The Insurance Department’s current-year savings target is $10.5 million, reflecting the Governor’s order for a 10.35 percent reduction in projected agency spending.
The Insurance Department is currently expected to achieve $4.5 million of its $10.5 million spending reduction target. Further savings may compromise the Department’s ability to effectively regulate the Insurance industry. They will continue, however, to work toward implementing additional savings actions to achieve a portion of their remaining target in a manner that does not compromise their core mission.
Major Savings Initiatives
The Insurance Department is implementing the following major actions to achieve savings:
Personal Service, Fringe Benefits and Indirect Costs – Management steps are in place to reduce cash disbursements including selective hiring, planned attrition and reductions to temporary services and overtime ($2,019,000).
Contractual Services – The Department is fostering reductions in contractual services through a tightly controlled competitive bidding process and a thorough review of all ongoing obligations. The Department has postponed its plan to acquire additional office space in New York City, reduced its vehicle fleet, and lowered telecommunication costs. The use of private vendors for training has been scaled back and the Department will instead maximize in-house expertise for these efforts ($1,587,000).
Travel – The Department has taken steps to reduce spending on travel for activities not directly relating to statutorily required insurance examinations. All out-of-state travel and attendance at conferences and association meetings require prior approval by the First Deputy Superintendent ($200,000).
Supplies and Materials – The Department has closely scrutinized its supply and material needs and expects significant savings for this area in the current fiscal year. Expenses related to non-stock supplies, publications/subscriptions, and food and beverages for special events have all been reduced ($350,000).
Equipment – The Department has examined its equipment needs for the current fiscal year and expects to exceed proposed reductions for this spending category ($300,000).