Archive for category Government State
A Comparative Argument For the Decentralization of Government in the State of Florida
Posted by admin in Government State on April 8, 2011
Governments at all levels and locations within the United States, as well as many worldwide, have been going through tremendous changes over the past two decades, which include improved customer service initiatives, citizen satisfaction efforts, streamlining agencies, flattening hierarchies, and continuous economic, redevelopment and growth management issues. State governments, especially larger ones, are becoming more centralized in order to deal with financial, legal, political and administrative relationships. In the State of Florida, as the never-ending quest for best government measures and practices are constantly being sought, it is important to examine the opposing viewpoints regarding the decentralization of government for local decision-making.
Yes there are pros and cons to the centralization of government in Florida and size often dictates the need for centrality. Florida is not only growing faster than any other part of the country, it has very large areas of separation between its urban centers. Voters in South Florida may differ vastly in opinions than the voters in the Keys or the Panhandle areas. It has been said that no one metropolitan area can dominate Tallahassee politics. With such a vast difference in geography and diversity in politically strong areas, it is difficult to manage government in Florida from one point of view or one part of the state. The members of the Florida Legislature, who are representatives of the different localities, can cause an effect on one area that they do not represent. Since this state also varies greatly in its location of resources, economic markets and products, to name a few, decentralization would appear to me to be a better fit, however, as my findings will suggest, there is always a benefit for either centralization or decentralization in certain areas depending on needs, past performance, intended outcomes and political climate.
Administrative Relationships
With the signing of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, the federal government passed to the states the responsibility for public assistance to families with children. This allowed the states flexibility in managing their own programs and through time has caused states to look at increasing the responsibilities of localities according to the New Federalism National Survey of America’s Families by The Urban Institute. The State of Florida embraced this reform and created the Work and Gain Economic Self-Sufficiency Program or WAGES. Due to this and other changes taken in Florida, dramatic changes have occurred in the administration and delivery of social services. The responsibility for running programs, and through the use of contracts, the management and administering of services has shifted from the state to the local level. Local governments will often support programs that they are more involved with administratively than ones in which they have very little control and less autonomy. In order to provide better services to constituents in all of the localities, it is necessary to shift responsibility and authority to employees nearer to these areas.
Financial Realm
Due to the recent population explosion and growing needs, Florida expended an unusual effort at predicting its financial future. Managing for results, performance based budgeting, tracking state expenditures and other efforts to increase accountability have been a constant focus of Florida state government. The process of decentralization and the effect on local government may include any combination of block grants from state to county or municipal governments reduced aid from the federal government that get addressed at the state level and then trickle down to local levels, or decentralization of state agencies to provide closer and more cost-effective services to local areas. A review of the decentralization of the teacher certification renewal process, as reported by the State of Florida’s Office of Program Policy Analysis and Government Accountability, showed that the early effects of decentralization were the elimination of duplication of work by state and district offices, increased service efficiency and increased district funding flexibility. The report also demonstrates that decentralization reduces the Department’s Bureau of Teacher Certification workforce and costs at the state level by approximately $1 million annually. The only drawbacks to this is that the workload for remaining staff is increased, but as demonstrated by the OPPAGA’s report, decentralization results in big gains for the financial realm for the entire state.
Decentralization is designed to enhance the efficiency and responsiveness of lower levels of government by allowing the localities more control over spending. Typically, counties will only contribute to program funding if they are involved administratively. A negative situation occurs when decentralization results in increased costs for services provided to constituents of local governments in the way of higher taxes. A politically hot issue these days are the increasing costs of providing police, fire and emergency medical services to local governments. These costs seem to increase significantly every year in municipalities and in county governments. Cooperation among police and fire departments has emerged as an effective way to deal with an environment of increasing needs, rising costs and decentralized service delivery. Successful mergers of departments, inter-local agreements and use of volunteers can improve service delivery and reduced taxpayer costs. Centralizing fire departments with a County would result in better response times and coordination, as well as, decreased costs to citizens. The decentralization of fire departments from a county to each municipality within a county is an option that appears to have local value in the beginning, but often in order to keep up with increasing demands, population and customer satisfaction, centralization seems often provides the solution.
Legal Arena
In Florida, law enforcement and regulatory agencies may take a case to either to local state attorney or to the Office of Prosecution at the state level. Although this choice enhances Florida law enforcement’s ability to aggressively fight crime, the debate as to whether this system is effective is continuous. Reports have shown that the state office not only collects more money for victims and government agencies, but that it has a very high prosecutorial record. There are certain cases that are better suited for statewide prosecution and those that are better handled locally. If the office of statewide prosecution were to be eliminated, there would be consequences that state and local law enforcement would not want to face. It is evident that the legal needs of Florida are vast and that a balance between centralization and decentralization is needed.
Conclusion
It is important for localities to continue to be growing providers of services and employment for the benefit of all citizens. We are in an environment in South Florida where there are a great number of municipalities within county borders and intergovernmental administration at the local level is very complex and politically cumbersome. Decentralization is a government reform that is at the forefront of the changes which are occurring in Florida now, especially given the current economic climate. When faced with increased financial burdens placed upon localities due to the decentralization of services such as health and education sometimes run counter to worldwide trends towards decentralization and actually results in government setbacks. It is obvious that decentralization is the answer for many deficiencies found in government and that this is a current trend. However, local governments can be financially hurt by unfunded mandates and growing needs. Results based management and reporting are new concepts that takes some getting used to and unfortunately many good programs suffer or do not get adequate funding because of the ineffective reporting that is occurring by state and local governments. This is highly prevalent when the improper or ineffective application of performance measurement to agencies’ activities occurs. Additionally, the transitioning of services and programs to lower levels of government is still an unsettling and uncertain one at times, but with good working relationships, proper management, and strong alliances between local governments with each other and the state, the benefits will outweigh any setbacks.
The author of this article is Gerald Henry, a Senior Code Enforcement Officer in Broward County Florida who holds a Bachelors Degree and Graduate Certificate in Public Administration from Florida Atlantic University and maintains the Certified Code Enforcement Professional designation.
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State Governments: Immobile, Going Broke But High On Wine
Posted by admin in Government State on April 8, 2011
Many state and local governments are heading towards financial insolvency as a result of their state employee pension and retiree medical liabilities. Consider an article from the October 18, 2010 issue of Businessweek magazine:
- According to a study by the University of Rochester and Northwestern University, there could up to as much as $3 TRILLION in unfunded state workers’ retirement liabilities. This comes out to about $26,000 worth of debt burden for every family in America.
- One reason for the problem is that state governments have historically been very generous with the way they funded the retirement plans of their state employees. According to the U.S. Labor Department, state and local governments paid $3.04 per hour toward each state employee’s retirement in 2007 compared to $.92 that private companies paid for their employees.
- The median state government pension plan had only 76% of its obligations covered as of this summer.
- Six cities, Boston, Chicago, Philadelphia, Cincinnati, Jacksonville, and St. Paul Minnesota, will run out of pension money by 2020 if nothing changes.
- Other state government programs, such as drug treatment centers and after school activities, are being starved for funds and curtailed in an attempt to meet these huge retirement obligations.
Now consider some individual state situations:
- According to a recent online article by the Washington Examiner, the state government of Maryland has $33 billion in unfunded pension liabilities.
- According to the Stateline online website, West Virgina has a $7.4 billion shortfall in its state government retiree health care system.
- According to the Houston Chronicle, the Texas state government has a $38.5 billion shortfall in its retiree fund.
- According to an online National Review article, the state of Ohio would have to dedicate 100% of its the next 8.75 years of its revenue stream to fulfill the current state government employee retirement liabilities, excluding any future liabilities. Obviously, if this was theoretically to happen, all other state funding would bet set to zero for almost nine years, i.e. no teachers, no state police, no roadwork, etc.
- Virgina recently closed a $4 billion shortfall in its operating budget partly do to the fact that it did not pay the required $620 million into its state employee retirement fund, raising the possibility of a larger shortfall for the funding down the road.
Why single out those five states? It ties into another recent article that was in the October 25, 2010 issue of Businessweek entitled: “Pouring Government Money Into Merlot and Chardonnay.” Apparently, despite possibly being $3 TRILLION in the hole just for state government employee pension benefits, all fifty state governments have some kind of program of giving state taxpayer money to in state wineries. The article points out the following examples:
- The state of Maryland, despite a $33 billion shortfall, has paid out over $80,000 to six in-state wineries to both plant more vines and expand production capacity. Knob Hall Winery received $8,000 from the state to plant 4,000 vines. The winery has lost money every year since it opened in 2006 and will be unprofitable again this year. Thus, the state of Maryland is not even funding a profitable private endeavor.
- The state of Texas, despite a $38.5 billion shortfall, allocates $2.3 million a year of taxpayer money for wine research, marketing, and grants, nine times what it allocated in 2005. Thus, as the economy got worse, more taxpayer money went into the in-state wine business.
- The state of Ohio, despite swimming in red ink caused by its out of control retiree liabilities, spent more than $1.1 million in subsidizing its state wineries last year, up 38% from the previous year.
- The state of Virginia, despite a multi-billion dollar budget shortfall, dedicates $1.3 million of its budget to support its state wineries.
- Although the West Virginia state government winery support dollars are not in the article, consider the financial status of the Forks of Cheat Winery in West Virginia. The winery is 22 years old and has yet to turn a profit. Wonder how many West Virginia taxpayer dollars are going to support this long time unprofitable operation?
- According to a spokesperson from the American Sommelier Association, it usually takes over two decades, if then, for a new winery to become profitable.
As a result of their outsized retiree pension liabilities, the states are rapidly facing bankruptcy, find themselves cutting other vital human services in order to pay for these retiree programs, but somehow think it is a good idea to subsidize unprofitable private businesses. How many drug treatment centers could be kept open in Texas if it diverted that $2.3 million winery subsidy? How many more teachers could Ohio keep on the payroll if they diverted the $1.3 million they spend?
And it is not just the states. According to the article, the Federal government, that government level with over $13 TRILLION worth of debt, will spend $500,000 of Federal taxpayer money just to help Virgina wineries, it will spend $40,000 to encourage alternative vine growing strategies in Idaho, and will spend $9,000 to improve highway access to wineries in Colorado.
Obviously, stopping all winery subsidies will not cure the states’ pension program problems and will not balance the Federal budget. However, these subsides are no more than examples of corporate welfare and should not be a responsibility or priority of any government entity, there are just too many problems, both financial and human, that need to be addressed with limited funds. How many other industries in each state and throughout the country receive taxpayer dollars? Add up all of those subsidies and you are probably talking about some serious dollars.
If a winery cannot be profitable on its own, it is not the state’s duty to keep it alive. In doing so, other vital financial needs go unmet. This is the concept that New York Times columnist David Brooks talked about several weeks ago, our “immobile government.” Government in America today has become so burdened down with bad priorities, poorly structured, poorly negotiated, and poorly financed retirement plans for state workers and corporate subsidies for failing businesses such as wineries, just to name one, that vital services, services that could positively and materially affect regular individual citizens, go wanting. Drug treatment centers, school funding, infrastructure improvements, etc. cannot be done because the political class has done such a poor job of immobilizing government at every level with bad and burdensome priorities.
The question of whether state governments and the Federal government will be able to fix their financial status and shake off the bondage of immobile government is the greatest challenge facing the country today. We can only hope that the politicians can find the courage, respect, and knowledge to fix these dire problems. We owe it future generations of Americans to present them with a workable, financially strong and mobile government structure and we can pay no higher respect to the sacrifices our veterans have made than to fix the country they so bravely defended so many times and restore the freedom that immobile government steals away.
Walter “Bruno” Korschek is the author of the book, “Love My Country, Loathe My Government – Fifty First Steps To Restoring Our Freedom and Destroying The American Political Class,” which is available at http://www.loathemygovernment.com and online at Amazon and Barnes & Noble. Our daily dialog on freedom in America can be joined at http://www.loathemygovernment.blogspot.com.
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