Doesn't everybody love a quick fix? Do you believe a tax refund check, weight loss pill, computer software, and even stock speculation will bring success without the need for hard work, determination and courage? Is there a quick fix to get state government out of its budget crisis today, and for years to come?

An auditor routinely looks at financial risks. And in state government, there is no shortage of risks threatening our ability to provide needed services, to balance our budgets and to maintain an infrastructure to secure our economic health in the future.

Vermont leaders have warned of:

Dire deficit projections for the fiscal year beginning July 1, 2011, after the federal stimulus program ends.

Over-reliance on federal funding for the state budget (currently about 30 percent).

State income tax revenues for this year that are 24 percent below past estimates.

State General Fund revenues that are 17.5 percent lower since July 2007.

Growing obligations for Department of Corrections, the state hospital, Medicaid, teachers' retirement, unemployment insurance, and retiree health care.

A backlog of approved school construction projects awaiting funding; and

Increasing need for many services, including health care, family supports, job training, long-term care, and many others.

These concerns are framed by a slow, fragile, almost "jobless" recovery from a two-year recession that has cost America more than seven million jobs. Many experts say the housing market and consumer spending could take years to reach their former levels.

Is there a quick fix to get us out of the multi-year fiscal storm ahead? I think that some people in Vermont believe so, perhaps by using rainy day funds or raising taxes. I disagree.

"Challenges for Change" is targeted to save $38 million (a tiny fraction of our $5 billion overall budget) this coming fiscal year, by re-thinking the way our key agencies provide services.

It is designed to force state agencies and their staffs to determine the best way possible to serve their clients and customers. It abolishes the old way of budgeting by focusing on outcomes for people served, instead of units of service provided. It is based on getting results, not just providing funds, or across-the-board cuts.

Challenges for Change is a very different way of doing things. It is hard work, and my hat is off to the dedicated teams of employees digging in to change rules and strategies so they can serve people in a better way. Legislators have raised real concerns about the impact on working people, the poor and elderly.

Because the process is difficult, some may hope that if we can just get through this year, we can go back to the old ways of budgeting. Something I've heard lately in Montpelier is: "Can we kill the concept and find $38 million somewhere else?" I hope not.

Vermont has a real opportunity now to restructure government so that it can survive and thrive in the years ahead. Opponents of the "change" process think it is all too much, too fast. It's not; 2011 and 2012 and their fiscal realities will be upon us before we know it. We can weather the fiscal storm ahead best by supporting Challenges for Change and the people at the front lines implementing it.

Some experts say that because of declining revenues and increasing needs, governments at all levels are now in a "permanent fiscal crisis." Many people chant that "new thinking is required" to address complex problems. Well, now is the chance for Vermonters to exercise that belief.

Myopia is the lack of foresight and long-term vision; it can be expensive. Yes, state finances are in rough waters and risks abound, but it would much more risky to abandon Challenges for Change now when it can serve as an important bridge to fiscal freedom in years ahead.



Tom Salmon, CPA, is Vermont State Auditor. He lives in St. Johnsbury.