Sanford process
makes budget more transparent
CHANCES ARE GOOD that there will be a lot in Gov. Mark Sanford’s
second executive budget to like and a lot to criticize. But we have
every confidence that it will set a new standard for what a budget
should be.
Indeed, it already has — not because of the way he chooses to
distribute limited state funds (which we haven’t seen) but because
of the way he is making and presenting his choices.
After undertaking the first exhaustive public review of state
agency spending as part of his budget-writing process last year, Mr.
Sanford is following up this year with the even more massive task of
identifying (as best he can) every single activity state government
performs. He has come up with about 1,500 discrete activities, which
he is in the process of ranking according to priority. Those at the
top of the list will be funded; those at the bottom will be
deleted.
This is extraordinary for two reasons. The most obvious is that
it goes even further than last year’s groundbreaking effort to
eliminate those programs that aren’t absolutely essential — an
effort that did not go very far in the status quo-oriented General
Assembly.
Perhaps even more important, though, is the list Mr. Sanford has
compiled. Frankly, we have no idea what to expect from this list,
because we’re not aware of anyone having even contemplated creating
such a list before — much less having succeeded. This type of list
allows budget-writers to change their focus from funding agencies to
funding activities. And unlike most agencies, which do some things
well and some things not so well, we can measure the effectiveness
of activities, and retain, change or eliminate them accordingly.
If this doesn’t sound extraordinary, it’s because it shouldn’t
be. In a rational world, we would decide, say, that reducing the
state’s infant mortality rate was a priority, we would figure out
which programs are most effective at doing that, and we would fund
those programs. But look at our state budget, and you can’t even
figure out which of our many overlapping agencies are attempting to
address this problem, much less how much they’re spending or which
programs are helping.
That pattern repeats itself on issue after issue. It’s a problem
of mind-set and of process.
The mind-set in budget writing is that we must first maintain the
status quo, paying for everything we’ve ever paid for in the past,
and then pay for new programs that sound promising or popular. Even
when there’s no money, the mind-set doesn’t change: We still insist
that agencies keep doing everything they’ve done in the past; we
just tell them to do it with less money.
We give money to agencies rather than specific programs.
Sometimes lawmakers do write instructions on how to spend the money.
More often, they leave agencies to decide how to spend it, sometimes
with individual lawmakers making it clear to agency directors how
they want the money spent. The budget isn’t easy to read to begin
with; this process makes it impossible for even experts to figure
out how money’s being spent.
The mind-set is deeply ingrained in our legislative culture.
Changing from one that concentrates on inputs to one that
concentrates on outcomes will be difficult. But changing the
process, as Mr. Sanford is doing, will make that easier. It also
will make it much easier to measure why our state isn’t making
progress in certain areas — thus adding enormous pressure to
legislators to change the mind-set as well. |