Posted on: Monday, January 31, 2005
Hawai'i gets a C in governance
By Robert Tanner
Associated Press
The financial downturn of the past few years left states with ailing tax systems, neglected infrastructure and aging workforces, a new nationwide analysis concludes. It also says that many states struggle with basic flaws in their tax systems, bringing their governments too little money to pay for everything from roads to healthcare to schools.
The silver lining, according to the Government Performance Project released today, was that the fiscal crisis drove many states to become innovative and more efficient. The authors of the report, academics drawn from across the country and journalists at Governing magazine, hope that state leaders will share examples of good governance highlighted in the analysis.
"There isn't any state that can't learn from the others," said Don Kettl, a political-science professor at the University of Pennsylvania and the project's academic coordinator. "No state really has everything under control. And different states have different lessons to teach."
The study, a project of the University of Richmond that was funded by The Pew Charitable Trusts, an independent, nonpartisan group, awarded letter grades to each state on how it handled finances, personnel, infrastructure and modern information systems through the downturn, plus an overall grade.
Hawai'i scored a C. The study cited the state's heavy spending on public education, yearly raids on the rainy day fund and too little funding dedicated to maintaining its own facilities.
The report said that because the state of Hawai'i is responsible for every public school in the Islands, its debt tends to be very high, which leaves little room for borrowing, and also noted that "a series of generous agreements with the state's powerful public employee unions has put the budget under chronic stress."
Hawai'i lawmakers also have taken $10 million from the state's rainy day fund each of the past couple of years, "leaving it stuck in the sand at the $50 million figure, too little to be of much help in a serious fiscal crisis," the study's authors said in their summary of the state.
The study's authors, however, praised Hawai'i's human-resources management, noting that a law that took effect in 2002 has made it easier to fill crucial positions within the state government.
The study said that although Gov. Linda Lingle's administration says it is ready to make substantial management improvements, it has a long way to go.
"There is certainly room for improvement," state Budget Director Georgina Kawamura told the study's authors.
No state failed. Utah and Virginia scored the highest overall, each with an A-minus. Alabama and California scored the worst, each with a C-minus.
The report sought to accentuate the positive, and particularly praised:
• Virginia's financial management, which includes six-year plans. Leaders also have sought to modernize the tax system. • Georgia's handling of personnel. The state considers its workforce needs along with operating strategy. • Utah's work to keep its infrastructure — roads, bridges, government buildings — well-maintained.
