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By Joe Kimball | Published Tue, Jan 13 2009 11:58 am
With both states facing budget woes, the governors of Minnesota and Wisconsin are looking for ways to share services and save money.
Minnesota Gov. Tim Pawlenty and Wisconsin Gov. Jim Doyle made the announcement today, first in St. Paul and then in Madison. (Let's hope they shared the same plane.)
“We’re not proposing to merge the Vikings and the Packers, but we are going to seek out every area where we can save money and improve services by working together across state lines,” Pawlenty said. He called it a “historic agreement between our two states that can serve as a model for the rest of the country.”
Some areas of sharing that they're exploring:
• Procurement: Both Minnesota and Wisconsin were pioneers in cooperative purchasing efforts and work together on a number of contracts, including pharmaceutical products. There are other opportunities, such as:
• Road salt – Minnesota and Wisconsin combined buy more than 600,000 tons of salt.
• Heavy equipment – Both states have similar needs for tractors and bulldozers.
• Institutional dood – Cooperating on similar menus could save money.
• Software – Licensing agreements typically depend on volume.
• Facilities and vehicles: Minnesota and Wisconsin will examine their fixed assets. Wisconsin’s Department of Natural Resources, for example, may be able to rent helicopter service from Minnesota, thereby saving Wisconsin money and generating revenue for Minnesota. Other potential opportunities include:
• Such specialized vehicles as patrol boats.
• Sharing DNR and DOT aircraft,
• Warehouse space.
• Cooperative functions: Wisconsin and Minnesota will look for opportunities to consolidate functions or capture efficiencies through sharing and specialization. Some common functions, they say, may be able to work cooperatively and more efficiently at a larger scale. Others, such as nursery and hatchery operations, may gain efficiencies by swapping products. Areas to examine include:
• Call centers.
• Collection operations.
• Licensing functions.
• Back-office functions.
• Agricultural, fishery and nursery operations.
• Prison industries, programs and facilities.
• Duluth/Superior operations.
The governors shared an executive order, directing their state commissioners to be creative and flexible in their approach and to identify the maximum potential areas for further review and consideration.
Commissioners are to report back by Feb. 27 with their agencies’ lists of specific activities, programs and services that could benefit from a cooperative arrangement.
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