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The Next Step
We now have a whole collection of programs operating on the principles of government by performance, they are all successful, but it is time to ask a key question, "Why are they separate programs?". One of the principles of government by performance was to keep federal prescriptions out of the mix, but with a whole collection of separately funded and managed performance based programs, we now have allowed a federal prescription to creep back. The separate programs each have separate funding, so, in effect, we have the federal government telling cities and states exactly which pile of dollars they are allowed to spend on which programs. This is just another federal prescription that should be done away with.
Some cities will have a bigger problem with schools than with crime, other cities will have a bigger problem with their roads and sewers, other cities might have perfectly modern infrastructure, but be facing a big crime problem. It is fine for the federal government to be setting goals for the whole country (in fact, it is refreshing to actually have some of them written down and regularly measured), but the federal government should not be telling the cities how much to spend on which problems. The cities have a much better feel for their own unique problems, and could do a much better job of deciding how their resources should be allocated.
So the obvious next step is to merge all the performance based programs which now exist into a single performance based program. Instead of allocating funds for each one individually, all the funds are lumped together. Congress would get the additional task of creating a formula each year giving the relative priorities of each of the performance goals and saying how collective progress will be measured. A single fund will now be distributed based on the overall combined performance of each city, and the cities will be free to decide for themselves how best to maximize their overall performance.
If the people of the country don't like the priorities Congress sets, they can always elect new members of Congress in the next election (but it will be a foolish congresscritter who will set priorities against the wishes of constituents). If the people in a city don't like the approach their city government is taking to selecting which goals to give high priority locally, they can express their feelings about that in a city council meeting or in the next election.
With large chunks of money now flowing only to projects which publicly show measurable good performance, taxpayers will start to get used to the idea that they can expect government to work right and to spend their money where it does some good.
At the end of this phase, we will have a few things no government has ever had before:
The only thing left to do is drag the rest of government (kicking and screaming if necessary) into the government by performance program.