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Creative Delivery and Funding of Government Debt Recovery

Increasing revenues without raising taxes

In difficult financial times, strategies that increase government revenues without increasing taxes deserve close attention. Many agencies have debt recovery responsibilities: tax departments collect taxes, motor vehicle agencies collect registration fees, courts collect fines and labor departments are responsible for unemployment insurance. In addition, departments of transportation, social services agencies and state universities also typically collect government debts.

Maximizing debt recovery throught centralization

While some agencies may consider debt recovery to be part of their core competency, the mission of most of these agencies is to provide services, not collect debt. CGI’s experience shows that without a debt-recovery focus and a critical mass of debts, these agencies are collecting significantly less than they could with increased focus and authority. As a result, states, large cities and counties are losing tens, if not hundreds, of millions of dollars each year. Significant new revenues can be realized through the implementation of advanced collection case management and workflow tools and centralized collection of non-tax debt.

Eliminating upfront investment cost

Frequently, jurisdictions cannot direct scarce dollars to pay for the upfront costs of technology improvements, even where there is a 10:1 or even a 100:1 payback. The good news is that CGI has helped numerous government agencies solve this puzzle. Our strategies are designed to eliminate upfront investment prior to achieving the revenue increase. Using a benefits-funded approach, CGI is only paid out of a portion of the increase in collections, allowing clients to spread the upfront costs over a period of years.

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