Reason Foundation Innovators in Action Mayor Governor Rudolph Giuliani Jeb Bush Mayor Governor Curt Pringle Bill Owens Edited by Geoffrey F. Segal, Director of Privatization Reason Foundation Reason Foundation’s mission is to advance a free society by developing, apply- ing, and promoting libertarian principles, including individual liberty, free markets, and the rule of law. We use journalism and public policy research to influence the frameworks and actions of policymakers, journalists, and opin- ion leaders. Reason Foundation’s nonpartisan public policy research promotes choice, competition, and a dynamic market economy as the foundation for human dignity and prog- ress. Reason produces rigorous, peer-reviewed research and directly engages the policy pro- cess, seeking strategies that emphasize cooperation, flexibility, local knowledge, and results. Through practical and innovative approaches to complex problems, Reason seeks to change the way people think about issues, and promote policies that allow and encourage individuals and voluntary institutions to flourish. Reason Foundation is a tax-exempt research and education organization as defined under IRS code 501(c)(3). Reason Foundation is supported by voluntary contributions from individuals, foundations, and corporations. The views expressed in these essays are those of the individual author, not necessarily those of Reason Foundation or its trustees. Copyright © 2007 Reason Foundation. All rights reserved. Innovators in Action Contents Introduction: Innovators in Action ............................................................................. 1 Edited By Geoffrey F. Segal Improvement Requires Willingness to Change ...........................................................3 By Governor Jeb Bush Addressing Public Challenges with Private Partners ..................................................6 By Governor Bill Owens Management Requires Measurement: The Key to New York City’s Renaissance ..........8 By Mayor Rudolph Giuliani A Bias Towards Freedom: Freedom Breeds Choice and Innovation in Anaheim ......... 13 By Mayor Curt Pringle Running Government More Like a Business ............................................................. 19 By Delegate Christopher B. Saxman Using Competition Because Taxes Are Too High .......................................................22 By Commissioner R. Patrick DeWine Steering Not Rowing................................................................................................24 By Secretary E. Mitchell Roob Jr. City of Charlotte’s Privatization and Competition Advisory Committee .....................27 By David Elmore Democrats and Public-Private Partnerships Toll Roads ............................................. 31 By Robert W. Poole, Jr. Prominent Mayors Champion School Choice ...........................................................35 By Lisa Snell Innovators in Action Introduction: Innovators in Action Edited By Geoffrey F. Segal ut a candidate on the campaign trail In the following essays by some of Pand watch him raise the banner of government’s most innovative policymakers, reform—but once in office, elected officials six common themes emerge: quickly discover that the road to reform is 1. Ask questions. Sometimes congested with failed programs, entrenched meaningful change begins with a simple special interests, and a lack of political question. Florida Governor Jeb Bush will. However, the need for real reform is challenged his administration to answer urgent, as government at all levels is faced fundamental questions about the business with a triple threat of unfunded pensions, of government by asking “why?” and “why spiraling health care costs, and crumbling not?”—and his efforts to make government infrastructure. Traffic congestion continues more competitive saved more than $20 to choke our metropolitan areas, threatening million in taxpayer dollars. our economic competitiveness and even our 2. Measure performance. How can way of life. Even our nation’s water and you tell success from failure if you’re not wastewater systems are facing upwards of measuring? Mayor Rudy Giuliani used $1.2 billion in repairs—and the cost for all performance measurement to manage of this will be borne by you. effectively and achieve policy outcomes, not It was Shakespeare who said “what just outputs. is past is prologue”—and when it comes 3. Challenge existing paradigms. Gone to government reform, we can learn from are the days government “goes it alone,” what has been successfully implemented writes former Colorado Governor Bill elsewhere. Innovators in Action showcases Owens in arguing that new paradigms are the efforts of visionaries who have moved emerging in how government operates and policy from the theoretical to the practical. interacts with citizens. In many ways a Thanks to this remarkable group of traditional government response will not reformers, government has become more meet the challenges of the 21st century. responsive, more effective and more 4. Embrace technology. Technology efficient. has improved our lives significantly, but its Innovators in Action potential has not been fully embraced inside is possible—and their ideas are taking hold the halls of government. Indiana Family in the highest echelons of government. and Social Services Administration Secretary In recent testimony to Congress, U.S. E. Mitchell Roob, Jr. is using the power of Comptroller General David Walker, stressed technology to refocus government programs the urgency of the problem when he noted back onto the customer while saving that “delay does not avoid action—it just millions of taxpayer dollars. makes the steps that have to be taken more 5. Utilize transparency. By shining dramatic and potentially harder. We owe a light on wasteful spending, reformers it to our country, to our children and to can make a stronger case for change. our grandchildren to address this fiscal Virginia Delegate Chris Saxman is showing imbalance. The world will present them that transparent government is more with new challenges—we need not bequeath accountable, more competitive government, them this burden too. The time for action is and will yield better services at a lower cost now.” to taxpayers. It’s time for a new way of thinking. 6. Embrace competition and market We know that government isn’t going forces. In Anaheim, California, a city known to reform itself—but for reform to have best as the West Coast home of Mickey a chance we must break down the tired Mouse, Mayor Curt Pringle has used market constraints of government-as-usual and forces and market-based incentives to create create new paradigms for change. Following one of the most dynamic economies in the examples and lessons learned from the Southern California. actions of these innovators will show the Reformers like these prove that change path to real, sustainable, effective reform. Lessons from Innovators 1. Ask questions 2. Measure performance 3. Challenge existing paradigms 4. Embrace technology 5. Utilize transparency 6. Embrace competition and market forces Reason Foundation • www.reason.org Innovators in Action Improvement Requires Willingness to Change By Governor Jeb Bush he world has changed dramatically in government. I believe the fundamental role Ta short period of time. Advances in of government should be to keep us safe from technology have revolutionized the way we threats both foreign and domestic, build the live. infrastructure and human capital that creates Thirty years ago, no one had a computer opportunity and fuels our economy, and care in his home. Now, many people have for the truly vulnerable among us. Blackberries in their pockets. The Internet A government that grows significantly allows inspiration and ideas to travel at beyond these core responsibilities will warp speed across continents and oceans eventually grow beyond our ability to pay in seconds. Medical breakthroughs are for it. When government grows in scope, its allowing people to live longer, with a better size and cost grow too—often exponentially. quality of life. Requiring a balanced budget, allowing the The world is “flatter” and more line-item veto, prohibiting earmarks, and connected than ever before. Trends that used capping the growth of government are to take years to develop, now take months sound fiscal measures to rein in runaway to take hold. Economies are emerging every government spending. day to challenge our dominance in the global The second step is developing a zeal for marketplace, where innovation and ideas are reform. Constantly challenging the status as commonplace as goods and services. quo with questions like “why?” and, perhaps Yet, government, with few exceptions, more importantly, “why not?,” creates an still works like it did in the 1950s, with a ongoing cycle of improvement. Controlling pyramid-style, top-down bureaucracy that costs is just part of the benefit. Getting moves with tortoise-like speed. For America better value for the taxpayers is an equally to succeed in the increasingly competitive important part of the equation too. global economy, our government needs to be As Governor of the great state of Florida, able to quickly adapt to this new, changing I spent a lot of time asking the question, world. “why?” and even more time asking, “why The first step is clearly defining the role of not?” Innovators in Action During a policy and budget briefing in the across jurisdictions with multiple radio transition prior to my taking office, I learned systems all on