Tuesday, July 30, 2019

Slash and Burn

Meet The Right-Wing Consultant Who Goes From State To State Slashing Budgets

A few days after a powerful earthquake hit the state last November, Alaska Gov. Mike Dunleavy (R) issued an order increasing the power of the state’s budget office, led at the time by a woman who had lived in Alaska a mere two weeks.

In her newly empowered role, Donna Arduin — an infamous budget-slashing expert — and Dunleavy went on cut to hundreds of millions from the state budget. They aim to trim even more in her second year in the remote state.

It’s hardly Arduin’s first rodeo. The budget consultant has served in several Republican-led governor’s offices, slashing state expenses while cutting or resisting efforts to increase tax revenue. (...)

Since arriving in Alaska last year, Arduin has led the governor’s attempt to cut a whopping $1.6 billion in spending from education, social services, the arts, and nearly every other corner of state government. Between legislative cuts and line-item vetoes, Dunleavy has so far cut “almost $700 million” from the budget in his first year, Arduin said in an interview earlier this month, despite a failed recent attempt by the legislature to override his vetoes.

“We’re about halfway solved,” she said. “We’re going to be looking towards reducing the budget another $700 million next year.”

The University of Alaska’s Board of Regents, at a meeting in which they declared financial exigency last week, sounded less enthusiastic. The institution has been “crippled,” its president said, by the governor cutting roughly 40% of the school’s state funding — over $130 million. Thousands of students across the state found their state-funded scholarships suddenly defunded with the school year looming. “We will not have a university after February if we don’t make a move,” one regent noted.

Another Alaskan who had scheduled a dentures appointment four weeks after having his teeth extracted was left with gums flapping in the wind, after the governor eliminated Medicaid dental coverage for adults. That saved the state $27 million.

But the steep cuts aren’t surprising to Americans in several other states. Following an internship in the Reagan-era Office of Management and Budget and stints at Morgan Stanley and elsewhere, Arduin has crisscrossed the country slashing state budgets left and right.

“I have no sympathy for people who want handouts from the government,” Arduin told Duke Magazine for a 2006 profile.

It shows. (...)

As then-Florida Gov. Jeb Bush’s budget director, Arduin pushed a plan that would have empowered a statewide board of appointed doctors, pharmacists and others to decide which drugs could be prescribed using Medicaid funds. To make her point, Arduin pointed to HIV-positive men receiving Viagra prescriptions. “If it were up to me, the state wouldn’t pay for it at all,” she said.

In the process of cutting $8.1 billion over five years in Florida, the Los Angeles Times later reported, “Florida eliminated money for eyeglasses, hearing aids and dentures for poor seniors and forced 55,000 low-income children onto health insurance waiting lists.”

At that point, Arduin was “on loan,” from Bush’s office to then-California-governor-elect Arnold Schwarzenegger’s as an unpaid budget expert, and then as the state’s full-time budget director. Arduin ultimately left California after 11 months as Schwarzenegger’s adviser. An initial budget proposed under Arduin’s leadership cut $274 million from programs for developmentally disabled people, the Los Angeles Times later reported, until furious protest led the governor to reconsider. Overall, the budget deficit she’d sought to tackle only got worse.

“We didn’t solve the problem. We made it worse,” Michael Genest, who worked with Arduin when she was California Department of Finance director and later held the same post, told the Anchorage Daily News in a profile of Arduin last week. “That was the tradeoff.”

One of her partners at the consulting firm, Moore, commented at the time to the Los Angeles Times, “I think that her attitude is, I’ve come and rescued California, and pretty soon it’s time to pass the baton to someone else and go back to Florida or privatize herself in some way.”

Later, in Illinois, Arduin spent just eight months as Republican Gov. Bruce Rauner’s budget adviser, receiving an estimated $165,000 for her work after failing to come up with a budget the Democratic legislature found palatable. Rauner called Arduin “the smartest state government budget person in America.” (He was subsequently defeated in a reelection bid.)

Just as Arduin’s bids to slash budgets in California and Illinois met resistance outside the governor’s office, many Alaskans are frustrated with her lack of familiarity with their unique state.

The leader of a tribal consortium, Melanie Bahnke, told Arduin not to “use the word ‘our’ when referring to our people, our state and our issues” at an event sponsored by Americans For Prosperity, the Anchorage Daily News noted.

That might sound withering, but by now, Arduin has grown used to such critiques, as she noted to Duke Magazine in 2006.

“I joined government to shrink it,” she said.

by Matt Shuhan, Talking Points Memo |  Read more:
Image: Screenshot/YouTube, "Governor Perry"
[ed. Alaska is a complete mess right now. Even the ferries are out of commission due to strikes. All this because a new governor promised to dole out more money each year to residents from the state's Permanent Fund (an oil royalty savings account) while cutting state services. See also: The lunacy of the PFD fight (ADN).]