Inefficient, inequitable, and maddeningly slow, America’s fragmented administrative institutions are saving the Republic before our eyes.
The American administrative apparatus is an astonishing jumble. Scores of federal agencies, fifty states (plus D.C.), 14 territories, hundreds of tribes, and tens of thousands of local governments share responsibility for domestic public policy in the United States. Beyond its inelegance, this mind-boggling fragmentation is a recipe for waste, confusion, and contradiction. No sane person would design a system like this if the goal was efficient, equitable regulation or delivery of public services. It’s a hot mess.
But by brilliant design or happy accident, America’s confusing and convoluted administrative institutions simultaneously allow for and defend against electoral abuse. The slow-rolling drama of this year’s federal elections is a dramatic case-in-point.
Federalism—a model of governance that shares authority between a central government and regional subunits—gets a pretty bad rap in political science and economics. Federalism generates inconsistent, often contradictory policies. The whole apparatus is inequitable, as citizens in different parts of the country experience government in very different ways, often with troubling racial or ethnic biases. Administrative systems are redundant, bloated, and sometime work at cross-purposes. Our system of government isn’t Schoolhouse Rock, it’s a Hieronymus Bosch painting.
Every time I move from one state to another and wait in line at the DMV, I wonder: does America really need more than fifty driver’s licensing regimes and insurance regulators? Do we really need to track births, deaths, marriages, and land ownership through 3,000 county governments? Does it really make sense to parcel out responsibility for firefighting and law enforcement and education and health care and trash disposal across tens of thousands of governments?
Brilliantly efficient policies conceived on drawing boards in think tanks, seminars, and congressional hearings slam into this amorphous, chaotic intergovernmental blob. Look no further than the COVID-19 vaccine administration to see what I mean.
Baffling, byzantine, brilliant elections
Disorder and fragmentation also afflict American democracy. Election administration is intensely local in the United States. Elections in this country aren’t run by the Federal Election Commission. In most of the U.S., county and town governments organize and administer elections with state oversight. The work of issuing and counting ballots falls to tens of thousands of local officials and poll workers. Votes are cast and counted with a bizarre mish-mash of technologies. Vote counting is slow, reporting of results is haphazard, and when presidential elections are close, the delays are maddening. Even worse, all this fragmentation can allow state or local authorities to make voting difficult when it’s politically advantageous. Our country has a troubled history of voter suppression and disenfranchisement. The 1965 Voting Rights Act was a landmark step toward addressing those problems, and over the years there have been calls to nationalize voting administration completely.
But ironically, fragmentation of our electoral system is also a safeguard against tyranny. Over the past month we’ve seen a remarkable federalist drama play out in Georgia. Georgia’s top election official and Secretary of State have publicly clashed with President Trump’s obdurate refusal to accept the outcome of the Peach State’s elections. The audio recording of Trump’s phone call with Georgia Secretary of State Raffensperger leaked last week is a testimony to the surprising strength of the nation’s fractured electoral systems.
Raffensperger, an elected official and life-long Republican, steadfastly refused to use his administrative authority to change his state’s election results, despite the President’s cajoling and vague threats. Raffensperger could show this kind of fortitude because he was selected by and is responsible to the voters of Georgia, not to the President of the United States. Raffensperger works in Atlanta alongside other Georgia officials; to capitulate to Trump’s demands would be to dishonor the public servants he sees every day. Just so, elections administrators in each of Georgia’s 159 counties are responsible to their own communities, not the President.
Hard to manage is also hard to hack
It is easy to imagine an alternative world in which Congress sets detailed rules for elections, the President appoints a Secretary of Elections, and a U.S. Department of Elections operates the whole system. Certainly, election administration would be more uniform, and we’d likely get results much faster. But uniform technology for casting and counting votes would make our elections far more vulnerable to electronic mischief. Whatever its other drawbacks, the Rube Goldberg Machine that is our election administration system is reasonably immune to concentrated attack. No vast right-wing conspiracy is possible, no deep-state conspiracy is possible, no national electoral conspiracy of any kind is really possible because our nation’s whole electoral apparatus is so convoluted.
Most of all, locally-managed elections form an inelegant but potent check on executive power. A U.S. Department of Elections staffed by presidential appointees would be glaringly vulnerable to presidential meddling. Would a U.S. Secretary of Elections appointed by President Trump resist manipulation the way that Georgia’s Secretary of State did?
As I write this, Georgia is in the throes of managing its special senate election. The polls suggest a close race, so it’s likely going to take elections officials a while to complete and validate everything. Angry, impatient cries will erupt from every ideological corner, just as they did in the ten days after last November’s federal elections. That’s OK. Our crazy quilt electoral system isn’t pretty, it isn’t quick, and it isn’t particularly fair; but it’s awfully hard to break. At a moment when our institutions are under stress, that is some comfort.
to win not to lose in water utility management
Warning: strained sports metaphor coming.
It’s late January, and the National Football League season soon reaches its climax with the Super Bowl. Both of last weekend’s conference championship games saw a high-octane home team take the lead. By late in the game, the winning teams’ strategies shifted from trying to score to trying to run out the clock. That meant lots of prevent defense, a tactic familiar to any reasonably attentive American football fan.
Prevent defense is an ultra-conservative strategy, designed to use up time and avoid disastrous, long passing plays—the goal is not really to stop the opposing team, but rather to manage moderate losses. A coach who deploys a prevent defense isn’t so much trying to win as he is trying to avoid losing. That works fine when the team that’s ahead has a comfortable lead. But when the lead is tenuous, prevent defense courts disaster because it can allow a quarterback to lead a heroic comeback. Legendary NFL coach John Madden famously declared that: “All a prevent defense does is prevent you from winning.”
Naturally, all of this makes me think about water utility management.
Compliance as performance
A few years ago I took a water operator training class through Texas A&M Engineering Extension. The course covered principles of safe operations, along with the basic math, chemistry, and physics that operators need. What really stood out to me was how virtually everything about our training involved regulatory compliance. Treatment plant operations, distribution system maintenance, even safety protocols, were all framed in terms of following rules and avoiding violations.
Things don’t seem much different in utilities’ executive suites or board rooms. Although the rhetoric of excellence abounds in water management circles, real policy decisions and capital investments tend to follow regulatory requirements. Treatment plant upgrades happen when the EPA formulates a new rule. Sewer capacity expansions come when overflows become so frequent and egregious that regulators force a consent decree.
A water system’s strategic goal might be public health, environmental quality, citizen trust, and economic prosperity, but the utilities’ management tactics often boil down to regulatory compliance. The practical goal is not so much to achieve good things, but to avoid bad ones.
The main reason is money. One of the challenges of managing great water and sewer systems is that the price of a water is much more visible than quality of water. Customers—who are also voters—know for sure what they pay for it when they get the bill each month. Water systems are literally buried. Unless quality is egregiously awful, the only marker of a system’s quality is regulatory compliance. It’s hard for utilities to demonstrate their real value in terms of anything but monthly bills and disasters.
Utility leaders are thus stuck between a rate increase rock and a regulatory hard place. For many, “success” means avoiding rate increases and regulatory violations as long as possible. The folks who operate these essential systems don’t like running them to the brink of failure, but as one city utility executive told me: “It’s hard to get anything done without a regulatory boot to your backside.”
That’s a fundamentally negative way to think about performance. Is it any wonder that utility managers often run a prevent defense?
From loss avoidance to winning
There are some creative, dynamic, and courageous leaders in the water sector who have found ways to build achievement cultures in their utilities. But hoping for the serendipitous arrival of an exceptional leader isn’t really a strategy. What would it take to change the game? How can we get utility leaders to think about seeking success, rather than avoiding failure?
What’s needed is a comprehensive, independent, and visible system for monitoring and reporting water and sewer utility performance. What if there were monthly box scores for utilities? What if they received a report card and grade point average every year, with results reported publicly?
Aquam cum laude
This isn’t really a radical idea; Congress had transparency in mind when it required utilities systems to provide water quality reports, and the State of New Jersey was thinking about political accountability when it launched the Water Quality Accountability Act. Too often we forget that public information about water system performance also creates a credit-claiming opportunity. But reporting under those laws is complicated and in many ways opaque.
Anyone who has been to high school understands grades and GPAs. A simple, comprehensive report card would give a utility’s leaders a way to communicate progress. A new management team could set clear improvement targets and show how their efforts moved the system’s GPA from 2.7 to 3.5. Mayors and councilmembers could trumpet the improvements, helping to demonstrate the value of those unpleasant rate increases. Water systems that achieve and maintain consistent excellence across the board would qualify for the Dean’s List.
I’m a big believer in the power of measurement and incentives. If we keep score correctly, our utility leaders can do more than avoid disaster—they can play to win health, environmental quality, and economic prosperity for our communities.
© 2020 Manny P. Teodoro
Water Sector Reform #4: Human Capital
With a major federal investment in water infrastructure possibly on the horizon, the United States has a once-in-a-generation opportunity to leverage that money into a structural transformation of America’s water sector. This is the fourth in a series of five posts outlining broad proposals to reform the management, governance, and regulation of U.S. drinking water, sewer, and stormwater systems. The first proposed reform was consolidation of water utilities; the second was an overhaul of financial regulation; the third was investment in information technology.
My fourth proposal is to invest in water sector human capital through workforce development and streamlining labor markets.
Working for Water
The U.S. water sector’s workforce challenge has been evident for a long time; as early as 2005 observers identified a slow-rolling retirement tsunami washing over utility organizations and recognized that the supply of workers was insufficient to meet the nation’s needs. In many ways, the water sector’s workforce issues mirror those of the wider public sector workforce. But addressing water workforce challenges isn’t just about quantity, it’s about quality.
Once upon a time, water system operations was a semi-skilled job. If you had a strong back, could turn a wrench, and operate a backhoe, you could probably do it. Until recently, a water operator could get by with limited reading comprehension and little to no aptitude for math or science.
That’s no longer true. Today water and sewer system operations are highly skilled jobs. Regulations and technology are ever-advancing. Modern water systems require operators who can interpret complex regulations. Operators must have a solid working understanding of physics, chemistry, and biology, and a good command of math. And they have to be able to communicate with management and engage directly with the public.
Water systems are getting smarter; water operators have to be smarter, too.
But highly-skilled operators are in short supply and human capital isn’t evenly distributed. Training up a utility operator takes a lot of time, and in rural or remote parts of the US it can be especially hard to find an adequate supply of educated workers who can be trained to operate water systems.
Human capital & utility performance
Labor availability has measurable effects on effects on water quality. A few years ago David Switzer and I analyzed the relationship between SDWA compliance and the availability of skilled workers in a labor market. We found a strong relationship between labor force education and utility performance.
We also found that larger organizations are more effective in leveraging human capital than small ones. The reason is pretty clear: if you’re a smart, ambitious person interested in a water career, a small utility is at best a stepping stone, at worst a dead-end job. There may be only a handful of employees and the only opportunity for advancement is to wait for another operator to leave—or to leave yourself. So small systems struggle to attract and retain good employees. I heard directly from one utility manager that systems sometimes deliberately choose not to invest in training because they fear that a well-trained employee will leave. It’s a kind of strategic mediocrity.
Making matters worse, each state has different training and licensing regimes for water operators. There are separate licensing systems for water and sewer. There are separate licensing programs for treatment, distribution, and collection systems. Sometimes states set up reciprocal licensing agreements, but it’s a confusing and frustrating patchwork. All those rules are sand in the gears of the labor market and discourage smart, ambitious people from entering or building careers in the water sector.
Human capital investment
We need to grow the supply of human capital, and we need to streamline the labor market. So proposal number four is to invest in workforce development, and create national certification standards for operators.
This isn’t a particularly new idea—it’s a revival of an old one. Discussions of the 1972 Clean Water Act tend to focus on the pollution controls in Titles III and IV (for obvious reasons). But importantly, the Clean Water Act included a huge federal investment in research and training. In the 1960s environmental engineering was in its infancy as a field, and when Congress passed the Clean Water Act it wasn’t exactly sure how to make the nation’s waters fishable-and-swimmable.* So Uncle Sam built human capital for the water sector as it was building physical infrastructure. It’s telling that Title I of the Clean Water Act was an investment in people, and Title II was an investment in pipes.
Folks in the water sector sometimes refer to the generation of water professionals who emerged in the 1970s and 80s as the “Class of 72,” recognizing that in many ways the field of environmental engineering came of age due to that federal investment. We need a similar investment today to build the next generation of water professionals. We need careful, data-driven research on effective utility management, leadership, and organizations. We need rigorous degree and certificate programs to funnel talent into the water sector. America’s land grant universities (like Texas A&M!) are great institutional venues for these efforts, but there are other good models out there, too.
Freeing the market
Labor markets—like most other markets—work best when buyers and sellers can exchange freely. Along with investments in research and training, we need to harmonize, liberalize, and streamline licensing regimes for water and sewer operations. Instead of a crazy patchwork of training programs and licensing requirements, let’s establish national standards and a national accreditation system for both individuals and training institutions. Organizations like ANSI and AWWA have processes in place to craft water technology standards; the same model could be applied to licensing and certification. With national training and licensing standards in effect, a smart, ambitious person could enter the water sector with the prospect of building a career that could take her anywhere.
*Political scientists call that “speculative augmentation,” which is a polite way of saying “Congress has no idea what to do, so it’s going to kick the problem to experts and hope they can figure it out.” In the case of environmental regulation, it’s worked out reasonably well.
© 2019 Manny P. Teodoro