April 20, 2011

Paul Francis – Co-Chair of the Spending and Government Efficiency Commission Antonio M. Perez – Co-Chair of the Spending and Government Efficiency Commission The Executive Chamber NYS State Capitol Building Albany, NY 12224

Dear Co-Chairs Francis and Perez, Congratulations on your formal appointments to head Governor Cuomo's Spending and Government Efficiency Commission. You, and your fellow SAGE Commission members, have been given the very serious responsibility of creating long-needed structural changes in order to rightsize New York's state government. We, as members of the Independent Democratic Conference, have the utmost confidence that you and the other members of this commission are up to this critically important task. Since the IDC's formation, we have developed and put forward our own proposals to create lasting efficiencies and tame a state bureaucracy that has grown beyond our collective means. Overall, our proposals would save more than $1.1 billion in recurring savings over the next decade. Of that, specific recommendations that would result in at least $500 million in savings fall within the SAGE Commission's parameters. These include: • Cracking down on overtime abuse by giving the Division of the Budget final approval over all overtime spending; creating new rules regarding the use of state assets; enacting tougher standards regarding state contracts; and consolidating duplicative functions within state agencies. These measures will help eliminate at least $313 million in wasteful spending in five state agencies alone. Revamping a little known division of the Office of General Services and empowering it to create risk management plans for state agencies. This step would decrease the state's liabilities, cut down on claims against New York, and save an estimated $150 million a year. Consolidating New York's Patchwork Inspector General System. This is estimated to save $37 million in recurring savings.

Full copies of our reports on these issues are enclosed. We ask that you review these recommendations and consider incorporating them in your restructuring proposal. If you have any questions, please do not hesitate to contact us. Sincerely,

Jeffrey D. Klein Senator, 34th District

Diane Savino Senator, 23rd District

David Carlucci Senator, 38th District

David J. Valesky Senator, 49th District

CC: Members of the Spending and Government Efficiency Commission Michael Balboni Neil Cole Jim Corcoran Cheryl Cohen Effron Cheryl A. Felice Alan Gerry Barry M. Gosin Denis M. Hughes Derek Q. Johnson Simone Levinson Anthony E. Malkin Lillian Rodríguez López Kevin P. Ryan Jonathan Sandelman Robert Samson Peter J. Solomon Andrew J. Spano Max Stier, Robert Zimmerman Senator Greg Ball Senator Liz Krueger Assemblywoman Jane Corwin Enclosures: Recommendations to the SAGE Commission and the Office of the Governor based on the Findings from the Senate Task Force on Government Efficiency, IDC, January 2011 Examining Spending at the Office of Children and Family Services, IDC, January 2011 Streamlining New York's Patchwork IG System, IDC, March 2011 Expansion of New York State’s Risk Assessment and Management Activities, IDC, March 2011