How to Cut Government 101


April revenues for the State of Idaho came in $55 Million lower than anticipated. How do we make ends meet in the state budget, without raising taxes, when revenues are drying up?

On February 1, 2009, the Idaho Freedom Foundation’s Wayne Hoffman wrote, “An audit of the Idaho Transportation Department shows as much as $37 million could be saved by changing procedures and operations within the agency. That alone should be cause for pause. Each penny increase in the gas tax raises $9 million, according to the state Transportation Department. That means four cents of the 10-cent fuel tax increase won’t even cover the cost of inefficiency.”

On March 31, 2010, the Idaho Statesman Editorial Board opined,

“From January 2007 to September 2009, Idaho spent $6.8 million holding prisoners past their tentative parole dates. When dollars are tight everywhere in state government – including the prisons system – this estimate from state auditors should pique the curiosity of Gov. Butch Otter.

Yet Otter largely dismissed the audit scrutinizing Idaho’s Commission of Pardons and Parole – and criticizing Olivia Craven, the commissions longtime and politically connected executive director.

An audit of the Idaho Transportation Department shows as much as $37 million could be saved by changing procedures and operations within the agency. That alone should be cause for pause. Each penny increase in the gas tax raises $9 million, according to the state Transportation Department. That means four cents of the 10-cent fuel tax increase won’t even cover the cost of inefficiency.”

Clearly, there are savings to be had by running state government more efficiently. In less than a year, my two Ada County Commission colleagues and I cut the county’s budget by more than 11 percent – $22 Million – by eliminating or consolidating departments and finding wasteful, unnecessary spending and eliminating that, as well. All this was done without appreciably cutting services.

In addition to cutting unnecessary spending, revenue can be increased without a tax increase, if the state’s administration were to vigorously pursue the collection of unpaid taxes and other payables already due the state.

Here are suggestions of some other places where attention should be focused and savings methodically pursued:

  • Consolidate school district administration. Currently, less than half of the public education employees in Idaho are classroom teachers.
  • Reclaim durable medical equipment that has been purchased with state funds. For example, once the need is no longer there, we can reclaim and reuse $8000 scooters, provided to people who are disabled.
  • Realize greater economies of scale with a consolidated purchasing department for school districts and other government agencies.
  • Parole inmates on time to save money. According to a Legislative audit, it cost an estimated $6.8 Million to keep parole-eligible inmates in prison from January 2007 through September 2009.
  • Increase use of alternative sentencing. Twenty-five percent of inmates are in prison for drug and alcohol offenses.
  • Put the state’s checkbook online and let taxpayers help find wasteful spending.
  • Use performance auditors to find wasteful spending and assure that dollars are spent wisely.
  • Implement a “workfare” program to replace the current welfare system.
  • Reduce duplication of effort by consolidating commissions, boards, departments, agencies and districts.

Ultimately, we need to look at the proper role of government and set priorities.

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