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February 15, 2016 Editorial

Government can, should act more like business

Some politicians, particularly those who want to protect the ever-growing size of state government, scoff at the notion that government can be run like a business.

They are, of course, wrong-minded. And in a surprising yet refreshing twist, Gov. Dannel P. Malloy seems to be challenging that conventional thinking head on, much to the chagrin of powerful interests, including state-employee labor unions.

It started in late January, when the Democratic governor touted improvements several state agencies have made under his LeanCT initiative, which takes a page out of the private sector by identifying more cost-effective ways agencies can deliver services. The Department of Energy and Environmental Protection, for example, has reduced from 60 days to 10 days (83 percent), the average time to complete wastewater discharge inspection reports, providing the opportunity for faster compliance.

Then Malloy delivered a budget that proposes to slash spending by hundreds of millions of dollars to better align state revenues with expenses. Last week, he announced plans to privatize more services at the Department of Motor Vehicles to reduce onerous customer wait times.

These days Malloy sounds more like a corporate executive restructuring a financially ailing company, than an idealist politician who believes every government service is sacrosanct and worth preserving no matter the cost to taxpayers.

More than ever, the state needs a hard-nosed executive willing to make tough choices, and Malloy's new approach is refreshing, particularly to the business community, which has long advocated for spending restraints and a transformation of state government.

State labor unions and their cheerleaders, which stand to potentially lose members and clout with some of Malloy's layoff and privatization efforts, have voiced concern and criticism over his budget. They argue the governor is protecting the rich at the expense of middle-class residents by not raising taxes further on corporations or high earners to preserve the state-employee workforce and the services they provide.

That recipe, however, has proven ineffective and has put at risk many more Connecticut jobs by worsening the state's business climate and giving companies further incentive to move or shift their operations elsewhere. Two of the largest tax increases in state history haven't been able to balance Connecticut's budget or speed up the state's economic recovery; Malloy is finally yielding to that reality and offering a new approach to deal with it.

The idea of government acting more like a business is repugnant to some, who view corporations as greedy entities only there to serve shareholder's interests. However, that is a misunderstanding of businesses' other true objective, which is to create value for consumers by delivering the highest quality services and products at the lowest possible price. That is the only way businesses can survive long-term and generate the profits that sate shareholders' appetites.

Taxpayers, who are the consumers of government, should expect the same value and accountability, which have been clearly lacking here in Connecticut.

We're not asking for a complete disbanding of the state-government apparatus. There are a lot of good, hardworking state employees who strive daily to deliver and improve crucial government services to residents and businesses. Some services can't and shouldn't be privatized, while others should continue to be funded to maintain the state's core function of assisting residents unable to help themselves.

But Malloy's restructuring efforts must leave no stone unturned, and every agency and budget line item must come under close inspection. The business community is also here to help. Last week, nine Connecticut business groups urged the governor to use their expertise to “replace the historical and often rigid approaches to economic growth and the delivery of public services” with more innovative, cost-effective methods.

We urge the governor to partner with the business and nonprofit communities, which must constantly reinvent themselves to survive. They have much wisdom to share.

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