.3 million over five years
Leadership
44
DRAFT
9.0 Prison Industries Land Sales
Sale of state farmland owned by DOC and • Met with DOC leadership and IPI Director to Timeline • January 2023 – December 2026
DHHS, and managed by Iowa Prison understand current use of land owned by the State
Industries (IPI) to capture one-time revenue and the impact considerations • IPI confirm acreage and boundaries of operating
to the State to help transition CBC farmland and pastureland that can be auctioned
• Based on the current inventory and accompanying Pre-Legislation
that incorporates necessary security boundary
infrastructure to DOC. notes provided by Iowa Prison Industries (IPI), Introduction
around the institutions
Guidehouse built an inventory of sellable land that • Confirm assessed value of sellable land
includes operating and rented land
• Gain Board approval to move forward with
• Guidehouse conducted calculations to capture assessment and potential sale of identified land
estimate price of each land type (crop acres vs. Pending • Develop transition plans for impacted IPI staff and
nontillable acres) using average value by County and Legislative other impacted stakeholders (i.e., DNR and private
$32.7 M High region from ISU 2021 Iowa Farmland Value Survey Approval nonprofits)
• Guidehouse built three calculation scenarios and • Identify timeline for sale of each property
• Execute sale of properties
used the average of the three scenarios to determine
the most likely budget benefit for a one-time sale of • IPI Director
Potential Estimated
existing DOC and DHHS property after reducing the • DOC budget analyst
Budget Benefit Ease Resources &
total benefit by 9% for valuation considerations • DOC Board and leadership
Over Four Years Responsibilities
• DHHS Director
• Land auctioneer, assessor
CONSIDERATIONS
• Sale of real estate, including farmland is subject to the approval of the DOC Board (Iowa Code §904.317). Additionally, the Governor, chairpersons,
and ranking members of the House and Senate Appropriations Committees plus chairs and ranking members of the Justice System Appropriations
Subcommittee must be notified before any farm operations is phased out (Iowa Code §904.706).
Cost Savings Legislature • IPI rents out farmland and uses a competitive bid process for leases every three years, and farms are rented on a staggered schedule. IPI rents
farms land to private farmers, other state agencies (DNR) and private nonprofits.
• Inmates employed have declined over the years given the increased technical requirements for farm operations and advanced machinery used. For
Department CY2020, only 8.36 inmates were employed (FTE), a 28% decrease from the year prior. To be eligible for the program, an inmate must be low risk,
Leadership and this also leads to high turnover as this population is often eligible for parole.
• As of CY2020, IPI employs 7.35 FTEs to support farm operations and would need to be reassigned if operations cease.
• Farmland value may continue to appreciate over time leading to additional revenue during a future sale.
• Revenue from sale can help fund CBC transition costs.
• IPI does not receive GF appropriation for IPI farm operations. IPI Farms reported a $253,993 loss on revenues of $1,861,524 in CY 2020. FY21 actuals show
DRAFT that the Revolving Farm Fund received $1.69 million in revenue from rents and leases, which will be removed if land is sold. 45
• DHHS owns 3 properties valued at $8.3M of the total $32.7M budget benefit.
9.0 Prison Industry Land Sales
DOC and DHHS own over 4,700 acres of farmland across the State, of which, 4,073 can be sold within the next three years to
generate an estimated $32.7 million in receipts to help fund other operations, included CBC transition costs.
Equation for Estimated Total Budget Benefit = (total acreage of land x cost per acre) – 9% of reduction rate
Fort Madison – Fort Madison – Independence Woodward
Anamosa
Farm #1 Farm #3
Newton Mitchellville Rockwell City Clarinda Eldora (DHHS)
(DHHS) (DHHS) Total1
Total Acres –
Cropland 696.2 - 316.4 113.3 75.7 98.13 - - - 0.0 1,299.6
Total Acres -
Nontillable 548.61 32.5 215.4 131.42 21.9 2.1 28.0 65.3 8.9 188.7 1,242.8
Rented Acres –
Cropland - - - 799.5 - - - 220.8 68.0 442.45 1,530.6
Rented Acres –
Nontillable - - - - - -4 - - - - -
Total Sellable Acres
– All Types6 1244.7 32.5 531.9 1044.1 97.5 100.2 28.0 286.1 77.0 631.1 4,073.0
Total Value
Model #1 $9,517,887 $126,243 $3,526,930 $9,553,866 $872,755 $1,176,113 $112,781 $2,681,935 $780,846 $5,234,705 $33,584,061
Total Value
Model #2 $11,192,127 $126,243 $3,987,969 $10,842,683 $942,977 $1,178,663 $112,781 $2,757,214 $840,295 $5,757,156 $37,738,108
Total Value
Model #3 $10,020,864 $138,192 $4,410,574 $10,636,894 $928,551 $1,091,779 $119,253 $2,715,498 $789,057 $5,687,425 $36,538,087
Average across all
3 Scenarios $10,243,626 $130,226 $3,975,158 $10,344,481 $914,761 $1,148,852 $114,938 $2,718,216 $803,399 $5,559,762 $39,953,419
Total Benefit w/ 9%
Reduction7 $9,321,700 $118,506 $3,617,393 $9,413,478 $832,433 $1,045,455 $14,594 $2,473,576 $731,093 $5,059,383 $32,717,611
• Used 9.0% reduction rate applied to the total benefit calculation to capture error rate associated with farmland value survey since the survey is based on opinion from ISU farmland survey. This is consistent
methodology as used by LSA’s 2013 financial analysis of DOC and DHHS farmland.
• Gross receipts do not include costs associated with the sale of the land to include, but not limited to realtor commissions, survey costs, advertising, and legal and administrative costs incurred by the State. Also,
calculations do not include the value of other assets on the farms such as heavy equipment, livestock and others.
• Total benefit analysis assumes that DHHS is willing to sell land as one-time benefit as well as the State is willing to end leases at the end of the three-year lease term. Benefits expected to be fully realized by year
four due to staggered leases.
• Farm operations provide an opportunity for inmates and the Department to meet Iowa’s Hard Labor Law (Iowa Code §904.317), although this opportunity has decreased in popularity in recent years.
1 Subtract 200 acres of pasture at Anamosa to provide buffer zone around the prison and land for potential construction
2 Subtract 200 acres of pasture at Newton for a buffer zone
3 Subtract 50 acres of crop ground at Rockwell City for a buffer zone
4 No land under the control of the DNR, such as Rockwell City, is included in the acreage amount; subtract ten rented acres of
pasture at Rockwell City due to the long-term lease arrangements currently in place 46
5 Subtract 200 rented acres of crop at Woodward for a buffer zone
DRAFT 6 Totals are rounded from actual amounts and may not equal the sum of the rounded amounts from the other columns
10.0 DOM Governance and Operating Model
An analysis of current processes within DOM and leading practice benchmarking revealed four key recommendations
that will increase governance and centralize the DOM operating model.
IMPLEMENTATION
10.1 ESTABLISH Performance Results Office 1. Establish Governance Model and Internal
Transformation Team
The Department of Management should establish a Performance Results Office to manage the people,
processes, and systems of any transformational changes across the State 2. Assign Alignment Project Manager
3. Reestablish Regular department CFO Meetings
Key Elements: Proposed Governance Structure, Alignment Project Manager, Lean Prioritization
4. Review and update risk management operations and
10.2 STRENGTHEN STATE BUDGET OPERATIONS

budget management compliance
5. Develop a standardized template and process to
A collective state-wide focus on mitigating financial risks through budget accountability, capturing cost
propose and approve projects and programs, both
saving opportunities, and program oversight will further Iowa's ability to serve residents and manage enterprise wide and within specific agencies
future challenges
6. Develop and formalize ongoing processes to evaluate
programs to ensure efficacy and make necessary
Key Elements: Budget Oversight, Risk Mitigation, Business Case Template, Program Assessment
adaptations on an ongoing basis
10.3 CONDUCT OPERATIONAL REVIEWS:

7. Create Formal Lean Initiative Prioritization model
8. Ensure alignment between Lean initiatives and
The Department of Management should be responsible conducting quarterly operational reviews with
regular program reviews
the Governor to review the overall status of the State
9. Identify key metrics for the State and build out
Key Elements: Conduct Operational Reviews Governor’s Scoreboard
10. Facilitate Quarterly Operational Reviews
10.4 ENHANCE FEDERAL BLOCK GRANT MANAGEMENT 11. Evaluate current block grant funding and uses
Block grants are federal funds administered by the state (or local government) and are designed to
12. Identify if any block grant funding could be used to
provide funding for various services generally with broad flexibility in determining how funds are used at supplement General Fund resources
the state and/or local level. Iowa should enhance practices to proactively manage annual block grant
planning and recommended spending (block grants total over $500M for FY 2023) 13. Formalize process for evaluating block grant plans
and recommended appropriations annually
Key Elements: Evaluate and plan block grant budgets
DRAFT 47
10.1 Establish Performance Results Office

ELEMENTS: OVERVIEW:
• To ensure the proposed alignment activities are
successful at the department level, state Governance Model The Performance Results Office will have delegated decision-
leadership must establish a Performance Results making authority and will work with departments to carry out
IGOV directives
Office to provide oversight, assistance, and
transparency
Alignment Project Manager The Alignment Project Manager will serve as the point of
• The Performance Results Office will execute contact within the Performance Results Office for departments
Lean initiatives across departments and prioritize to work with to execute all alignment activities
projects within departments
Lean Initiative Prioritization Model DOM must build a robust process to identify, evaluate, and
select those projects which will drive significant cost savings
BENEFITS: aligned with the Governor’s vision and strategic priorities
• Establishes a central office and point of

contact to direct all transformation activities
• Serves as an intermediary between IGOV and
the impacted departments to promote
transparency and ensure deadlines are being
met
• Serves as a Project Management Office
(PMO) to assist with troubleshooting and
should quickly escalate issues as they arise
DRAFT 48
10.2 Strengthen State Budget Operations

ELEMENTS: OVERVIEW:
OPPORTUNITY AND RECOMMENDATION: Key State Budget Activities Conduct regular assessments in the following three areas:
• DOM has an opportunity to implement • Revenue
• Block Grants
stronger measures to track a more • Staffing and Salaries
accurate and complete picture of the state
budget to quickly locate funding gaps or Business Case Development Develop a standardized template and process to propose and approve
projects and programs, both enterprise wide and within specific agencies
program inefficiencies
Regular Program Assessments Develop and formalize ongoing processes to evaluate programs to ensure
BENEFITS: efficacy and make necessary adaptations on an ongoing basis
Risk Management Risk management evaluations can reduce the risk of fraud,
• Promotes transparency and insight into
mismanagement of funds, and prepare for economic uncertainty.
all department activities Department risk evaluations should be conducted to protect the integrity of
• Holds departments accountable on the state budget.
program management and promotes Budget Management Budget compliance must be enforced at the department level. Lack of
better stewardship of taxpayer funded oversight may result in the inability of the State to adapt to a change in the
initiatives needs of departments or constituents.
• Provides opportunities to utilize federal Regular Department CFO Re-establish regular meetings with department CFOs.
funds to accomplish department goals Meetings
DRAFT 49
10.3 Conduct Quarterly Operational Reviews

OPPORTUNITY AND RECOMMENDATION: EXAMPLE METRIC
• Operational reviews provide the Governor with DASHBOARD
more frequent insight into departments’
operational plans and opportunities to improve
• Reviews should be conducted with individuals
from the Department of Management,
Governor’s Office (i.e., COO), and department
leadership
• Quarterly meetings are recommended, but some
departments may need more frequent meetings
due to varying needs or challenges
BENEFITS:
• Establish ongoing assessment to determine the
suitability of departments’ operational plan, identify
opportunities for improvement, and coordinate
various performance improvement initiatives
• Promote accountability and adherence to agreed
upon key performance indicators (KPIs) or
department goals
• Ensure that progress is being made on operational
objectives which support the achievement of
department-wide and state-wide strategic goals
and objectives
• Enable departments to focus on most impactful
initiatives that solve most pressing challenges
DRAFT 50
10.4 Enhance Federal Block Grant Management

OPPORTUNITY AND RECOMMENDATION: BLOCK GRANT PURPOSE BUDGETED SFY23
Advance and enhance practices to proactively Substance Abuse Prevention Grants to plan, implement, and evaluate activities that prevent and treat substance abuse
$ 36,148,355
manage annual block grant planning and and Treatment Block Grant and promote public health
recommended spending to:
Comprehensive community-based mental health services for adults with serious mental
• Leverage the flexibility of federal block Mental Health Block Grant illnesses and children with serious emotional disturbances, and support to monitor $ 10,727,609
grants to meet emerging issues progress in implementing a comprehensive, community-based mental health system
• Evaluate and plan block grant budgets to

Services to reduce dependency and promote self-sufficiency; protect children and adults
support executive priorities such as Social Services Block Grant
from neglect, abuse, and exploitation; and help individuals who are unable to take care of $ 15,348,310
childcare capacity building, workforce Program
themselves to stay in their homes or to find the best institutional arrangements
development, and the most needed services
for Iowans Temporary Assistance to Needy Flexibility in programs to help low-income families with children achieve economic self-
$ 114,398,074
Families sufficiency, including cash assistance payments and a wide range of services
• Evaluate opportunities to leverage block
grant funding in lieu of new state funding Child Care and Development Support for paying for childcare, childcare licensing, quality improvement systems to help
$ 198,659,103
• Assure Iowa Code requirements are met Fund programs meet higher standards, and training and education for childcare workers
Community Development Block Housing, a suitable living environment, and economic opportunities principally for low- and
$ 61,260,987
Grant Program moderate-income persons
BENEFITS: Community Services Block Grant

Services that alleviate the causes and conditions of poverty in under resourced
$ 9,433,057
communities
• Block grants are designed with broad
flexibility in determining how funds are used Low Income Home Energy
Assistance with energy costs for families, including assistance to reduce costs associated
at the state and/or local level. with home energy bills, energy crises, weatherization, and minor energy-related home $ 70,140,334
Assistance Program
repairs
• Able to increase savings for taxpayers, by
Supports and promotes development and coordination of systems of care for the maternal
fully leveraging block grants to support state Maternal and Child Health
and child health population, particularly vulnerable populations who do not have access to $ 4,901,441
needs Services Block Grant
adequate health care
Specialty Crop Block Grant U.S. Department of Agriculture funding to enhance the competitiveness of specialty crops
$ 390,000
Program - Farm Bill (e.g., fruits, vegetables, tree nuts, dried fruits, etc.)
Total $ 521,407,270
DRAFT 1Based on instructions from DOM, federal funds are identified as budget object code 201R 51
SECTION V
Future State Departments
52
DRAFT
Department of Administrative Services
Department Head: Adam Steen, Director
Alignment Overview: The Department of Administrative Services (DAS) is assuming oversight of the State Museum, State Archives, and State Records divisions from the
Department of Cultural Affairs (DCA), and the State Library from the Department of Education (DOE). This alignment is intended to streamline service delivery, HR, and
finance functions, as well as align physical assets management with the State’s real estate management bureau. DAS is also pursuing greater centralization of processes
across the State.
KEY CHANGE RATIONALE AND BENEFITS $0.0 M TOTAL BUDGET BENEFIT

Align Functions
Align DCA: State

Museum, State
Archives, and State
•
•
Leverages DAS’s property management strengths to improve
operations across historic sites and the museum
Integrates staff to promote collaboration and alignment
PERSONNEL: $0
Reducing 2 unfunded positions will
result in an estimated cost avoidance
2 POSITION REDUCTION
Reduces positions by 2
unfunded vacant positions
Records (Iowa Code Ch. around grant management, fundraising, and membership of $90.6k based on the minimum
303) base salary for these positions
Align DOE: State Library • Leverages DAS’s existing management capabilities that are
to DAS (Iowa Code employed at the capitol complex
§256.51)
REAL ESTATE: $0
• Expands upon the human resources and accounting support There is no potential benefit to space
that State Library already receives from DAS consolidation as DAS usage of 90
SF/FTE is lower than benchmark
53
DRAFT
Iowa Department of Corrections
Department Head: Dr. Beth Skinner, Director
Alignment Overview: The Iowa DOC aims to establish greater accountability of Community Based Corrections (CBC) initiatives spread across eight regions. Currently, the
CBCs do not report to the DOC as they are under district boards nor utilize Iowa procurement or accounting platforms. Additionally, the state pays salaries, benefits, and
assumes tort liability for the CBCs. Alignment can bring greater operational oversight and uniform sentencing to CBCs eliminating waste and unequal justice.

Align Entity
PERSONNEL: $0
Align Community Based • Increases oversights to drive efficiencies, cost savings,
Corrections to DOC enhanced public safety, and equal justice Reduces positions by 4
(Iowa Code Ch. 905) • Leverages redundant positions across CBCs to support result in an estimated cost avoidance unfunded, vacant positions
treatment or other needed roles of $236k based on the minimum base
• Brings uniformity to treatment policies that have shown salary for these positions
improvement to recidivism rates across the country
• Establishes control of confinement policy to help manage
budget and costs
• Allows for aligned classification of current employees with REAL ESTATE: $25.2 M*
DOC
Reduction of Des Moines office space into a single floor
• Enables a state-wide cohesive strategy which in other states of Jesse Parker; Sale of state farmland owned by DOC
like Oklahoma, South Carolina and Florida has led to lower and DHHS, and managed by Iowa Prison Industries, to
recidivism rates capture one-time revenue to the State
* Total real estate savings from IPI farmland only includes DOC owned property
and not the 3 properties owned by DHHS, which is valued at $8.3M.
54
DRAFT
Iowa Department of Education
Department Head: Dr. Ann Lebo, Director
Alignment Overview: Alignment efforts impacting DOE aim to streamline education-related services. Moving key entities under the DOE will simplify how stakeholders
(e.g., students, educators, parents) engage with public education and create needed efficiencies. Similarly, moving workforce programs out of the DOE will enable a full-
service workforce development department that minimizes roadblocks for stakeholders in need of these programs.

Align Entity
PERSONNEL: $417.5 K
Align BOEE to DOE • Creates operational efficiencies and a one-stop shop tor
(Iowa Code Ch. 272) Iowa educators Reduces positions by 8 total. Six
In addition to the budget benefit of the
• Previously part of DOE, BOEE’s transition back will face few 6 funded positions the 2 unfunded of these positions will have an
obstacles impact on the budget
positions will result in an estimated
Align CSAC to DOE • Streamlines college resources for K - 12, allowing the DOE cost avoidance of $131k based on the
(Iowa Code §261.3) to serve the full continuum of education minimum base salary for these
positions
• Promotes collaboration on college and career transition work
and data reporting
• Aligns to leading state in higher education like Florida, which
houses its aid commission in the education agency
REAL ESTATE: $1.4 M
Align STEM Advisory • Provides a foundation to scale innovative practices statewide Space optimization in the Grimes building would allow
Council to DOE (EO 81) and promote a culture of innovation across the department cancellation of CSAC and BOEE leases
• Aligns to leading states in their integration of STEM initiatives
with the larger education agency
Align Functions
Align ISD/IESBVI to • Ensures alignment of all K - 12 services and resources within

DOE (Iowa Code §262.7 DOE and enhances specialty teacher training
and Ch. 270)
55
DRAFT
Homeland Security and Emergency Management
Department Head: John Benson, Director
Alignment Overview: Department of Homeland Security and Emergency Management (HSEM) oversees FEMA and federal grants to other agencies as well as
provides support to local governments and citizens during disaster response. With this alignment disaster case management programs will transition over from DHHS, but
no personnel will transition with this program. HSEM will also provide one liaison to DPS Intelligence Fusion Center.
KEY CHANGE RATIONALE AND BENEFITS $0.0M TOTAL BUDGET BENEFIT

Align Functions
23
Align Iowa Individual • Movement of IIAGP and DCM to HSEMD enables the
Assistance Grant effective implementation of lessons learned from prior years
PERSONNEL: $0 POSITION REDUCTION
Reducing 23 unfunded positions will Reduces positions by 23
Program (IIAGP) & • Increases information sharing with the removal of existing
Disaster Case limitations in place due to HHS requirements result in an estimated cost avoidance unfunded vacant positions
Management (DCM) to of $1.7 M based on the minimum
Homeland Security and base salary for these positions
Emergency
Management
(Iowa Code §29C.20A &
29C.20B)
REAL ESTATE: $0
There were not any real estate savings
identified for DPD
56
DRAFT
Department of Health and Human Services
Department Head: Kelly Garcia, Director
Alignment Overview: The Department of Health and Human Services (HHS) was created to enhance and expand upon existing population health efforts and strategies to
improve the quality of life for Iowans. Additional alignment of departments to HHS aims to strengthen systems for disease prevention and treatment, social justice, and
services through enhanced funding opportunities, shared services, and efficient operations.

Align Entity
Align IDA to HHS (Iowa • Facilitates better customer services to older Iowans receiving social
Code Ch. 231)
•
assistance and or aging at home
Supports enhanced federal funding drawdown through Medicaid
PERSONNEL: $6.4 M
In addition to the budget benefit of
the 110 funded positions, the
Reducing positions by 110
funded and 159 unfunded
and potential to claim additional matching funds
159 unfunded positions will result in positions
Align DHR to HHS (Iowa • Creates a one-stop-shop for social assistance (e.g., LIHEAP, an estimated cost avoidance of $9.8
Code 216A) community action, etc.)
M based on the minimum base
• Integrates DHR’s language and cultural competency services into
salary for these positions
other social services
• Supports underrepresented communities by providing access to
greater resources (e.g., federal refugee support funding) REAL ESTATE: $9.11 M
• Aligns to leading practices across the country in which human All DHHS could be consolidated into
rights education and advocacy are housed within a larger agency the Lucas Building, contingent in part
Align Child Advocacy • Presents new opportunities for the Board to better evaluate HHS’
on consolidation and relocation actions
Board to HHS (Iowa Code child welfare and foster care work by other agencies in that building; Sale
§237.16) of state farmland owned by HHS, and
managed by IPI to capture one-time
Align Functions
revenue to the State
Align Early Childhood Iowa • Aligns the expertise of ECI with the resources and infrastructure of
to HHS (Iowa Code Ch. a larger department
256I)
Align Volunteer Iowa to • Enables collaboration across DHHS-supported volunteer program

HHS (Iowa Code Ch. 15H) to better reach target populations
57
DRAFT
1 HHS owns 3 farms that are managed by IPI (Eldora, Independence, Woodward) and total value is $8.3M.
Department of Inspections, Appeals, and Licensing
Department Head: Larry Johnson, Director
Alignment Overview: The Department of Inspections, Appeals, and Licensing (DIAL) is a multifaceted regulatory department charged with protecting the health, safety,
and well-being of Iowans. Alignment will combine licensing, the Civil Rights Commission, the Division of Labor, and the Division of Workers’ Compensation. This will
provide the opportunity for one department to efficiently serve residents’ and businesses’ needs.

Align Entity
Align Administrative Law Judges to • Improves resource management and increases retention
DIAL (Iowa Code §10A.801)
Align ICRC to DIAL
(Iowa Code Ch. 216)
• Aligns to leading states which do not maintain an independent
entity solely for civil rights enforcement
PERSONNEL: $1.5 M
20 funded positions, the 10 unfunded
Reducing positions by 20 funded
positions and 10 unfunded
• Increases access to non-lawyer investigators, hiring and IT positions will result in an estimated positions
• Improves case response times cost avoidance of $767k based on the
Align Functions minimum base salary for these
Align Professional Licensing Bureau • Supports administrative efficiencies and improves customer
positions
to DIAL (Iowa Code §§542.4, service
542B.3, 542B.9, 543B.8, 543B.14,
544A.1, 544A.5, 544B.3, 544B.5,
REAL ESTATE: $1.9 M
544C.1, and 546.10) All DIAL could be consolidated into the
Align Division of Labor to DIAL • Streamlines licensing processes and standardizes State
same building
(Iowa Code §§84A.1 and 84A.5 and services across the State
Ch. 91)
Align Division of Workers’ • Aligns the Division’s operations with the State’s primary
Compensation to DIAL licensing and regulatory department
(Iowa Code §§84A.1 and 84A.5 and • Allows IWD to focus on businesses and workforce needs
Ch. 86)
Align State Fire Marshal inspections • Streamlines licensing processes and standardizes services
to DIAL (Iowa Code Ch. 100) across the State
Align Department of Public Health • Streamlines licensing processes through unified oversight
licensing functions to DIAL (Iowa • Supports administrative efficiencies and improves customer
Code Ch. 147) service
58
DRAFT
Department of Public Safety
Department Head: Stephan Bayens, Commissioner
Alignment Overview: The Iowa Department of Public Safety (DPS) aims to provide administrative oversight over the majority of sworn peace officers at the state level and
to align public safety initiatives for uniform application across Iowa government. Proposed alignment will include HSEM providing a liaison to DPS to streamline intelligence
sharing and collaboration on security initiatives. Motor Vehicle Enforcement (MVE) is proposed move to DPS to standardize the training of peace officers and increase the
number of statewide peace officers available to the DPS, which is especially important in emergency situations. The Office of Drug Control Policy (ODCP) will unify policy goals for
drug enforcement and additional federal grant capacity by aligning with DPS.

Align Entity
Align ODCP into DPS

(Iowa Code §80E.1(3))
• Unifies policy goals for drug enforcement
• Alleviates ODCP staff from administrative burdens so they
can focus on mission
PERSONNEL: $0
DPS did not identify any position
reductions
DPS did not identify any position
reductions
• Aligns to leading states in which drug control is part of a
larger entity
Align Function
Align MVE to DPS (Iowa • MVE officers are sworn and have police authority like the
Code §321.477) DPS. All sworn officers with policy authority should be under
DPS. REAL ESTATE: $0
• MVE officers would be available to help the DPS officers in There were not any real estate savings identified
emergency situations due to standardized training. for DPS
• MVE officers could more easily become troopers and vice
versa, promoting retention.
Align HSEM: Send one • Increases coordination around overlapping intelligence
liaison to DPS Fusion sharing responsibilities to better align priorities and achieve
Center safer outcomes for Iowans
59
DRAFT
Department of Management
Department Head: Kraig Paulsen, Director
Alignment Overview: There are no proposed alignment changes for the Department of Management (DOM); however, an analysis of current processes within DOM revealed
four key recommendations to help increase governance and centralize the DOM operating model. See slides 46 through 51.
PERSONNEL: $2.8 M
Reducing 31 funded positions will 31 POSITION REDUCTION
Reduces positions by 31 fully
funded, vacant positions
result in over $2M estimated budget
benefit based on the minimum base
No key alignment changes proposed
REAL ESTATE: $0
There were not any real estate savings identified for
DOM
60
DRAFT
Department of Natural Resources
Department Head: Kayla Lyon, Director
Alignment Overview: There are no proposed alignment changes for the Department of Natural Resources (DNR).
PERSONNEL: $0
unfunded vacant positions, and
of $395K based on the minimum base outsources 3 positions
REAL ESTATE: $2.0 M

Consolidation into fewer floors of the Wallace
building will create an opportunity to merge
operations of other agencies that may be
spread across multiple facilities. Another
option would be to reassess the viability of the
Wallace Building.
61
DRAFT
Iowa Department of Revenue
Department Head: Kraig Paulsen, Director
Alignment Overview: The vision is to move Alcoholic Beverages Division (ABD) and Iowa Lottery (ILOT) to the Department of Revenue (DOR) wholly intact to create efficiencies
between overlapping back-end functions while maintaining unique customer-facing processes to ensure credibility in the market and continued revenue growth.

Align Entity
PERSONNEL: $1.9 M
Align ABD to IDR • Presents opportunity to focus ABD’s efforts on core mission,
(Iowa Code Ch. 123 and data analytics, and financial management In addition to the budget benefit of the Reduces positions by 32 funded
§546.9) • Brings together all major revenue generating agencies 32 funded positions, the 4 unfunded vacant positions, 4 unfunded
• Aligns with other “control states” that locate their alcoholic positions will result in an estimated vacant positions, and outsources
beverage regulation within a larger department cost avoidance of $242k based on the 25 positions
minimum base salary for these
Align Lottery to IDR • Brings together all major revenue generating agencies positions
(Iowa Code Ch. 99G) • Presents efficiency opportunities related to compliance and
accounting
REAL ESTATE: $0
• Lottery has previously been housed within DOR At 169 SF/FTE, DOR has the most
efficient usage of office space in the
Capitol Complex and is the Moderate
scenario benchmark
62
DRAFT
Department of Transportation
Department Head: Scott Marler, Director
Alignment Overview: Motor Vehicle Enforcement (MVE) is proposed move to DPS to standardize the training of peace officers and increase the number of statewide peace
officers available to the DPS, which is especially important in emergency situations.
KEY CHANGE RATIONALE AND BENEFITS $808.5 K TOTAL BUDGET BENEFIT
PERSONNEL: $808.4 K
Reducing 11 funded vacant positions
will result in an estimated budget
Reduces positions by 11 funded
vacant positions
benefit based on the minimum base
REAL ESTATE: <$0.1 M

The only DOT office space in Des
Moines is its legislative office on the
ground floor of the Lucas building
63
DRAFT
Department of Veterans Affairs
Department Head: Todd Jacobus, Director/Commandant
Alignment Overview: Iowa Department of Veterans Affairs (IDVA) and the Iowa Veterans Home (IVH) alignment will return the two departments to their original orientation
of being combined into one entity. Alignment has the possibility to streamline delivery of services and enable the sharing of key services between the organizations.
KEY CHANGE RATIONALE AND BENEFITS $193 K TOTAL BUDGET BENEFIT

Merge Entities
Merge IVH and

IDVA (Iowa Code Chs. 3
5A and 35D)
•
•
Promotes better coordination and outcomes for Iowa’s
veterans
Improves integration of data, processes, and services to
PERSONNEL: $193 K
Reducing 3 funded positions will
result in an estimated budget benefit
positions
veterans that can be understood by public of $193 based on the minimum base
• Serves as a natural fit and aligns with leading practices of salary for these positions
other benchmarked states in which Veterans’ Affairs and
Veteran Homes are housed under a single department of
Veteran Affairs
REAL ESTATE: $0
identified for IDVA
64
DRAFT
Department of Insurance and Financial Services
Department Head: Doug Ommen, Director/Commissioner
Alignment Overview: The Iowa Insurance Division (IID) will become the lead entity of a new Department of Insurance & Financial Services (DIFS) with the Divisions of
Banking (IDOB) and Credit Unions (IDCU) reporting to DIFS. The rationale is that IID has considerable capabilities due to the scale of the insurance industry and is best
positioned to assume control of common processes between the three regulatory divisions.
KEY CHANGE RATIONALE AND BENEFITS <$0.1 M TOTAL BUDGET BENEFIT

Merge Entities
Merge Iowa Division

of Banking,
Iowa Division of
•
•
Elevates all three entities and boosts Iowa’s profile as a
national leader in the insurance industry
Enables greater collaboration between all three entities
PERSONNEL: $0
unfunded vacant positions
Credit Unions, and of $251K based on the minimum base
• Creates a single voice for financial / service markets in the
Iowa Division salary for these positions
State
of Insurance
from Commerce to • Creates efficiencies while retaining the authority of the
a new entity DIFS (Iowa superintendents to regulate banks and credit unions
Code Ch. 505 and
§§524.201 – 524.229, REAL ESTATE: <$0.1 M
533.101 – 533.118, Based on a separate analysis, there is
546.3, 546.4, and a clear opportunity to consolidate IID,
546.8) DOB, and IDCU operations on the first
floor of 1963 Bell Ave
65
DRAFT
Iowa Economic Development Authority / Iowa Finance Authority
Department Head: Debi Durham, Director
Alignment Overview: Alignment efforts impacting IEDA/IFA aim to streamline economic development-related services in the State. Moving key entities under IEDA/IFA will simplify
how stakeholders engage with programs and create efficiencies.

Merge Entities
Merge Iowa Finance • Leverages existing synergies that are possible when run PERSONNEL: $496 K
Authority with IEDA as a single department In addition to the budget benefit of the Reduces positions by 12
(Iowa Code Ch. 16) • Allows for merging across operations and leadership 7 funded positions, the 12 unfunded unfunded positions and 7 funded
without impacting the required financial autonomy of positions will result in an estimated positions
either entity cost avoidance of $1 M based on the
minimum base salary for these
positions
Aligning Entities
Align Sister States to IEDA • Increases oversight of Sister State activity given that REAL ESTATE: $3.8 M
current funding passes through IEDA There is an opportunity to optimize
usage and consolidate IEDA and IFA
into a single floor of 1963 Bell Ave.,
Align DCA to IEDA • Elevates funding of arts and culture to economic
opening the third floor for another
(Iowa Code Ch. 303) development efforts
department
• Strengthens IEDA’s Downtown Resource Center and
empower rural Iowa programs
• Creates a one-stop-shop for tourism-related businesses
and developers
66
DRAFT
Iowa Workforce Development
Department Head: Beth Townsend, Director
Alignment Overview: Alignment efforts are intended to create a one-stop shop for all workforce needs in Iowa and to simplify the experience for external audiences,
particularly employers. IWD began its alignment earlier this year with 260 programs and the STEM internship moving over from IEDA. The proposed alignment of Adult Ed.
and Literacy as well as other WIOA funded programs will help further this goal.

Align Functions
Adult Education & Literacy • Streamlines all WIOA funding and resolves obstacles of
Title II to IWD
(Iowa Code §260C.50) •
seeking services from multiple different agencies
Promotes better engagement with businesses
PERSONNEL: $4.2 M
63 funded positions, the 4 unfunded
positions and 4 unfunded
Align IVRS to IWD (Iowa • Streamlines WIOA funding and workforce programs into a positions will result in an estimated positions
Code §259.3) single department to create a one-stop-shop for workers cost avoidance of $407 K based on
and businesses the minimum base salary for these
• Aligns to the most common model across states (Note: positions
Only 8 states house IVRS in their education department)
Align 260 Programs and • In progress: Streamlines all workforce programs into REAL ESTATE: $0
STEM from IEDA (Iowa single department There were not any real estate savings
Code Chs. 260E, 260F, identified for IWD
and 260G)
Align SNAP T and E and • In progress: Streamlines all workforce programs into
Promise Jobs single department
(Iowa Code Ch. 239B)
Align Sector Boards (Iowa • In progress: Reduce redundancies in
Code §260H.7B) business engagement
Align Intermediary Network • In progress: Simplifies employer experience
(Iowa Code §256.40) with government agencies
67
DRAFT
Department of Public Defense
Department Head: Maj. Gen. Ben Corell, Adjutant General
Alignment Overview: There are no proposed alignment changes for the Department of Public Defense (DPD).
KEY CHANGE RATIONALE AND BENEFITS $0 TOTAL BUDGET BENEFIT
PERSONNEL: $0
DPD did not identify any position
reductions
DPD did not identify any position
reductions
REAL ESTATE: $0
identified for DPD
68
DRAFT

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Government

02 The Case for Change 7

04 Cost Savings Opportunities 16

05 Future State Departments 53

The current structure of

GUIDING PRINCIPLES FOR ALIGNMENT:

CREATE AN ACCOUNTABLE ORGANIZATIONAL STRUCTURE

ELEVATE DATA-DRIVEN DECISION MAKING

SIMPLIFY REPORTING & APPOINTMENTS

EXPAND THE RESPONSIBILITY OF DIRECT REPORTS

KEEP PEOPLE AT THE CENTER

Lt. Governor Law Enforcement Public Employees’

Communications Department for the

Iowa Workforce Department of Department of Public Homeland Security

Dept of Inspections Econ Development Department of Department of Public

MAXIMIZING TAXPAYER DOLLARS

ELEVATING EFFICIENCY EFFORTS

BUDGET INFORMATION TECHNOLOGY REAL ESTATE

$9.5B $323.7M 22.1M Sq. ft Owned // 2.3M Sq. ft Leased

AREAS OF OPPORTUNITY: AREAS OF OPPORTUNITY: AREAS OF OPPORTUNITY:

Proposed Change: Align workers’ compensation from IWD to DIAL

› State Archives, Museums, and Records: › Insurance Division: In some states,

COST SAVINGS EFFICIENCIES

1. DEBT AND FEES 2. PRIVATIZATION 3. FEDERAL FUNDING 4. SUNSETTING

Cost Savings Opportunities

Total Potential Cost Savings Year One: $75.6 M

Reduce Office Space Footprint $13 M 8.0 Community Based Corrections

Consolidate Common Technology Land Sales2 $ 17.6 M

6.0 Recover Medicaid Matching Funds1 $5.5 M

1 Medicaid savings are 100% State funds

Opportunity Year 1 Year 2 Year 3 Year 4 Total

1.0 Strategic Personnel Alignment $18.6 M $19 M $19.4 M $19.8 M $76.8 M

5.0 Consolidate Common Technology $15.3 M $15.3 M $15.3 M $15.3 M $61.2 M

7.0 DOC Medical Cost Capture $0.5 M $0.5 M $0.5 M $0.5 M $2 M

8.0 Community Based Corrections $3 M $3 M $3 M $3M $12 M

9.0 Land Sales $17.6 M - $15.1 M - $32.7 M

Total $73.5 M $41.6 M $57.1 M $42.4 M $214.6 M

LEVERS AUTHORIZATION CONSIDERATIONS

1 Sum of rounded amounts greater than total.

DAS 264 2 262 $90,571 Insurance 130 3 127 $175,863

State Library 33 0 33 $0 Banking 88 0 88 $0

Totals 347 2 345 $90,571 Totals 236 4 232 $251,006

Department of Natural Resources (DNR) Department of Corrections (DOC)

DNR 902 9* 893 $394,894 DOC 2778 4 2774 $236,102

Totals 902 9* 893 $394,894 CBCs 1114 0 1114 $0

IDA 73 18 55 $60,165 Civil Rights 27 0 27 $0

DOM - ECI 2 0 2 $0 DPS – Fire

Totals 864 30 834 $1,623,580*

*$161,461 in General Fund savings

College Aid 43 3 40 $75,143

Department of Revenue (IDR)

Totals 563 8 555 $417,455*

Department of Transportation (DOT) Lottery 112 11* 101 $488,392

Current Total FTE Efficiencies Future Anticipated

DOT 2809 11 2798 $808,399

IWD 694 39 655 $2,863,447 IEDA/IFA 235 14 221 $139,930

Totals 1172 67 1105 $4,165,837

Current Total FTE Efficiencies Future IDVA 19 3 16 $193,316

HSEM 112 23 89 $1,708,641 IVH 794 0 794 $0

Totals 112 23 89 $1,708,641 Totals 813 3 810 $193,316*