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Why do I need to know about The Price of Government?
MAR has teamed up with the Michigan Chamber of Commerce to bring the authors of The Price of Government, and their staff, to guide Michigan’s legislature through a new budgeting process that focuses on results for citizens. The new budget is “outcome” based, meaning that every state program will have to show its value in order to receive funding. With the help of NAR, MAR has allocated $300,000 from the association’s Issues Mobilization Fund to fund this project.
Why is this a problem for REALTORS® to address?
This “outcome” based process is designed to prioritize government goals and assess the tools it would need to run efficiently, without any additional revenue, such as a sales tax on services. A balanced budget and efficiently working government allow for a great opportunity of economic growth. Strong economic growth, leads to more jobs, which leads to more opportunity for Michigan residents to pursue the American Dream.
How does it work?
The new approach to budgeting, adopted by Michigan House and Senate leaders, and based on the principles laid out within The Price of Government is intended to produce a fiscal year 2006 budget process that is fundamentally different from those in the past. State lawmakers and citizens will purse the following questions while prioritizing state programs:
- How much revenue will the state have to spend in FY2006?
- What results matter most to Michigan’s citizens?
- What percentage of the budget should be spent to achieve each result?
- How can government best deliver each result within the allocated amount?
Is there anything else that sets this process apart?
Yes. Not only will each government service and department be responsible for living within their means, but also for producing results. This budget will be different in six primary ways:
- It will “live within our means” by not relying on tax increase or one-time fix to pay for ongoing programs that the state can no longer afford.
- It will be constructed around the results that Michigan citizens expect, not around the structure of state bureaucracy.
- It will clearly identify how much of the approximately $40 billion the state plans to spend in FY2006 will go towards delivering each result.
- It will be based on a thorough examination of every program in every fund (not just the General Fund).
- It will evaluate and rank those programs based on the degree to which they are able to produce the results that citizens expect.
- It will recommend buying those programs that rank the highest and eliminating those programs “that fall below the line” where the amount of money available runs out.
In other words, it will help structure the budget around results citizens care about vs. state bureaucracy and focus on how to spend $39.5 billion incredibly well vs. how to cut $750 million, as well as prioritize and buy those activities that lead to the results citizens want vs. just continue what has always been done.
Who are the authors?
David Osborne is the co-author, with Ted Gaebler, of Reinventing Government, which became a national bestseller. He is also the author of Laboratories for Democracy and co-author of Banishing Bureaucracy and The Reinventor’s Fieldbook. A senior partner of the Public Strategies Group, he has served as an advisor or consultant to Vice President Al Gore, governors, mayors and city managers nationwide, and to public leaders around the world. He has written for Governing, The Atlantic, The New York Times Magazine, Harper’s and many other publications. He lives in Essex, Massachusetts.
Peter Hutchinson is a founder and President of the Public Strategies Group in St. Paul, Minnesota. He previously served as vice president of the Dayton Hudson Corp. (now Target Corp.), commissioner of finance in Minnesota and superintendent of schools in Minneapolis. As a management and turnaround consultant, he has advised governors and their administrations in Washington State, Minnesota, New York and Iowa, as well as cities, counties and school districts throughout the United States and internationally. He lives in Minneapolis.
Where can I obtain a copy of the book?
The book is available at bookstores around the state. You can also purchase the book on line by clicking here.
How is MAR paying for this service to come to Michigan?
MAR’s issues mobilization fund exists to improve public policy by encouraging and stimulating REALTORS® and others to take a more active and effective role in state and local government decision-making and the legislative process. The fund is organized and operated for the purpose of providing financial support for, or in opposition, to issues at the state and local level that have an impact on the private property rights of real property owners in Michigan. It shall also support related grassroots lobbying and educational efforts. Earlier this year MAR’s delegate body met and raised the amount that MAR can spend on the fund to $200,000 to combat any sales tax on services measures that might come up at the legislature. The National Association of REALTORS® has committed $100,000 to MAR to help fund this endevour.
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