The states are facing a protracted budget crisis, like none seen in the last 30 years, and perhaps not seen since the Great Depression. The long climb toward recovery of state fiscal health has not yet begun, and this has prompted urgent efforts to redesign and downsize government. In some instances, this has given states an opportunity to enact needed changes that have been avoided during prosperous times. But in other cases, it has prompted hard choices on the best way to "cut to the bone" while doing the least harm to state competitiveness and quality of life.
This paper examines some of the efforts states are undertaking to redesign government to meet the new austere realities and presents some of the ideas suggested for tackling the toughest issues. Many states are taking a hard look at the core services they provide and asking tough questions on what is essential and what can be made more efficient. Areas being examined include K-12 and higher education funding, corrections programs, state workforce size and costs, and government processes that cross all departments.
Governors, legislators, and citizens all need to be engaged in these efforts to redesign state government. It is a topic that will dominate the agendas of states for the next several years, and likely lead to some profound changes in how state government operates and what services it provides.
