DATE: Sunday, July 20, 1997                 TAG: 9707180032

SECTION: COMMENTARY              PAGE: J4   EDITION: FINAL 

TYPE: Editorial

                                            LENGTH:   62 lines

ALLEN REFORMS CUTS AND BRUISES

Reinventing government turns out to be trickier than capturing water in a sand hole. It's hard to collect much water (or savings) to begin with, and before you know it, some of it is sure to seep away.

Gov. George F. Allen took office promising to cut the size and cost of state government. But a recent evaluation by the Richmond Times-Dispatch concludes that work-force reductions - despite much angst from the affected workers - were only about half of the 15 percent recommended by his blue-ribbon task force.

Moreover, while Allen puts the savings from a 1995 buyout of state workers at $134 million annually, other analysts say much of the saving is offset by increases in overtime and the use of private contractors to do work previously performed by public employees.

Nor is there any broad consensus on whether the effort was worthwhile. For every example of improved efficiency there's another example of permit-writing that has slowed or inspections that aren't being done.

That said, there's no question that Allen deserves plaudits for delivering on his promise to whittle the state work force. While estimates on savings vary widely, no one disputes that at least some savings have occurred. It will take longer to sort out how positive the impact has been.

One result of Allen's personnel policies is unquestionably negative. While the spoils belong to the victor, the wholesale change in agency heads that accompanied Allen's arrival in Richmond was unprecedented in Virginia government.

Turnover at the top is usual in Washington and in states where government has long been dominated by partisanship. But in Virginia, until recently, the bureaucracy stayed largely intact, even as administrations changed.

That allowed for some dead weight. It also allowed many fine public servants to keep the ship of state steady. It's unfortunate that the era has passed.

It's also unfortunate that politics seems to be penetrating deeper and deeper into the bureaucracy. Some longtime public servants saw their jobs abolished, only to have the positions reinstated later with a political crony hired for the job. Those instances are a stain on the Allen administration.

Clearly, downsizing and reorganization, and attendant chaos for hundreds of workers, are not unique to Virginia government. Thousands of businesses and government agencies have undergone similar overhaul. In many cases, the change has been for the better.

In government, it's harder to measure results. A private business can gauge the success of a reorganization by the bottom line. In government, there is no profit margin, no stockholder earning higher or lower dividends, and often no chance for a customer to vote with her pocketbook by choosing a competing supplier.

That also makes it harder to know whether efforts at reorganization have gone too far or not far enough. Some offices cut by Allen, including the state fire marshal's and the office of consumer affairs, have had to reinstate positions because the cuts were too close to the bone.

Others, from Central State Hospital to child-support enforcement to day-care regulation, are clearly understaffed.

As Allen leaves office, the next administration should forgo another round of wholesale cuts until the last round has been carefully assessed.

When that happens, the odds are strong that even more of the savings the Allen administration advertises will seep away.

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