As Peter noted earlier, we're witnessing something rare in New York right now ? a Democratic governor cutting budgets, pushing for property tax caps, even targeting education spending for aggressive reductions. With a $10 billion budget deficit and all its Federal stimulus funding squandered, this may be just what the state needs.
What is perhaps most laudable in Andrew Cuomo's proposed budget is that he seems to be taking the crisis as a chance to bend the cost curve in government for good, taking on basic funding formulas in addition to proposing temporary cuts.?What's not clear, however, is that he, the legislature, public-sector unions, or other players in the state are thinking creatively enough about how to re-envision how government works.
On Monday, Lou Gerstner, former CEO of IBM, had an op-ed in the Wall Street Journal arguing for just this kind of restructuring, and one of his fundamental tenets is, ?Focus on programs, not costs.? In a previous life, when I was a management consultant, this was my dogma. If tasked with cutting 5% of a business unit's budget for a client, my first step was to think about how I would fulfill that unit's mission if I had to start from scratch. If I could succeed in reinventing a process or two more cost-effectively, I could usually make cuts while improving operations ? not making things worse.
At least when it comes to schools, the powers that be in...