
Wisconsin Gov. Jim Doyle and Minnesota Gov. Tim Pawlenty announced last week an attempt to cut costs by combining services in state government as a way to reduce the deficits both states are currently facing this year.
Wisconsin is currently facing a $5.4 billion deficit, while Minnesota’s deficit is $4.8 billion.
On Jan. 13, both governors held press conferences in their respective capitals announcing executive orders requiring each of their state agencies to work together to find areas of possible savings.
While the idea of the states to come together came from Pawlenty, Doyle said at his press conference he was happy to go along with it. According to Doyle, the coming together of the two states was almost natural.
“We really do have so much in common,” Doyle said. “We have very similar populations, very similar histories, and geographic and national resources are very much the same.”
While Doyle was hesitant to put an exact amount forward as a goal each state would like to save, Pawlenty was quick to point out any money saved would benefit each state.
“Each dollar that we save could be reemployed back into higher priorities, like things like K-12 education,” Pawlenty said.
According to Doyle, any money that could be saved would then help a variety of sectors across each state’s government.
Their plans to save money focus on three major areas: procurement, facilities and vehicles and cooperative functions.
In terms of procurement, both states could save money by buying various products in bulk, including road salt, heavy equipment and institutional food.
By examining fixed assets, including real estate and specialized vehicles, states may be able to save money by sharing these resources.
Lastly, by consolidating functions such as call centers, collection operations and office functions, each state may also be able to save money.
According to Pawlenty, this is the first time states have come together in such a way that would allow each state to handle the economic crises they are currently facing by reducing government spending.
While any plans to save money are currently short term, Doyle expressed his openness to work toward long-term plans.
With the proposal receiving a lot of media attention, reactions from members of the state Legislature have been mixed.
“I think it’s great that Gov. Doyle and Gov. Pawlenty are working together. It shows innovation, and I support their efforts wholeheartedly,” said Sen. Glenn Grothman, R-West Bend.
Assembly Minority Leader Rep. Jeff Fitzgerald, R-Horicon, however, said while the idea is good in theory, he is skeptical about the plan as it goes into practice, according to his spokesperson Jim Bender.
There are no definitive plans regarding the governors’ proposal, but Wisconsin and Minnesota commissioners and secretaries are scheduled to report back to their respective governor by Feb. 27 regarding the findings of any areas of possible savings.