I’ve written before much of my working career has been spent in the public sector – mostly working directly for elected officials. I don’t consider myself a “policy wonk,” but I do pay attention to what happens in government.
I find elections fascinating, particularly when they occur during economic peaks and troughs. As clear examples, it was "the economy stupid” that led to Bill Clinton’s election in 1992, and the return of a lousy economy in 2007 that pushed Obama and the Democrats to victories in 2008. And, the future state of the economy will play a large role in determining the outcomes of national elections in 2014.
And, so it’s no surprise that we saw the shift in power in Congress and in state houses to Republican control resulting from last year’s elections. Voters saw little improvement in the economy during the first two years of the Obama administration, despite massive increases in federal spending intended to jump start the economy. Unemployment remains around 10 percent. To many, the federal stimulus didn’t work and simply increased the size of the federal deficit. State governments, including Arizona, face huge budget deficits that seem insurmountable.
So what to do?
For one thing, government (at all levels) can and ought to become more efficient in delivering services to the public. In this respect, many aspects of government can be run like a business. Regulatory agencies, for example, have many ways in which regulatory oversight can be made more efficient. But, government also plays an important role as safety net for many segments of our population.
As we’ve seen recently, the “business” decision to eliminate state Medicaid funding in Arizona for potential life-saving transplant operations is not without controversy, or one that is easily subjected to a cost-benefit analysis. My point is that our policymakers must be thoughtful and selective in the funding decisions they make – cut where it makes sense – don’t cut simply to cut. After all, that’s what a business would do. Newly elected officials, like Governor Rick Scott of Florida (former CEO of Columbia/HCA), will soon discover running government is not exactly like running a business.
On my drive home recently, I was listening to NPR and thought the interview of outgoing House Speaker Nancy Pelosi – believe it or not – addressing the subject of federal budget cuts made a lot of sense. Her point was that every federal dollar should be carefully scrutinized as to whether it efficiently delivers the service it’s supposed to deliver. A simple enough concept, if adhered to.
Closer to home, I applaud the Arizona Corporation Commission for its recent actions to make its regulatory oversight of investor-owned utility companies more efficient. Earlier this week, under the leadership of newly the elected Chairman, Gary Pierce, the Commission directed its staff to suggest ways to improve its processing of filings and to reduce regulatory lag – the time it takes to process rate requests. Chairman Pierce specifically pointed to the ideas contained in a 2008 White Paper issued by AIC as a starting place for the staff to begin its examination.
Like other state agencies in today’s economy, the ACC must make do with fewer resources. The move to introduce efficiencies and improve throughput and productivity in the ratemaking process is clearly welcome and long overdue. The Commission stands to benefit through more effective use of its resources; regulated companies will benefit through lower costs of regulation; and customers will benefit from reduced pressure on rate increases.
Through its recent actions, the ACC is showcasing itself as one state agency that understands government can indeed be run like a business.
So what to do?
For one thing, government (at all levels) can and ought to become more efficient in delivering services to the public. In this respect, many aspects of government can be run like a business. Regulatory agencies, for example, have many ways in which regulatory oversight can be made more efficient. But, government also plays an important role as safety net for many segments of our population.
As we’ve seen recently, the “business” decision to eliminate state Medicaid funding in Arizona for potential life-saving transplant operations is not without controversy, or one that is easily subjected to a cost-benefit analysis. My point is that our policymakers must be thoughtful and selective in the funding decisions they make – cut where it makes sense – don’t cut simply to cut. After all, that’s what a business would do. Newly elected officials, like Governor Rick Scott of Florida (former CEO of Columbia/HCA), will soon discover running government is not exactly like running a business.
On my drive home recently, I was listening to NPR and thought the interview of outgoing House Speaker Nancy Pelosi – believe it or not – addressing the subject of federal budget cuts made a lot of sense. Her point was that every federal dollar should be carefully scrutinized as to whether it efficiently delivers the service it’s supposed to deliver. A simple enough concept, if adhered to.
Closer to home, I applaud the Arizona Corporation Commission for its recent actions to make its regulatory oversight of investor-owned utility companies more efficient. Earlier this week, under the leadership of newly the elected Chairman, Gary Pierce, the Commission directed its staff to suggest ways to improve its processing of filings and to reduce regulatory lag – the time it takes to process rate requests. Chairman Pierce specifically pointed to the ideas contained in a 2008 White Paper issued by AIC as a starting place for the staff to begin its examination.
Like other state agencies in today’s economy, the ACC must make do with fewer resources. The move to introduce efficiencies and improve throughput and productivity in the ratemaking process is clearly welcome and long overdue. The Commission stands to benefit through more effective use of its resources; regulated companies will benefit through lower costs of regulation; and customers will benefit from reduced pressure on rate increases.
Through its recent actions, the ACC is showcasing itself as one state agency that understands government can indeed be run like a business.
