INDIANAPOLIS (September 7, 2006) - State government performance improved in the first half of 2006 with 64 percent of performance results for 36 state agencies in red or yellow categories, compared to 87 percent for the same period of 2005.

Governor Mitch Daniels today issued the Indiana State Government Performance Report for January to June 2006, the third such report. Overall, since reporting began in early 2005, it is estimated that nearly $300 million in cost savings and redirected funds have occurred. New agency graphs that show performance over time rather than for just one quarter are a new feature of this report.

"State government performance is better - not everywhere, and not near enough, but provably, measurably better. The challenge is to continue improving every single day," said Daniels. He said the Indiana Office of Technology, Indiana State Police and Department of Insurance were closest to achieving goals for the period.

Targets for performance are set at green, yellow and red levels. Green represents superior performance, yellow means needs improvement and red is unsatisfactory performance. In the first six-month report of 2005, 87 percent of results were in the red and yellow categories; for the second half of 2005, 73 percent fell into those categories, and now, 64 percent.

Among specific agency changes:
• The Public Employees Retirement Fund (PERF) dramatically improved customer service measures in three areas over the last 18 months. For example, the average number of days to complete a refund moved from 80 (red) in the third quarter of 2005 to less than 20 days (green) in the second quarter of 2006.

• The Department of Local Finance improved its turnaround time to respond to public inquiries from 7 days in the third quarter of 2005 to 3 days in the first quarter of 2006.

• The percentage of personal income tax refunds processed by the Department of Revenue within 15 days improved from 67 percent to nearly 74 percent in the second quarter of 2006.

• In the second quarter of 2006, the Indiana Office of Technology reduced the cost of providing high speed Internet access from over $700 annually to $625 annually per connection. In January 2005, the cost was over $1,100.

Among other report highlights are several improvements made through OneIndiana, the state's effort to improve purchasing of goods and services. Those include:
• Leveraging the state's purchasing power to more efficiently buy hearing aids. Through bulk purchasing, rather than one at a time, the cost of hearing aids has been reduced from $1,800 to $900 each.

• Initiating an office supplies contract which now provides discounts on items purchased. Previously, statewide expenditures were nearly $7 million annually for office supplies. The state will save an average of 46 percent on office supplies purchases or about $3.1 million annually.

• Negotiating a new contract for the purchase of computers that will save $5 million annually.

Four more state entities - the Indiana Law Enforcement Academy, PEN Products, the Office of Faith-Based and Community Initiatives, and the Office of the Utility Consumer Counselor - created performance measures for the first time.

A copy of the Performance Report and specific agency metrics may be found at: http://www.in.gov/gov/