Archive for August, 2010

Too Much Government in Too Many Places

local government reform No Comments »

Check out these words of New York Attorney General (and candidate for governor) Andrew Cuomo:

Our system of local government is broken … New York has more than 10,521 overlapping governments, including counties, towns, villages, school districts, special districts and public authorities. These entities impose layer upon layer of taxing structures — with citizens receiving multiple tax bills annually — resulting in the highest local property tax burden in the nation … To hold government to account the people must have a government they can understand. But what they have today instead at the local level is a ramshackle mess. The current local government system is the product of sheer historical accumulation — not logic, reason or common sense.

Well said. No, make that very well said. The Indiana Chamber and many, many others have put forth a strong case in recent years that township government in our state is beyond repair. Each new revelation of outlandish township reserves, unsightly administrative costs to deliver poor relief and outright criminal behavior further makes the point.

But like most challenges, it’s not just an Indiana problem. The Governing magazine article that featured the Cuomo quote also included the following. Maybe, just maybe, the momentum will grow, lawmakers will step up to the plate and all Hoosiers will benefit.

Rich Pahls, a Nebraska state senator from Omaha, has proposed merging many of his state’s 93 counties. The jurisdictions were designed for the days of the horse and buggy, he pointed out to the New York Times, not an era when “people will drive 100 miles to the grocery store.”

New Jersey, meanwhile, has some of the highest property taxes in the country, thanks in part to its 567 municipalities, a third of them with fewer than 5,000 residents, along with 611 school districts and 486 local authorities. Bergen County alone has 70 school districts and 76 superintendents.

New York State has more than 10,500 governmental entities that levy taxes and fees, and that depend on state largesse for any number of needs. This includes towns, villages and a multiplicity of water, sewer, lighting, school, 911 and other districts. Erie County, which is where Buffalo is located, has over 1,000 such local governing entities alone.

But while political leaders in the U.S. have been talking about local government rationalization, in Denmark, they’ve actually done it.

In 2007, Denmark shrunk the number of municipalities from 271 to 98. County government was completely eliminated. Fully 455,000 local government employees were involved in the restructuring; and 30,000 physically relocated to a new site. The government projects $274 million (1.6 billion DKK) in savings from the restructuring.

The implementation of this massive reform, which began in 2002, offers important lessons as other governments look to achieve big cost savings through rationalizing local government.

Anyone hoping to rationalize the delivery of services from the state level on down must first understand where the opportunities lie to eliminate duplication and inefficiency. Then, you need to lay the groundwork for public acceptance of the change. Both of these goals can be served by gathering hard data on what every unit of government does, how much it spends and what it gets for its money. Only after these goals have been achieved can you make that information readily available to the public.

This is not an easy task. The collection of data alone is enormous. But data gives you the ability to shine a light on what is taking place under the status quo, making the tough task of driving change a little easier.

Bowen Engineering Founder to Teach at Purdue

Business News, Education No Comments »

Having interviewed Bob Bowen for a BizVoice article in the past, I can vouch for the fact that it rarely takes him long to bring up his passion for Purdue University. (Funny, during the conversation, I conveniently neglected to mention the four years I spent in Bloomington.) Now, the founder of Bowen Engineering Corporation, a thriving central Indiana company that has many Boilers on staff, will parlay his passion for Purdue into helping a new generation of graduates:

Robert Bowen, founder and chairman of Bowen Engineering Corp., is the first Hancher Distinguished Fellow, teaching a class in construction engineering and management at Purdue University this fall.

Donn Hancher was one of the founding faculty members of the College of Engineering’s Division of Construction Engineering and Management. He earned his bachelor’s, master’s and doctorate degrees in civil engineering at Purdue and was a faculty member for 16 years.

The teaching fellowship will be funded by an endowment set up by engineering alumni, including Bowen.

While fundraising for the endowment is still under way, Bowen is volunteering his time to teach during the fall semester. His class, "Leadership and Advanced Project Management," focuses on the technical challenges of the construction industry and the managerial decisions needed to keep a project moving forward.

"Donn Hancher and Bob Bowen have something key in common: They both are passionate about the success of Purdue’s CEM program and its students," said Mark Hastak, head of construction engineering and management.

When fully funded, the Hancher fellowship will be a renewable, three-to-five-year teaching appointment, Hastak said. The idea is to find professionals who are willing to share their experience and knowledge with future leaders in the industry.

"CEM has been searching for ways to involve industry leaders in the classroom, and the Hancher Distinguished Fellow is perfect," Hastak said.

The classes will involve more than war stories, he added. "The Hancher Fellow will push our students to a better understanding of the challenges they will face and the skills they will need."

Filibuster: Changing the Magic Number?

Government No Comments »

Recent reading included a short piece about a potential change to the filibuster law. If pursued, it would not come without controversy.

For those following the goings-on in Washington over the past couple of years, 60 has been the magic number for the Senate to cut off debate on legislation that lacks bipartisan support (which has been harder to find than "insert your own joke here"). Republicans have used their now 41-seat minority to block action on several issues, while Dems have offered various "perks" to gain support. The current party in power wants to lower that number to 55.

It can be done on the first day of the next session. Vice President Joe Biden can overrule the certain GOP objection and set the stage for the rule change, but how will voters react in 2012? Will they take it out on the Democrats as a "power grab?" The determining factor might be the final tally after this November’s election. A 54-46 majority might be enough to convince Dems this is their only course of action in order to achieve their objectives.

By the way, there was no cloture (the official name for the filibuster rule) before 1917. Debate could not end as long as one senator was willing to keep talking on the Senate floor. The original cloture required 67 votes; Democrats lowered that number to 60 in1975. 

Broad Reach for Broadband?

Government, Technology No Comments »

By a 53 percent to 41 percent margin, Americans say they do not believe that the spread of affordable broadband should be a major government issue. After an extended period of sustained growth, there was little change this year in the adoption of broadband service across the United States. A new survey from Pew Internet has these results and more:

Americans have decidedly mixed views about the problems non-broadband users suffer due to their lack of a high-speed connection. There is no major issue on which a majority of Americans think that lack of broadband access is a major disadvantage.

  • Job opportunities and career skills: 43% of Americans believe that lack of broadband is a “major disadvantage” when it comes to finding out about job opportunities or gaining new career skills. Some 23% think lack of access is a “minor disadvantage” and 28% think it is “not a disadvantage.” 
  • Health information: 34% of Americans believe that lack of broadband is a “major disadvantage” when it comes to getting health information. Some 28% think lack of access is a “minor disadvantage” and 35% think it is “not a disadvantage.”
  • Learning new things to improve and enrich life: 31% of Americans believe that lack of broadband is a “major disadvantage” when it comes to learning new things that might enrich or improve their lives. Some 31% think lack of access is a “minor disadvantage” and 32% think it is “not a disadvantage.”
  • Government services: 29% of Americans believe that lack of broadband is a “major disadvantage” when it comes to using government services. Some 27% think lack of access is a “minor disadvantage” and 37% think it is “not a disadvantage.”
  • Keeping up with news and information: 23% of Americans believe that lack of broadband is a “major disadvantage” when it comes to keeping up with news and information. Some 27% think lack of access is a “minor disadvantage” and 47% think it is “not a disadvantage.”
  • Keeping up with what is happening in their communities: 19% of Americans believe that lack of broadband is a “major disadvantage” when it comes to finding out about their local community. Some 32% think lack of access is a “minor disadvantage” and 45% think it is “not a disadvantage.”

A fifth of American adults (21%) do not use the internet. Many non-users think online content is not relevant to their lives and they are not confident they could use computers and navigate the web on their own.

Going Clean in Colorado

Uncategorized No Comments »

Denver Mayor John Hickenlooper may have the right idea (as well as a fun name to say) regarding his campaign commercials in his bid to become Colorado’s next governor. While the ad doesn’t really say much about what he’ll do if elected, it is critical of negative campaigning and may resonate well with voters. The spot was recently featured on The Fix.

Keep Your Business Innovative to Separate You From the Rest

Business News No Comments »

Interesting blog here from Copyblogger about how to keep your business from getting stuck in the mire of routine (and see today’s earlier post on GAP). All too often, businesses can fall victim to doing things like they’ve been done in the past, with little thought of what can be different in the future. Hopefully, these tips can get us all thinking in those terms:

Keep the innovative ideas flowing
Finally, it’s easier to keep the new ideas flowing in to your business if you have a structure in place that allows cross-pollination to happen on a regular basis. Here are some techniques:

Create an informal Board of Directors. Gather a group of 3-5 people who are willing to support your efforts. Meet with them in person or by phone at least four times a year. Update them on your goals, the progress you’re making, and your struggles. Let the ideas flow, and take good notes.

Join a Mastermind group. Many groups meet monthly, some more often. Some Chamber of Commerce organizations coordinate them, but you can also find virtual Mastermind groups with a quick web search. The group supports each member, so you’ll both offer and receive encouragement and ideas.

Join a virtual private community. Sites like Third Tribe are great places to connect with like-minded people and to generate exciting new business ideas.

Consider working with a coach. Because business coaches speak to many different clients, they’ll naturally cross pollinate your conversations with ideas they’ve picked up from helping other people.

GAP’s Groupon Earns Company Some Extra Bank

Business News No Comments »

Ever heard of a Groupon? Well, you have now. See how GAP’s week got a whole lot better when results from its discount push started rolling in last week:

Groupon is having a smashing day, likely generating over $4 million in net revenue, thanks to a deal with the Gap.

Today’s Groupon gives users a $25 discount at the Gap if consumers spend over $50 at the store. If you think it sounds like a good deal, you’re not alone.

CEO Andrew Mason tells us that as of 4:43 ET, Groupon has sold over 300,000 Gap deals. That puts Groupon’s gross revenue for the day at $7.5 million ($25X300,000).

Mason wouldn’t say how much Groupon keeps, but previously we’ve heard it’s around 50%. So, Groupon’s net revenue could be $3.75 million already, and the day’s not over yet. It will keep selling deals and it will generate much more than $4 million today.

TechCrunch thinks Groupon could do 700,000 sales today for gross revenue of $17.5 million.