December 3, 2007
Dear Fellow Nebraskans:
Every day we see new advances in technology. Whether these advancements
help us live better and longer lives or help things run more smoothly, our
state is committed to using technology to provide better services to
Nebraskans. Our strategy for technology involves both opportunities to cut
costs and eliminate red tape while delivering services that benefit
Nebraskans.
It is essential that we become more customer-focused and more customer-responsive wherever we can. By leveraging technology, we are finding ways for government to deliver services more efficiently and one area we have made progress is in reducing the number of checks that are printed and mailed each month, thanks to the convenience and security of electronic payments.
Several state agencies are responsible for distributing payments to individuals and families in need. One of the recent successes we’ve seen in this area comes from the Nebraska Department of Labor, which this fall completed a transition of using electronic payments rather than mailing unemployment insurance benefits to Nebraska workers. The result was that Nebraska became the first state in the nation to give workers the option of having their unemployment benefits deposited directly into a bank account or added to a debit card.
By providing Nebraska workers with the opportunity to choose how they receive unemployment benefits, the department was able to accomplish a quick and efficient conversion to the new electronic system. Within five months, virtually all payments were being processed electronically. Since April, more than 130,000 payments have been processed totaling nearly $33 million in benefits.
It’s important we make upgrades to help citizens interact more easily with state government, but they also have the benefit of helping control costs. For example, no longer mailing unemployment checks every month is expected to save $300,000 each year.
Electronic payments are used in many ways, from paying state employees to distributing tax refunds via direct deposit. Those filing their taxes electronically have their refund deposited directly in a bank account typically receive their payment in seven to 10 days, instead of the several weeks needed to process and mail checks. Of the tax refunds owned to individuals and families this year, the Department of Revenue returned 63 percent of all refunds electronically this year.
The Nebraska Department of Health and Human Services (DHHS) had one of the first successes in upgrading to electronic payments. Food stamp coupons are a thing of the past thanks to use of electronic payments. Instead of mailing coupons, qualifying families receive an electronic benefits card that works like a debit card. Begun in 2001, the electronic payments the department used have reduced staff time and costs needed to process and mail food stamps each month, and benefitted families by providing a more secure way to manage the funds they receive.
DHHS has expanded on the convenience and security electronic food stamp payments offered by distributing child support payments collected on behalf of children electronically. So far this year, the child support enforcement unit has processed more than $157 million in electronic payments. These payments go directly to a bank account or debit card, saving people a trip to the bank and ensuring that funds are available quickly.
Electronic payments are quickly becoming the standard in state government. These are the kinds of changes we hope to continue to deliver, and there are countless examples of how technology has been harnessed to provide the services Nebraskans expect. I’ve challenged state agencies to continue to explore new ideas for improving the services we provide and I hope to have additional successes to share in the months and years to come.
