Delaware plans to cut real estate costs $1.1 million

Governor Markell, who will unveil his FY 2011 budget proposal on Thursday, says the state has already saved $400,000 by better managing its real estate holdings.

As part of an ongoing effort to make Delaware government more efficient, Governor Jack Markell (D) announced plans to reduce the state’s real estate expenses by more than $1 million in Fiscal Year 2011, which starts July 1, 2010.

Markell, who will unveil his FY 2011 budget proposal on Thursday, says the state has already saved $400,000 by better managing its real estate holdings.  One example, workers in the Victims Compensation Program that had been working out of a leased office space are now working in a building that the state already owns.  Markell says not only does the move save money on the lease, it also brings the state employees closer to their colleagues, which improves efficiency.  “Teams across the state thought creatively about how we could reduce the cost of the space we use in order to preserve core services and make government more efficient.”  In addition to consolidating office space, the state Office of Management and budget has also negotiated rent reductions to save money.

Heading into the new fiscal year, the state will continue to identify properties that are under utilized and could be sold.