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August 20, 2004
(Culp, A Tool Is a Tool Is a Tool - 2)

Take Arnold Schwarzenegger’s whirlwind descent on Sacramento. The new governor arrived on the wings of promises to reform the state government. He must have read the same operating manual as Newsom, because his approach from the beginning has been to negotiate private contracts instead of waiting for legislated agreements. He has refused to get bogged down in capital politicking, preferring to market his programs directly to the people, who are then presumably supposed to pressure their elected representatives to vote as he wishes. And he has been largely successful, rolling back an unpopular but needed automobile registration fee, for example, and persuading five Indian nations to sign individual compacts regulating casino activity.

In early August the day arrived when Schwarzenegger triumphantly announced, “A promise made, a promise kept.” The “promise” arrived in the form of a 2,500-page “California Performance Review,” which presents more than 1,000 suggestions of ways to “make California the first true 21st century government in America, a government that is as innovative and dynamic as the state itself.”

The government in Sacramento could indeed use a leg-up into the 21st century. And the California Budget Project notes that many of the report’s recommendations provide just that: The “proposals to increase the efficiency and/or ‘user friendliness’ of state government … are modest improvements that make sense and could be implemented without restructuring state government or making major policy changes.” In other words, they’re useful tools.

But they don’t reinvent government. Other provisions do. Most specifically, says the governor’s office, “the California Performance Review will consolidate common functions and responsibilities in single departments, ensure departments with analogous subject matter responsibilities are grouped together for efficient and effective leadership by cabinet secretaries.” Efficient indeed. And dangerous.

At present, many of the regulatory functions of the state government are performed by quasi-independent boards, with members appointed by the governor for fixed terms. The review commission examined 339 of these agencies, and recommended 118 for extinction. In their place would be a very small number of new divisions — Health and Human Services, Higher Education, Labor and Economic Development, Infrastructure, Commerce and Consumer Protection, Public Safety and Homeland Security, Environmental Protection, Natural Resources — nestled safely within the governor’s cabinet structure. A Chronicle article  reporting on the proposal says that critics fear the new offices will sway according to the whim of their boss. “Many legislators and environmental groups say Gov. Arnold Schwarzenegger … is responding to campaign promises to forge a ‘business-friendly California’ by getting rid of some of the most effective boards, which have routinely set national precedents with their policies of cracking down on air and water polluters.” The governor has also joked about the next step: “A part-time Legislature is something I'm looking forward to.” Or was it a joke?

Schwarzenegger has been doing what any good CEO would do. He’s been cutting through a lot of bureaucratic dead wood to get results. In choosing this approach, he’s not alone. Far from it. In fact, he’s keeping some pretty high-powered company.

During the past week, the newspapers have carried one article after another tracing the end run that the Bush administration has done around Congress as it exercises its executive power to the utmost. On Saturday, August 14, the New York Times ran a front-page story headlined, “Out of Spotlight, Bush Overhauls U.S. Regulation.” It reported that, while Americans are glued to their TV screens and computer monitors, following the latest events in Iraq, the administration has quietly introduced a host of new rules that determine how federal agencies operate. In an era when government bureaucracies loom large in Americans’ daily lives, these agencies watch out for our health, environment, and work- or product-safety. In other, more peaceful times, members of Congress might have weighed in on behalf of their constituents as regulations were relaxed. But preoccupied with the War on Terror, they were looking the other way when the administration carried out a campaign promise to simplify the way the government does business.

“Business” is the operative word. The Times article notes:

The overall regulatory record shows that the Bush administration has heeded the interests of business and industry. Like the Reagan administration, which made regulatory reform a priority, officials under Mr. Bush have introduced new rules to ease or dismantle existing regulations they see as cumbersome. Some analysts argue that the Bush administration has introduced rules favoring industry with a dedication unmatched in modern times.

On Sunday the Washington Post took up the melody, running the first of three articles, entitled “Bush Forces a Shift in Regulatory Thrust — OSHA Made More Business-Friendly.” Part 2, “‘Data Quality’ Law Is Nemesis of Regulation,” appeared on Monday, followed by Part 3, “Appalachia Is Paying Price for White House Rule Change,” on Tuesday.

The details are different, but the story is the same. The people at the Post examined an Office of Management and Budget database covering the past 20 years to find out how recent presidents have regulated agencies’ regulatory actions.

All presidents have written or eliminated regulations to further their agendas. What is distinctive about Bush is that he quickly imposed a culture intended to put his anti-regulatory stamp on government.

Unlike his two predecessors, Bush has canceled more of the unfinished regulatory work he inherited than he has completed, according to The Post’s analysis. He has also begun fewer new rules than either President Bill Clinton or President George H.W. Bush during the same period of their presidencies.

Once again, the theme is simplification, with an eye toward cost-savings.

On Tuesday, the San Francisco Chronicle transposed the tune to a new key with an article by Don Lattin, the paper’s religion writer: “Bush's Faith-Based Changes Scrutinized —
He Has Made Changes Without Congress' OK.”
  The scrutinizer is the Albany-based Rockefeller Institute of Government, which has just released a report called “The Expanding Administrative Presidency — George W. Bush and the Faith-Based Initiative.” The process under scrutiny is the same:

In the absence of new legislative authority, the President has aggressively advanced the Faith-Based Initiative [issued in January 2001] through executive orders, rule changes, managerial realignment in federal agencies, and other innovative uses of the prerogatives of his office.

But this time, the energetic application of executive power achieved a very different result. Instead of simplification, Bush’s faith-based program created more bureaucracy. Not only did he act quickly, redeeming a campaign promise just nine days into his presidency by creating the White House Office of Faith-Based and Community Initiatives (WHOFBCI). But soon afterward he also established FBCI branch offices in a number of federal agencies to implement the initiative by helping “the federal government coordinate a national effort to expand opportunities for faith-based and other community organizations and to strengthen their capacity to better meet social needs in America’s communities.” What is unusual, the report suggests, is not the Bush administration’s unilateral exercise of power but its scope:

The innovation in the Bush Faith-Based Initiative is the creation of a high-profile special office in the White House, connected to mini-offices in ten government agencies, each with a carefully selected director and staff, and empowered to articulate, advance and oversee coordinated efforts to win more financial support for faith-based groups as publicly-aided providers of domestic public services.

What is not unusual is the rationale given for the action. Last March Bush explained to a group of faith-based leaders in Los Angeles,

I got a little frustrated in Washington because I couldn’t get the bill passed out of the Congress. They were arguing process. I kept saying, “Wait a minute, there are entrepreneurs all over our country who are making a huge difference in somebody’s life; they’re helping us meet a social objective. Congress wouldn’t act, so I signed an executive order — that means I did it on my own.” In other words, it was just good business.

Bush has been doing what any good CEO would do. He’s been cutting through a lot of bureaucratic dead wood to get results. In choosing this approach, he’s not alone. Far from it. In fact, he’s keeping some pretty high-powered company.

Newsom and Schwarzenegger and Bush — standard-bearers for a new, better way of governing.

The frightening thing is what’s missing. Amid all the talk of user friendliness, equal opportunity, and service for the people, there’s little talk of democracy. “We believe deeply in government,” say Osborne and Gaebler. “How do we act collectively? Through government.” Through ­reinvented government.

It’s a truism that democracies are messy. And they’re not particularly efficient. More than 200 years of experience have demonstrated that they are also in frequent need of mending, as one branch or another becomes vulnerable to the appetites of special interests. But when we insist that the checks and balances established by the Constitution do their job, our particular form of democracy works pretty well.

The problem is that there is nothing innately cooperative about the executive, legislative, and judicial branches. Quite the contrary. The government operates in a kind of political free market, where each branch uses every tool at its disposal to compete with the other two for power.

That’s where the “reinventers of government” come in — not as heralds of a new technological, knowledge-based era, but as the creators of a new political tool to assist the executive branch in its struggle. In the past decade, legislatures and courts have sat silent, as though stunned, as CEO-type executives surged ahead. In the past, every time our democracy has become skewed, it has managed to right itself. It undoubtedly will again.