AUGUSTA (AP) – As Gov. John Baldacci moves into his second year as the state’s chief executive, a 17-member advisory council is nearly ready to release its report on merging Maine’s two big human services agencies.

“Simply put,” a draft of the report says, “the taxpayers in Maine cannot afford to underwrite a system that is inefficient from an administrative or program viewpoint.

“Duplication, fragmentation, overlapping program, inability to reconcile data all act as open windows in winter, sapping precious fuel needed for other purposes.”

Baldacci outlined his goal of unifying the Department of Human Services and the Department of Behavioral and Developmental Services in his inaugural address last January.

He went on to propose one consolidated agency that would include a Division of Children and Families.

The draft report of the advisory council cautions against unbridled optimism.

“A merger is not sufficient in itself to achieve the governor’s three goals of improved service, increased efficiency and improved community relations,” it says. “But it is a necessary first step.”

The chairwoman of the advisory council, Valerie Landry, said Monday the group’s final report had gone to the printer’s and that its developers were scheduled to meet with the governor on Friday.

“It’s very much a consensus document,” said Landry, a former state Labor Department commissioner.

At the same time, she allowed that “everybody doesn’t agree on everything.”

To date, a screening panel has interviewed half a dozen candidates for the top post in the new department, according to Baldacci spokesman Lee Umphrey.

According to the draft report, “ideally, the commissioner should have experience in change management, labor relations, developing systems of fiscal and program accountability; be knowledgeable and supportive of family centered reform and be experienced in human service or related systems.”

The Baldacci administration has already persuaded lawmakers to book $5.8 million in savings from a merger. But an appendix to the draft report summarizing the experience of other states raised questions.

One entry warns that “reorganization, where it happened, was just a first step, and an expensive one, in fostering desired changes.”

Another summary entry added: “Reorganization itself has not led to reduced costs, particularly in the short term. Cutting positions and money in the name of consolidation can lead to a reduced capacity to provide services.”

Landry said the council report identified some areas that should generate savings “over time.”

The final report will contain about 100 recommendations in all.

“We didn’t make a hard and fast recommendation” on organizational structure, Landry said.

Much of the substance of the report could be accomplished administratively, but some elements would require legislation.

Lawmakers convened for the 2004 regular session last week and could adjourned in about three months.

“I think everybody needs a chance to read it, but it’s a short session,” Landry said.

AP-ES-01-12-04 1730EST