Minnesota and Kentucky Examine State Vehicle Spending
Budget deficits are forcing states to take a hard look at state spending. One of the latest areas to fall under scrutiny is whether or not it is a wise investment of taxpayer dollars to have the state purchasing and maintaining a large fleet of vehicles.
For example, Minnesota is looking to trim the $29.4 million budget for the state’s 6,656 “light-duty vehicles.” Minnesota’s Department of Natural Resources, for instance, has nearly as many vehicles as full-time employees. Representative Bill Haas, chairman of Minnesota’s House State Government Finance Committee, feels that there is enough waste in the state fleet that it can be cut in half. [1]
Part of the attention has been focused on some of the most expensive passenger vehicles in the state’s fleet — SUVs. Minnesota owns at least 309. [2]
According to Haas, “Every agency that comes before my committee to talk about their budget will have to answer to me about how many cars they have out there and why they need an Excursion when a van will do.” [3]
Kentucky has taken action in this area, as well. In February, the state held its first of two surplus vehicle auctions to meet an Executive Order calling for the state to reduce its fleet by 500 vehicles. [4]
In addition to the $772,275 the sale brought to the state treasury, additional savings are expected. “We’ll save $225 thousand in yearly maintenance costs, $125 thousand in insurance premiums and $612 thousand in reduced fuel expenditures,” said Jim Covany, Director of the Division of Fleet Management for the Kentucky Transportation Cabinet. [5]
Faced with a projected $4 billion deficit of its own, perhaps Ohio would be wise to take stock of its fleet expenses. As of March 2003, Ohio has 12,568 vehicles in its fleet. [6] In 2002, Ohio purchased 1,098 new vehicles for a total cost of nearly $26.2 million. [7] Total maintenance costs for fiscal year 2002 were $9,476,525.22. [8]
Much like Minnesota’s Department of Natural Resources, Ohio’s Department has a high ratio of vehicles to employees. ODNR has 1663 vehicles and 1780 permanent full-time employees. [9] That’s one vehicle for roughly every 1.07 employees. Of these, nearly 13 percent are SUVs. [10]
And recently, when prison closings were announced in Ohio, the union representing many prison employees called attention to what they felt was significant waste at the management level. One of their biggest concerns was the use of state vehicles. [11]
Before policymakers consider raising taxes as a way to close the budget hole in Ohio, they should determine whether it is necessary that the state own and maintain close to 13,000 vehicles.
Notes
[1] Mark Brunswick, “Drive is afoot to slow state spending on cars,” The Minneapolis Star Tribune, March 19, 2003. Available at: http://www.startribune.com.
[2] Ibid.
[3] Ibid.
[4] “Governor Patton Kicks Off Surplus Vehicle Auction; Nets the State Budget $772,275,” Press Release, Kentucky Transportation Cabinet, February 13, 2003. Available at: http://www.kytc.state.ky.us/News/pattonauction.htm
[5] Ibid.
[6] Statewide Vehicle Counts by Class, Ohio Department of Administrative Services, February 25, 2003.
[7] E-mail correspondence, Ohio Department of Administrative Services.
[8] FY 2002 Statewide Fleet Report, Ohio Department of Administrative Services.
[9] E-mail correspondence, ODNR Human Resources.
[10] Statewide Vehicle Counts by Class.
[11] Jim Siegel, “Let’s be honest: Deep cuts won’t just trim fat,” The Coshocton Tribune, February 8, 2003. Available at: http://www.coshoctontribune.com.
