Efficiency analysis Futile search for savings in the St. Gallen administration

Three years ago, the St. Gallen cantonal council called for a step-by-step review of the state administration. The aim is to identify potential savings. An external consultancy firm has so far scrutinized ten offices and assessed their efficiency as "good to very good". The government now no longer wants to continue the exercise.

The starting point in February 2021 was the structural deficit in the state accounts at the time. The majority of the Cantonal Council demanded a review of the state administration based on the criteria of effectiveness and efficiency. This should also include process automation, digitalization and the use of artificial intelligence.

The analysis should also show which government tasks could be eliminated or outsourced to the private sector. Among other things, comparisons with other cantons should provide the basis for such decisions.

An external auditing and fiduciary company, BDO AG, based in Zurich, was commissioned to carry out the analysis. Last year, the Office for Economy and Labor, the Tax Office, the Office for Commercial Registers and Notary Offices, the Office for the Environment, the Public Prosecutor's Office and the cantonal police were already scrutinized.

Costs of over 400,000 francs

A 19-page report stated that the efficiency of the offices examined was rated as "good to very good". This first tranche of the efficiency analysis cost the canton 250,000 francs.

The results of the second review round are now available, for which a further CHF 168,000 was invoiced. The focus was on the two offices for vocational training and secondary schools, the road traffic and shipping office and the migration office.

The consultancy firm also listed suggestions for savings in the report. In vocational training, for example, it is recommended that savings be made on teaching staff. This could be achieved by making adjustments to the salary scale or by abolishing the automatic step increase. However, the government does not want to do this "especially in view of the current shortage of skilled workers".

Fewer secondary school classes

BDO AG is proposing to increase class sizes at the secondary school office and thus reduce the number of classes. However, the government wants to stick to the guideline of 22 to 23 pupils per new class. This target is relatively high compared to other cantons. It also does not want to implement the proposal to merge the locations of the secondary schools.

However, the government is taking up one of the recommendations regarding the Road Traffic and Navigation Office and wants to review the number of test centers. This could possibly reduce the fixed costs and cut the costs per test.

However, the consultancy firm also advises additional staff to make up for the backlog of vehicle inspections. This expansion could be implemented cost-neutrally or even profitably due to the level of coverage provided by the fees.

The government refers to "restrictions in the control of personnel costs" and sees no possibility for this. However, it wants to examine further outsourcing to third parties for the Road Traffic Office.

In summary, it can be said that the analysis of the ten offices that have now been examined shows that the efficiency of cantonal task fulfillment is "good to very good", the government wrote in its evaluation. Against this background, it is proposing to the Cantonal Council that a third stage of the review be dispensed with.

SDA