A slow economic recovery may ease the sharpest pain felt over the last three years by most state and local governments facing smaller revenues and rising costs. But for many, the budgeting process and structures are still flawed and that means the long term prospects of growth and opportunity are limited. Too often during tough times the professional budget gurus simply put last year's numbers on the board and just start cutting. Sometimes they target obvious waste, sometimes they make uniform decreases, but either way, it's all about the cuts -- determining what matters least with a constant focus on what governments cannot afford to do.

This week, however, Iowa Governor Tom Vilsack has launched a new iniative that aims to change that equation and determine what government ought to do and how to do it best. "Purchasing Results" is a new way of budgeting that focuses on getting the most for Iowa's citizens and their tax dollars. It ties all state spending to six key areas:

• Transforming Iowa's economy,
• Improving student achievement,
• Keeping Iowans healthy,
• Ensuring Iowa's communities are safe,
• Preserving the quality of our natural resources,
• and Increasing government accountability.

"Iowans want to know if they are getting their money's worth from state government," Vilsack said. "We have a responsibility to Iowans to assure them that every dollar spent is producing results for our state. This new approach will tie every dollar to a specific, measurable result, so we will all be able to feel confident in our government's accountability."

For each of the six results, a small "buying team" will recommend how they would spend the state's limited resources to maximize results. State agencies and others who receive state dollars have been asked to think of themselves as "sellers" in the results marketplace. Their job is to make creative offers to the buying teams that will help produce the outcomes Iowans want.

Vilsack will present the state legislature with a prioritized list of every option for state spending that is available for the year ahead. That list, he says, will include an "evidence-based rationale" for the very order in which each government service and purchase has been prioritized.

The process acknowledges that government has certain responsibilities just like any other business functioning in the marketplace: eliminating waste, buying goods and services competitively, rewarding performance, and demanding accountability.

"The budget picture isn't getting any rosier," Vilsack acknowledged. "In order to continue to provide the services Iowans want, we must find new ways to squeeze every inch of progress out of every dollar."