This article contends that recent managerial improvements in the federal government can and should be replicated by the states. Although effective internal controls in federal agencies and programs had been mandated in 1950, little progress was made until the late seventies and early eighties, when Congress enacted several laws to strengthen federal financial management and the executive branch initiated a modernization program. This happy confluence of events brought significant improvements to federal management as a whole. Now it's time for similar progress in state operations. State and even local administrators should adopt the best features of the federal model in order to reap significant savings. California, Tennessee, and Rhode Island have already done so; the author recommends that others follow their lead.

The support of the Private Sector Council of Washington, D.C , contributed to the writing of this article and is gratefully acknowledged.



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