Time to Revisit Public Sector Reengineering

Almost a year ago, I discussed the failure of government to analyze and remake itself.  See Why Not Reengineer Government? The private sector has embraced this core agenda and has emerged leaner, more profitable and productive.  For political reasons states and cities have been slower in this effort, despite the obvious need to do so.   Only with their budgets publicly in shambles are the savvy politicians slowly and reluctantly embracing reengineering.

State budget gaps have spawned two distinct approaches.   The first is the financial meat cleaver: slash budgets, furlough or lay off employees, and end grants to counties and municipalities.  But Andrew Cuomo, NY State Attorney General and candidate for governor proposes a more thoughtful approach.

How Many Agencies??

New York has more than 1000 byzantine state agencies designed like Rube Goldberg machines.  Let’s take a look at this phenomenon:

Robert A. Caro’s 1974 biography of Robert Moses, “The Power Broker,” chronicled the rise and expansion of the state’s largely autonomous system of public authorities, entities like the Niagara Falls Bridge Commission and the Metropolitan Transportation Authority. These bodies are responsible for the bulk of New York’s debt, and they control most of the state’s infrastructure.

But even state agencies, which are controlled by the governor’s office, have become Rube Goldberg-like bureaucracies. Mr. Cuomo’s report notes that the Health Department has had at least 87 administrative subgroups imposed upon it by legislation over the years, including 46 councils, 17 boards, 6 institutes, 6 committees, 5 facilities, 2 task forces, 2 offices, 2 advisory panels and a work group. One entity is called the Task Force on Health Effects of Toll Plaza Air Quality in New York City.  See Cuomo to Propose Eliminating Many State Agencies.

Now the state is functionally bankrupt.   Cuomo proposes a Spending and Government Efficiency Commission (another agency!) to overhaul and consolidate state government.  To eliminate and consolidate agencies, Cuomo would delegate broad powers from the legislature to the governor.  As a reference for how revolutionary this all is, Governor Al Smith effected the last such overhaul in 1919.

Furloughs and Cuts

California, Wisconsin, Maryland, Hawaii and other states have jumped on the other bandwagon, slashing budgets and furloughing employees. Not surprisingly, public sector unions are passionately resisting.  As indicated in my first post on this issue, California has 489 state agencies that cry out for consolidation or elimination.

Necessity is a Bad Mother

We have discussed the concept of “it doesn’t matter, until it matters.” No one cared about bloated public employee payrolls, rich compensation and benefits packages and proliferating governmental authorities, commissions and agencies.  We could afford it! Unfortunately, now we cannot.

I wish Andrew Cuomo well, but I have some gnawing concerns. Do we really need another commission to effect governmental restructuring?  Why not employ a politically independent consulting firm that is expert in reengineering?  What about privatizing governmental functions altogether?  Will a newly elected Governor Cuomo have the political resolve to convince a reluctant legislature?

If Cuomo merely intends to combine one thousand agencies into fewer ones without further examination of necessity, then he has missed a timely and historic opportunity.  We need a reassessment of what role we want government to play.  Zero based budgeting and a holistic and philosophical look at the role of government would be an excellent starting point.  Certainly, our political establishment has lost touch with the core role of government on its way to creating this unwieldy bureaucratic behemoth.

Necessity will be a bad mother and a frugal one too.

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