Next comes locating savings for the "One-time savings" section in row 38. As is typical for cost-benefit analyses on administrative projects, savings come from current costs they will stop paying under the pilot: they used to pay for it, but won't pay for it any more. That means that you're looking for something that's a current cost. Notice there are only new items under "Pilot-Specific Cost Assumptions" in rows 9 through 13, so savings will NOT be found there. Another thing to keep in mind is the timing of when savings start to accrue. Savings come from previous costs to the department of participants (before they begin the pilot), and that spending doesn't cease until 2nd half of FY23. So you may only want the amount for a half year instead of a whole year. 14) Then, assign the recurring costs (beginning at row 42), which last beyond the initial year. Everything before this point has dealt with changes that happen once, at the beginning of the pilot. As was stated before, a recurring cost is any future payment by the department that it doesn't currently pay, but is going to start paying under the pilot (B9 through B13).

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Examining the expenses the department is currently paying is necessary to determine the savings for ... View the full answer