The Jefferson Journal

Michael W. Thompson



Reform a Priority at Last

 

House Republicans are exploring a host of ideas for reforming state government. Judging by Gov. Warner's actions and Sen. Chichester's recent statements, they may have allies.


 

Last month, House Speaker William Howell convened a weekend meeting of the House Republican Caucus to discuss how this majority of state legislators can put the “recent unpleasantness” of the wrenching tax battle behind them and unite around an agenda of government reform.

 

Among the ideas brought to the table for further research and discussion were bringing the private sector into a more active role in confronting the state’s increasing transportation needs; how public-private partnerships can be expanded for the more efficient delivery of government goods and services; how innovative and market-driven ideas in health care might lower the cost of health insurance and Medicaid to our state; how measuring the success of government programs is critical to knowing which programs should be continued and which ones dropped; why prioritizing government’s responsibilities is critically important just as it is in a business, a church, a local community group or in our families.  There was widespread support for these “reforms” by those attending this issues conference.

 

Howell may well have an ally in Gov. Mark R. Warner. The Washington Times recently reported that the Governor wanted to work with the Cost Cutting Caucus to bring more business-like practices to state government. This bi-partisan caucus is headed by an ally of Speaker, Del. Chris Saxman, R-Staunton.

 

Since taking office Governor Warner has been using his expertise to bring more business-like practices to state government. Changing the way a huge bureaucracy functions is not something that can happen overnight. And when the chief executive only occupies the seat of power for four years, there are those who will “wait him out” and frustrate any move to reform.  But this governor has been moving steadily forward to force state government to use business practices that made him one of the most successful business leaders in our state.

 

The recent “tax holiday” brought the state almost $100 million in overdue taxes. Consolidating information technology into a central management base is expected to save more than $8.5 million this year and next while this more coordinated system is projected to save an additional $23.5 million over the next few years. The governor is bringing procurement into a better managed system and has begun to get a handle on the state’s real estate portfolio which could reduce the amount of rental space by 15 percent to 20 percent over the next several years. 

 

By executive order the Governor has created a panel to bring to his desk by this December a more understandable and transparent state budget document that will allow taxpayers and legislators to better understand where and how well money is being spent. This could be a major step toward getting a real handle on spending. He also created an inspector general for the first time in Virginia history to ferret out waste, fraud and corruption and report it to the public.

 

Last year Gov. Warner appointed former Gov. L. Douglas Wilder to chair a commission that detailed well over $1 billion that state government could save. Some of these savings are one time and some are long-term savings that increase over the years. The governor has implemented some of these recommendations and the General Assembly has approved others. Many recommendations still need to be put into place.

 

While the Governor was making these improvements, the General Assembly was moving in government reform as well. It passed legislation this year to allow more private sector involvement to improve the collection of accounts receivable, which now exceed $2.9 billion; to require job retraining, drug and alcohol treatment programs to clearly report how well they are doing and what the true cost per client is to the taxpayers; and to detail government positions by agency that could be handled in the private sector.  These bills move government toward a more business-like culture.

 

And recently, powerful state Sen. John Chichester, chairman of the Senate Finance Committee, has said that innovative ideas must be brought to the table in the area of transportation since general tax increases and total reliance on past government programs are not the way of the future. He seems open to more private sector involvement in transportation and more market driven alternatives.

 

So government reform seems to be a priority in all the right places. The major players are all moving in the right direction.

 

The stars may be aligned to bring the three most powerful political leaders together – Gov. Warner, Speaker Howell, and Sen. Chichester -- to make government reform the central issue over the next few years. If this happens, the taxpayers could be substantial winners.

 

-- July 12, 2004

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Michael Thompson is chairman and president of the Thomas Jefferson Institute for Public Policy, a non-partisan foundation seeking better alternatives to current government programs and policies. These are his opinions and do not necessarily reflect the opinions of the Institute or its Board of Directors.  Mr. Thompson can be reached here