California’s Special Election

Higher taxes got the smackdown from California voters last night. To the tune of 66% no, 34% yes. The message could not be less muddled and more clear: Fix the budget. Live within your means. Align spending with revenue.
We’ve done this at Sierra College for the last five years. It’s not easy. In fact, it’s really hard. Because it means we have to be very focused to put our resources where we can best achieve our mission. We don’t have the money to spread money everywhere.
So we’ve actually developed a process to go through and review all of our programs, and allocate resources on the basis of strategic priorities rather than the “everyone gets a little bit more this year” approach. We’ve taken resources away from some programs. We’ve added resources to other programs. And we’ve put in systems so that we can measure the results.
It has been difficult for Sierra College to rethink everything we do, and become more efficient about doing it. But you know what? The hardworking taxpayers, who have entrusted us with their money to achieve our educational mission, deserve nothing less.
The State of California is going to have to do the same thing. There are things the state did in the last fiscal year that it will not be able to do in the next fiscal year. There are one-size-fits-all rules that they had the staff to enforce last year that they will need to stop enforcing. Where they had 10 people on a team, they’ll need to get by with 8…and just stop doing the 20% of the things that are least important.
These are the things that the private sector does all of the time in economic pullbacks. Do fewer things, and at times, we even have to do more things with less money (always challenging and not always possible).

This isn’t intended as a knock on any other candidate for Governor, but if I was Arnold Schwarzenegger, I’d be calling Insurance Commissioner Steve Poizner right now.
This is a guy who built a billion-dollar business and knows how to review organizations and align expense with revenue. And after he became Insurance Commissioner, he did a top-to-bottom review of his department, modernized systems, cut 8% of his staff through attrition, and delivered a corresponding cut in fees back to insurance ratepayers. First time that has happened in the history of government during good economic times.
These are bad times, and the State has no choice now but to figure out how to become more efficient. If he wasn’t a candidate for Governor, Poizner would be the perfect guy to do a top-to-bottom review and take the costs out of state government. Governor Schwarzenegger ought to figure out how to tap his experience for the task ahead. If they keep punting, Poizner may get the opportunity anyway in 2011.







