The Price of Government
By Michael W. Thompson
4/25/2005 -- Well, the General Assembly has gone home and many Delegates now face re-election campaigns and some have primary challenges. Of course, the Senators are relaxed since our state protects the State Senate from regular citizen review by having all 40 elected every four years rather than staggering terms so that half face the voters every two years. But that is an issue for another day.
I have just finished reading a nifty book from a long-time advocate of better government. David Osborne, author of “Reinventing Government,” wrote a new and very exciting book last year. It is called, “The Price of Government.”
While state and local governments continue to grow and new taxes are always being talked about (sometimes only whispered about in election season though never far from the minds of some), there is a great need for an open and honest discussion on how to make our state and local governments run more efficiently, with more accountability, and in a more transparent fashion. Important steps have been taken over the past few years by Governor Warner and by many local governments such as Prince William County. And, all politically interested citizens look to Richmond’s new mayor, former Governor Doug Wilder, to dramatic changes in the way that city is managed.
What this recent book by David Osborne does for political, business and community leaders truly interested in modernizing government is to give a practical outline of what can and must be done if government is to continue providing those services most important to the voters. “The Price of Government” is a very practical discussion on what can be done. This book should be required reading by all who profess to want a more efficient government.
Osborne clearly outlines the problems facing government: taxes rarely satisfy the “needs” of government and the recent recession cut the growth of tax revenues; tax increases can encourage companies and individuals to move out of the state or county/city since the digital economy allows this movement to be accomplished much easier than in the past; 60% of our economy is now in the service industry and aren’t, in most cases, taxed; and the aging population is bringing huge pressures on health care and retirement funding.
The typical reaction by government to a “fiscal crisis” is to do the least it can do until the problem passes and to raise taxes. Taking a serious look at government programs, why they exist and how they are managed, is rarely the direction governments take. But Osborne makes a strong case that the days of minimum government reaction and turning to taxes when more is needed in critical programs are over. A new management paradigm is needed and this book outlines it for anyone who reads is.
Some of the ideas that Osborne brings center stage in his book should be a central focus of the next Governor and the next General Assembly. Business leaders and community leaders should promote these management ideas and encourage our elected leaders to pursue them aggressively.
Let’s take a look at just a few of the ideas in this impressive book.
An on-going review process needs to be established to weed out programs not central to the core purposes of government. Funding streams can be consolidated and work contracted to “outside” groups keeping management control with government that holds final responsibility for the programs. Some organizations can be reduced in size and do as good or a better job while others cannot. But Rightsizing is key to the future and must begin immediately.
Then, Osborne makes this dramatic statement, “The fastest way to save money and increase value is to force public institutions to compete.” Monopolies are bad so government should compete with the private and non-profit sectors for the delivery of services. Performance targets need to be adopted and maintained while rewarding outstanding performance will bring about more outstanding performance. Rules should be simplified, partnerships should be established, compliance to rules and regulations should be made easier, and incentives for those who comply with rules and regulations should be created and penalties for those who don’t should be more severe.
This book goes on and on with practical ideas bolstered by examples of where they have been put into practice here in America or overseas. The point is clear throughout: government has not changed with the times; government is still “stuck” in the old command and control framework; government must change if the taxpayers are to receive their expectations at a price they are willing to pay.
So while our elected officials are wondering what to talk about at their next Rotary or Kiwanis club meeting; if they are “stuck” without new ideas they can “sell” to the voters in their areas; if they want to become leaders in transforming state and local government into a more reasonable, cost effective and modern structure, then they should go down to their local bookstore and pick up a copy of Davis Osborne’s “The Price of Government.” And frankly, every business leader who wants government to be more business-like it they way it delivers services and manages its staff should read this book and tell their elected officials to do the same.
Michael W. Thompson is Chairman and President of the Thomas Jefferson Institute for Public Policy, the states premier non-partisan public policy “solutions tank.” You can reach Mr. Thompson at .