Thinking About Governments Roles

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Thinking About Governments Roles

• Don Kettl
• June 13, 2000
• Blue-Ribbon Commission on
• State-Local Partnerships
• for the 21st Century

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Governments jobs
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Governments jobs and missions
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Governments jobs and missions . . . and roles?
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Ground rules

• Economic development challenge
• Funding
• Accountability
• Citizens
• Fair play

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Economic development

• Wisconsin faces challenge of rising to
  knowledge-age economy
• Brain drain
• Per capita income below national average
• Shrinking labor market
• Shortage of venture capital

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Economic development ground rule

• Any proposal must rise to the challenge of the
  21st century economy.
• Will a suggestion promote the creation of
  high-wage, high-growth jobs and a better quality
  of life?

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Funding

• Wisconsin economic facts
• Per capita income (1998)
• US average 26,412
• Wisconsin 25,079
• State/local revenue as percentage of personal
  income (1996)
• US average 11.3
• Wisconsin 13.3 (rank 4)

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Funding, contd

• Wisconsin economic facts (1996)
• Tax capacity (ability to pay)
• 97 of national average (rank 25)
• Tax effort (taxes compared with ability to pay)
• 116 of national average (rank 3)
• 1 (tied) DC, NY
• 3 (tied) WI, VT
• 5 AK
• 8 MN
• 17 MI
• 26 IL

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Funding ground rule

• Given the heavy tax effort of Wisconsin
  taxpayers, any proposal to put more money into
  the state-local system assumes a very high burden
  of proof.

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Accountability

• Language for conversation
• Clear link between taxing and spending
• Government that spends money raises it
• or
• Performance system that ties funds to results
• What are the connections?
• among citizens, elected officials, taxes, and
  programs

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Accountability ground rule

• Any proposal must give elected officials the
  ability to ensure that tax dollars produce
  results.

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Citizens

• Citizens are at the center
• Governments must work together to serve the needs
  of citizens

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Citizens ground rule

• Any proposal must demonstrate its value for
  citizens.

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Fair play

• Wisconsins current situation is the product of a
  long history.
• Rich traditions
• Enduring conflicts

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Fair play ground rule

• No proposal can protect any player from change
• Everything is on the table.
• No one gets a free pass.

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Ground rules

• Any proposal must rise to the challenge of the
  21st century economy.
• Given the heavy tax effort of Wisconsin
  taxpayers, any proposal to put more money into
  the state-local system assumes a very high burden
  of proof.
• Any proposal must give elected officials the
  ability to ensure that tax dollars produce
  results.
• Any proposal must demonstrate its value for
  citizens.
• No proposal can protect any player from change
• Everything is on the table.
• No one gets a free pass.