Unlocking Gridlock

A Five-Part series on improving transportation without raising taxes ". . . hold us accountable." – Governor Gary Locke

Part 2: Performance Measures and Performance Audits

Washington taxpayers deserve accountability for the money they provide to transportation agencies. Assurance that money is being spent efficiently can only be achieved through practical performance measures and regular performance audits of transportation agencies. But, the cart can’t be put before the horse. First, the transportation budget process must be fixed. Second, a clear mission statement and goals to accomplish the mission must be established for performance measures and performance audits to be effective tools of ensuring accountability.

I. Any successful organization has a clear and concise mission statement that explains the reason for its existence and describes the organization in general terms that capture its unique purpose and functions.

The Washington State Department of Transportation’s (WSDOT) current mission statement is as follows: "Together we efficiently build, maintain, operate and promote safe and coordinated transportation systems to serve our public."

This is not a clear and concise mission statement. It is not evident who "together" is and the mission is based on a false premise: "Together we efficiently build ...." By law, WSDOT must provide a means or method for a coordinated transportation system. They do not need to build, maintain, or operate any part of the system. By stating the need to build, maintain, and operate, WSDOT precludes meaningful outsourcing (contracting out); public-private partnerships; or having other government agencies carry out WSDOT functions. Privatizing passenger-only ferries or rest areas would also be excluded.

This unclear mission statement also makes it difficult to screen transportation projects. With such broad parameters, what project would not fit under this mission statement?

The Virginia DOT provides an example of a clear and concise mission statement:

"Using outstanding customer service, we will build, maintain, and operate a surface transportation system that represents the highest standards of safety and quality by the year 2006."

• We will maintain the public trust, and treat public dollars with the utmost care.
• We will be a leader in utilizing innovation and technology to deliver our products and services.
• We will use the best business practices to get our jobs done.
• We are committed to making VDOT a great place to work.
• We will enhance economic opportunities while preserving the beauty, natural resources, and heritage of Virginia.
• The Virginia DOT quantifies its mission and specifies what kind of transportation projects it will oversee. It also clearly outlines the agency’s purpose and functions.

II. After establishing a clear mission statement, specific and quantifiable goals that fit with that mission must be developed to articulate its overall expectations and intentions.

Washington DOT outlines nine goals to achieve its mission. But seven of the nine goals have the same goal statement:

"Ensure that the Washington State Department of Transportation has the capability to develop and implement transportation solutions to address needs identified in Washington’s Transportation Plan."

Who in WSDOT or the public knows what this goal really means? Where are the specific expectations and intentions of what WSDOT will do? How do we know when the goal has been achieved? How does this fit in with its mission statement?

An example of a clear goal statement can be found at the Virginia DOT:

"By 2002, VDOT will deliver a six-year highway construction program that is appropriately resourced, scheduled, implemented, and completed on time and within budget."

There is a definite time-line for what the Virginia DOT expects to do with its highway construction program. It is clear when the public can expect this goal to be achieved. This also fits in with its mission to build, maintain, and operate a safe and effective transportation system by 2006.

III. Once a clear mission statement and specific goals are established, performance measures are created to show an organization’s progress toward accomplishing its goals.

Performance measures are practical and express progress in quantifiable terms. Progress cannot be shown by merely measuring what the agency does. Rather, performance measures should be able to measure the economy, efficiency, and effectiveness of agency programs.

A performance measure WSDOT uses for six of its nine goals is comparing the number of advertisements of project bids it made versus how many it planned. What does this have to do with its goal of having the capability to implement transportation solutions? How does this tie into its mission statement?

The Texas DOT provides an example of a clear and understandable performance measure:

Contract for the construction of the highway system and facilities. Estimated targets.

Output (volume):	8/31/2000	8/31/2001
Number of New Location Lane Miles Contracted	272	266
Number of Lane Miles Contracted to Increase Capacity	1,659	1,623
Number of Lane Miles Contracted for Rehabilitation	7,076	6,290

This performance measure specifically states what has been done in the contracting of the highway system and its facilities. It provides lawmakers and the public with a clear indication of how the Texas DOT is doing in this category.

IV. Regular performance audits determine if an organization is carrying out its responsibilities effectively and efficiently and determines if information reported in performance measures is accurate.

Contrary to assertions by lawmakers, WSDOT has never undergone a comprehensive performance audit. There have been countless small and limited audits by various agencies including internal audits and those done by the Joint Legislative Audit and Review Committee (JLARC). But the results of these audits are either incomplete or inferior because of their narrow focus.

A true performance audit cannot be achieved by use of internal audits or special review teams. Instead, a comprehensive performance audit measures the accuracy of performance measures, the economy and efficiency in the use of resources, and the extent to which desired outcomes or results are being achieved.

The best way to conduct a comprehensive performance audit is through the State Auditor’s office. But Washington state law makes this extremely difficult. Prior to 1993, Washington was the only state in the U.S. with a law specifically prohibiting the State Auditor from conducting performance audits. Although the State Auditor can conduct performance audits now, he can only do so when the legislature appropriates money in the budget or JLARC authorizes it.

Why limit the auditor to financial book audits? Unless an agency is knowingly violating the law, limiting audit authority is of benefit to no one. Performance audits are a tool, not a weapon. Only when repeat violations of state law are discovered does it become a weapon. The legislature’s reluctance to grant the auditor full authority to do performance audits further erodes the taxpayers’ trust in government.

No amount of money or personnel will solve our transportation problems unless legislators and the governor clearly define the mission of WSDOT. Performance measures and audits do no good unless there is a clear mission statement and specific goals. Reforming transportation starts with fixing the budget process. Once that is completed, ensuring accountability can be done through meaningful performance measures and regular performance audits of WSDOT.

Prepared by Jay Balasbas, Communications Deputy, (360) 956-3482 or jbalasbas@effwa.org

Evergreen Freedom Foundation P.O. Box 552, Olympia, WA 98507 Phone: (360) 956-3482, Fax: (360) 352-1874 Email: effwa@effwa.org