Gov. Kay Ivey’s Study Group on Efficiency in State Government, an initiative the governor announced at the start of her second four-year term in January, issued its report on Wednesday.

The 10-member group, chaired by State Treasurer Young Boozer, reported in two main areas: How to improve recruitment and retention of the state workforce, and the need to consolidate or eliminate executive branch agencies that are unnecessary, obsolete, or duplicative. .

The 12-page report included the findings of two subcommittees assigned to the two main topics of state employment and consolidation. (You can read the report at the end of this article.)

The state employment subcommittee, chaired by State Comptroller Kathleen Baxter, reported that state agencies had a turnover rate of 15.2% in 2021, the highest in almost two decades. The report said that reflects a national trend of a growing number of job openings and a shrinking number of job seekers.

The report recommended an independent, comprehensive study of Alabama’s state merit system, including hiring, retention, pay and benefits and supervision, as well as best practices in other states.

The report recommended a statewide media campaign to promote the benefits of state employment with the goal of attracting a wider pool of job applicants.

Other recommendations included offering paid parental leave for births and adoptions, three or four-step pay raises, which would be up to 10%, increased accrual of sick leave, and tuition reimbursements for state employees in certain cases.

Another recommendation was a return to Tier I retirement benefits, which for now are only available for state employees hired before 2013. The report said the state is losing employees to local agencies that can offer Tier I benefits.

Tier I employees are eligible for full retirement after 10 years of service and reaching the age of 60 or after 25 years of service, regardless of age.

The consolidation and elimination subcommittee, chaired by State Budget Officer Doryan Carlton, recommended eliminating executive branch entities that have obsolete missions. It did not list any in the report.

The report recommended folding two state agencies into the Department of Human Resources because DHR handles related responsibilities. The two agencies that would be absorbed by DHR are the Department of Child Abuse and Neglect Prevention and the Department of Senior Services.

Another consolidation recommendation is to move three state park-type entities — the Historic Blakeley Authority, the Alabama Historic Ironworks Commission, and the St. Stephens Historical Park — into the Department of Conservation and Natural Resources, which manages the overall state parks system.

The report recommended requiring state agencies to pay vendors electronically, rather than issuing paper checks to minimize costs and the risk of fraud.

The study group recommended creating an executive branch agency to handle administrative functions for multiple occupational or licensing boards as an efficiency measure. And the group recommended that all boards and entities seek traditional appropriations from the Legislature instead of receiving earmarked licensing and penalty fees.

The study group first met in February and held three meetings, including one public hearings. The subcommittees both met five times.

Gina Maiola, communications director for Ivey, said the governor commended the study group for its worked and looked forward to reviewing the report.