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LEAN Government

by The Wise One

Lean Government—kind of rolls off the tongue, doesn’t it?  Two of my hot-button issues for the upcoming gubernatorial election are personal (as opposed to corporate) tax burden and size of state government.  I think the two are closely related.  According to The Tax Foundation, we are the eighth highest state when it comes to total state and local tax burden as a percentage of personal income (as of 2002).  States like New York, Wisconsin, Hawaii, Minnesota and Rhode Island rank higher than us.  California, however, with all its problems, ranks 24.  In California, 7.3% of personal income goes to feed state government.  They must think that is too much, because they threw out their legally-elected governor and seated Arnold Schwarzenegger who promised to reduce that burden.  Here in Utah, the situation is even worse.  Our state government consumes over 12.6% of all our personal income (Source: Utah Foundation, Report Number 661).  Doesn’t that seem incongruous to you?  Why do we need such a large (and expensive) state government?  Did you know that over the decade 1992-2001 our state government grew faster, as a percentage of personal income, than any other state in the country?  We’re Number One!

 

That needs to change.  We need a Governor who will do the right thing and bring down the size of our state government.  My suggestion for him/her is to implement what I call LEAN Governing, which is based on the concept of LEAN Manufacturing.  At the little medical device manufacturing company where I work, we went from a traditional MRP-based manufacturing model to one based on kanbans and just-in-time inventory, which is part of LEAN Manufacturing, just over a year ago.  We brought in a team of consultants who sat down with the management team, and we essentially re-engineered the entire company.  We started out by mapping each individual step in the life-cycle of one of our products, from concept to retirement at end of life.  We discovered that there were nearly 6,000 of these steps, and it required 27 employees.  Then we went back and figured out all the unnecessary, non-value-added and often redundant tasks, and eliminated them.  We got down to 127 tasks that required only 18 employees.  After repeating this process for each of our products we had re-engineered the company, making it much more effective, reducing time to market and, along the way, downsizing it by about 25%.  I think the same thing could be done in state government.  I think a 25% reduction in the size and cost of Utah state government would be a wonderful thing for us long-suffering taxpayers.

Posted by windley on February 27, 2004 12:55 PM