Oklahoma State Government Asset and Cost Savings Program.

              INTERIM STUDY REPORT
Government Modernization Committee
Rep. Jason Murphey, Chairman
Oklahoma House of Representatives
Interim Study 11-031, Rep. T.W. Shannon
November 8, 2011
Oklahoma state government asset and cost savings program
Leonard Gilroy, Director of Government Reform
Reason Foundation
Leonard.gilroy@reason.org
• States don’t have a good handle on their real property assets.
• The state should conduct a real property inventory (RPI).
• The RPI will assess potential value of divesting an asset or property for the purpose of:
+ generating revenues and leveraging existing assets;
+ divesting underutilized or unnecessary land or assets to lower maintenance and
operations costs;
+ selling or leasing assets to the private sector which can increase proper management
and encourage economic growth.
• There is a growing awareness among states of the need to have better asset management.
• It is important to not only conduct an inventory, but to actively manage and analyze data.
• Reviewed 12 recommendations based on best practices.
John Morrison
Office of State Finance
John-morrison@dcs.state.ok.us
• Annually identify the 5% most underutilized properties to describe the value of the
properties, assess potential for selling property and describe the impact on local tax rolls
if it is sold to a private entity.
• The report will be available on data.ok.gov
• The current property database is extensive but not comprehensive and does not include
property values.
• Provided additional information on the capital planning initiative comparing the current
model vs. the proposed efficiency model.
• Some benefits of comprehensive asset management include:
+ eliminating “silo” decisions and duplication of services;
+efficiency and cost effectiveness of strategic contracts;
+lower overall building operating costs;
+predictable fiscal impact of technology and facility decisions.
Regina Birchum, Deputy Treasurer
Office of the State Treasurer
• Many states and the federal government are pursing monetization of assets but there is no
clear example of a long-term coordinated plan.
• This presents Oklahoma with the opportunity to become the first state with a coordinated
effort at asset monetization.
• Asset management has been tasked to the treasurer in New Jersey, Arizona and Ohio.