Efficiency consultants hired by the Kansas Legislature said they are unearthing savings and finding new revenue possibilities that will benefit the state to the tune of hundreds of millions of dollars over the next five years.
In a preliminary report, representatives of Alvarez & Marsal told a legislative budget committee Tuesday that the methods range from centralizing office leasing to filling vacant revenue officer positions to selling little-used wood chippers owned by the Transportation Department.
One recommendation, shifting the state’s payment cycle from 10 days to 30 days, would free up $170 million in working capital, said the firm’s J.W. Rust.
The Transportation Department could sell about 5 percent of its equipment, including some wood chippers, to generate about $3 million, he said.
The company’s full report is due in early January.
“I’m very encouraged,” said Rep. Marvin Kleeb, an Overland Park Republican.
Legislators are hoping the $2.6 million efficiency study will help them out of a 2016 budget conundrum. The projected ending balance in June of $5.6 million provides little cushion for unexpected expenses.
“I’m looking forward to more details,” said Rep. Ron Ryckman Jr., an Olathe Republican. “And it’s not just money. It’s also providing a better quality of service.”