2009-2010 Resolution: Modernizing Government
Preamble: The 2009 Budget of the Government of Manitoba identified practical strategies to reduce costs and modernize government, targeting three key areas:
1) improving service delivery for citizens and business;
2) strengthening the control and management of public resources; and
3) strengthening the capacity of our civil service.
The Budget documents defined ‘modernizing government’ as:
“… constantly improving the way government operates to ensure the provision of the best possible services to all Manitobans. It is about identifying what works and moving ahead with those efforts, while improving on activities and services that can be better achieved in a more effective, efficient, innovative and affordable manner.”
This Resolution follows up on a 2008-2009 Resolution called “Provincial Government Spending.”. The Government responded to that Resolution by defending its level of spending, however, it did not specifically respond to the suggestions in the Resolution (reproduced below).
Resolution: That the Government of Manitoba:
a) create a culture in the public sector that inspires and rewards employees for finding efficiencies;
b) review all programs every year to determine where the payoffs are the greatest and identify areas where spending can be reduced or eliminated;
c) further to the efforts described in b), establish a Commission on Efficiencies that engages the public in an effort to determine if the services provided by the Province are being done in a cost-effective and efficient manner; and
d) consider the use of ‘sunset clauses’ in all new program spending.
Resolution Report:
The Manitoba Chambers of Commerce produces Resolution reports as part of its commitment to be accountable to its members. The reports are updated as matters unfold and have three components:
MCC Advocacy: Specific activities the MCC has done to help make this Resolution a reality.
Developments: Events (e.g. government action, media coverage) that relate to Resolution.
Current Status: The MCC’s current plans to help make this Resolution a reality.
Advice, comments, and information sharing are welcome; simply enter a reply at the bottom of this post.
MCC Advocacy:
April 16, May 6 and May 7, 2009: The 2009-2010 Resolutions were posted on the MCC website, listed as part of a comprehensive Report on AGM 2009 and then notice of this story was circulated through the MCC e-Omnibus which is sent to all MCC members, Media and Government.
May 19, 2009: Resolution books were sent to every MLA and every Member of Parliament that hails from Manitoba. The following had this Resolution specifically drawn to their attention with a detailed letter setting out the background to this issue, Government initiatives (where applicable), and an argument for the Resolution:
- The Premier
- The Minister of Advanced Education and Literacy
- The Minister of Agriculture, Food and Rural Initiatives
- The Minister of Labour and Immigration
- The Minister of Finance
- The Minister of Science, Technology, Energy and Mines
- The Minister of Competitiveness, Training and Trade
- The Minister of Infrastructure and Transportation
July 22, 2009: This Resolution was highlighted in an MCC E-Update which was sent to 2,500 individuals including MCC members, Media and Government.
August 12, 2009: This Resolution was highlighted in an MCC E-Update which was sent to 2,500 individuals including MCC members, Media and Government.
August 19, 2009: The MCC met with the Minister of Science, Technology, Energy and Mines in relation to this issue.
The Government is implementing SAP (Systems Applications and Products in Data Processing) in various projects.
Pilot projects are strategically picked that are ideal for replication and expansion into other areas.
Examples of initiatives to date:
March 9, 2010: The MCC highlighted this issue during its Pre-Budget submission. Click here to learn more.
Developments:
July 16, 2009: The Manitoba Chambers of Commerce received correspondence from the Minister of Advanced Education and Literacy responding to this issue as follows:
I understand that Minister Selinger will be responding to this in detail. However, I can assure you that funding for all government programming is reviewed annually through the estimates process and that staff are encouraged to develop innovative and cost-effective ways to deliver programming.
August 7, 2009: The Manitoba Chambers of Commerce received a letter from Manitoba’s Minister of Finance. Here are the portions of the correspondence letter that directly touch on this Resolution:
Sound management and use of public resources are keys to making government more effective, efficient, accountable and transparent. Our Government has made sure that public spending remains under control and that every tax dollar invested into government delivers results in an effective and efficient way. According to Statistics Canada, since 1999/2000, Manitoba’s total per capita expenditure growth has been the second lowest of all provincial governments. As well, Manitoba’s rank in total per capita spending has fallen from fifth highest to forth lowest among all provinces. Since 1999, the Government of Manitoba has undertaken a number of activities to create a culture in the public sector for finding efficiencies. Our Government plans to maintain its advantage by continuing to test new ways to reform government processes in order to improve services without increasing costs.
1. Values and Ethics in the Civil Service
Effectiveness, efficiency and accountability are all part of the Government of Manitoba’s Values and Ethics Guide for Civil Servants (the Guide). The Guide reflects the predominant views of the civil service, and offers a guide for those who seek leadership or have questions about public servants role in providing effective and efficient programs and services to Manitobans.
The Guide requires that civil servants act in the public interest. In practice, this means that public servants must display the efficient, effective and accountable use of public money, property, goods or resources. Civil servants at all levels are required to use all resources, including human, financial and technological resources efficiently and effectively for the public benefit, and strive to ensure that the public receives maximum value for each tax dollar spent.
The Guide also requires that civil servants act with skill and dedication, meaning the provision of responsive, effective and efficient services to the community that are flexible and can adapt quickly to changing demands. It means that civil servants give their best to meet performance standards and other organizational requirements. In doing so, public servants should continually review ways to improve our programs and service in response to the public’s changing needs – whether through the use of new technology, forging new partnerships, or streamlining our processes.
For more information on the Values and Ethics Guide, please visit:
http://www.gov.mb.ca/csc/policy/valueethic.html
2. Training Public Servants to be Efficient, Effective and Accountable
Training and staff development further reflects our commitment of an efficient, effective and accountable public service. Workshops train and educate civil servants about Government of Manitoba Performance Reporting Guidelines, approaches to performance measurement, policy development and completing department plans. These guidelines and workshops provide public servants with a common language and approach for managing public resources in a consistent, efficient, effective and accountable manner.
3. Projects, Initiatives and Reorganizations
Since 1999, the Government of Manitoba has undertaken a number of projects, initiatives and reorganizations that further reinforce efficient, effective and accountable management of public sector programs and services. Examples include:
- In 2008, the Comptrollership Change Management Initiative (CCMI) was launched to continue implementation of modern comptrollership practices in the government. The CCMI will enhance the ability of departments to generate information that is accurate, relevant, understandable and timely about their financial situation, their results relative to costs incurred, and mitigation strategies relative to financial and operational risks.
- Launched in 2008, the Budgeting for Outcomes (BFO) Pilot Project is testing a comprehensive way of budgeting that defines desired outcomes for particular projects dealing with greenhouse gas reduction, and decides on the funding to be made available to achieve these outcomes. While BFO is not new, Manitoba’s approach has been tailored to our provincial context, and a competitive process where departments are able to apply for programming funds to Treasury Board based on the outcomes they offer, and the value and efficiencies they achieve.
- Since 1999, our Government has implemented reforms within existing government organizations to better mange public resources, capitalizing on synergies, regional capabilities, expertise and talent. The appointment of a Healthy Living Minister focuses on creating conditions and supporting behaviors that promote the best possible health choices for everyone. Manitoba Water Stewardship now has sole responsibility for protecting and managing Manitoba’s high-quality water resources. Manitoba Science, Technology, Energy and Mines was created to better align existing resources in support of the development of energy, research and innovation as key contributors to the provincial economy.
- Through a process known as “clustering”, some internal administration, finance and information technology services have been reorganized to consolidate services in fewer administrative groups.
A further list of the Government of Manitoba’s modernizing efforts can be found in the appendix section of the following budget paper:
http://www.gov.mb.ca/finance/budget09/papers/finstats.pdf
The Manitoba Government is committed to improving the way government measures and reports to the public on both financial and non-financial performance outcomes. Outcomes-based reporting enhances efficiency, effectiveness, transparency and accountability by providing information on the actual impacts, benefit or changes experienced as a result of a program or government service.
The first overall Manitoba Government performance report to the public, Reporting to Manitobans on Performance: 2005 Discussion Document, was released in June 2005. This document asked Manitobans for their views on the best way for the provincial government to expand the information that it provides to citizens on the progress it has made toward meeting its commitments. The document provided information on key performance indicators, opening discussion on approaches to performance measurement and reporting in Manitoba.
In the fall of 2006, for the first time, a set of key performance measures was included in every government department’s Annual Report. Performance reporting information is also included in the regular Annual Reports, and various specialized reports, of many of the other organizations in the Government Reporting Entity. Performance indicators in Departmental Annual Reports are intended to compliment financial results and provide Manitobans with meaningful and useful information about government activities, and their impact on the province and its citizens. Please note that Departmental Annual Reports containing performance measures are available on-line at:
http://www.gov.mb.ca/finance/annual.html
In 2007, the Province developed performance reporting principles and guidelines. These principles and guidelines provide a solid foundation for performance reporting as Manitoba works to improve the way government reports to the public.
Also introduced in 2007, the Financial Management Strategy (FMS) – as statement of our Government’s priorities or sound financial management – further demonstrates the commitment to enhancing transparency and accountability. The FMS sets out what our Government intends to achieve over the next year and into the future. The results achieved are reported at the end of each year; the first report on outcomes was released in 2008. This gives the public a real opportunity to assess the success of our Government’s performance.
It should also be noted that the number of specialize reports of indicators has increased since 1999. Examples include:
- Manitoba Health and Healthy Living has established Community Health Assessments as a foundational process to measure the health status of the populations served and to inform Strategic Planning by the Health Authorities. Two 5 year cycles of community health assessments have been completed over the last 10 years with the third set of reports planned for release in Fall 2009.
- In 2005, the first Provincial Sustainability Report of Manitoba was also published. It provided Manitobans with timely, accurate information on important sustainability issues and trends. It is a way of monitoring Manitoba’s sustainability by tracking and interpreting key indicators in the province’s many sectors.
- As well, Government departments are continually reviewing and revising their websites and the reports they compile in order to provide meaningful and easily accessible information to the public regarding issues such as health care, education and justice.
Further information on performance reporting in the Government of Manitoba can be found at the following link:
http://www.gov.mb.ca/finance/performance.html
Consideration of departmental estimates and monitoring of program spending is done through the Legislature on an annual basis, as well as by the Opposition through public hearings. Departmental estimates are reviewed by the Committee of Supply (which has no fixed membership) through a line-by-line question and answer process in which spending is reviewed in detail, and calling the vote on each line and resolution in the order in which they appear. It is through this process that motions to remove or reduce line items can be made.
The letter also features detailed comments from the Minister of Finance on the Payroll Tax; Business Tax Relief; Infrastructure; and Human Capital.
It can be read in its entirety here.
September 29, 2009: Manitoba’s Minister of Agriculture, Food and Rural Initiatives wrote to the Manitoba Chambers of Commerce on this issue, stating as follows:
Regarding Modernizing Government, Manitoba Agriculture, Food and Rural Initiatives implemented a major reorganization in April 2005 to enhance the department’s ability to deliver services and provide assistance to producers, farm families, the agriculture industry and rural Manitobans. In addition, we continue to engage rural citizens who participate on local GO Team Advisory Councils and provincially through the Agriculture, Food and Rural Development Council. Additionally, we have engaged economic development stakeholders on how to better coordinate economic development programs and services and to achieve positive economic outcomes.
November 23, 2009: Received a letter from the Minister of Infrastructure and Transportation on this issue, stating as follows:
I appreciate your kind remarks on our government’s fiscal strategies and our accomplishments in the modernization of government. It is Manitoba’s intention to continue our efforts to improve the accountability and transparency of government activities as we strive to deliver an effective and efficient level of service to the people of this province.
March 23, 2010: The speech of accompany Manitoba Budget 2010 had this to say about the issue of modernizing government and controling spending:
At pp.6-7:
Manitoba’s per capita spending growth over the last decade has been second lowest of all provincial governments. The most recent data shows that our per capita spending is the fourth lowest in Canada.
Today’s pressures on our budget make it more important than ever to manage our spending strategically and set priorities. This means that in some areas we will need to move more slowly than we had planned in delivering new initiatives. It also means targeting resources to priority services.
That is why Budget 2010 reduces spending in one-half of government departments and dedicates more than 90 per cent of all new spending to health care, education and training, family services and justice.
To free up these resources for front-line services, we are taking responsible steps to better manage costs.
Ministerial salaries are being reduced by 20 per cent. We will ask members of this house to approve our proposal that all members of the Legislative Assembly will not receive a general salary increase for the next two years. This would include ministers’ political staff as well as senior government officials. All government overhead costs will also be closely managed.
Wages and benefits for public sector employees are a major component of the provincial budget. Manitobans value the important services they deliver and the dedication they bring to their work.
Managing expenditures without cutting jobs and reducing services requires realistic expectations about the wage costs we can afford. Over the last decade, we have made public sector wages more competitive, but we will now negotiate for a pause in wage increases. We will find further savings by leaving some positions unfilled, but only where vital front-line services will not be affected.
The health care system is also implementing new ways of doing business. Innovations in drug procurement have saved millions and allowed new drugs to be covered. Improvements in service access are helping doctors see families more quickly and connecting patients with the right specialists.
Service innovation is a top priority. We will establish a new Health Innovation Network to link health system leaders, local health providers, researchers and the business community and seek their expert advice and ideas. We will use lean management and develop better processes to improve the patient journey and create a stronger health care system.
The Budget documents touched and built upon on a vision for modernizing government that was first developed for the 2009 Budget.
Here is the basic framework (at p. 8):
| Financial Management Priority | Measurable Outcomes |
| Transparency, Accountability and Fiscal Discipline |
|
| Stable and Affordable Government |
|
| Managing Debt |
|
| Infrastructure and Capital Asset Renewal |
|
| Performance Measurement |
|
Further reporting of interest includes:
At p. 12:
Priority Area – Stable and Affordable Government
Manitoba uses public revenues effectively and efficiently to deliver affordable Government programs and services. Manitoba’s per capita spending growth over the last decade has been the second lowest of all provincial governments. The most recent data for 2008/09 show that our per capita spending is fourth lowest in Canada.
Measurable Outcome – Credit Ratings
The implementation of the economic recovery plan is expected to result in credit ratings remaining unchanged for 2010.
At p. 13
| 2005/06Actual | 2006/07Actual | 2007/08Actual | 2008/09Actual | 2009/10Forecast | 2010/11Budget | 2011/12Projection | |
| Core Government Programs | 19.1% | 18.6% | 18.5% | 19.2% | 20.5% | 19.9% | 19.4% |
| Other Reporting Entities | 3.7% | 3.9% | 4.1% | 3.7% | 4.0% | 4.1% | 4.0% |
| Debt Servicing Costs | 2.1% | 1.8% | 1.8% | 1.6% | 1.5% | 1.5% | 1.5% |
| Total Expenditures | 24.9% | 24.2% | 24.3% | 24.5% | 26.0% | 25.4% | 24.9% |
The Manitoba Government’s objective is to maintain a stable or declining ratio over the longer term.
Measurable Outcome – Strengthening the Management of Public Resources
For Budget 2010, general salary and discretionary operating costs were carefully reviewed by departments to absorb as many price and volume increases as possible while managing vacancies. As a result, half of the departments in Core Government will see a budget decrease in 2010/11. Overall, general salary costs have been held flat in 2010/11 compared to the 2009/10 voted authority and discretionary operating expenditures are 1.2% lower in Budget 2010 compared to Budget 2009.
The Government has also implemented reforms with other reporting entities to better manage public resources, capitalize on synergies and enhance regional capabilities, expertise and talent.
The Government supports continuous internal review and reform to provide Manitobans with affordable, innovative and effective public service operations, programs and services. The Government will continue to emphasize reforms that improve efficiency, accountability and transparency, three important goals of modern government.
At p. 17:
Priority Area – Performance Measurement
Measurable Outcome – Continued Development of Performance Measurement Capacity
In 2010/11, Manitoba will continue to develop performance measurement practices to strengthen management of department resources. There will be an increased emphasis on the use of performance measurement to support management decision making. Training courses and workshops will be strengthened to provide staff with more tools to develop and use performance measures more effectively. Work will also continue on the development of a community of practice to provide opportunities for collaboration and peer review of performance measurement activities across departments.
To put all of this in perspective though, Core Government expenditures were $421M (4.1%) higher in 2009-2010 than originally budgeted, and are budgeted to increase $532M (5.2%) in 2010-2011 compared to the 2009 Budget. Compare that to Core Government revenues which were $92M (9.0%) lower in 2009-2010 than what was originally budgeted and are predicted to increase only $84M (0.8%) in 2010-2011 compared to the 2009 Budget.
Final Report:
While the Government has done much to ‘modernize’ government and its accountability framework is impressive, it chose not to respond to the MCC’s request for a Commission on Efficiencies and sunset clauses on all spending. As well, spending rose substantially in 2009-2010, essentially committing us to deficits over the next four years.
As a result, this Resolution is a qualified success at best.
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