The Jefferson Journal

Michael W. Thompson



Keep the Ball Rolling

 

Gov. Warner has initiated important reforms to improve efficiency in state government. It's imperative that the next governor and General Assembly pick up where he left off.


It’s time to focus the strong light of public opinion on the way state government manages our money. A lot can be done by the next governor and members of the General Assembly who are truly interested in better government.

 

State government should spend the working public’s money in the most efficient way possible. Gov. Mark R. Warner has initiated several promising efforts. His Secretary of Administration, Sandra Bowen, has laid the groundwork for serious reform by the next governor. Some legislative building blocks have been put into place. And public surveys continually show strong support for reforming the way government spends our money.

 

The statewide elections next year are an ideal forum to bring true government reform to the center of public discussion. A vision of true reform can catch the imagination of the public by the leader willing to take on this issue. Here are a few ideas for starters.

 

First and foremost is the absolute necessity to create a wholly new budget document that can be more easily understood by legislators, business leaders, the news media and community activists. The budget is the single most important statewide policy document — it establishes priorities and policy goals. Most states have crafted budget documents that are easily understood and clearly show what taxpayers receive for their money. Virginia’s budget document is one of the most Byzantine, obtuse and purposefully arcane budget documents in the nation. It is a travesty that in today’s modern world Richmond continues to hide how state money is spent and it fails miserably in setting goals and priorities.

 

Earlier this year, Gov. Warner signed an executive order indicating that he would appoint a working group to create a state budget document that was more easily understood and significantly more transparent. But to date no such working group has been created.

 

The General Assembly should pass legislation authored by Del. Gary Reese, R-Fairfax, mandating a more easily understood budget document, such as the "Citizens' Budget" suggested by the Thomas Jefferson Institute a year ago. We cannot move forward with serious budget reform without a budget document that shows where our money spent and what we get for that spending. Other states have created a very user friendly budget and so must Virginia.

 

Second, the Governor, in that same Executive Order, said he would appoint a state inspector general. This new office would have the authority to look into how the state spends money, looking for waste, fraud, abuse, and more efficient uses of state money — this is similar to what inspector generals do in other states. This inspector general is an essential piece to real government reform. Yet, once again, this idea languishes in the Governor’s office. The General Assembly should pass legislation creating this position.

 

Third, let’s free our colleges and universities from the rules and regulations that only cost all of us more money. Every college and university will tell you that the state’s overseeing of construction adds 20 percent to the cost of construction. Why not free our colleges and universities from Richmond bureaucrats and allow these institutions to construct their buildings faster and quicker? Our voters recently passed a $900 million bond for college construction. Ending the Richmond middleman process would give colleges between $180 and $270 million in added funds, at no additional cost to the taxpayers. When the Governor says more money is needed for buildings and maintenance on our campuses, it can likely be “found” through getting the state out of the micro-managing of current construction projects. The current system makes no sense and should be changed.

 

Fourth, VDOT reform should be the top priority of whomever is our next governor. With strong leadership, transportation spending can be more efficient and effective. Under this governor the on-time completion rate has significantly improved, but we must do more.

 

There are many other avenues for improvement. We can solicit more public-private partnerships, which invite fresh ideas for tackling transportation bottlenecks, bring in private investment and generate additional revenues through tolls. We can expand the private sector asset-management that has proven successful on a small percentage of our state roads. We can reduce the number of VDOT employees through attrition, with particular focus on those “walk around” employees we all see at VDOT projects across the state. We can address why it takes so long for VDOT to decide on using private contractors on projects such as the expansion of I-81 through the Shenandoah Valley when many millions of dollars can be saved and that improvement can be completed several years earlier.

 

The potential of hundreds of millions of dollars in savings waits for those who have the courage to be true leaders in this field. Hopefully, this will be a central focus of next year’s statewide elections.  When additional taxes are always lurking in the background, those who want more money should be in the forefront of making sure the current taxes are spent as efficiently and as transparently as possible.  And those who are opposed to increased taxes should make sure that current taxes are spent in the best business-like fashion.

 

-- November 1, 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