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Changes in the Way the Commonwealth Works
by
Otis Brown
If
you're in state or local government, you learned a long
time ago that nothing remains the same forever.
It can be argued that some changes in government have
created an abrupt and powerful break from the past.
For example, the establishment of our democratic form
of government started with events which led to a new
form of government. The Boston Tea Party was a dress
rehearsal for the coming Revolutionary War. These and
similar examples are described by policy experts as
powerful "change breakpoints" in government.
History reflects a series of breakpoints as our state
and country left the industrial age and entered the
information age.
Before
charging ahead into these change breakpoints, one is
wise to look to our history and leaders for lessons
and experience. The words of Thomas Jefferson inscribed
on his Washington, DC memorial reflect strong sentiments
about change in government. "I am not an advocate
for frequent changes in laws and constitutions, but
laws and institutions must go hand in hand with the
progress of the human mind. As new discoveries are made,
new truths discovered and manners and opinions change,
institutions must advance also to keep pace with times."
Such
far reaching sentiments are as timely today as in Jefferson's
time. They are reflected in the changing way we now
think in terms of national, state and local public policy.
The new outlook is to think in terms of global, regional
and neighborhoods. This is quite a break from past thinking.
One conclusion is that this shift in thinking is driven
by the demands of a new competitive business environment
on the one hand, and profound changes in the nature
of computers on the other.
These
changes also reflect the transformation of the American
workplace. In the 1970s, a handful of companies began
to experiment with new concepts in running their business
while recognizing the changing environment. Today, there
are thousands of new programs in place in all ranges
of technology; service, and manufacturing sectors. These
are not isolated phenomena; they are in the forefront
of an emerging trend in the private sector that is producing
dramatic results. What these cutting edge companies
have in common is flexibility, responsiveness, and a
willingness to embrace change. They don't wait for things
to happen. Today, business is better able to work as
a partner with government.
GROWING
CITIZEN DEMANDS During the 1970s, citizens were
also demanding increased services from government. Simultaneously,
they were showing resistance to increases in taxes to
pay for the services. As a result, state officials,
faced with the public resistance to higher taxes, ever
increasing expenditure needs, and growing pressure to
"do more with less," searched for alternative
arrangements for providing public services at lower
cost.
Virginia
government officials were seeking answers to these daunting
issues while the other changes were occurring. In 1987-1990
the Virginia Commission on Efficiency in Government
(Axselle Commission)was inaugurated; in 1988 there was
House Joint Resolution No.213; both addressed efficiency
in government and privatization. Governor L. Douglas
Wilder's Project Streamline followed in 1990-1992. The
Joint Subcommittee on Privatization of Certain State
Government Functions, Senate Document No.55, started
in 1993, and was joined by the current Governor's Commission
on Government Reform in 1994.
SENSIBLE
PRIVATIZATION All in their own way these studies
and programs were focused on efforts to provide cost
effective, quality services to Virginia citizens. They
also recognized that governments have long contracted
with the private sector to provide services. Privatization
is as old as the republic, and the military contractors
who supplied (and sometimes cheated) George Washington's
Continentals. This was not known as privatization at
the time, but it involved the same concept.
Privatization
became increasingly popular in the 1980s during the
Reagan Administration. The mantra was that the private
sector could do the job better, faster, cheaper. Privatization
took on a conservative, libertarian meaning that emphasized
cost reduction and threatened public employees and managers.
Although governments continued to pursue contracting,
the term "privatization" led to some resentment,
fear; and intense opposition.
COMPETITION
- COMMON SENSE FOR THE COMMONWEALTH Studies on Virginia
government policies and resulting actions have contributed
to our Commonwealth's reputation for sound fiscal management.
But at the same time, the Commonwealth has not rested
on its laurels. We must continue to address the need
for action in response to the changing world around
us. A major step in this direction was the Virginia
Government Competition Act of 1995. The act created
the Commonwealth Competition Council as an independent
agency of state government to provide continuity and
direction in implementing competitive government. It
provided a change breakpoint for Virginia government.
The
farsighted government leaders who created the Commonwealth
Competition Council believed not necessarily in the
sanctity of privatization, but in healthy competition
between the public and private sectors to enhance efficiency
and quality service delivery by government. Privatization
in the form of competition has become a more progressive
term involving a range of opportunities and careful
strategies designed to assist employees affected by
the process. Virginia's Government Competition Act of
1995, and the Commonwealth Competition Council received
national attention for their systematic approach to
the issues.
The
essence of Virginia's new model is that competition
is better than monopoly, either public or private. Numerous
public benefits result from competition, including reduction
in delivery costs, improvements in service quality,
and positive morale of public employees and managers.
Private
companies have a fair chance to prove their claim that
they are better; cheaper; and faster. Public employees
can meet the challenge to prove that they are superior
service providers. Meanwhile, the financially burdened
government and its taxpayers will reap significant benefits
of efficiency regardless of who the service provider
is.
Those
of us who work with the act realize it provides a clear
statement recognizing the importance of competition
in providing both quality and cost effective government
services to the citizens of Virginia. Privatization
is a tool and, like any tool, it is well suited to certain
tasks and ill suited for other tasks.
We
established a process and criteria for analyzing prospects
for competitive government and, where appropriate, implementing
them. A key element of the process is the program called
"Compete." This PC based program enables managers
to determine the full cost of their operation, as well
as the unit cost of their respective activities. The
Compete program overcomes the main obstacle, the lack
of valid cost information, encountered by government
officials who are considering privatization. It reduces
the difficulty in determining cost savings.
The
Commonwealth Competition Council has provided a sound,
well defined and inclusive process for agencies and
institutions of the Commonwealth to following in their
decision process. We want to make clear that we recognize
the principles of good government, which call for process,
access and account-ability And perhaps, most important,
it also has the advantage of independent, bipartisan
oversight.
The
above article was extracted from Virginia Review,
Government Managment, Technology & Finance, July/August
1997.
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