The 85th Legislature required all agencies and institutions of higher education to find savings of $34 million in contracted goods and services to ensure the cost-effective use of state appropriations. This published report of the LBB summarizes the cost containment activities undertaken by state agencies in fiscal year 2018 to achieve those savings.
71 agencies reported All Funds cost savings totaling $27.3 million. 89 percent of the cost saving are associated with contract cost containment. Reported General Revenue and General Revenue Dedicated savings for fiscal year 2018 exceeded 74 percent of the biennial savings target.
After one year the LBB reports, 32 agencies have met their cost savings requirements, 32 are on track, seven have achieved some savings but are behind schedule, and 14 have yet to report any cost savings.
Actions such as reducing spending on a contract, canceling contracts, and switching vendors, accounted for the most cost savings at $7.2 million. “Reducing on-hand quantities of inventory” was the strategy accounting for the second most savings with $4.4 million.
