Wednesday, November 08, 2006

Performance by U.S. Counties and Cities

The mission of the Council on Municipal Performance in 1973-1988 was to try to figure out why some cities and counties provide better services than others. What makes the difference?  

In 1988 its activities were absorbed by the National Civic League. They were also picked up by, among others, the Maxwell School Government Performance Project. The Maxwell School in 2002 rated 40 counties in the United States in five management areas. Five of the counties were in New York State. 

At the top end, the Project overall rated Erie and Westchester Counties C+, which is a failing grade in graduate school. At the low end, Nassau County rated the lowest, at D-, which is the next grade up from failure even for undergraduates. Since the data were collected in 2001 and Nassau has undergone some reforms, an update might carry Nassau County out of the cellar.

Two years before, the Project rated 35 cities, included two cities in NY State – New York City and Buffalo. The city ratings were published in 2000, based on data collected in 1999, when Rudy Giuliani was New York City's mayor.

Combining the New York State county and city numbers together in a single table - not something we asked the Project permission to do - New York City outperformed all of the NY counties in every area with only three exceptions. Westchester excelled in capital management, with a grade of A-, exceeding New York City’s B+. Also, Westchester equaled New York City in financial management, while Buffalo equaled New York City in information technology.

The counties and cities in New York State were given six grades - an overall average grade based on their rating and five ratings in specific areas, namely Financial Management, Human Resources Management, InformationTechnology, Capital Management and Managing for Results.

Erie County's grades were C+ B- C- B C+ C
Monroe County: C C C- D B C
Nassau County: D- F D D+ D- F
Suffolk County: C- B- C- C B- F
Westchester County: C+ B D+ B- A- D+
City of Buffalo: C- C D C C- D+
New York City: B B B- B B+ B

The Project rated counties thoughout the United States, so it was possible to scale the performance of New York counties and cities to a national norm.

FINANCIAL MANAGEMENT: U.S. County Average B-
The Project rates U.S. counties rated highly on financial reporting. All but one county received the Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting. Most of the county budgets are viewed as having a good structural balance (i.e., avoiding deficits on a year-to-year basis) and as having strong rainy day funds. Only 15 percent of the counties have a legally required rainy day fund. Nassau County, NY received the only F in the nation.

HUMAN RESOURCES: U.S. County Average C+
Many counties lack of a unified county personnel system, meaning that departments may bid against one another for potential employees. The tight job market of the 1990s forced many counties to improve their salaries and merit pay policies.

INFORMATION TECHNOLOGY: U.S. County Average C+
The decentralized nature of county government has hampered introduction of technological efficiency. Different county offices may use different IT systems. Counties are improving their web sites for two-way transactions. The only A’s received in any management area were the IT grades of Fairfax (Va.) and Maricopa (Az.) Counties. Allegheny and Monroe, N.Y. Counties tied for the lowest information technology grade, with a D.

CAPITAL MANAGEMENT: U.S. County Average B-
New standards from the Governmental Accounting Standards Board Statement 34 (GASB 34) requie counties to add information on assets and their maintenance needs. Almost all counties have long-term capital improvement plans and solicit citizen input. Baltimore, Fairfax, San Diego, and Westchester, NY Counties tied for the high score of A-. Nassau County’s D- grade was the lowest of the 40 counties studied nationwide.

MANAGING FOR RESULTS: U.S. County Average C+ Only one-fourth of the counties evaluated have formal overall strategic plans, although more counties have departmental strategic planning. Budgets tend to be the main way that counties convey their goals and measure results. Fairfax, Maricopa, and San Diego Counties received the highest grade of A-, while Nassau and Suffolk, NY Counties received the lowest grade of F.

Overall, this record suggests room for improvement in New York State. Some counties have improved their records since 2002 - Nassau is an example. But in the absence of crisis, the incentives and pressures for improvement are not necessarily present.

Iraq Is the Wrong Enemy and It Is a Costly Mistake

Voters have rejected President Bush’s plan for Iraq, described to supporters on October 28, 2006 as designed “to protect the homeland” by first seeking to “find the enemy and defeat them overseas."

The problem is: wrong enemy and serious collateral damage.

Wrong Enemy

The President made a case that terrorists were in Afghanistan, but made no such case in Iraq. The mistake was costly. The annual average cost of the Iraq war is about 2 percent of U.S. GDP, according to new estimates by Nobel Prizewinner Joseph Stiglitz and Harvard Professor Linda Bilmes.

Iraqis themselves have lost $24 billion in 2005 income. Their incomes were 40 percent lower, partly because the destruction of infrastructure that hasn’t been rebuilt – compared with what they might have earned in the absence of war. This estimate by Iraq expert Professor Colin Rowat of the University of Birmingham (UK) is a per-person income loss by Iraqis of roughly 20 times the cost to U.S. residents.

Collateral Damage I - Enemies among U.S. Allies

The war in Iraq has made new enemies among our allies by deceiving them. U.S. credibility among British voters has dwindled over Iraq and the staunch ally of the last two U.S. presidents, Tony Blair, is stepping down.

Collateral Damage II - Draining of U.S. National Guard Resources

The war in Iraq has overtaxed the National Guard, depriving governors of these resources for homeland emergencies like Katrina. No wonder the Democrats picked up Governorships on November 7.

Collateral Damage III - Resistance and New Terrorists

The war in Iraq has created civilian casualties in overseas battlegrounds, generating fury among survivors and a breeding ground for new terrorists. An estimated 2 percent of the Iraqi population has been killed, according to three researchers at Johns Hopkins University and a professor at Baghdad's Al-Mustansiriya University. This number, higher than previous U.N. estimates, was published in the peer-reviewed UK journal Lancet. It is about the same percentage as the overall proportion of civilians killed in World War II in affected countries as a percentage of the pre-war populations of these countries.

Risks of Shock and Awe

At a rally in Sellersburg, Indiana, on Saturday, October 28, President Bush told supporters: "Five years after September the 11th, too many Democrats still do not get it. The best way to protect the homeland is to find the enemy and defeat them overseas." This sounded like the Pet Goat Strategy.

The Pet Goat Strategy. When the President was considering his options after getting news of the 9/11 attacks in a Sarasota, Florida, classroom, pupils read out to him about a girl who had a pet goat that ate too many things. Her angry dad says that the goat must go. But the goat butts a man allegedly planning to steal the family car. The goat becomes a hero and stays. Mission accomplished.

So the Pet Goat Strategy is: Cover up problems with a show of force. Shock and awe. Full speed ahead and damn the torpedoes. This is the essence of the imperial Wolfowitz doctrine.

Risks of the Pet Goat Strategy. The problem is that the goat still eats too many things, hero or not. The risks of the aggressive Pet Goat Strategy include the following:
- It stretches a volunteer army thin. U.S. military doctrine in the Weinberger-Powell era was more cautious because the Pentagon management did not want to put the troops unnecessarily at risk.
- A preemptive strike, without full support of allies, may undermine future cooperation.
- The “shock and awe” may wear off and the mission may be far from accomplished.
- The President’s ability to respond to another crisis may be limited. Implementation of a preemptive plan may be weak. In fact, by a 15-point margin, the “most likely” U.S. voters believe Democrats would do a better job in Iraq, according to a national AP-AOL poll.