The Price of Government, Getting the Results We Need in an Age of Permanent Fiscal Crisis

David Osborne and Peter Hutchinson (Basic Books, 2004)

Reviewed by Brian Cox

Before getting into a review of the book, a point of personal disclosure: I am not a frequent contributor of book reviews for professional journals. I haven’t even been an occasional contributor. I’m just a local government professional who, like many of you, tries to keep up with today’s ever growing market of business and management books. However, my good colleague, Hyong Yi, persuaded me that this is an ideal perspective for a review of The Price of Government, David Osborne and Peter Hutchinson’s recent book that proclaims “Government is broke.”

With the rising federal deficit factored in, it’s pretty hard to dispute that assertion. Regardless of perspective and government level, it is becoming increasingly difficult to craft budgets that effectively fund the perceived needs and wants of citizens. Osborne and Hutchinson suggest that the amount of money citizens are willing to pay for government services is historically consistent with some fluctuations. Hence the term “price of government.” The authors propose that governments find the “right price” through a historical review of taxes and fees, then prioritize and determine services to be purchased at this price.

The fundamentals of this pricing and prioritization process are covered in chapters one through three, and are the most engaging of the book. The remaining chapters are informative, but a bit cumbersome as topics such as strategic reviews and rightsizing are addressed. (This is not so much a reflection on the authors as it is the subject matter. Who wants to read more about TQM? Raise your hands.) Some parts bring to mind principles championed in other current management literature: “getting back to the core” is very similar to the “hedgehog concept” described by Jim Collins in Good to Great. I also was left wanting more discussion of the “finding the right price” process. Only a handful of pages describe the mechanics envisioned for this principle, which seems a little lacking for such a key part of the overall premise.

At a more micro­level, there are occasional points made that are probably debatable. For example, the authors’ state, “Frightened by the economic damage done by the Reagan­Bush deficits, voters sent a clear message in the 1992 election,” suggesting the price of government had fluctuated too low and the correction was reflected in the election of Bill Clinton. That suggests voters wanted higher taxes, when in fact George Bush’s raising of taxes in the wake of his now famous “read my lips” quote turned a good portion of his base to Ross Perot in 1992. Most political analysts agree that absent the Perot factor, Bush Sr. would have benefited far greater than Clinton and won the election.

However, despite any level of nit­picking, the value of the book’s material far outweighs any suggested shortcomings. In fact, I have found myself reaching repeatedly for The Price of Government much like a textbook in recent months. Actionable ideas and tips, such as “Bureaucracy Busters” and business process reengineering, are outlined in a step­by­step format, and the content in general is organized in a manner that facilitates easy reference.

The bottom line of any book review should be a read/don’t read or perhaps a buy/don’t buy recommendation. If you are in local, state, or federal government, I’d say definitely find a copy to read. If your organization is in frequent dialogue about funding priorities with an elected body, you probably should go ahead and buy a copy. Our organization, Mecklenburg County, NC, purchased copies for each member of our elected board. One thing’s for sure: concepts discussed in The Price of Government will drive the debate regarding government spending for the foreseeable future.

Brian Cox is a new contributor to The Public Manager. In addition to serving as the e­Government/customer service director for Mecklenburg County, he also makes a mean cheesecake. Brian resides in Charlotte, NC, and may be contacted at coxbe@co.mecklenburg.nc.us.