The Jefferson Journal

Michael W. Thompson



The Price of Government

 

David Osborne's new book provides practical advice on how to squeeze more efficiency out of state and local government. No elected official should leave home without it.


 

Well, the General Assembly has gone home. Many delegates now face re-election campaigns, and some have primary challenges. Of course, our state senators can relax because the Constitution protects them from regular citizen review by holding elections for all 40 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. Gov. Mark R. Warner and many localities, such as Prince William County, have taken important steps to overhaul government over the past few years. And all politically interested citizens look to Richmond’s new mayor, former Gov. L. Douglas Wilder, to dramatic changes in the way that city is managed.

 

David Osborne's book gives 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” should be required reading by political, business and community leaders 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 percent 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, or 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.

 

  • Establish an on-going review process,to weed out programs not central to the core purposes of government.

  • Consolidate funding streams and work contracted to “outside” groups by ensuring that agencies responsible for programs maintain management control.

  • Rightsize, recognizing that some organizations can be reduced in size and do as good or a better job, while others cannot.

  • Adopt performance targets and reward outstanding efforts to meet those targets.

  • Simply rules

  • Establish public-private partnerships

  • Make it easier to comply with rules and regulations, create incentives for those who do comply and tough penalties on those who don't.

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. 

 

The Price of Government 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 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.

 

-- April 25, 2005

 

 

 

 

 

 

 

 

 

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.

 


 

The Innovations in Government Conference

- May 4, 2005 -

 

This important conference is being hosted by the state’s highly respected non-partisan public policy foundation, the Thomas Jefferson Institute, in partnership with the Office of the Governor, the General Assembly’s Cost Cutting Caucus, the Virginia Association of Counties and the Virginia Municipal League.

 

The conference is bringing together a group of highly knowledgeable experts to focus on those “best practices” that have been successful around the county and ideas that were tried and did not work.  It will look at the need to re-think how to manage networks of providers, how to determine what services and activities can and can’t be better provided by the private sector, how to develop effective performance standards and how all of these impact in a real world sense.  Do not miss this “How To Do It” event.

 

For details and registration information, click here.