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Leading and Learning Together: Leading and Learning Together: g g g g g g Opportunities for County Leadership Opportunities for County Leadership in Redesigning Government in Redesigning Government g g g g CCI Annual Conference June 8,


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Leading and Learning Together: Leading and Learning Together: g g g g g g

Opportunities for County Leadership Opportunities for County Leadership in Redesigning Government in Redesigning Government g g g g

CCI Annual Conference June 8, 2011

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Presentation Outline Presentation Outline

  • Beginnings of the MN REDESIGN Initiative
  • HHS Examples of Moving From REDESIGN

Id i t P li I iti ti Ideas into Policy Initiatives

  • Service Delivery Authorities (SDA’s)
  • The MAGIC Act
  • The MAGIC Act
  • Opportunities to Partner & Collaborate OR

pp Lessons Learned

  • Discussion / Q & A
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The Beginnings of The Beginnings of The Beginnings of The Beginnings of REDESIGN at AMC REDESIGN at AMC

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The Beginnings of REDESIGN The Beginnings of REDESIGN

While the recent economic recession has

  • fficially ended, Minnesotans face a long and

slow economic recovery. y Even once the economy has recovered to pre Even once the economy has recovered to pre‐ recession levels in a few years, long‐term growth is projected to be subdued when growth is projected to be subdued when compared to past decades.

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The Beginnings of REDESIGN The Beginnings of REDESIGN

So why will we not be returning to the way hi b f h i ? things were before the recession?

– Demographic changes are driving growth in public i di d d i h l f service expenditures and reducing the pool of available workers

The recent recession exacerbated the problem b i i i j h by causing economic strain just as the demographic shift began to take full effect.

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The Beginnings of REDESIGN The Beginnings of REDESIGN

Minnesota’s Aging Workforce

50,000 60,000 5 years 20 000 30,000 40,000 Within Past 5 10,000 20,000 Worked W

7/05 to 7/06 7/06 to 7/07 7/07 to 7/08 7/08 to 7/09 7/09 to 7/10 7/10 to 7/11 7/11 to 7/12

Year Turning Age 62

Source: Stinson/Gillaspy Presentation, July 2008

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The Beginnings of REDESIGN The Beginnings of REDESIGN

Declining Labor Force Growth

1.52% 1.12%

1.2% 1.4% 1.6% nge

0.75%

0 6% 0.8% 1.0% nnual Chan

0.43% 0.10% 0.13% 0.27%

0.2% 0.4% 0.6% Ave An 0.0% 1990- 2000 2005-10 2010-15 2015-20 2020-25 2025-30 2030-35

Source: Stinson/Gillaspy Presentation, July 2008

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The Beginnings of REDESIGN The Beginnings of REDESIGN

Minnesota’s current budget was affected by the recession, but future budgets will be affected by these unavoidable demographic shifts.

– 2012‐2013 biennium: A $5.5 billion deficit – Spending is projected to continue outpacing revenue beyond 2012‐2013

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The Beginnings of REDESIGN The Beginnings of REDESIGN

So what does this all really mean?

– Assuming state policymakers increase revenue by raising taxes and vigorously cut programs and h hl b bl h h services, it remains highly improbable that the state will be able to structurally balance long‐term revenue and spending projections revenue and spending projections.

T f ti l f f th t Transformational reform of the current system—REDESIGN—is the only practicable l ti il bl t li k solution available to policymakers.

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The Beginnings of REDESIGN The Beginnings of REDESIGN

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The Beginnings of REDESIGN The Beginnings of REDESIGN

In 2003 the AMC Board began a movement to cultivate a culture of innovation and set up programs at AMC to explore and embrace innovative proposals. County officials recognized at that time that the current state/county relationship would not current state/county relationship would not be sustainable over the long‐term.

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The Beginnings of REDESIGN The Beginnings of REDESIGN

In 2008 that culture of innovation at AMC led to the formal creation of the Minnesota REDESIGN Project. The project’s goals were:

– To devise means for serving citizens within a future of significantly reduced resources – To enhance governance, transparency and flexibility within local and state government – To demonstrate that county officials could provide leadership devoid of partisanship to improve p p p p the long‐term outlook of MN

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Opportunities to Partner & Opportunities to Partner & Collaborate Collaborate Collaborate Collaborate

Some REDESIGN initiatives will be intra or inter‐county, but others should be county‐ y y city, county‐state, county‐township, county‐ school, etc.

Whate er prod ces impro ed Whatever produces improved

  • utcomes!
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The Beginnings of REDESIGN The Beginnings of REDESIGN

There has been agreement during the past three years from a vast array of stakeholders about the need to REDESIGN government so that it can sustainably meet the needs of its citizens. Significant ideological, institutional and statutory barriers to innovation still exist, yet AMC members remain resolute in their support for the REDESIGN initiative.

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Turning REDESIGN Ideas Turning REDESIGN Ideas Turning REDESIGN Ideas Turning REDESIGN Ideas into Policy Initiatives into Policy Initiatives y

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REDESIGN Policy Initiatives REDESIGN Policy Initiatives

AMC’s role in REDESIGN can be divided into three major categories:

– Foster a statewide culture of innovation – Develop substantive REDESIGN policy proposals – Offer implementation resources when possible

The AMC Board of Directors has been emphasizing its desire to transition from REDESIGN rhetoric into sustained action

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REDESIGN Policy Initiatives REDESIGN Policy Initiatives

Since REAL Colorado is specifically focused on HHS issues, the following are two recent REDESIGN policy initiatives with significant HHS implications for MN Counties:

Service Delivery Authorities (SDA’s) – Service Delivery Authorities (SDAs) – The MN Accountable Government Innovation and Collaboration (MAGIC) Act

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About SDA’s About SDA’s

January 2007

  • Legislative auditor’s report on human services

d d f d administration identified:

 Too much administrative complexity in human services  Variability in process, outcomes, and access to service among counties y p , , g  Small counties struggling to effectively administer human services

J M 2009 January‐May 2009

  • Then‐Governor Tim Pawlenty proposed consolidation of

MN’s county human services departments into 15 regional MN s county human services departments into 15 regional centers. C ti d ith SDA l b d ff f

  • Counties respond with SDA proposal based off of

REDESIGN principles

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About SDA’s About SDA’s

What exactly is an SDA?

 Can combine with other counties as an SDA to deliver a service, some services, or all services  Provides an avenue for innovation‐‐potential access to waivers from state regulations‐‐sets up a more g p transparent process for this to happen  No structure is specified in law, counties have maximum flexibility to organize themselves.

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About SDA’s About SDA’s

Why form an SDA?

 Use resources more effectively/efficiently  More consistency in services in geographic region More consistency in services in geographic region  Opportunity for waivers from state/federal laws and rules rules  Transparency in working with DHS (through Council process)  Political reality of the future Political reality of the future

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Human Services Redesign

Structure for Implementation

About SDA’s About SDA’s

Steering Committee on P f Results Accountability Performance and Outcome Reforms

Counties

Accountability Redesign Council

‐Counties ‐Counties ‐DHS ‐Advocates ‐DHS ‐Legislators

AMC Human Services Liaison Work Group

‐Commissioners ‐Human Service Directors Administrator ‐Administrator At large member

Minnesota Counties

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About SDA’s About SDA’s SDA Example 1

Southeastern Minnesota Sout easte esota Community Transformation Contract 12 SE MN counties Outcomes/structural redesign/technology Co‐op model Design labs Example: Chemical d d il j dependency pilot project

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About SDA’s About SDA’s

Northeastern Minnesota

SDA Example 2

Northeastern Minnesota Technology Sharing 7 NE MN Counties 7 NE MN Counties Goal: no county b d i boundaries to access income supports Means: shared technology and staffing

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About SDA’s About SDA’s

Southwestern MN

SDA Example 3

Southwestern MN Shared Administration 2 counties 2 counties Goal: administrative i savings, more consistency across programs Share county services director and fiscal

  • fficer
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About the MAGIC Act About the MAGIC Act

What is the MAGIC Act?

– The MAGIC Act was a 2011 legislative initiative to enable counties and the state to cooperatively test d i l t ffi i t d l f and implement more efficient models of program delivery. – The MAGIC Act recognizes that the state should focus on deciding WHAT to do and then enable counties to determine HOW to best achieve those desired outcomes.

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About the MAGIC Act About the MAGIC Act

Two Major Components to the MAGIC Act Two Major Components to the MAGIC Act

1 All counties provided a “general welfare” clause

  • 1. All counties provided a general welfare clause
  • 2. An improved, outcomes‐based waiver process is

created

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About the MAGIC Act About the MAGIC Act

Counties Provided a “General Welfare” Clause

 Counties would be statutorily authorized to take any action not prohibited by state law to provide for the action not prohibited by state law to provide for the health, safety and general welfare of the public. This provision would mirror the authority currently granted i ’ i i d hi to Minnesota’s cities and townships.  Currently counties can only act when explicitly authorized by the state.

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About the MAGIC Act About the MAGIC Act

Creation of an Outcomes‐Based Waiver Process

 A waiver process based on the state‐local partnership would be implemented to enable time‐limited pilot p p projects subject to final legislative review, thus resulting in the creation of an innovative best‐practices repository that governments can use to guide future policy and that governments can use to guide future policy and program decisions. Th i k h f d bli hi  The waiver process keeps the state focused on establishing and overseeing outcomes and performance measurement while counties will be enabled to focus on the implementation of efficient service delivery.

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About the MAGIC Act About the MAGIC Act

Legislative Progress of the MAGIC Act

 The bill passed 5 committee hearings (3 in Senate; 2 in House) with unanimous, bipartisan support at each stop ) , p pp p  The bill passed the MN Senate 62‐1 during the last week

  • f the legislative session, but due to scheduling was

g , g unable to receive its final House committee hearing  AMC is currently negotiating with all parties to ensure y g g p that the MAGIC Act authorizing language is included in the yet‐to‐be‐finalized state budget agreement. Today this outcome appears more likely than not this outcome appears more likely than not

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About the MAGIC Act About the MAGIC Act

After Passage: Summer 2011 MAGIC Act Work

 It is imperative that AMC work with all 87 counties to ensure that all are aware of the new opportunities that pp are available after passage of the MAGIC Act  AMC will be making association staff available for county g y consultations to educate and/or assist in implementation, and all county association events and affiliate

  • rganization conferences will include MAGIC Act
  • rganization conferences will include MAGIC Act

discussion forums Goal: Incorporate MAGIC launch into ongoing  Goal: Incorporate MAGIC launch into ongoing MN REDESIGN Project efforts (just like SDA’s)

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Five Lessons Learned: Five Lessons Learned: MN REDESIGN Project MN REDESIGN Project MN REDESIGN Project MN REDESIGN Project Implementation Implementation

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Five Lessons Learned Five Lessons Learned

  • 1. Bringing forward innovative and sustainable

ideas will fundamentally change the way counties are viewed by other parties

– AMC has incrementally become more proactive in trying to predict (and in some cases dictate) the next big issue(s) that will impact local governments – Leadership is naturally uncomfortable at times, and there have been moments when members have questioned the strategy of seeking instead of being sought out g

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Five Lessons Learned Five Lessons Learned

  • 2. Developing mandate lists will never result in

counties’ fully achieving desired outcomes

– AMC used to develop mandate lists for the p Legislature every year to encourage the state to allow counties more freedom to make decisions and innovate yet the list approach always disappointed innovate, yet the list approach always disappointed – There are times when AMC still needs to develop illustrative lists but the AMC Board has expressed a illustrative lists, but the AMC Board has expressed a desire to focus on and modify the foundational elements that produce mandates

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Five Lessons Learned Five Lessons Learned

  • 3. Ownership of innovation successes must be

shared

– AMC has at alternating times enhanced it success by g y sharing ownership with non‐county stakeholders and impeded its success by trying to singlehandedly drive government REDESIGN government REDESIGN – It is a significant institutional challenge to expend resources on an initiative and then partially relinquish resources on an initiative and then partially relinquish

  • wnership, but government innovation cannot only

be directed/managed by one county or group of counties

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Five Lessons Learned Five Lessons Learned

  • 4. County associations and individual counties

both have important roles to play in a statewide innovation agenda

– AMC’s role focuses on facilitation, coordination and categorization of ideas and then overseeing REDESIGN policy initiatives with potential statewide benefits – Individual counties are the true drivers of REDESIGN by boldly implementing innovative ideas (created due to AMC efforts or otherwise) that ) are available

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Five Lessons Learned Five Lessons Learned

  • 5. Changing a culture is difficult, takes time

and requires committed visionaries

– There are no shortcuts to getting members g g supportive of a broadly focused innovation agenda that may significantly alter the status quo – A culture of innovation requires trust that while some ideas may not prove fruitful, the long‐term goals will ultimately result in an outcome that justifies the ultimately result in an outcome that justifies the effort and resources expended

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Thank You for Listening Thank You for Listening Questions or Comments? Questions or Comments? Questions or Comments? Questions or Comments?

Ryan O’Connor

Association of MN Counties

  • connor@mncounties.org

(office) 651­789­4339 (office) 651 789 4339 (cell) 651­303­4854