Secretary George Shultz Visits OpenGov; Talks Budgeting

September 20, 2016 – OpenGov


Today, OpenGov was honored to host Former Secretary of State George P. Shultz and OpenGov Co-Founder and Chairman Joe Lonsdale for a fireside chat with our Co-Founder and CEO, Zac Bookman. The OpenGov team huddled for an hour to listen and ask questions as the trio discussed world affairs and shared stories.

The conversation ranged from the expected to the sentimental. Secretary Shultz reaffirmed his simultaneous desires not to endorse a presidential candidate and to help the next president craft foreign policy. He also revealed a regret millions share: not writing to his mother more. A portrait of her hangs in the Secretary’s office.

Most of the talk, however, centered on a topic that rarely makes the front page. Or page two. But the topic enables effective, competent government. It puts uniforms on soldiers, repairs our bridges, and educates our children.

It’s the budget process. The annual or biannual cycle governments use to allocate public money and implement policies that citizens’ elected representatives enact.

As Director of the Office of Management and Budget from 1970-1972, Secretary Shultz helped craft the President’s budget proposal and manage budget negotiations with Congress. The budget process today is broken at all levels of government: the last time Congress passed all 12 appropriation bills to fund federal agencies on time was 1996. In The Coming Transformation, Joe and Zac write how “government administration and security realms rely on closed platforms with slow back-office processes and excess manual data entry.”

Secretary Shultz reaffirmed the magnitude of these challenges. Because of inadequate budgeting tools that do not enable true collaboration, budgeting power has become too centralized in the White House. Secretary Shultz explained how centralization over-politicizes the budget process, limits input from those closest to government operations, and prevents the natural inter- and intra-agency negotiations necessary to any budget process. He believes that, by making budgeting more collaborative and inclusive, the budget process can create a more operational instead of partisan climate – achieving improved operational effectiveness.

We agree, and believe all levels of government can benefit from better budgeting:

  • A recent article explains how Greenwood, Indiana’s Police Department discovered using modern budgeting software that its 2017 budget “did not account for enough police cars to accommodate an extended staff. Finding the money for the squad cars was much easier than it would have been before Budget Builder. ‘We collectively made additional reductions on certain items based on the past in order to accumulate money to buy those cars,’ [Greenwood’s Controller Adam] Stone said.” In other words, Budget Builder caught an error before it happened, saving hours of clerical work and a scramble to find funds in during the year.
  • Burnet, Texas used modern budgeting software to cut time spent on the budget’s clerical work in half, creating more time for the collaboration and strategic thinking necessary to craft and implement effective policy.

An excerpt of a fireside chat with Secretary Shultz, OpenGov Co-Founder and Chairman Joe Lonsdale, and OpenGov Co-Founder and CEO Zac Bookman

Imagine successes like Greenwood’s and Burnet’s across the world, at every level of government. These triumphs are what Secretary Shultz repeatedly emphasized will restore effective, competent government. This is the vision we at OpenGov work every day to achieve.

We thank Secretary Shultz and Joe for joining us today, sharing stories, and inspiring our team.

Category: Management