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Andrew Cline has been editorial page editor of the New Hampshire Union Leader since October of 2001. His writing has appeared in more than 100 newspapers and magazines, including The Wall Street Journal, The Washington Post, and National Review.John Stephen: NH employees victims of poor management
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By JOHN STEPHEN
Sunday, Oct. 4, 2009
CURRENTLY, state employees are dealing with the reality that 750 of their ranks may lose their jobs in the middle of a recession to meet a legislative mandate of $25 million in cuts included in this state budget. Sadly, the threat of layoffs is a result of poor management, instead of a harsh fiscal reality.
The Legislature passed the buck to the governor to make these cuts throughout state government, despite the leadership of the House and Senate saying that across-the-board cuts in other areas were "simplistic" and "irresponsible." The governor then chose to direct department heads to prepare for layoffs or furloughs, and not manage budgets in a way that could preserve these jobs, keep government open for our citizens and demand efficiency and accountability from state leaders.
That leaves our state workers with the option of rejecting the state's contract offer and seeing 750 state employees let go or accepting it and seeing 250 laid off and each employee accepting 19 furlough days. Many of these furloughs days would involve shutting most of state government, denying our residents access to important state functions, such as the ability to get a license renewed or having groundwater tested.
This whole process could have been handled much differently with strong leadership that demanded accountability and effective management across state government.
When I was appointed head of the Department of Health and Human Services in 2003, instead of being greeted with a welcoming party, I received a demand from the Legislature in the state budget to cut $20 million, including nearly $4 million in personnel costs. Given that I was new to the department, it certainly seemed like a daunting challenge.
Although it felt insurmountable at first, we pulled together as an agency and found the cuts, without laying off a single classified state employee. However, we didn't stop there. Over the four years I led the department, we managed to cut, or "lapse," an average of $9.3 million per year in personnel costs to the state treasury. Again, we did this without having to lay off one classified employee.
How did we do it? By not filling open positions, our vacancy rate hovered between 10 and 15 percent. Our directors learned to do more with less, and by having fewer employees, we found ways to work more efficiently. The state was facing a difficult budget situation, so we tightened our belts and came together, without needing the Legislature or governor to tell us.
Now, if one state department can come up with $18.6 million in personnel savings over a two-year budget period, I find it hard to believe that across the entire state government, the governor and agency heads cannot find $25 million to protect the jobs of our state employees and keep government open and running for our citizens. As taxpayers, we ought to demand that level of accountability from our state officials.
That's why it's discouraging to see that in these difficult times, the state approved 71 waivers, costing roughly $4 million per year between February and June of last year, despite a hiring freeze, as reported by the Josiah Bartlett Center. Those positions will cost nearly $8 million over this current two-year budget that necessitated the $25 million cut. Holding the line on these positions and the additional 352 waivers authorized between July of last year and this June could have meant that there would have been no need for layoffs.
That's why state employees have a right to be upset at the way this entire situation has been handled. That many of them are facing the prospect of involuntarily losing their jobs because state leaders haven't properly managed the budget is unfortunate.
Of course, state employees have a critical role to play to get through difficult financial times. If the state is to avoid layoffs by leaving positions open, they need to understand that there would be many open positions and they would have to work harder to cover these gaps. We all have to pull together.
Our state employees are victims of poor management. Their leaders have let them down, and they deserved the chance to answer the bell, not get shown the door. As someone who worked in state government for 15 years and who married a state employee, I certainly understand their frustration.
John Stephen, of Manchester, is a health care and government solutions consultant. He was state commissioner of health and human services from 2003 to 2007.
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YOUR COMMENTS
As an employee who used to work for John, I can firmly say that he is one of the smartest Commissioners that has served the State. He knows the system, but unfortunetly Lynch didn't give him a chance.
Our current leader Nick Toumpas, has done a great job, and I respect him alot. But this whole mess can be directed elsewhere, the SEA and our elected officials.
- Mike, Dover
You hit the nail on the head.
Great article. Well written and COMPLETELY TRUE.
- CathyMike, Merrimack Valley
RUN JOHN RUN!!!
We are in a time of need and desperately need the fiscally conservative leadership you tout. I applaud you on the article and have been keeping in touch with my state reps as to where you stand. Please consider running and booting the current inept, lying governor to the curb.
- Keith, Raymond
We are seeing the same problem on the municipal level. Portsmouth, for example, raised property taxes, yet again, to cover its bloated budget. I am running for City Council this term, and am proposing that the city reduce the budget by 5% per year until spending is more in line with residents' ability to pay taxes. The means to do this is in line with John's experience at the state level. Good job, John.
- Jack Thorsen, Portsmouth
One big problem is once a Department Commisioner does show some quality management, the SEA is quick to take them to court and get it reversed.
Refer to the abuse of overtime in the Dept of Corrections.
- Jon, Concord
John,
Yes we need you to help bring some fiscal responsibility to the Governor's office. I know you are aware odf this but one of our biggest expenses is our out of control "Family Court" which is spending millions systematically removing fathers from childrens lives just to maximize federal Title IV-D monetary incentives to the state. The result is more fatherless children growing up on state services and severe court operational costs due to re-litigation.
Please help our state from using or kids as pawns for money. We'll also save money in the process!
- Jeff, E Hampstead
I would like to associate myself with peppergas, Jay, and Glen. Of course John Lynch had to force John Stephen out because John knew how to get results! Not sure John Stephen is interested in campaigning for governor. We definitely need a Republican who wants to serve his state for the right reasons - which is not all that easy to find.
bnyoung@metrocast.net
- Niel Young, Laconia
This article is about saving union jobs. No organization, including the State, should be a mill for creating jobs whose only purpose is to provide a person wages and benefits. It is evident that government has become an advanced "welfare-wage" provider. In a functioning economy, jobs are created when there is an output needed, there is demand by the consumer, the purpose of which, is to achieve some measured RESULT. To have government setting up empty and useless procedures to make unproductive jobs is destructive to an economy. And for those who argue that government services are in demand; it is because government mandated those services be from government with no other competitive option.
- LynnG, Dover
Commissioner Stephen you show us what a leader and manager is and that is why you were supported by the republicans in the legislature; we all remember how the governor’s office tried to undermine your programs. Do us a favor and run for governor, we need to stand behind a leader and a manger. We need to stand behind someone who we can respect and trust.
- peppergas, Exeter
"John Stephen, of Manchester, is a health care and government solutions consultant. He was state commissioner of health and human services from 2003 to 2007." This guy touts his own horn fairly nicely, but I'd like to know why is no longer a government employee? Was he not re-appointed? Was the pay of that unclassified (political appointment) not high enough even though the unclassifieds are highly paid and paid at more than three times the line-worker's pay?
Yes, the workers of that department have gone through very difficult financial times. An example of politically motivated actions was back twelve years ago when 58 workers were given no notice pink slips and lost their jobs. That was done at the hands of politicians who wanted to keep their overly well paid positions. Yes, sacrifices of the lowly paid line-worker just to "save" the politician. Who else suffered? I'll have to guess it was the needy, the poor, the indigent, etc., as usual.
This year, there is no need for those kinds of sacrifices because the state fully funded 1,359 VACANT positions and just found another booty of money in the "rainy day fund". It never ceases to amaze me what lies and subterfuge a politician will use just to keep his/her job or to benefit their pet projects.
- Gary L. Kerr, Chichester
"If one agency can do it"....that one agency is the lions share of the state budget. Agree that the state management, using the term management loosely, is typically sub-par, lets not forget the rising costs of healthcare and the inability of the SEA to move on benefits. The benefit structure needs to be overhauled, surely a topic you should be familiar with. There is plenty of blame to share. The state is not "the state", it is a collective of fiefdoms jockeying to protect their own agency/department interests first and foremost. That needs to change, from within, and it will not change from within without new blood and a desire to change. The SEA is one huge barrier to that change.
- Ethel, Conord
Great article John!!! Lets now see if the govenor's spin doctors will put a bandaid on your op-ed! I'm sure perennial labor basher, The Union Leader, will give many unfounded reasons why your wrong and there right, similar to their rebuttal of chief SEA negotiator Diane Lacy's editorial last week.
30+ year state employee
- Mike, Bedford
Good column. In simple, and plain language Stephen explains how to cut government spending without the wholesale cutting of thousands of jobs. I still can't believe NH is being run into the ground by this hapless group of democratic leftists. These past 5 years have been like watching "The Twilight Zone" comes to NH. Enough of these people......enough ! Get out there in 2010 and let's fix this mess before there is nothing left worth fixing in NH, and we become just another cold northeast state people are looking to move out of.
- Jay Collins, Laconia
It's nice to see someone who demands accountability. These days, everyone want to blame "bad revenues" or "program growth" as the reason to dig deeper in our wallets.
Unfortunately, our state government is infested with technocrats, from the corner office on down. What we need are leaders, one who see the big picture of the people who pay the price for their inaction and dogmatic adherence to bureaucratic inertia.
Yes, it is the legislature's job to set policy, but a good executive doesn't just put the show on cruise control after the budget is passed.
- Glen, Manchester, NH
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