Posted on Wed, Jun. 25, 2003


Governor's review panel offers great potential for change



NEARLY TWO DECADES later, we still remember the $640 toilet seat and the $436 hammer. Those examples of wasteful government spending, which helped lead to reforms in a federal procurement system that had obviously gotten out of control, were products of President Reagan's Grace Commission.

The idea behind that commission -- that business executives could find ways to make government more efficient "by simply turning to modern business practices" -- is being borrowed by Gov. Mark Sanford to try to reduce the cost of government in South Carolina.

It is an exciting idea that could lead to some of the most dramatic changes in the way state government operates in a decade.

One of the biggest problems with state government is that we assume the way we've always done things is the way they need to be done, and any changes we make are incremental. While three years of budget cuts have led some agencies to reexamine these assumptions, not all managers have the expertise to identify efficiencies, and many reforms need to be made across several agencies or even the entire government.

We are encouraged by Mr. Sanford's desire to examine long-held assumptions about spending practices and priorities, but that's a huge task. Bringing on people with management expertise, if only for a few months, should make the process more productive.

But in order for it to live up to its potential, the Management, Accountability and Performance, or MAP, Commission needs to take care to avoid some of the pitfalls of its prototype.

While supporters claim $700 billion in savings from the Grace Commission, that's a pittance when amortized over nearly 20 years since the report was issued; the report had promised three-year savings of $424 billion. The savings weren't realized because the Congress rejected most of the recommendations; and a big reason for that is that most had little to do with improving the way the government did what it was doing. Instead, they focused on changing what government does, from restricting Medicare payments and cutting military retirement pay to charging more for hydroelectric power and charging boaters for Coast Guard services.

There's no question that our state government delivers some services it doesn't need to deliver. But it's best to leave the task of identifying those to the politicians, particularly given the short time frame Mr. Sanford has given his MAP Commission. Where this panel can provide a real service is to find better ways of providing the services that are currently being provided.

Fortunately, it appears that this is its plan. Despite debate about such things as what is and isn't classroom spending, the panel's task forces are examining such topics as procurement, information technology, human resources and organizational structure. Last week, Mr. Sanford made the point of reminding the commission that it needed to focus "more on substance, big structural change, and less on sound bites."

Excellent direction. We have reached a point where the Legislature doesn't want to discontinue programs, and it doesn't want to raise taxes, and as a result we are starving such vital services as public education and public safety. Bringing in fresh eyes to examine how we do business would be a smart idea any time; it's crucial now. This could be our best hope for preventing the disintegration of the social order.





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