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Rightsize: Government Budgets in the 21 st Century Council of State Governments January 20, 2012
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Rightsize: Government Budgets in the 21 st Century Council of State Governments January 20, 2012.

Dec 26, 2015

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Page 1: Rightsize: Government Budgets in the 21 st Century Council of State Governments January 20, 2012.

Rightsize:Government Budgets in the 21st

Century

Council of State GovernmentsJanuary 20, 2012

Page 2: Rightsize: Government Budgets in the 21 st Century Council of State Governments January 20, 2012.
Page 3: Rightsize: Government Budgets in the 21 st Century Council of State Governments January 20, 2012.

The Government People Want

• Functional• Streamlined• Constantly improved• Lower- and-lower priced• Personalizeable• Not just left or right

Page 4: Rightsize: Government Budgets in the 21 st Century Council of State Governments January 20, 2012.

Outline of Presentation

• Waste is a Terrible Thing to Mind• A New Twist• An Ounce of Prevention• Talkin’ ’bout de-Regulation• Providing Some Backbone• The Life Raft

Page 5: Rightsize: Government Budgets in the 21 st Century Council of State Governments January 20, 2012.

Waste is a Terrible Thing to Mind

Page 6: Rightsize: Government Budgets in the 21 st Century Council of State Governments January 20, 2012.

Comprehensive Efficiency Reviews

• Texas – first in the nation– $4 Billion the 1st year

• National Performance Review Clinton/Gore)– $108 billion 1st year

• Our experience:Consistently 5%

Page 7: Rightsize: Government Budgets in the 21 st Century Council of State Governments January 20, 2012.

The Basic Approach

Page 8: Rightsize: Government Budgets in the 21 st Century Council of State Governments January 20, 2012.

The Basic Approach

Page 9: Rightsize: Government Budgets in the 21 st Century Council of State Governments January 20, 2012.

Savings Examples

• Employ technology to fight Medicaid fraud

• Implement Reverse Auctions

• Calibrate salt spreaders to reduce road costs

• Eliminate most free postage for prisoners

• Consolidate agency mail service

• Combine duplicative commissions

• Consolidate highway pipe types

• Require doubled-sided printing

• Eliminate blankreport pages

Page 10: Rightsize: Government Budgets in the 21 st Century Council of State Governments January 20, 2012.

A New Twist on Human Services

• 19th Century Model• “Discovery of the Asylum”

– Insane Asylums– Poor Houses– Orphanages– Penitentiary

• Year in the State Penvs.

Year at Penn State

Page 11: Rightsize: Government Budgets in the 21 st Century Council of State Governments January 20, 2012.

Corrections

• Divert non-violent offenders– Pretrial detention– Misdemeanor reform– Habitual-offender laws (“3 strikes”)

• Alternatives to incarceration• Re-entry services• Drug treatment

Page 12: Rightsize: Government Budgets in the 21 st Century Council of State Governments January 20, 2012.

• Prevention• Smaller facilities• Promote home- and

community-based care• Individually-targeted• Aftercare• Evidence-based

More EffectiveLess Expensive

• Intervention arises due to crisis

• Overemphasis on incarceration

• Especially: Large facility

• One-size-fits-all• Inattention to

community/family connections

Less EffectiveMore Expensive

Similar Issues: MHMR, Juvenile Services, Long-Term Care…

Page 13: Rightsize: Government Budgets in the 21 st Century Council of State Governments January 20, 2012.

Up Next: Education

• Distance Learning Technologies– Improve outcomes– Especially for current lower-performers– Will transform role of schools, need for and

use of facilities, nature of debate (e.g., vouchers, home-schooling)

– Lower cost

Page 14: Rightsize: Government Budgets in the 21 st Century Council of State Governments January 20, 2012.

An Ounce of Prevention

• Government intervention usually post-hoc– Ideology– False economy

• We know better– Policing– Health care

Page 15: Rightsize: Government Budgets in the 21 st Century Council of State Governments January 20, 2012.

Proactive = Cheaper

• Fall prevention• Dental checks for expecting mothers• Investment in chronic disease research

Page 16: Rightsize: Government Budgets in the 21 st Century Council of State Governments January 20, 2012.

We Need More Research

• Early Childhood Ed reduces downstream costs

• What would reduce the costs of Early Childhood Ed?– Parenting Instruction?– Book Rx?– Get Parents a GED?– What’s the chicken/What’s the egg?

Page 17: Rightsize: Government Budgets in the 21 st Century Council of State Governments January 20, 2012.

Talkin’ ’bout de-Regulation

• False dichotomy:– More regulation– Less regulation

• Best example (as usual):Policing

Page 18: Rightsize: Government Budgets in the 21 st Century Council of State Governments January 20, 2012.

One Regulatory Taxonomy

15% Hostile compliers

30% Hesitant compliers

30% Clueless (‘inhabitants of the

parallel universe’)

15% Spontaneous compliers

10% Industry leaders

Page 19: Rightsize: Government Budgets in the 21 st Century Council of State Governments January 20, 2012.

Cheaper Regulatory Strategies

• Performance Tier

• Compliance (instead of enforcement)

• Target bad actors

• Netherlands

• British Commonwealth

• WA State

• IRS• Wisconsin

Page 20: Rightsize: Government Budgets in the 21 st Century Council of State Governments January 20, 2012.

Providing Some Backbone

Page 21: Rightsize: Government Budgets in the 21 st Century Council of State Governments January 20, 2012.

Providing Some Backbone

“A few of the things we use the most are the ones we love the least, like Facebok, which according to ForeSee Results holds an approval rating close to that of the IRS.” BusinessWeek 8/16/10

Page 22: Rightsize: Government Budgets in the 21 st Century Council of State Governments January 20, 2012.

Government as Backbone

• Post Office– Public Apps: Package services– Private Apps: Ad/coupon packages

• Public Employee Health Care Plans– Private apps on public background:

• FEHBP• Connecticut municipal pool• Health exchanges?

• A Counter-Intuitive: Public Pensions?

Page 23: Rightsize: Government Budgets in the 21 st Century Council of State Governments January 20, 2012.

The Life Raft

• Cut services or raise taxes?

• Grandparents or grandchildren?

• Public vs. Private?• ROI

Page 24: Rightsize: Government Budgets in the 21 st Century Council of State Governments January 20, 2012.

Questions?

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Page 25: Rightsize: Government Budgets in the 21 st Century Council of State Governments January 20, 2012.

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