Tag Archives: Governing Magazine

Straight Talk About Government Efficiency

We can only speculate about the real motives prompting Trump/Musk to take a hatchet to the federal government. That motive is clearly not efficiency–indeed, in any logical world, it would be universally seen as insane, as would the betrayal of Ukraine, which undermines America’s global interests. (That betrayal is more than likely prompted by Trump’s continuing anger over Zelensky’s prior refusal to be blackmailed into accusing Joe Biden of invented crimes. Trump holds grudges.)

As I’ve watched Musk’s illegal DOGE wreak havoc with the federal government and put millions of Americans at risk, I revisited an article from Governing published just before that “department” began it’s slash and burn operations. The author,  who had participated in several state-level efforts to root out “fraud and waste,” noted that there are proper–and improper– ways to go about that task.

Before sharing the persuasive insights of that article, however, I want to point to a truly foundational issue–one that has become far more evident as DOGE continues its destructive path through our federal government. Most Americans reject what we now understand to be Musk’s definition of “fraud and waste.” Anyone who thinks that Social Security is a “Ponzi scheme” is clearly incapable of providing an evidence-based definition of either fraud or waste. (Evidently, to Musk, if a government program benefits millions of Americans–or if an agency’s operations interfere with the ability of Musk’s businesses to rip off taxpayers–that function is wasteful, if not fraudulent…)

The linked article begins by agreeing that efforts to streamline government and root out inefficiencies are always appropriate. It then points to some pesky facts about federal expenditures–facts that should guide any legitimate efforts.

Musk and Ramaswamy have promised a 30 percent cut in the federal government. Roughly 60 percent or so of federal spending, however, consists of interest payments on the national debt, Social Security, Medicare and national defense — largely (though not entirely) untouchable. The projected savings therefore purport to come mostly from wiping out everything else: cutting government regulation, eliminating large numbers of government programs and firing even larger numbers of employees.

Gutting regulation does little to reduce government spending, however, while employee compensation makes up only 4 percent of the federal budget. Firing every single federal employee would barely make a ripple. Whatever the merits of all this as policy, in reality it has little to do with efficiency.

In fact, in many ways, the proposed DOGE approach illustrates how not to pursue actual efficiency in government.

The author then suggests realistic ways to make government more efficient.

Be honest and realistic. Thirty years ago, the massive National Performance Review produced recommendations shaving nearly 7 percent off federal operations… it’s possible to reduce spending by as much as 10 percent annually — although not without severe political repercussions.

The “annually recurring” part is important. It’s easy to fake savings through accounting gimmicks and one-time asset sales. Sure, you can close a budget hole by raiding dedicated funds, postponing needed infrastructure repairs or construction, or even doing a sale-leaseback of the state capitol…  Real, meaningful “efficiency” recurs year after year. In fact, so should the search for efficiency.

It would be easy to cut government spending by 30 percent by eliminating all health and welfare spending. That may be the goal under DOGE. Unfortunately, about six months later, emergency rooms will be crammed, hospital systems will be incurring massive debts through charity care, workforce productivity will plummet, and communicable diseases will proliferate. Cutting just to cut generally costs more in the long term.

 Very little government spending consists of actual fraud and abuse, and less still by beneficiaries filing claims for, say, medical care they never received. It is mostly committed, rather, by providers seeking reimbursements for care they never delivered, or by big-dollar private contractors (particularly in defense: know anyone who fits that description?).

Sometimes, spending saves money. That may sound counterintuitive, but you wouldn’t fire your accounts receivable department, would you? Hiring more revenue collectors is good “business,” even in government.

The author noted that the best way to save money is by improving service delivery, not performative gestures like slashing huge programs. Cutting inefficiency doesn’t require attacking the people who carry out the processes — it requires streamlining the processes themselves.

And rather than firing staff, if we really wanted to find ways to eliminate waste and inefficiency, we would ask the people who work for government–because those are the folks who actually know. “That’s how leaders, public or private, proceed if they’re serious about making their operations work better.”

But of course, making government work better is the farthest thing from Trump/Musk’s mind. They just want it to work better for them.

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For Goodness Sakes, Indiana!

A couple of years ago, Indiana geniuses came up with the motto “Honest to goodness, Indiana!” After reading this scorching–and utterly accurate–description of what passes for governing in my state, I think that motto should be “For goodness sakes, Indiana!”

The article by Aaron Wren in Governing  magazine looked at the traditional Red state tactics that brought disaster to Kansas and failed to improve economies in Red states generally. When Wren focused on Indiana, he laid out the state’s current status and the roots of our declining wellbeing.

Or look at Indiana. It has had Republican governors since 2005 and full Republican control of the state for over a decade. Its leadership loves to boast that its growth rate in population and jobs beats surrounding states, but that’s a low hurdle to jump. In reality, most of Indiana is stagnating or declining. Over half of the state’s counties are losing population, and the forecast for the prime working age population is grim: Virtually the entire state is projected to have a declining workforce in coming years. Indiana’s per capita income is only 86.2 percent of the national average, and that’s lower than it was when the GOP took over the governorship and the Legislature. Under Republican management, the state started out poor and got even poorer.

Why these poor results in states with the full panoply of red state best practices? It’s because the entire philosophy of governance in Kansas, Indiana and quite a few other Republican states is based on a fundamentally mistaken view of progress. Rather than investing to build up the skills and enhance the well-being of their citizens, they engaged in a race down to the bottom as a strategy to attract corporations.

Wren doesn’t simply make an assertion–he provides examples.

When local media reported on the horrific situations faced by many local renters, Indianapolis responded by passing an ordinance that required landlords to provide tenants with a list of their rights– including the right to have “functional plumbing, safe wiring and heat in the winter.” Indiana’s legislature just overturned that ordinance, as part of the legislature’s ongoing refusal to respect local control, and–as Wren says–at the behest of the property owners’ lobby.

Indiana is a great place to be a slumlord, but not such a good place to be a citizen who rents.

The article points out that this example is just one of many.  The state’s nursing home industry has so many negatives, it has become, Wren says, “a giant scam.” He recounts how hospitals in the state used ownership of nursing facilities to overbill Medicare and siphon over a billion dollars from those homes. The money was used to fund building projects and generous salaries for hospital executives. Meanwhile, Indiana ranks 48th in nursing home staffing, and more than 20 percent of nursing home patients with COVID died (the national rate is 13 percent).

How did our legislature respond? It passed a bill providing expansive immunity from liability for nursing homes and other businesses.

In addition to overturning tenant protections, Indiana has flirted with canceling a transit expansion in Indianapolis that has been supported overwhelmingly by the voters, and gutted a bill that would have required employers to provide basic accommodations to pregnant women. (Expectant mothers can now ask for accommodations, but employers don’t have to actually provide any). Perusing the list of bills working their way through the state Legislature, it’s hard to see much that could even plausibly make a material improvement in the life of Hoosier citizens.

Wren points out that the most important factor in attracting high-wage employers is the availability of a skilled labor force – talent. What he doesn’t mention is the Indiana legislature’s continuing assault on public education, and the negative effects of that assault on efforts to produce a skilled labor force. Instead, the Republicans who have dominated state government continue to siphon dollars from public schools in favor of private, mostly religious schools via the nation’s largest voucher program.

Aaron Wren is no bleeding-heart liberal. When he lived in Indianapolis, I knew him slightly, and followed his observations on local governance. He was pro-business in the better sense of that term, supportive of governance that created a business-friendly environment, but highly critical of the crony capitalism that continues to characterize Republican politics in Indiana.

So long as Indiana’s gerrymandered districts continue to weight rural votes over urban ones, we will continue to rank among the bottom of states in numerous categories, and we’ll continue to have what the late Harrison Ullmann called “the world’s worst legislature.”

For goodness sakes, Indiana!

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