Topeka ? Gov.-elect Kathleen Sebelius has her eyes on Texas to find ways to solve Kansasâ budget mess.

Sebelius, a Democrat who promised a âÂÂtop-to-bottomâ review of state government, has often referred to the âÂÂTexas modelâ when talking about her proposal, which she said she would unveil in full this week.

That model was devised by former Texas Comptroller John Sharp in 1991 when Texas faced a situation now familiar in Kansas – a staggering budget deficit amid a sour economy and cries from some for more taxes.

In Texas, Sharp was given the green light to find savings and establish better ways to serve taxpayers.

He unleashed 100 auditors who found billions of dollars in savings and scores of ways to make government more effective and useful.

The program, which became known as the Texas Performance Review, was updated with new reports in an eight-year period and has been used as the template for reviews in other states and even the federal government.

Sebeliusâ staff has been consulting with a key assistant to Sharp – Kelly Fero of Austin – on ways to start a similar review program in Kansas.

Culture change

Fero said the goal of the review should be to save money, but just as importantly to find better ways for government to conduct business.

âÂÂThe basic approach is really to change the culture of state government,â he said. âÂÂThere are a lot of good people working in Kansas government, as in many governments, but they are often trapped in outmoded, inefficient systems. The Kansas equivalent of a Texas Performance Review should have the ultimate goal of retooling state government into a customer-oriented organization that offers high-quality, low-cost service.âÂÂ

Fero said that involves asking tough questions about what role government should play and predicted it would lead to tough political battles when recommendations are made.

He added that SharpâÂÂs first report was developed somewhat behind closed doors âÂÂto keep the lobbyists at bay and not give them time to organize. They did manage to kill off some proposals.âÂÂ

The auditors were grouped into teams according to a specific state function and then had âÂÂtoll-gateâ sessions where ideas were debated with the winners going through the toll-gate, he said.

The report led to major agency reorganizations and more efficient ways to deliver welfare programs and tap into federal funds. The report even included seemingly mundane recommendations, such as turning off the lights in vending machines in state offices.

After the first report, a Republican group in Texas was so impressed that it asked Sharp, a Democrat, to join the GOP. He declined.

Kansas skepticism

In Kansas, Sebelius hasnâÂÂt revealed details about how she intends to conduct the audits, only to say that the system will include a toll-free number and Web site for Kansans to make suggestions.

Some lawmakers have voiced skepticism about the process, saying the cratering state budget needs immediate cuts and canâÂÂt wait for a comprehensive review.

The current fiscal yearâÂÂs $4.4 billion budget will require about $255 million in cuts in order to prevent a year-ending deficit, which is prohibited by state law. And the next fiscal year, which starts July 1, will require about $800 million in additional revenue to keep up with spending commitments already made.

One day after her victory, Sebelius said that between now and her inauguration Jan. 13, she would leave decisions about the current budget to outgoing Gov. Bill Graves. But Graves, who has already cut $41 million from the current budget, has said he didnâÂÂt want to make any additional cuts without Sebeliusâ approval.

Do it sooner?

State Rep. Kenny Wilk, R-Lansing, and chairman of the House budget writing committee, said Sebelius would have to channel cuts through Graves now, during the period of transition between the two administrations.

âÂÂThe sooner budget action is taken, the better off we will be,â Wilk said.

Delaying cuts in the current fiscal year, he said, simply adds to the $800 million gap in the next fiscal year.

He said the immediate budget problems will force Sebelius to take action even before she is sworn into office.

âÂÂShe will have the shortest honeymoon as any governor in state history,â he said.

Still, Wilk endorses Sebeliusâ idea to conduct a review of state government and has quietly initiated his own, smaller version of such a review with the Legislative Division of Post Audit, which is the auditing arm of the Legislature.

Wilk, who has been on the front lines of tough budget sessions the past two years, asked the audit division to brainstorm and come up with cost-cutting or revenue-increasing ideas.

The division has produced a wide-ranging list of proposals, which include many that sound do-able, while others are probably politically impossible, such as letting cities bid on being host to the Kansas State Fair.