A concern with the unprecedented growth of state government prompted the 1973 General Assembly to create the Commission on State Governmental Management. In the ten years prior to the 1973 Session, employment in state government increased 83 percent, from 40,571 to 74,269 and state expenditures grew 300 percent, from approximately $496 million to over $2.004 billion; while Virginia's population increased only 13 percent, from 4.276 million to 4.844 million. The Commission's major responsibility, as defined by the General Assembly, was to propose ways of:

"bringing about greater efficiency in state government by the reduction of the more than one hundred agencies to a reasonable and practicable number, the elimination of duplication and overlap, the establishment of clearer lines of authority, and undivided responsibility for particular functions of state government."

Since its establishment, the Commission has sought ways to make state government more efficient, effective and accountable. The Commission proposals have been directed toward:

• Making state government more productive, effective, and efficient while also increasing its accountability and responsiveness.

• Improving the quality of state services by clarifying lines of responsibility and authority.

• Enhancing state government's adaptability to change.

• Improving the state's planning, policy analysis and program development capability.

• Fostering a more positive management attitude with greater emphasis on results and program accomplishments.

Throughout its study, the Commission was keenly aware that previous reorganization study groups had suggested changes with only partial and often short-term success. Over 50 years ago, Governor Harry F. Byrd, Sr. proposed u reorganization of state government. The principal elements of the reorganization included the implementation of a short ballot providing for the popular election of only the Governor, Lieutenant Governor and Attorney General; the appointment of all administrative heads by the Governor; and the grouping of all agencies under 10 major departments. Of those recommendations, only the short ballot proposal was fully implemented. The Governor's Management Study in 1970 also considered state government operations but, because of its short time in existence, was unable to fully address the wide range of organization and management questions that were raised.

When the Commission was created, it began seeking proposals which would eliminate the need for reorganization every few years. Government works more effectively when changes in its organization and management are made as they are needed, rather than through a massive reorganization effort every quarter of a century.

There will be many changes in the future problems facing Virginia, in the demands made on state government, in the personnel occupying state offices and in the political climate in which Virginia functions. With these realities in mind, the Commission sought, and is still seeking, to promote the effective and responsible government Virginians both want and deserve. The product of the Commission's work will not only allow for these future changes, but also allow the state to anticipate them, and avoid crises, disruption and uncontrolled growth.

Many of the Commission's recommendations have already been adopted by the 1975, 1976 and 1977 Sessions of the Virginia General Assembly.

In 1975, the General Assembly enacted legislation sponsored by the Commission to strengthen the state's budget and accounting processes. A major aspect of the legislation requires the Governor to formulate the budget on n programmatic basis, emphasizing goals and objectives to be achieved by the programs of state government.

At the 1976 Session, several Commission proposals were approved by the General Assembly. Legislation was passed to strengthen the Governor's role in the coordination of federal contacts, in budget formulation and in his relationship with his Secretaries and the Attorney General. Recommendations were also approved which provided for the reorganization of administration and finance agencies, including the integration of planning and budget processes; the establishment of a Secretary of Public Safety; and the revision of the state personnel process with particular attention given to making the process more effective.

The Commission's legislative program approved during the 1977 Session included several bills giving the Governor a more substantial role in the affairs of state government. Specifically, the legislation gave the Governor the authority:

• to submit with his proposed budget a statement of proposed policies in six major areas of state government,

• to submit reorganization plans to the General Assembly for approval,

• to appoint all heads of state agencies, boards and commissions subject to confirmation by the General Assembly, and to remove any member of a board and commission for a specified reason.

The 1977 General Assembly also approved Commission legislation establishing the Department of Commerce, the Department of General Services and the Department of Housing and Community Development. The creation of these Departments occurred through the consolidation of various agencies with similar functions. This approach provides sound management and offers potential savings to Virginia's taxpayers.

The Commission will conclude its study at the end of the 1978 Session of the General Assembly. During the past few months, the Commission has revaluated earlier recommendations on which it had taken no final action. The Commission found that many of the earlier problems remain and that further changes are necessary in the organization and management of state government to solve those problems. This report contains the discussion of the changes proposed by the Commission. A summary of the 1978 Commission recommendations is listed below:

General Administration

• Retain boards and commissions and have them play a significant role in state government.

• Maintain the Public Telecommunications Council within the new Department of General Services for the present and request the Governor to initiate a study of the utilization of educational television in the Commonwealth.

• Request the Governor to prepare a program for the delegation of personnel authority.

• Separate management analysis and systems policy activities from computer services activities.

• Transfer the Art Commission to the new Department of General Services and change its name to the Art and Architectural Review Council.

• Establish a consistent format for identifying state agencies and collegial bodies.

Agricultural and Economic Resources

• Divide the state's commerce and resource responsibilities between a Secretary of Agricultural and Economic Resources and a Secretary of Natural Resources.

• Consolidate the state's industrial development and travel service activities within a Department of Industrial Development and Tourism.

• Consolidate responsibility for the inspection and regulation of milk activities within the Department of Agriculture.

• Transfer activities of the Office of Consumer Affairs and other non-agricultural inspection activities of the Department of Agriculture and Commerce to the Department of Commerce.

• Assign responsibility for the supervision and administration of the Virginia Truck and Ornamentals Research Station to Virginia Polytechnic Institute & State University.

Education

• Consolidate the administrative activities of the state's educational finance authorities within a single agency.

Human Resources

• Reorganize the state's social and employment services with responsibility for their administration placed within a Department of Social and Employment Services.

• Reorganize the state's welfare and unemployment benefit payment programs with responsibility for their administration placed in a Department of Economic Security.

• Broaden the mandate of the Department of Vocational Rehabilitation and rename the agency the Department of Rehabilitative Services.

Natural Resources

• Divide the state's commerce and resource responsibilities between a Secretary of Agricultural and Economic Resources and a Secretary of Natural Resources.

• Expand the State Water Control Board's recent efforts in water resource management and assign all responsibility for the regulation of sewerage systems and sewage treatment plants to the Board.

• Assign responsibility for the Bureau of Solid Waste to the proposed Secretary of Natural Resources.

• Establish a Department of Recreation and Historic Preservation by consolidating the activities of the Commission on Outdoor Recreation, the Outdoors Foundation, the Historic Landmarks Commission and the Division of Parks.

Public Safety

• Transfer responsibility for the enforcement of the state's Alcoholic Beverage Control and Motor Carrier Laws to the Department of State Police.

• Consolidate the activities of the Capitol Police, the Criminal Justice Services Commission and the Division of Justice and Crime Prevention within a Department of Justice Planning and Safety Services.

• Request the Governor to evaluate the programs of the Rehabilitative School Authority and its relationship to the Department of Corrections, and report his findings, conclusions and recommendations to the General Assembly.

Transportation

• Establish a Policy and Evaluation Staff reporting to the Secretary of Transportation; make the Secretary responsible for developing balanced transportation system plans; and make the powers of agency heads reporting to the Secretary consistent.

• Transfer responsibility for all aviation matters, except economic regulation, from the State Corporation Commission to the Secretary of Transportation, and rename the Division of Aeronautics, the Department of Aviation.

• Transfer responsibility for the Virginia Port Authority from the Secretary of Commerce and Resources to the Secretary of Transportation and reestablish the Authority as the Department of Ports and Waterways.

• Transfer responsibility for mass transit programs from the Department of Highways and Transportation to a new Department of Public Transportation.

• Consolidate the state's transportation safety activities within a single agency responsible to the Secretary of Transportation.

State Corporation Commission

• Continue the State Corporation Commission in its constitutional role of setting rates, issuing certificates of convenience and necessity, regulating the services of public service companies, and administering corporation laws.

• Transfer executive responsibilities for public utility regulation to a Department of Public Utilities responsible to the Secretary of Agricultural and Economic Resources.

• Transfer executive responsibilities for insurance regulation to a Department of Insurance responsible to the Secretary of Agricultural and Economic Resources.

• Transfer executive responsibilities for banking regulation to a Department of Banking responsible to the Secretary of Agricultural and Economic Resources.

• Transfer executive responsibilities for securities regulation to a Department of Securities and Retail Franchising responsible to the Secretary of Agricultural and Economic Resources.

• Transfer the Public Service Taxation activities of the State Corporation Commission to the Department of Taxation.

• Consolidate the investigatory activities of the State Corporation Commission's Enforcement Division and the activities of the Motor Transportation Division, Commerce Counsel Division, and Motor Carrier Taxation Division within the Division of Motor Vehicles and rename the expanded agency the Department of Transportation Regulation.

• Make the Attorney General responsible for representing only the public interest before the State Corporation Commission and other bodies.