President Obama’s chief of staff, Rahm Emanuel recently said, “You never let a serious crisis go to waste. And what I mean by that it's an opportunity to do things you think you could not do before." The bleak economic forecast released last month has led many Oregon Legislators to look to the old, tried-and-failed solutions – tax increases or spending cuts. But the on-going revenue problems offer a profound opportunity for elected officials to do things they haven’t been able to do before. Namely, enact common sense budgeting reforms that allow government to continue to meet the needs of Oregonians without raising fees or taxes on the same people who are already hurting.

This has actually been happening in many governments around the world, in the US and right here in Oregon. Even some socialist governments that are broke, economically in shambles, and over-taxed are adopting these time honored principles because they have found that they work. And, they can even be accomplished by working with government employee unions as a partner!

New Zealand’s then-newly elected socialist government privatized that nation’s Department of Transportation and educational system in the mid-1980’s because they were dead broke and out of options. Ireland’s socialist leader Bertie Ahern presided over the capitalist transformation that made Ireland one of the world’s strongest economies. Indianapolis, Indiana privatized and outsourced many city functions working with the government employee unions during the 1990’s and actually reduced the city budget for 7 years in a row without a reduction in services.

Sandy Springs, Georgia is a recently incorporated Atlanta suburb of nearly 100,000 residents which employs (excluding police and fire) only four city employees. The City contracts out virtually all city services to CH2M Hill and is saving $20 million per year. Right here in Oregon, Jackson County re-opened their library system under private contract (after being closed for six months) and are saving taxpayers 50 percent.

Government efficiency consultants with a track record of results can also help reorganize government processes to save 20 to 30 percent per year, without laying people off. Oregon’s Department of Human Services accomplished savings in just such a pilot program last year.

These are but a few of the examples of how governments can partner with their employees and private industry to accomplish more with less money. These reforms represent a win for everyone – taxpayers avoid an additional unaffordable burden; aid recipients get what they need, and; government employees retain their jobs.

This economic crisis is an opportunity to create sustainable government budgets that lead to long term economic prosperity. Our leaders should not let it go to waste.