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The Urgency Of Change

The Urgency Of Change. Public Division Leadership Board January 23-24, 2 009. Barack Obama:. “I want to make government cool again.”. 40-Year War Against Government. “A government big enough to give you everything you want is big enough to take everything you have.” — Barry Goldwater.

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The Urgency Of Change

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  1. The UrgencyOf Change Public Division Leadership Board January 23-24, 2009

  2. Barack Obama: “I want to make government cool again.”

  3. 40-Year War Against Government “A government big enough to give you everything you want is big enough to take everything you have.” —Barry Goldwater

  4. 40-Year War Against Government “The nine most terrifying words in the English language are: ‘I’m from the government and I’m here to help.’” —Ronald Reagan

  5. 40-Year War Against Government “The era of big government is over.”—Bill Clinton

  6. 40-Year War Against Government “They want the federal government controlling Social Security like it's some kind of federal program.” —George W. Bush

  7. New Attacks on State, Local Government “Conservatives need to put as much focus and attention on reducing state and local spending over the next years as they do on the federal budget.” —Grover Norquist, right wing strategist

  8. States Are In Trouble States with Funding Shortfalls (in yellow)

  9. Revenue Shortfalls are Huge • For FY 2009 (the current fiscal year) –45 states with shortfalls –$91 billion –$1 short for every $8 needed • For FY 2010 –Even more states with shortfalls –Likely $145 billion or more

  10. Property Tax Declines Hit Local GovernmentProjected Peak-to-Trough House Price Declines > 30% 20 to 30% 10 to 20% Sources: Fiserv Lending Solutions, Moody's Economy.com, OFHEO 0 to 10% No decline

  11. New Attacks on State, Local Government Public ServicesIn the Crosshairs “Spending limits will do to government what Japan did to the auto industry.” — Grover Norquist

  12. How Big? How long?

  13. 40-Year War on GovernmentHas Undercut Public Services • Warped tax system, unsustainable budgets for government • Damaged image of public employees • Deregulation lets Wall Street, banks and investment houses run wild • Layoffs and service cuts

  14. The biggest economic crisis since the Great Depression

  15. 2 Million Jobs Lost in 2008; 1 in 7 without a job

  16. $2 Trillion in Pension Wealth Wiped Out in Financial Meltdown

  17. $15 trillion in at risk mortgages, 1 in 10 mortgages foreclosed or delinquent

  18. “Things are going to get worse before they get better.”

  19. What Does it Mean for Us?

  20. Today, We Look a Lot Like The UAW Once Did • Growing • Employer-paid healthcare • Employer-paid pensions • Job security • Generally good wages Today 1950s-1960s

  21. Like SEIU today, the UAW was innovative, visionary and led the labor movement Flint Sit-down Strike – 1936-37

  22. Like SEIU today, the UAW was a progressive leader in America Walter Reuther and Dr. King Walter Reuther and Cesar Chavez

  23. But Then… The UAW stopped challenging the Big 3 and became a defender of the status quo As Reuther predicted, private healthcare and pensions were not sustainable and forced the UAW to take positions at odds with the community and the common good

  24. As a Result… The public today sees auto workers as just another special interest So… Widespread opposition tothe auto bailout even though it puts millions of good jobs at risk

  25. The UAW: A Cautionary Tale • Ignored quality for too long • Faced lower standards in the non-union South • Eventually could not sustain pay and benefits much higher than the rest of the workforce • Took public positions that lost public support & moral high-ground UAW Members 1.5 million 400,000* 1969 2008 *Even though total auto industry jobs grew during this period

  26. Could It Happen to Us? How would the leaders of the UAW have answered that question in their heyday?

  27. Making the Connection: Auto Industry = Public Services “I would analogize it to what thegovernment is doing with theauto companies. Congress said, we’ll give you the money but you have to show us a plan for sustainability. Now government is in the same position of the auto companies, but they haven’t come up with any plan for sustainability.” —Robert Bixby, Director, The Concord Coalition, 1/7/09

  28. The Right is Gearing Up a New Wave

  29. Their Aim is Starting to Point Directly At Us

  30. They Have a Powerful Message “Every person in every town in America will know the reason their library is closing early is that public employees have defined benefit pensions.” Grover Norquist

  31. Even Our “Friends” Are Lowering Standards Union Sues Gregoire for Not Funding Contract Corzine to Cut Payments to Pension Plans Paterson Offers Draconian Budget Cuts Strickland orders another $640 million in budget cuts

  32. We Know What’s Coming • Layoffs • More pressure to privatize • More pressure to cut wages and benefits • More demand for services while the staff to provide them shrinks • Greater reliance on technology vs. people

  33. How do we get out of this mess?

  34. Short-Term Thinking Won’t Work We can no longer limit our thinking to the next contract or the next budget. In this environment, having a contract is a legal position, not a guarantee We can’t wait – we need to merge short- and long-term strategies right now

  35. Change is Coming • Government more as “arranger” than “provider” of public services • National health and new medical technology will have huge impact on public budgets and health programs

  36. Change is Coming • More government by “network” – Wisconsin/Minnesota may share prison food and salt purchasing; merge call centers & licensing • Prison inmate releases and less prison construction will mean more community-based programs

  37. Change is Coming • More technology vs. people delivering services (websites, kiosks) • Increased contracting out • Increased globalization

  38. Can WeMeet the Challenge with Real Change of Our Own? Quality is Job 1 When reality and hype don’t match up people see right through it

  39. Can We Lead the Change? • Every local with a quality committee that constantly works to improve services? • Every local with a “Blow the Whistle on Waste and Fraud” operation?

  40. Can We Lead the Change? • Every local insisting on more energy efficiency and environmental responsibility? • Demanding that all budgets be transparent and online? • Demanding that all tax breaks or cuts show who benefits, who pays?

  41. Could We Imagine a “Make GovernmentCool Act” Introduced in all of our states, cities, counties, and school districts – all on the same day across America so we take the lead on quality, efficiency, and innovation? Other BIG ideas?

  42. Adjusting to Our New Reality

  43. The UrgencyOf Change Public Division Leadership Board January 23-24, 2009

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