The state hired the consulting firm, Alvarez and Marsal (A&M), to recommend efficiency to deliver better government services at a better cost and at a higher quality. They also advised on improving the financial stability of the state. I have a keen interest in this area. The following recommendations on financial stability would be important for the legislature and Governor to work on and implement.
- Establish a Rainy Day Fund to weather economic downturns and unexpected expenses
- Develop a structurally balanced budget policy. Match up reoccurring revenues to address reoccurring expenditures each year.
- Improve accuracy of revenue forecasts. Use more expert economists to provide more accurate tax receipt forecasts.
- Develop long term financial plans. Over 22 states have forecasts that go out an additional 3-4 years on top of their regular 2-year budget plan.
- Develop user fee policy. A&M found that Kansas' fees are not covering the programs or services they are providing.
- Develop Debt Management Policies.
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