Iowa Charter Agencies

Overcoming Barriers

Charter Agencies are still growing into the new deal. They are not yet taking full advantage of the authority and flexibilities to improve results for Iowans, which should surprise no one.
 

Bureaucratic patterns are deeply ingrained. Even the best leaders and employees are unaware of the extent to which pervasive assumptions and habits dictate their actions, to say nothing of the maze of those whose very jobs embody administrative rules and bureaucratic process. Add “gotcha” media and legislators steeped in micromanagement to appreciate the full extent of the barriers arrayed against Charter transformation.
 

So while Charter Agencies have started well, perhaps extraordinarily well given the circumstances, great potential remains untapped. A journey of a thousand miles begins with one step, in this case a step taken on July 1, 2003. Each succeeding development over the last two years has advanced the transformation. With each month, we are seeing Charter Agencies become more confident, more assertive, more intrigued with how they can use Charter Agency status to benefit the Iowans they serve.
 

For the first six months, the central agencies that traditionally exercise control expressed considerable concern and resistance. Did the law really say that Charter Agency directors have their same powers? What about checks and balances? Could the Charter Agencies be trusted to exercise their freedom responsibly? Did the Charter Agencies have the necessary expertise in budgeting, accounting, personnel, procurement, and information management to make decisions on their own? Is this the beginning of the end for administrative professions in these areas? Will the Governor and Legislature still blame the central agencies for irregularities?

The Department of Management and The Public Strategies Group, which helped Iowa hatch Charter Agencies, continue to support this transformation:

• Coaching Charter Agency Directors and key staff;

• Providing technical assistance on the relationship between the law and rules on one hand and Charter Agency authority and flexibilities on the other;

• Facilitating interaction between the “central control” agencies and Charter Agencies;

• Briefing legislators, reporters, and others;

• Providing ideas for ways to take best advantage of Charter Agency status;

• Responding to requests for information and clarification;

• Problem-solving when Charter Agency status appears to conflict with other executive branch initiatives or procedures; and

• Documenting success and gaining recognition for Charter Agencies.

No one expects this transformation to happen quickly or easily. We are extremely pleased with the progress to date and look forward to pushing it further.

Costs

Charter Agencies contributed over $22 million to the General Fund in FY 2004. These savings and/or new entrepreneurial revenues were taken from or added to the FY 2004 budget. They are not projections. $20 million was achieved in FY 2005. FY 20006 numbers are not complete, but we anticipate exceeding $22 million.

There is no program budget as such because there is nothing to administer. The strengthened accountability arrangement, the flexibilities, and the savings/revenues are part of the ongoing operations of the Charter Agencies and the Departments of Administrative Services and the Management. There are no special activities in these departments devoted to the Charter Agency concept. These conditions are part of the beauty of the program.