Thursday, January 07, 2010

Jim Ryan's 10 step plan for fiscal discipline

Marathon Pundit has endorsed former Illinois Attorney General Jim Ryan for governor. On Monday Ryan unveiled his 10-step plan "to restore fiscal discipline and efficiency to Illinois government—a blueprint to start undoing the damage caused by the Blagojevich-Quinn administrations." These will be initiated in the first 30 days of a Ryan administration.

"From my 1st hour in office, I will begin undoing the catastrophic financial policies of the Blagojevich-Quinn era," Ryan said. "The lack of leadership has hurt those who need it most—working families and those who help the less fortunate. We need to get the state’s budget under control so we can focus on our real priorities and give Illinois government back to the people."

The 10 steps are:

1. Ordering an immediate freeze on hiring and a moratorium on new spending programs. Also suspend out of state travel and in-state travel other than essential to conduct state business. A message needs to be sent that we are in a budget crisis.

2. Creation of an Efficiency Panel to recommend spending cuts, consolidations and streamlining. The panel will be appointed prior to inauguration and consist of business leaders, academicians and efficiency experts. It will do a cost-benefit analysis on all state spending. A first wave of recommendations will be due in 60 days and another in six months. We have identified a list of nearly 100 spending efficiencies identified by the Civic Federation, Taxpayer Action Board and Illinois Policy Institute. The Efficiency Panel can start with these recommendations and make others.

3. Reforming the state's big-ticket, unsustainable programs. "Cadillac" pension and retiree health care systems must be brought under control. Medicaid must be reformed. These are the big ticket items that need to be put on sustainable courses. In the short term, those reforms could save at least $2 billion and could solve the pension shortfall over 25 years.

4. Encouraging a constitutional amendment to limit spending to population growth plus rate of inflation or some other metric. Ryan proposed a similar cap in 2002 and had it been put in place, the state would have saved $13.7 billion from 2004-2008, according to the Illinois Policy Institute. Colorado has used a cap effectively and other states, including Minnesota, are considering their own spending limitations. Funds collected in excess would be returned to taxpayers or put in a rainy day fund.

5. Ushering in a new era of transparent government. A state-of-the-art new state government website will immediately be developed to make all state spending much more open and transparent than ever before in Illinois. Honest and effective government requires that citizens have easy access to government documents. Transparency will help unmask wasteful spending, fraud and abuse.

6. Emphasizing and rewarding efficiency throughout state government. Any non-supervisory state employee who identifies a new efficiency saving of at least $100,000 will be eligible for a $5,000 bonus or one-time salary adjustment. These adjustments will be given transparently and with stringent oversight, including requiring verification of taxpayer savings and requiring supervisors to sign affidavits vouching for the legitimacy of the tip. The bonus program will be re-evaluated after one year to make sure it is working properly.

7. Measuring results. Starting immediately, supervisors of all new and existing state spending programs and grants will be required to devise metrics to determine how effectively the program is operating. Those metrics will be monitored annually to make sure the program is meeting expectations and serving a critical public need.

8. Giving government back to the people. During his first year in office, Ryan will pledge to hold town hall meetings across the state at least once a month to report on the progress of state government and to give citizens a chance to speak out. No more hiding at home or in government offices.

9. Considering all innovative approaches to solve budget crisis. Those approaches include sale or lease of tollway and prudent monetization of any state asset or service. The difference with the Ryan approach compared to the Blagojevich-Quinn approach will be a focus on whether such a plan helps taxpayers instead of helping insiders.

10. Realizing that the long-term solution to budget problems is a vibrant, growing state economy. Illinois ranks near the bottom of all states in economic growth and job creation. As Governor, Ryan realizes that must change. He will work to lower the cost of doing business in Illinois in order to create a more vibrant economy, which will help alleviate chronic budget problems. Next week, he will unveil a more detailed plan to improve the economy and bring new jobs to Illinois.

Click here to visit the official Jim Ryan site. You'll find Ryan's Facebook group here, and you can follow his tweets here.

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