Governor Lamont Announces Government Efficiency Study To Prepare for Significant Amount of Retirements Among State Employees in Coming Years

Statement

Governor Ned Lamont announced that his administration will be conducting a study to evaluate workforce efficiency and organizational design that will prepare the state for a significant number of anticipated retirements among state employees by 2022. The goal of the project is to generate recommendations about how best to mitigate the risk of the potential retirements and use the opportunity to modernize and improve how state government provides its critical services to Connecticut residents while reducing cost. After a competitive bidding process, Boston Consulting Group (BCG) was selected to assist in completing the study and to provide recommendations to Governor Lamont and the members of the Connecticut General Assembly.

The study will be conducted in three phases, with an anticipated completion date of February 2021. The Office of Policy and Management (OPM) and Department of Administrative Services (DAS) oversee the effort and provide the necessary funding. In the 2017 bipartisan budget, the legislature directed the prior administration to hire a national consultant to help the state identify efficiency opportunities and this project will fulfill that goal.

"It has been ten years since the last time we studied our workforce, and a lot has changed over the past decade," Governor Lamont said. "We have had two significant labor agreements, the effects of a lingering recession and slow recovery, and we are in the midst of a global pandemic and its resulting economic fallout, combined with the simple fact that our state employees are getting older and as many as 25 percent are eligible for retirement. We need to dig deep into our state agencies and learn more about what to anticipate, and how best to use this challenge as an exciting opportunity to ensure our government is serving our state as effectively as possible."

"Starting with 2017 legislation that requested OPM secure a consultant to identify cost savings and continuing through the alarming retirement data we have received from our actuaries, it is clear and obvious we are facing the possibility of thousands of state employees retiring over the course of the next year and we need to prepare," OPM Secretary Melissa McCaw said. "We need to be able to accurately assess and prepare for the magnitude of these potential retirements, the loss of the relevant expertise, the subsequent impact on state government, and how we can emerge stronger in the delivery of services to ensure the continuity of effective government as the next generation of leaders assumes the mantle. I look forward to working with BCG on this study and subsequent report and tackling the undoubtedly tough challenge that lies ahead."

"The upcoming wave of retirements presents both a major risk due to the loss of knowledgeable and experienced staff, but also a significant opportunity to reengineer and improve the operations of state government," Chief Operating Officer and Administrative Services Commissioner Josh Geballe said. "Like many governments we are well behind the times in our use of technology and modern approaches to many of the services we provide. We also know we need to evolve to attract the talent we need and increase the efficiency of our operations to be more in line with what our residents expect and deserve. This is a major undertaking, particularly during our ongoing pandemic response, and we are thrilled to have support in this effort from BCG, which proved such an important partner in helping us reopen Connecticut safely."

The three-phase process, led by the Lamont administration with the support of BCG will entail the following:

Phase 1 will include analysis of executive branch agencies to identify and document the scope and magnitude of the issues related to their workforce and efficiency opportunities. Upon completion of Phase 1, gaps and opportunities will be identified and developed for further review.
Phase 2 will develop targeted best practices, prioritizing criteria and objectives, identifying and analyzing available choices, and testing recommendations.
Phase 3 will include analysis of outcomes, stakeholder feedback, and detailed review of the information, culminating in a final report in February 2021.

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