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COMMENTARY January 22, 2004 Evergreen Freedom Foundation testimony regarding SB 6391 Audio Link: Windows
Media | Real
Audio Jason Mercier | Evergreen Freedom
Foundation
Having agencies prioritize activities helps ensure accountability and efficiency. The recent public outcry over the Department of Labor and Industries’ (L&I) decision to once again increase workers’ compensation rates illustrates the need for the agency to continue to address the concerns of stakeholders. Many are concerned that the Department is not currently operating in an efficient and accountable manner. Focusing on the Department’s priorities and a self-analysis of its activities could provide a solid base for any future performance audits. Results of these efforts may alleviate concerns regarding future rate increases – or reveal that they are unnecessary – if L&I receives clean audits and is operating transparently.
Included in your handouts is information from the state auditor’s most recent statewide accountability report (p.3). Of the 24 statewide findings, L&I was responsible for four. L&I’s progress (or lack thereof) in addressing these problems will become apparent when the state auditor releases his updated report sometime in mid-February.
In the meantime, reviewing and tightening the agency’s internal performance measurements could allow a comprehensive performance audit to be conducted. Though the Joint Legislative Audit and Review Committee (JLARC) recently conducted a limited performance audit of L&I, we believe that a more comprehensive review would be beneficial for stakeholders.
Also included in your handouts are: 1) L&I’s 2001-03 performance progress report (p.5-6) and 2) the 2003-05 activity index for the agency (p.7-18). The 2003-05 performance indicators are still being processed by the Office of Financial Management (OFM). Noticeably absent from L&I’s performance indicators are any measures to reduce fraud. Based on the state auditor’s findings, the agency needs to put more effort into adequately addressing the issue of fraud. While OFM currently requires all state agencies to report on their activities, prioritization of these activities is not required. Prioritization would not only provide a framework in which to conduct a comprehensive performance audit, but may also allow more detailed legislative oversight and more transparency for stakeholders.
I’d be happy to answer any question you may have. Jason Mercier is a budget research analyst for the Evergreen Freedom Foundation. Contact: Jason Mercier | Budget Analyst | 360.956.3482
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1 Part Honesty; 2 Parts Arrogance At a March 23, 2005, House Appropriations hearing on a bill to gut the voter-approved I-601 spending limit, Rep. Jim McIntire (D) asked a supporter of I-601’s two-third supermajority requirement for the legislature to raise taxes the following question: "Can you name a time when we [legislators] have actually not just set it [supermajority requirement] aside by majority vote? I mean, this is in many respects a procedural motion that has no bearing. It’s a statutory constraint that cannot constrain any legislature that chooses as a majority to set it aside . . . have we ever used a supermajority [to raise taxes]?" - Rep. Jim McIntire (D - 46) Despite the arrogance of some state officials, Washington's constitution is clear: "All political power is inherent in the people..." |
