Return to Article: Lawmaker opens debate on financial management
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Many of the existing fiscal laws actually prevent us from obtaining the best value for the government. For example, Government utility contracts are limited to ten years. If one wanted to buy "wind power" for federal buildings to obtain fuel cost savings this limits the government's ability to enter into long term contracts to do so. Wind farms are characterized by high initial capital investment costs, low maintenance costs, and zero fuel costs. Government could help the environment and its own operating costs as well, but a ten year limitation gets in the way of doing this because it does not provide enought time to recapture the initial investment.
There is no substitute for sound business judgement, good logical reasoning and decisions based upon the economic outcomes that are under consideration.
Government badly needs a way to hold executives accountable. Those who manage programs and funds well ought to be given greater responsiblity. Those who do not ought to be given less. There is a paucity of personal responsiblity for decisions that are reached by government executives. All too often committees, study groups, consultants, or teams, are used to dissipate responsibility and accountability. It is a simple proposition. Hire good people and give them freedom and responsiblity to manage, then hold them accountable for the results.
Some have discussed a sort of Federal agency Sarbanes Oxley Act type of legislation as a method to address these issues. There are significate differences between government, and the private sector, but some manner of managment controls, fiscal accountability, and other guidance would be helpful.
There is also a great fear in government of innovative or new approaches to financial issues. ESPC contracts are opposed and difficult to gain support for. Share-in Savings contracts are new and infrequently used. It seems that everyone in government is trying to drive a stake in the heart of public private partnerships, or enhanced use leases. The fact is that without doing "stupid financial things" government must be more efficient and innovative in its approach to these mission problems, and their financial solutions.
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