University of Michigan Gerald R.

Ford School of Public Policy

Transitions & New Administrations Course

Lecture On the Gubernatorial Transition Process

Outline of Remarks by

Richard D. McLellan
Tuesday, March 26, 2013 Approach to Lecture o NGA New Governors Conference convention: use the other party instead of Democrat and Republican. o Use war stories to make a broader point. o Structure of Presentation: My background, bona fides Broad discussion of gubernatorial transition process Organizing the Transition Team: Keys for Success Policy development People Issue Management Questions and discussion My Background o Policy Wonk and Lawyer for 40+years. 1963 as House Janitor. 1965-66 driver for Lt. Governor. 4 years as administrative assistant to Governor. o Believe in the life cycle of a public policy: examples: charter schools, corporate political speech. Concept, drafting, enactment, implementation, defend, appeal, revise. (Examples: Age of Majority, corporate political speech, medical marihuana, and charter schools.) o Taught Issue Management at MSU. Annual lecture to Michigan Political Leadership Program (MPLP) graduates. o Involvement in controversial issues: dark money, medical marihuana, Indian gaming and casinos, education vouchers and charter schools, indigent defense funding. o Transitions subspecialty: Transition Director to Michigan Governor-elect in 1990. Most significant and satisfying professional assignment in career, better than U.S. Supreme Court argument. Prepared remarks for Governor and attended four New Governors Conferences of the National Governors Association (NGA) War Story: Who develops policy? Governors Big Jim Thompson (IL) vs. Michael Dukakis (MA).

Lecture On the Gubernatorial Transition Process Page 2 of 6 War Story: Assault by the wheelchair zealots. Prepared for Gov. Engler and NGA a compilation of all federal laws giving state governors powers. Chair of Transition for Michigan Attorney General-elect Bill Schuette in 2010. Conducted transition process briefing as part of 2010 Next Governor Project. When to Start Planning Transition? o During campaign: Reagan (Ed Meese), Rick Snyder, and Mitt Romney (new federal law). o After election: Most officeholders-elect. Types of Gubernatorial Transition o Governors term ends, replaced by same party o Governors term ends, replaced by the other party o Hostile take over: Governor is defeated and the other party candidate takes over Examples: Engler/Blanchard (pol v. pol), and Romney/Swainson (Brahmins v. labor), Bush/Clinton, Reagan/Carter Transition Funding Models o Federal: Government funded and statutory authorization o Michigan: Government funded, not statutes (but private funding required) o Many others: Private funding Gubernatorial transitions are a vital part of our democratic form of government. o But it is a little known process. o In 7 weeks, the following happens: For the government leaving office: The governor and all of his or her staff leave government. All files are removed from government offices; computer hard drives are removed or erased. The governors office is turned over to the successor empty with only the furniture All cabinet officers leave office For the incoming governor: A transition staff has to be created within days The governor and key staff should attend the New Governor Conference taught by sitting governors (same for urban Mayors) All the incoming governors staff, cabinet officers and other key officials have to be recruited, vetted, interviewed, and offered positions. The governor-elect has to begin to prepare a budget for the following year and to learn the budget situation where he or she will control the spending for only three of the four quarters. The incoming governor must prepare to translate campaign positions into legislative proposals and government actions. Media: feeding the beast

Lecture On the Gubernatorial Transition Process Page 3 of 6 o Single point of contact. Director does not talk to media. o Controlling staff trying to promote self (see Confidentiality). o Must keep information flowing even when you have little to say o War Story: Off the Record show o Change in the media; bloggers Organizing the Transition Team: Keys for Success in Transition and Priority Activities (Adapted from material created for Gov. Engler at NGA) Select Transition Team Leader Who Does Not Want A Job With You o Let him/her take all the bullets. o Tell people no. o Governors staff can start clean after inauguration. Transition Team Principles o Team holds position of public responsibility. o Respect for civil servants. o Basis for recommending appointment: Competence, Character and Capacity. o Outgoing Governor is in charge until inaugural. Communications and Confidentiality o ALL communications through press secretary. o Sign confidentiality agreement. No leaks. No second chance rule: if a transition team member is quoted in the press, he/she is off the team. No appeal, no due process. o Avoid application of FOIA. o Announce decisions (appointments) as soon as they are made. Separate policy teams from appointments process. Avoids policy teams from being lobbied for jobs. o Team leader group briefings for trade associations and lobbyists; give them something to report to members and clients. o Create Buffers for Governor-Elect and Team Leaders o Manage flood of calls and correspondence. o Policy Team Reporting Office; field questions from policy teams; forward urgent matters for decision at end of day. o Allow Governor-elect to think, initiate his/her own contacts and focus on key appointments and decisions. Legal Counsel to Transition Was Valuable Position o Legal counsel recruited top law firm of best lawyers in the state to volunteer. o Lawyers were honored to serve; contributed first-rate work. o Example: Complete review of Governors authority under federal laws. o Attorney/client privilege was important; subsequent lawsuits have sought access to transition documents. Key factors in Transition Team Leadership o Loyalty to Governor-Elect. o Knowledge of government. o Ability to keep things confidential. Structuring the Team

Lecture On the Gubernatorial Transition Process Page 4 of 6 o Must evolve quickly. o No time for planning. o Keep inaugural activities separate but cooperatively linked to transition team. o Equipment (phones, computers) are critical o Changes in 20 years: computers, internet, video links, decline of main stream media Priority Appointments o Chief of Staff. o Legal adviser. o Budget and treasury agency heads. o Welfare director. Policy Development Actually, a secondary function of transition. People are the most important element. 80% people 20% policy. Campaign rhetoric quickly bumps into reality especially regarding spending and taxes. Policy constraints: control of the legislature, fiscal situation. Policy teams for transition: mix of political favors, policy wonks and interest group representatives. o My view: Value is to make members feel happy and appreciated (without regard for the work product), NOT to really make decisions/create options for the elected officials. Policy and background binders from outgoing governors departments. Governors-elect come to office with varying degrees of policy plans. Compare Engler and Snyder vs. Granholm. My opinion: In developing Governors policy staff, brains are more important than experience. I would rather have a very smart young person who can seek out the best advice and develop strategy for the governor than the seasoned expert. EXCEPTION: budget and taxes. Importance of messaging: Inaugural Address, First State of the State, First Budget, Special Messages (e.g., crime), and speeches. Execution: controlling bill drafting, directives, cabinet officers control and commitment to messages. o Lesson: dont make your staff too small. (See People section.) Most transition policy team recommendations are quickly lost. But they can uncover some unseen challenges and issues. Understand and using your powers: o Importance of legal team; can policies be carried out. o Deep understanding of executive powers. o Engler secret weapon: Judge Nancy Edmunds: survey of federal laws. o War story: Governors reorganization powers. 1972 Memo. o Be prepared to defend actions in court. o Governor Granholms secret weapon. People. Getting them in and out.

Lecture On the Gubernatorial Transition Process Page 5 of 6 Three staffs: (a) transition staff picks (b) permanent staff. Dont forget (c) people who are leaving. Different functions. Clearing out the previous administration o Depends on type of transition. Most people plan for it. Not under hostile takeover. o Fire people from the other party. Memo to all unclassified employees, make exceptions if you need to. Surprise that some people dont know it is coming. o War story: Turncoats. Special treatment. o War story: Firing the State Police Director and Adjutant General. o No hit list. Litigation. o Outgoing governor trying to protect people and bury them in civil service. War story: Lt. Gov. role. o Being fair: Larry Tokarski Democrat on the floor. Transition Team: what was important o If director is white male, deputy-woman of color, attorney, close to Governor-elect. o Ability to get along under intense pressure. o Legal counsel to Transition. o Diversity and affirmative action; credit standards; women; LGBT not an issue. o Commitment to Governors vision. o Pro-life Governor; no litmus test on appointments (but, for many, abortion stance is more important than any other quality). o Someone who has been through it before. Priority positions for permanent staff: o Chief of staff, press secretary, personal assistant (gate keeper) o Transition directors and Inaugural planner o Budget director o Key cabinet: depends on circumstances. Welfare director (budget impact), State Treasurer (taxes), Transportation Biggest Mistake o Making governors staff too small. o New governors (mostly Republican) make a big deal of cutting staff at the outset. o It doesnt work. One-day story and then months without sufficient staff to drive governors policies. o If you have to show cuts, make them symbolic. o Learn to bury people you need in the bureaucracy and federal dollars. o In the end the governor will be judged on the basis of what he or she accomplishes, not the size of staff. Process o Administration of process is critical (thousands of resumes) o Managing governor-elects time and priorities

Lecture On the Gubernatorial Transition Process Page 6 of 6 o Vetting: BQ, interviews, background checks (now corporate systems), and private interview for tough questions from Peter Ellsworth. Governor makes final decision. o Challenges: campaign workers, out of work legislators and senatorial staff expecting top jobs Issue Management o Administration is like any interest group, it has interests it wants to advance. o Apply the principles and techniques of Issue Management o First test is Messaging the Transition - what message are you sending? Have a plan, a strategy, and a theme. Understand symbolic acts, the theater of government. Example: Meeting with the Attorney General o From course description:
This course will look at the complexity of activities involved in professional efforts by public relations professionals, pollsters, lobbyists, lawyers and others to affect public policy decisions including legislation and ordinances, ballot questions, government decisions such as zoning and contracts, and other government decisions on the federal, state, local and tribal levels. Subjects covered will include coalitions building and team dynamics, ethics and political regulation in the government policy arena, ballot question campaigns, working with the media, handling crises and setbacks.

o Prof. Richard Cole: Managing Through Messages

The key to the political comeback of [Michigan Governor Jim] Blanchard and Michigan was the governors message and the innovative policy supported by it. He communicated his comeback plan directly to the public. Describing his aspirations for the states future. He used his cabinet adroitly providing cabinet heads with the information and inspiration necessary to manage their agencies and to further disseminate his massage across the state.

Final Stories

o Leadership Through Communication

Use your security detail. Being a Big Shot for 8 weeks: Christmas ham, investment bankers, and judicial candidates. Dealing with the Media: Off the Record show (say nothing, education employees). December 30 with the Governor elect: Be Bold, make tough decisions.

Questions and Discussion

Richard D. McLellan 2013 rdmclellan@comcast.net www.richardmclellan.com