Tuesday, July 22, 2003
Volume 2, Issue 28
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CONTENTS
Increasing Number of Entities Outsource
Child Support Cards Solve State Check Problems
Pizzas Fly Into Mailboxes
Lone Star State Leads in Housing Starts
News of the Weird
FEATURES
States implement child support cards
Maximizing cost savings has become a top priority for state governments as they face large budget deficits and are pressured to make better use of taxpayer's dollars. Last year alone, the government saved $1.4 billion from the elimination of paper checks. To cash in on these savings, state governments in Colorado, Iowa, Maryland, Minnesota and Washington have become the first states to introduce a new concept in the child support payments program: child support cards.
Working with Visa and its member financial institutions, these state agencies are offering the child support cards to deliver child support payments electronically or "direct deposited" to custodial parents. Nationwide, state agencies issue an estimated 54 million child support checks to disburse more than $16 billion in child support collections. Eliminating the costs associated with check issuance, handling and processing - which can add up to $25 per check - the re-loadable child support card not only speeds up the availability of the funds to custodial parents, but also creates a more secure distribution of funds.
The child support cards also allow state agencies to:
1) Reach out to all custodial parents, even those without a banking relationship since the card offers universal eligibility;
2) Eliminate possibility of check fraud or lost checks;
3) Eliminate undistributed collections due to recipient moving and not notifying the state about new address;
4) Comply with federal laws requiring child support payments to be disbursed within 48 hours of collection.
The state governments are already receiving significant cost savings and operational efficiency from the child support cards, and they serve as models for other states that are jumping on the bandwagon. If you are interested, we would like to have you speak with a Visa executive or a state government official to discuss the success of the program.
Government Entities Outsource Critical Activities
Nearly 90 percent of government executives outsource activities that are important or absolutely critical to their mission of citizen service delivery, finds a recent study by Accenture. Only two percent of those surveyed said that outsourcing is relatively unimportant.
The study, which entailed surveying and/or interviewing more than 150 executives in 23 governments in Asia, Europe, North America, and South America, found that governments outsource mainly to improve the speed or quality of the service they provide to citizens and others. Among the activities and services most often outsourced are staff training and education programs, finance and accounting functions, human resources and supply chain operations, and information technology applications and infrastructure.
According to the study, as governments become more experienced with outsourcing, they seek new ways to derive greater value from these arrangements and are therefore more inclined to outsource processes such as procurement, finance and accounting, and human resources, which were previously considered too critical to outsource. By outsourcing certain critical services and functions, governments can improve the quality of service they provide to citizens, while increasing operational efficiency and lowering costs.
Government executives who said they outsourced to gain access to technology, change operations, or find workers with specific skills were more satisfied with the results than were those who outsourced primarily to reduce costs.
The study also finds that governments that used outsourcing to change the way they operate were more inclined to engage in business process outsourcing than were governments primarily concerned with reducing costs. More than two-thirds of those who said they used outsourcing to transform their agencies indicated that they achieved change by outsourcing business processes.
Based on the data and in-depth interviews with government executives, the study concludes that governments usually outsource to achieve one of two objectives: 1) make changes in government operations to improve citizen satisfaction and address severe budget deficits, or 2) create efficiencies through cost reductions and greater productivity. On that basis, each of the 23 governments studied was placed into one of two groups according to the governments outsourcing objectives, then charted along a continuum to illustrate the degree and complexity of its experience with outsourcing.
The study finds that the United Kingdom has developed a range of capabilities for managing outsourcing contracts while achieving greater value for the money it spends on outsourcing. In addition, the UK ranks as the most mature in its use of outsourcing to drive change. Canada and the United States also are among the most advanced in using outsourcing to modify the way government operates.
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POSTAL SERVICE PUSHES THE ENVELOPE
Pizzas, donuts, and motorcycles are just some of the items that will soon make their way to mailboxes near you. Well, replicas of them, that is. The United States Postal Service launched Customized MarketMail (CMM), an advertising mail product recognizable from others by their eye catching, novel shapes.
These distinctly different, literally-outside-the-box-shaped pieces will set their senders apart by visually communicating those mailers products and services. The local ice cream parlor may appear all the more inviting to a potential customer who holds a model of the real treat that awaits.
In the battle for audience attention, Customized MarketMail will allow business mailers to differentiate their products in the mailstream, said Nick Barranca, Vice President of Product Development for the Postal Service. Within certain size, weight, and thickness limitations, Customized MarketMail can be virtually any shape and design the mailer desires. CMM will let advertisers put their creativity to work, designing their mail pieces to deliver high impact, demand attention, and generate greater response rates.
Texas Leads States in Housing Gains
Texas, with 149,000 new housing units, led all states and accounted for about 10 percent of the increase in the nation's housing inventory between July 2001 and July 2002, the Commerce Department's Census Bureau reported.
According to the Census Bureau's tabulations, the United States had an estimated 119.3 million housing units as of July 1, 2002. That represented a 1.3 percent increase over July 2001.
Texas' housing inventory climbed to 8.5 million in the one-year period. Florida was second, adding 147,377 housing units. Rounding out the top five were California (up 130,779), Georgia (87,909) and North Carolina (76,480).
The largest percentage increases in housing units occurred in Nevada (4.0 percent), Colorado (2.9 percent), Arizona (2.7 percent), Georgia (2.6 percent) and Utah (2.3 percent).
NEWS OF THE WEIRD: Bizarre but true stories about real people.
http://www.govpro.com/GPRONewsletter/Article/28336/ LINKS
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