Democratic gubernatorial candidate R. Creigh Deeds yesterday proposed regular audits of every state agency -- and requiring those agencies to start from zero dollars in their budgets -- as part of an ambitious plan to make Virginia's government cheaper, leaner and more efficient.
The state senator from Bath County also would require all school divisions in the common-wealth to participate in a performance review program, consolidate the purchases of drugs by state government and require the head of the troubled Virginia Information Technologies Agency to report directly to the governor.
Deeds unveiled the proposals just miles from his home in Bath, as he ended his weeklong "Deeds Country" RV tour of rural, recession-besieged Southside and Southwest Virginia.
Deeds' push for greater oversight and efficiency in government spending comes on the heels of just-released revenue forecasts that suggest the state may have to slash up to an additional $1.5 billion to balance the budget for fiscal year 2010, which started July 1.
Gov. Timothy M. Kaine said last week that this latest round of cuts could result in layoffs at state agencies.
The candidate, who faces Republican and former Virginia Attorney General Bob McDonnell in November, said the state has a "sporadic history" of deciding whether and when to examine the spending and performance of state agencies, more often dictated by "political whims" than sound policy decisions.
He proposed establishing an Efficiency Improvement Office to be run by a member of the business community and operate in the state Department of Planning and Budget. Deeds estimated the audits could potentially cut state spending between 1 percent and 6 percent, saving up to $500 million.
Deeds also said he would transition to "zero-based" budgeting in all state departments, requiring every agency to "start from scratch" to justify the dollars they need -- with the exception of money required for federal mandates -- rather than start with a base amount of funding.
The candidate said only 33 of Virginia's school divisions participate in the school performance review program set up under Gov. Mark R. Warner in 2005. He would require all divisions to be reviewed by the end of his four-year term.
Deeds also said he wants to increase the bulk purchases of drugs paid for by the state, which he said currently purchases drugs separately for its prisons, schools, state workers and Medicaid program.
Echoing similar environmentally friendly themes of Kaine, Deeds set a goal of reducing state energy costs by 20 percent in four years, in part by reducing the size of the state vehicle fleet and requiring all state buildings and leased space to conform to "green" building standards.
Deeds also took on VITA, the troubled private-public partnership under which the state is paying contractor Northrop Grumman about $2.3 billion over 10 years for information technology services.
Deeds criticized the arrangement for "unacceptable missed deadlines and delays in providing services" and would require the head of VITA to be appointed by the governor and report directly to the governor.
VITA, he said, would be the first agency to be audited.
Contact Jim Nolan at (804) 649-6061 or jnolan@timesdispatch.com.
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