penditures in 1987 based on funding formula changes taking effect in 1987.

Perhaps, overshadowed by the assessment process, one key element of the Depart-
ment's operation is the corporate chartering and assessment function. Here, two key di-
visions are involved—the Corporate Charter Division and the Corporate Assessment
Division. The activities of both are summarized in this report. The year 1986 produced
significant advancements in performance in both areas and much more is on the way. The
year 1987 will evidence completion of automation of corporate records and major im-
provements in the timing and manner in which corporate personal property assessments
are determined and certified to the taxpayer and local governments.

In conclusion, a word about the management philosophy of the Department. "Effi-
ciency in government" has been the catch word in recent years. To many, this term means
getting the job done for less cost, or at least holding down increases in costs. The De-
partment's management believes there is more to management. We operate with the goal
of not only being efficient, but effective. It is our view that a program that is efficient
and yet not effective is a program that should be abolished. We strive to be efficient in
what we do and when what we do is not effective, we strive for change.

Respectfully submitted.

Gene L. Burner
Director