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GOOD MORNING CHAIRMAN ISTOOK AND MEMBERS OF THE SUBCOMMITTEE. I AM LINDA W. CROPP, CHAIRMAN OF THE COUNCIL OF THE DISTRICT OF COLUMBIA. ON BEHALF OF THE COUNCIL, I AM HERE BEFORE YOU TODAY WITH MAYOR WILLIAMS AND DR. RIVLIN TO TESTIFY ON THE STATUS OF THE DISTRICT GOVERNMENT'S MANAGEMENT REFORM EFFORTS. MY TESTIMONY WILL BE BRIEF, BECAUSE I DO NOT BELIEVE THAT I HAVE MUCH LIGHT TO SHED ON THIS SUBJECT AT THIS TIME. WE WILL BE REVIEWING THE GENERAL ACCOUNTING OFFICE'S REPORT ON THE DISTRICT GOVERNMENT'S MANAGEMENT REFORM PROJECTS. ALTHOUGH THE COUNCIL ASSISTED IN THE INITIAL IDENTIFICATION AND DEVELOPMENT OF THESE PROJECTS, WE HAVE BEEN PROVIDED SCARCE INFORMATION ABOUT THE STATUS OF PROJECT EXPENDITURES DESPITE OUR INQUIRIES ABOUT THEM. AS YOU KNOW, MANAGEMENT REFORM WAS AN EFFORT INITIATED BY THE FINANCIAL AUTHORITY UNDER THE FORMER CHIEF MANAGEMENT OFFICER OF THE DISTRICT. THE FINANCIAL AUTHORITY, NOT THE COUNCIL, APPROVED CONTRACTS ASSOCIATED WITH MANAGEMENT REFORM PROJECTS AND OVERSAW THEIR IMPLEMENTATION. FROM THE START, THE COUNCIL HAS CONSISTENTLY VOICED THE CONCERN THAT TENS OF MILLIONS OF DOLLARS IN CONSULTANT CONTRACTS WERE BEING AWARDED IN THE NAME OF MANAGEMENT REFORM. THESE CONTRACTS RESULTED MOSTLY IN REPORTS THAT DESCRIBED LONGSTANDING FAMILIAR PROBLEMS IN THE DISTRICT GOVERNMENT, AND THESE REPORTS ALSO RECOMMENDED SOLUTIONS WHICH, IN MANY INSTANCES, HAD PREVIOUSLY BEEN RECOMMENDED EITHER BY THE COUNCIL OR OTHER BODIES IN PREVIOUS REPORTS. WE HAVE NOT SEEN A COMPREHENSIVE ASSESSMENT OF WHETHER AND WHERE DOLLARS WERE ACTUALLY EXPENDED ON THE IMPLEMENTATION OF THE SOLUTIONS THAT WERE RECOMMENDED IN THE CONSULTANT REPORTS. THE INFORMATION HAS BEEN REQUESTED. MY SENSE IS THAT SOME OF THE MANAGEMENT REFORM DOLLARS DEDICATED TO ACTUALLY SOLVING PROBLEMS, AS OPPOSED TO SIMPLY WRITING REPORTS ABOUT THE PROBLEMS, HAVE BEEN SPENT ON RAISING THE SALARIES OF MANAGERS IN DISTRICT GOVERNMENT AGENCIES, AS PART OF AN EFFORT TO RETAIN AND ATTRACT A HIGHER QUALITY MANAGEMENT TEAM, WHICH WAS GREATLY NEEDED. I REALIZE THAT, FROM YOUR PERSPECTIVE, THAT THIS MAY BE PROBLEMATIC BECAUSE IT WAS NOT A ONE-TIME EXPENSE. HOWEVER, I CAN ASSURE YOU THAT THE DISTRICT HAS AT LEAST SHOULDERED THE ONGOING COST OF THESE PAY SCALES WITH LOCAL FUNDS FOR THE OUT YEARS. THE COUNCIL HAS PLAYED AN ACTIVE ROLE OVER THE PAST FEW YEARS IN ENACTING MAJOR REFORMS WHICH HAVE BEEN RECOMMENDED BY THE MAYOR AND VARIOUS EXPERTS TO MANY STATUTES THAT GOVERN DISTRICT OPERATIONS. FOLLOWING OVERSIGHT AND OTHER PUBLIC HEARINGS BY COUNCIL COMMITTEES, LEGISLATIVE REFORMS HAVE BEEN ADOPTED VIRTUALLY ACROSS THE BOARD, INCLUDING MAJOR CHANGES TO OUR PROCUREMENT LAW, OUR PERSONNEL LAW, OUR BUSINESS REGULATORY ENVIRONMENT, OUR TAX STRUCTURE, POLICE DEPARTMENT PERSONNEL REQUIREMENTS, AND, MOST RECENTLY, TO OUR SCHOOL GOVERNANCE AND CRIMINAL SENTENCING SYSTEMS, JUST TO NAME A FEW. IMPLEMENTATION OF MANY OF THESE STATUTORY REFORMS HAS BEGUN BY THE EXECUTIVE AND OTHER AGENCIES, BUT MUCH MORE IMPLEMENTATION SURELY NEEDS TO BE DONE, IN THESE AND OTHER AREAS OF REFORM. AS YOU KNOW, MR. CHAIRMAN, THE COUNCIL ALSO HAS TAKEN AN ACTIVE ROLE IN REQUIRING PERFORMANCE MEASURES FOR DISTRICT AGENCIES AND PUBLICLY FUNDED ACTIVITIES. IN 1995, THE COUNCIL ENACTED THE GOVERNMENT MANAGERS ACCOUNTABILITY ACT, WHICH REQUIRES THE ESTABLISHMENT OF PERFORMANCE MEASURES AND AN ACCOUNTABILITY PLAN FOR EVERY AGENCY AND ACTIVITY IN THE DISTRICT THAT USES PUBLIC FUNDS. THE COUNCIL HAS USED PERFORMANCE MEASUREMENTS AS A TOOL IN ITS REVIEW OF THE FISCAL YEAR 2001 BUDGET. WE WANT TO ENSURE THAT GOVERNMENT RESOURCES ARE LINKED TO SPECIFIC PERFORMANCE GOALS AND MEASUREMENTS — GOALS AND MEASUREMENTS THAT CAN NOT ONLY BE TRACKED BY THE DISTRICT GOVERNMENT, BUT BY DISTRICT RESIDENTS AS WELL. AS YOU EXAMINE THE FY 2001 BUDGET, I THINK YOU WILL FIND THAT IT ADDRESSES OUR PROGRAMMATIC PRIORITIES (CLEAN/SAFE NEIGHBORHOODS; TAX REFORM; QUALITY HEALTH CARE; ECONOMIC DEVELOPMENT AND JOB GROWTH; AND EFFECTIVE EDUCATION SYSTEM) IN A WAY THAT ENSURES GOVERNMENT ACCOUNTABILITY FOR RESULTS. THE COUNCIL WILL BE WORKING CLOSELY WITH THE D.C. AUDITOR IN MONITORING THE IMPLEMENTATION OF THE GOVERNMENT MANAGERS ACCOUNTABILITY ACT, INCLUDING ASSESSING THE RELIABILITY OF PERFORMANCE DATA, THE ACCURACY OF PERFORMANCE MEASUREMENTS, AND THE LEVEL OF SUCCESS IN ACHIEVING PERFORMANCE MEASURES. WHILE A FULL ACCOUNTING OF THE DISTRICT'S MANAGEMENT REFORM EFFORTS MAY BE UNCLEAR, ONE MAJOR IMPACT OF THOSE EFFORTS IS EXPECTED TO BE REALIZED VERY SOON. THE FY 2001 BUDGET IS PREDICATED UPON THE REALIZATION OF MANAGEMENT REFORM PRODUCTIVITY SAVINGS IN THE AMOUNT OF $37 MILLION. THE PROPOSED SAVINGS IS TO BE ACHIEVED THROUGH THE ELIMINATION OF 1.000 FTE POSITIONS IN THE DISTRICT GOVERNMENT. THIS WILL BE DONE BY OFFERING A RETIREMENT INCENTIVE PROGRAM-WHICH THE COUNCIL AUTHORIZED — AND IDENTIFYING VACANT POSITIONS THAT DO NOT NEED TO BE FILLED. THE DISTRICT GOVERNMENT, THROUGH ITS OFFICE OF PERSONNEL, HAS BEGUN THE PROCESS OF IMPLEMENTING THESE SAVINGS. FINALLY, THE COUNCIL HAS NOT EXEMPTED ITSELF FROM MANAGEMENT REFORM. THE COUNCIL COMMISSIONED A STUDY BY THE NATIONAL CONFERENCE OF STATE LEGISLATURES AND WORKED COOPERATIVELY WITH THE APPLESEED FOUNDATION IN THEIR STUDY OF COUNCIL OPERATIONS. THE COUNCIL HAS ALREADY IMPLEMENTED MANY OF THE RECOMMENDATIONS FROM THESE TWO STUDIES. IN CONCLUSION, TAXPAYERS AND THE PUBLIC DESERVE TO KNOW WHAT THE POSITIVE, CONCRETE RESULTS HAVE BEEN FROM MANAGEMENT REFORM EFFORTS, WITH SPECIFIC PERFORMANCE MEASUREMENTS ASSOCIATED WITH: IMPROVED QUALITY OF SERVICE, REDUCED COSTS, EFFICIENCY AND EFFECTIVENESS. THE COUNCIL WILL CONTINUE TO WORK COOPERATIVELY WITH THE MAYOR AND OTHERS TO ENSURE IMPLEMENTATION OF THOSE MANAGEMENT REFORM INITIATIVES THAT IMPROVE DELIVERY OF ESSENTIAL AND BASIC SERVICES TO OUR RESIDENTS, BUSINESSES AND VISITORS. |
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