08:36 AM PST on Tuesday, January 11, 2005

By Terry Corbell

If you want to witness Washington state lawmakers make critical decisions affecting your pocketbook or business, you once again have two choices – watch on TVW or from the public galleries in the Legislative Building. Legislators are again working in the beautiful, 76-year-old edifice that was refurbished at a cost of $120 million.

Aside from the gubernatorial controversy, lawmakers will be debating answers to vital fiscal questions: 1. Will they stick with the priorities of government, or raise taxes? 2. Will they eliminate waste? 3. Will they make it easier to retain workers by reforming the costly workers’ compensation and unemployment insurance programs? 4. Will the new governor create jobs by re-convening the state’s Competitiveness Council?

A $2.9 billion spending increase, as recommended by outgoing Governor Gary Locke in his proposed $26.2 billion budget for 2005-2007, is the starting point for lawmaker debate. That includes a $598 million tax increase on doctors and so-called sin purchases. His proposal represents a double-digit spending increase although the state faces a $1.6 billion shortfall.

The Evergreen Freedom Foundation questions the governor’s priorities: “With inflation for the next biennium forecasted at under four percent, Locke's 12.5 percent spending increase is more than three times the forecasted rate of inflation,” said budget research analyst Jason Mercier. Mercier believes the proposed spending increase is above and beyond a forecast of $1.5 billion in new tax revenue. The organization’s analysis shows 32 state agencies would get funding increases. Twenty-five would receive a double-digit increase. That includes a 225.1 percent hike for Labor and Industries and an 18.4 percent increase for the Department of Social and Health Services (DSHS).

But only one agency would get less funding – the State Auditor’s Office – the independent watchdog of government efficiency. The proposed decrease prompted me to ask for an interview.

That can’t possibly be true, is it? “Yes,” said Brian Sonntag, the state auditor since 1993.

That’s a surprise considering the Tacoma Democrat’s stature and his office’s success in protecting taxpayer dollars. He seems universally respected for being nonpartisan and he won endorsements from editorial boards throughout the state in his recent campaign for re-election.

You might recall the reports of the recent DSHS audit, which included these disturbing facts:

• Refusal to cooperate with auditors, which led to disclaiming of the $6.1 billion Medicaid program
• $22 million paid to persons failing to provide valid Social Security numbers
• More than $1 million awarded to people using Social Security numbers of dead family members
• $1.3 million to illegal aliens ineligible for medical services
• Failure to provide documentation for 1.4 million prescribed pills costing more than $0.5 million

The interview presented an opportunity to ask blunt questions about his record. I’ve long wondered why his public image has been a model of efficiency and if he seeks press coverage. So, regarding DSHS, did his office seek publicity? “No, they did (DSHS) and they even edited our work on their Web site. We don’t want to sensationalize our work – we don’t make stuff up. We want to make government work better for citizens.”

Sonntag acknowledges the impact of the proposed cutback would be significant: “It’s about $500,000, which means 10 auditors would leave. The timing is certainly suspect. It’s sure curious and rather abrupt.” Was his office consulted? “No,” said the agency head of 300 employees.

His other budgetary concern: “The budget should not be arbitrarily set by the folks we audit.”

What about future DSHS audits? “I sure want to see that whole thing on a different page next year – our job is to identify ways to make government work better,” he commented. “Our other audits aren’t this contentious – this divisive. We audit over 2,700 units of government from state agencies to King County government to mosquito control districts.”

“When dealing with two House Speakers over the years, Clyde Ballard and Frank Chopp, they’ve both have had a great respect for our office,” added Sonntag. “We’re asked by higher education to audit them more regularly. We’re having to audit community colleges every other year and I’m not comfortable with that.”

Mercier says Sonntag deserves maximum respect for his financial oversight: “He is too nice in my opinion. He is not required to allow a response. The agencies often abuse the system.”

How do state audits work? “We ask questions. The communication is continual. We want it to be right. We want it to be something for the people to rely on. Ultimately, we have an exit audit conference and issue a draft audit report, which we discuss with the agency, but sometimes the final report is different from the draft.”

What if he could wave a magic wand regarding his work?

“I would see a relationship between state government and my staff where the word of our office would be appreciated and valued. I would hope the Legislature would consider the results of our work in policy and budget decisions.”

He’s been a proponent of performance audits of agencies, which has not been supported by Locke, and advocates a dialogue on priorities with voters with what he calls a citizens’ alliance. “Policymakers are ultimately going to decide value, transparency, and how important that is. The public hasn’t been asked yet about priorities. Citizens have been left out of the priority process.”

Based on reported problems and my personal experience, DSHS and other state agencies need auditing oversight:

• Hired a therapist to mediate contentious conflicts among numerous personnel employees
• Failed to honor a contract to provide projects and compensation for my consulting firm
• Allowed staff members, not agency managers, to select consultants
• An employee actually complained to me about consulting firms that were reluctant to attend countless meetings without compensation

Fortunately, the personnel office did require consultants to use benchmarks using the nationally recognized Malcolm Baldrige criteria for performance excellence. But when I facilitated a strategic planning retreat for DSHS managers, they refused to consider tools for measuring their performance. They finally relented after a lengthy discussion.

Actually, in both private and public sectors, employees often fear oversight but good auditors and management consultants don’t judge. They only care about providing a quality service.

Sonntag and his staff have done an excellent job helping state agencies to be more efficient by eliminating waste. The state would be better served if the State Auditor’s Office was fully funded and his recommendations regarding performance audits and a citizens’ alliance implemented.