Government Reform Initiatives: Taking Advantage of Tough Times to Make Change Happen

1. Government Reform Initiatives:Taking Advantage of Tough Times to Make Change Happen Presented to: NASACT Annual Conference August 17, 2009 By: and Gila J. Bronner President & CEO BRONNER GROUP, LLC Chicago, IL Andy Shaw Executive Director Better Government Association Chicago, IL

2. Agenda • Historical Perspective • Trends and Challenges • Case Study: State of Illinois • Andy Shaw’s “Perspective” • Role of NASACT Members in Reform NASACT 2009 Annual Conference

3. Historical Perspective • Current fiscal constraints, recent corporate/government scandals, and growing public scrutiny emphasize the importance placed on accountability in government • Sarbanes-Oxley Act and more recent private sector business failures have significantly impacted awareness of expectations of public sector entities • Public Sector has also experienced increasing levels of ethics lapses and corruption NASACT 2009 Annual Conference

4. Historical Perspective • Federal, state and local governmental entities are increasingly challenged to review and improve their governance processes and structures • Governments are responding to these new challenges in many ways • Bodies are being created to strengthen oversight functions and perform key roles toward enhancing overall effective governance, accountability, and demonstrations of active public stewardship • Seeing a proliferation of reform initiatives across the nation NASACT 2009 Annual Conference

5. What is Reform: • re • form-noun • the improvement or amendment of what is wrong, corrupt, unsatisfactory, etc.: social reform; spelling reform. • the amendment of conduct, belief, etc. • re • form-verb (used with object) • to change to a better state, form, etc.; improve by alteration, substitution, abolition, etc. • to cause (a person) to abandon wrong or evil ways of life or conduct. • to put an end to (abuses, disorders, etc.). NASACT 2009 Annual Conference

6. Historic Types of Government Reform: • Financial • Ethics • Election/Campaign • Management NASACT 2009 Annual Conference

7. History of Federal Government Reform Initiatives: • Liquor Laws (Prohibition) • SEC • Establishment of Various Oversight Boards • Procurement Codes • Campaign Finance • Management NASACT 2009 Annual Conference

8. Federal Government Reform Initiatives • At least 14 government-wide reform efforts in Federal government over the past century • Most recent during Clinton/Bush2 administrations • March 1993 – President Clinton initiated “Reinventing Government” initiative 1200 recommendations • April 2001 – President George W. Bush made better management and performance of the Federal government – 2002 budget promised to “reform and modernize” government – President’s management agenda • Led to results.gov web site NASACT 2009 Annual Conference

9. Various Current Reform Initiatives • Louisiana – July, 2009 • Governor Bobby Jindal called for 4-pronged “reform” plan: • Higher education spending reform • Organizational reform to reduce size of government • Civil Service reforms to reduce number of state employees • Fiscal reforms around budgeting practices NASACT 2009 Annual Conference

10. Various State Reform Initiatives • Indiana – December, 2008 • Governor Daniels announces 2009 initiatives for reforming local government • Ethics • Lobbying • Campaign Finance NASACT 2009 Annual Conference

11. Various State Reform Initiatives Massachusetts – July, 2009 Governor Deval Patrick signs ethics legislation • Ethics • Lobbying • Campaign Finance NASACT 2009 Annual Conference

12. State of Illinois Case Study • Several governors and other high-ranking elected officials indicted/convicted • History of corruption from time of Al Capone • Various fledgling/failed attempts at reform over the years • George Ryan convicted in corruption trial NASACT 2009 Annual Conference

13. State of Illinois Case Study • December 2008 – Arrest of then Governor Blagojevich • January 2009 – Then Lt. Governor Pat Quinn established the Illinois Reform Commission • Charge: Recommend meaningful ethics reform, but result was much broader NASACT 2009 Annual Conference

14. Focused on Six Categories of Reform • Transparency • Campaign Finance • Procurement • Government Structure • Enforcement • Inspiring Better Government NASACT 2009 Annual Conference

15. Campaign Finance • Requiring year-round, real-time submission of campaign disclosure filings; • Banning campaign contributions from lobbyists and trusts; • Enacting a pilot project for public financing of judicial elections in 2010; • Enhancing powers of the Illinois State Board of Elections; and, • Creating more robust discovery and enforcement mechanisms. NASACT 2009 Annual Conference

16. Procurement • Moving state procurement officials into an insulated, central, independent procurement office; • Eliminating loopholes and exemptions in the procurement code; • Establishing an independent contract monitoring office to oversee and review the procurement process; • Mandating greater disclosure for contractors, lobbyists, and others; and, • Enhancing transparency in the procurement process. NASACT 2009 Annual Conference

17. Enforcement • Amending and enhancing state laws to provide prosecutors and investigators with many of the same tools available to federal authorities; • Adding significant corruption offenses to the existing list of offenses that are non-probationable; • Granting the Illinois AG authority to independently conduct grand jury investigations of public corruption offenses; • Directing additional resources to the investigation of public corruption crimes; and, • Modifying the laws applicable to inspectors general’s offices to improve the ability of inspectors general to independently conduct investigations. NASACT 2009 Annual Conference

18. Government Structure • Substantially reforming the State’s redistricting process; • Adopting pending legislation that would impose term limits on legislative leadership positions; • Amending House and Senate Rules applicable to the budget approval process; and, • Amending the House and Senate Rules to ensure that each piece of proposed legislation with a minimum number of sponsors receives an up-or-down committee vote. NASACT 2009 Annual Conference

19. Transparency Enforcing the existing statutes with renewed vigor by adopting a presumption in favor of full public access to information and documents; Amending relevant statutes to increase transparency and accountability; and, Using technology to make public documents readily and easily accessible to the public through the internet and online databases without waiting for specific requests from the public. NASACT 2009 Annual Conference

20. Inspiring Better Government • Combating patronage by reforming the personnel system to better protect non-political positions and the employees who hold them; • Reforming the state’s hiring process; and, • Establishing a code to guide everyday decision-making and holding state employees accountable for abiding by the code; NASACT 2009 Annual Conference

21. Richard J. Daley Chicago Mayor (1955-1976) Greylord Summerdale Michael A. Bilandic Chicago Mayor (1976 – 1979) Mirage Tavern BETTER GOVERNMENT ASSOCIATION Jane Byrne Chicago Mayor (1979-1983) Chicagofest Harold Washington Chicago Mayor (1983–1987) Operation Incubator NASACT 2009 Annual Conference

22. Richard M. Daley Chicago Mayor (1989 to Present) Silver Shovel Hired Truck George Ryan Governor State of Illinois (1999 – 2003) Licenses for Bribes Rod R. Blagojevich Governor State of Illinois (2003 – 2009) Pay to Play BETTER GOVERNMENT ASSOCIATION NASACT 2009 Annual Conference

23. BETTER GOVERNMENT ASSOCIATION End the "Corruption Tax" Restore the "Faith" Fairness Accountability Integrity Transparency Honesty NASACT 2009 Annual Conference

24. BETTER GOVERNMENT ASSOCIATION • "OLD" BGA • Investigations • Lawsuits • Public Advocacy

25. BETTER GOVERNMENT ASSOCIATION • "NEW" BGA • Interactive website • "Good Government Guy" shows • Neighborhood Forums • Report Card

26. BETTER GOVERNMENT ASSOCIATION • "Unholy Trinity" • Jobs • Contracts • Contributions

27. BETTER GOVERNMENT ASSOCIATION • Lessons • Reformers Fight Mightily (But Usually Fail) • Voter Apathy The Answer: Civic Engagement

28. Role of NASACT Members in Reform • Transparency • Publishing frequent and timely audit/financial reports • Assuring transparent expenditures and accountable processes NASACT 2009 Annual Conference

29. Role of NASACT Members in Reform • Enforcement • Conduct of audits • Monitoring compliance and performance • Coordinating integrated oversight approach • Preventing fraud, waste, and abuse of public resources and trust NASACT 2009 Annual Conference

30. Role of NASACT Members in Reform • Inspiring Better Government • Leading business process improvement initiatives • Increasing public awareness of roles of NASACT members in accountability and transparency initiatives • Ensuring effective and efficient expenditures of funds NASACT 2009 Annual Conference

31. Conclusion • We live in changing times: business as usual has ended! • Real reform in government requires established accountability and transparency framework • This framework must be promoted and protected to assist in fully transforming our nation to one where public governance is the paradigm for more responsive, accessible, and accountable government NASACT 2009 Annual Conference