Article

America's governors find common ground in focus on efficiency

March 23, 2026

Key takeaways

Line illustration of a megaphone

U.S. governors across party lines are converging on a shared management playbook.

alert

Governors are launching efficiency drives to reduce waste and improve operations.

mitigate

State-of-the-state addresses now stress results and execution rather than offer new promises.

#
Government State & local government

This year's state-of-the-state addresses reveal a finding that should surprise anyone who thinks American governance is hopelessly divided: governors from Alaska to Wisconsin, from deep red Idaho to deep blue California, are all trying to solve essentially the same problems. And they are doing it with a strikingly similar playbook.

An analysis of the 39 state-of-the-state addresses delivered in early 2026 shows that the nation’s governors often disagree on policy. However, when considering the question of what governors are actually doing to make their governments work better, a frequent answer emerged.

Call it the management consensus.

Rainy day funds are the new common currency

Across states that could not be more different politically, governors are building reserves, paying down debt and treating fiscal discipline as a management imperative.

Florida Governor Ron DeSantis has tripled the state's rainy-day fund and retired nearly half of all state debt accumulated throughout the state's entire history. Connecticut Governor Ned Lamont, no ideological cousin of DeSantis, has built a $4 billion rainy day fund while paying down over $10 billion in pension debt that previous administrations had, in his words, "put on the credit card for the next generation to pay." Wisconsin Governor Tony Evers ended a 30-year streak of deficit years. And Georgia Governor Brian Kemp holds reserves large enough to run his state’s government for three months.

This appears to be a shared operating principle. Governors of both parties have concluded that states that do not manage their finances conservatively are one crisis away from catastrophe, and they have acted accordingly.

Red tape is losing friends

The same convergence is visible in regulatory reform. The speed of permitting—for housing, energy projects, business development and so on—has become a competitive differentiator that governors across the spectrum are fighting to improve.

West Virginia Governor Patrick Morrisey said speed is the state's advantage. The state implemented a one-stop permitting process and expanded licensing reciprocity so qualified professionals can start work without bureaucratic delay. New York Governor Kathy Hochul launched the "Let Them Build" initiative, which targets housing and infrastructure. Hawaii Governor Josh Green signed emergency proclamations to cut red tape on housing, delivering what his administration called the most significant zoning reforms in 40 years. Maryland Governor Wes Moore framed cutting red tape and improving permitting as central to economic repositioning.

The specific problems differ. The diagnosis is the same: government processes that were designed for a slower era are now obstacles to the outcomes everyone says they want.

Efficiency is in

The push for government efficiency has a visible presence in state capitals this year, though it takes different forms depending on who is governing. Missouri's new governor, Mike Kehoe, launched the "Missouri GREAT" initiative, bringing private sector business leaders into state agencies to identify waste and recommend reforms.

Nebraska Governor Jim Pillen described reducing reliance on contractors and bringing pandemic-era remote workers back to the office as steps to restoring government effectiveness.

While the language differs, the agenda overlaps considerably.

The deeper shift

There is a notable change in how governors communicate their job performance.

For years, state-of-the-state addresses were vision documents, full of bold goals, new programs and ambitious promises. This year, the most credible addresses were operational scorecards. Governors shared bond rating upgrades, fraud savings figures, permitting timelines and reserve fund balances. They talked about implementation more than inspiration.

Utah Governor Spencer Cox quoted Calvin Coolidge's advice to legislators: "Do not hurry to legislate. Give administration a chance to catch up with legislation." Vermont Governor Phil Scott focused his entire address on implementing an education reform that already passed, highlighting the political will to follow through rather than announcing something new.

At a moment when public trust in government is fragile, governors appear to have concluded that demonstrating competence is more valuable than announcing ambition. In a resource-constrained environment, management and efficiency determine whether any priority gets delivered.

Across 39 states with wildly different politics, leaders and constituencies, one lesson emerges clearly: in government today, management capacity is policy. The governors building the most durable records are the ones who show they can execute.