Friday, January 30, 2009

Where We Go...

Now more than ever our local system of government should be overhauled. I have maintained for years that consolidating city and county government is a good idea. There has never been a better time to act.



Government revenue streams are dropping due to the decrease in collected sales taxes. Future threats to the revenue stream include further declining property values, sinking pension fund values and higher unemployment. These issues and more will add strain to an already overtaxed population.


Faced with this immediate economic calamity our elected officials should take the opportunity to find more efficiency in our government. But the quality level of our services is not where they should look. They should look to the design of the business models they run.



Both of the past two Mayors have cut services to citizens in order to save tax dollars and or shift them elsewhere for public projects. The result has been a steady decline in the availability of law enforcement, an erosion of quality in our city parks, long lines and ridiculous waits for permits, bad street conditions, trash pick up that resembles a pie throwing contest, a library system that yearns for any attention at all, shorter hours at recreation centers like city pools, and oh the list could go on.


The driving maxim in business is that you must constantly look for ways to become more efficient and competitive. The failure to do so will likely result in your destruction. As we are witnessing, everyday market forces are brutal and unforgiving. Unfortunately, many businesses suffer from the same error our government has been making for years. They look to cut the quality of their product or their services as a way to save money. This downward spiral is a death spin for a business. If it doesn't recover by correcting its mistakes quickly, its over.





Government on the other hand has little if any competition for its product. It can cut services, lay workers off, and in the process of lessening the quality of its product even raise its revenues. Why? Because government has no competition, total control of its market, and the ability to increase its own revenues. Looking at government in this way makes one quickly aware of why its in so much trouble. Lets look at local city and county government as an example.


Some will no doubt argue that the purposes of county and city governments are different. Most likely those doing the arguing are elected officials or those with vested economic interest in a particular arm of government. To look at it another way, those who wish to protect their political turf and or a contract they might have with an arm of local government like the status quo. These arguments are efforts only to preserve prestige, power or cash flow. There is no real incentive to look logically at consolidation. Yes, businesses consolidate everyday. Fueled by too much competition and the desire to survive in tough markets and economic times, business not only has too, but also has the ability to take the logical step.


The business of government is providing basic services and security for taxpayers. Locally, the defined market area is the land mass encompassed by Douglas County. Geographically speaking, City and County governments overlap each other on an 80 percent basis. They don't compete with each other specifically for anything except our important income IE., taxpayer dollars, which is their blood flow. They do not have to worry about going out of business. If necessary they can raise revenues simply by increasing the price of their service without threat of competitors taking away the customers. What a sweet deal that is. Virtually guaranteed revenue and little if any competition. As a business owner, I would take that option in a nano second. Is it any wonder government is inefficient? Where is the incentive?



Some might say the incentive comes at the ballot box. High spenders are voted out of office. Really? Why then do taxes NEVER go down?



No, the system is broke. The models of government organization used today came from two centuries ago. Wow, do you still drive a car designed in 1925? The modern demands placed upon government far outweigh its ability to cope.



Next, how, when, and where.

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