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The Legislative Press & Information Bureau
Op-Ed

RI should try zero-based budgeting
By Sen. Edward J. O'Neill
Last year, I wrote a Commentary piece (“R.I. business, taxpayers must fight like unions,” Jan. 24, 2010) that discussed the lack of effectiveness of business to mount an effective campaign to change the makeup of the Rhode Island General Assembly.

During the 2010 election, good-government groups led by the Rhode Island Statewide Coalition, through its Business Network, tried to rally business and provide financial support for business-friendly candidates to change the mix in the legislature. Intentions were good and a strong effort was made, but it was a failure. Organized labor, meanwhile, stuck to its playbook and took out disobedient Democrats via primaries. They also helped elect Governor Chafee, with 36 percent of the vote. So here we are.

Now we have a proposed budget that would take a sick cow and poison it.

Small business, the backbone of our state economy, would suffer the most. Taxing our way out of a deficit would also hurt the people who can afford it the least — the poor. The Chafee administration is now proposing taxing homeless veterans out of what little they have, and taxing heating oil and haircuts.

What are we doing? Where are the budget cuts?

I am often told that government is not like business. That the laws of physics do not apply. That we can’t do it because we have always done it this way. I guess, by that logic, that we could not send men to the moon. After all, it had never been done before.

Why wouldn’t zero-based budgeting work? Maybe because it has not been tried? How about each department head reducing his or her budget by 15 percent, ranking the functions and services by the most critical at the base and building the budgets with the least critical items at the top?

Instead, the common trick is to lop off the things that will cause the largest outcry to deflect the focus from what should be cut.

In the business world, when a manager is told to reduce his budget, he or she does, or a replacement does. When is the last time a department head in Rhode Island was sent packing for overspending, or failing to make required budget cuts?

Has all state hiring been stopped? Are all state purchases on hold? What is being done to reduce state costs? Where is the “team effort” to reduce expenses?

In a prior life in high tech, I was involved with “team improvement programs.” These teams were made up of people doing the work with an in-house facilitator, not an outside hire. We saved millions of dollars by listening to fellow employees and improving the tools our people worked with. People like to work smarter, not harder.

Have Rhode Island managers tapped the giant reservoir of ideas available from the state workers doing the jobs? Are they listening to them?

George Nee, president of the Rhode Island AFL-CIO, has said publicly that we should give our state workers a chance to improve productivity. They know best how to get the job done. I agree with Mr. Nee on this point.

Operational excellence is a natural outcome of people working as a team. Everyone needs an oar in the water to get our costs down. A new day has dawned, and Rhode Islanders are beginning to realize that we need to work together to get our state operations lean. That means better thinking, better systems, better tools, and better leadership.

Our new administration has failed in recruiting new thinkers and change agents while pushing away some of our best and brightest. Col. Brendan Doherty is gone as superintendent of state police, and Education Commissioner Deborah Gist may be on her way out, given the composition of the new Board of Regents of Elementary and Secondary Education.

We need to burn the proposed budget and start over.

Let’s get some intellectual horsepower to help. I’ll bet that, if we locked our department heads in a room with a few of our business leaders and the state treasurer, they could hammer out a better budget in two weeks than one we have now.

What do we have to lose?

(Edward J. O'Neill is the Independent Senator from District 17, Lincoln, North Providence, Pawtucket)


Legislative Press & Information Bureau, R.I. State House, Room 20