The Jefferson Journal

Michael W. Thompson



Rays of Hope

 

The General Assembly is considering several bills that would improve the efficiency of state government. We'll find out soon how serious  legislators are about getting them passed.


 

This year’s session of the General Assembly, with a little luck, will continue moving Virginia toward the formation of a better, more accountable and more business-like state government. We’ll know a lot more in a few weeks when this year’s session ends. Right now there is lot to be excited about.

 

Sure, the angst from last year’s tax battle continues to bubble. And, frankly, a lot more money is pouring into the state coffers than many thought was possible. Some tax cuts will pass, such as moving up the reduction on the food tax and eliminating the advance sales tax payment forced on businesses a couple of years ago. But there’s room for more. Lifting the current cap on the car tax makes sense at this stage. The promise by Governors Warner and Gilmore and by the General Assembly to finish the cut in the car tax should be finalized. 

 

Some really good bills are moving through the legislature. Many legislators realize this is the time to lay the groundwork for significant improvement in the state budget and spending process down the road. It will be interesting to see just how committed the legislature is in making state government more accountable, more business-like, and more transparent.

 

There is an effort to amend the budget to create the position of Inspector General, and the creation of a “Citizens Budget” is moving on a number of fronts. These two efforts could make a huge difference in the perception of the state trying to get a better handle on its $32 billion a year budget. With a doubling of spending over the past ten years, it is critically important that the citizens see a state government that is more accountable and more transparent in the way it works.

 

And then there is the effort to have each new governor conduct a top-to-bottom performance review of how well the state government is doing in each agency--how well our money is spent and how well the agencies are doing in fulfilling their missions. Other states are doing this from South Carolina to Texas to California. Indeed, Gov. Arnold Schwarzenegger of California completed a top-to-

bottom performance review of that mega-state government in just nine months. This would give each legislator as well as business leaders and others interested in an efficient government the needed benchmarks to review how well our state is doing and what improvements were made during a governor’s term in office. 

 

The Administrative Process Act will require the Department of Planning and Budget to detail the economic impact of proposed regulations on small businesses. This will be a huge benefit to small businesses that are the job-producing engines of our economy. Indeed, if this legislation passes, it is hoped that a group of small business leaders will be brought to the table when regulations are being drafted so that the state bureaucrats understand what has to be done by small business to comply with those regulations. Many times government just doesn’t understand how complicated and how expensive the regulations are to fulfill. This input could be a huge improvement.

 

There is legislation that will more actively encourage state employees and agencies to bring new ideas to the table on how to make government more efficient.  These bills will give those who bring cost saving ideas to their leadership a share of the money saved. This incentive could have a large impact on making “better and more efficient government” a team sport with our state employees. 

 

And then there is the area of improving the innovative Public Private Transportation Act that was the baby of Sen. Walter Stosch, R-Henrico, a few years ago.  These pending bills would allow local governments to accept unsolicited proposals for transportation projects. Another bill would do the same for regional transportation authorities. If Virginia is to bring the private sector into a more involved relationship in solving our transportation problems, these efforts to broaden the PPTA makes sense.

 

These bills are largely the creation of the Cost Cutting Caucus-- a bi-partisan group of reform-minded legislators. This important caucus has brought Democratic and Republican leaders to the table to discuss how to really improve our state government. This Cost Cutting Caucus proves that good government is not the purview of only one political party.

 

These are just a few of the bills that our legislators can pass that will greatly improve the way state government functions. Of course, as the old saying goes, “the proof is in the pudding”, so we will have to wait a few more weeks to see just how serious our elected leaders are in their public statements about making government more accountable and more efficient. It will be interesting to say the least.

 

-- January 31, 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.


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