Malone Describes Years as Treasurer

The key to a more efficient government is intelligent reform of existing programs, not haphazard slashing of funds, State Treasurer Joseph E. Malone '78 told an audience of about 15 yesterday at the Kennedy School yesterday.

Malone cited his experience as state treasurer to show how government agencies can simultaneously shrink in size and grow in effectiveness.

With a chart for illustration, Malone showed how he has reduced the Treasury's spending by 53 percent since his election just eight years ago. At the same time, he said, the Treasury has added programs to encourage banks to invest in their local communities, to help home buyers secure loans and to help families save for college.

Malone's programs have indeed been used as models by other states and the federal government. As recognition for his record of innovation in public service, Malone was recently named winner of a Pathfinder Award, along with Hillary Rodham Clinton.

"The culture in our office is one where people are constantly looking for innovation," the treasurer said yesterday.

When he first took office, Malone said he sought advice from leading investors across the state--including Harvard Management Company President Jack R. Meyer--on how to improve the Treasury.

Malone warned, however, that merely cutting programs does make for better government.

Malone likened the current program-slashing fervor in Washington to "going to your doctor's office, and your doctor saying, 'I'm going to do something to you, and you may die because of it, and if you die you die."

The second speaker in the Institute of Politics' Summer in Boston speaker series, Malone echoed the sentiments of former Massachusetts governor Michael S. Dukakis who last week criticized California Gov. Pete Wilson.

Yesterday, Malone termed Wilson's call for restricted immigration "the darkest message I ever heard."

"This isn't the way to unite our society, to take one set of society and to say they are responsible for all our problems," said Malone, a first-generation American.

Malone, rumored to be a possible candidate to succeed Gov. William F. Weld '66, said Weld's proposals for welfare reform do not go far enough to protect the needy.

"If we pass that plan and put it on autopilot, I think we'll find a lot of people on the streets," Malone said.

In an interview after the discussion, Malone defended his decision to keep state pension money invested in tobacco companies.

State Attorney General L. Scott Harshbarger '64 is suing several of the same tobacco companies to recoup state Medicaid expenses, and the governor's office is conducting a multimillion dollar anti-smoking campaign.

Although it is within his discretion to divest from the tobacco companies, Malone says it is a power he should not exercise.

"Once you leave it up to the whim of one individual, then it's a slippery slope," he said.

Malone said that if the State Legislature wants him to divest from tobacco companies, it should pass a law to that effect

Malone, rumored to be a possible candidate to succeed Gov. William F. Weld '66, said Weld's proposals for welfare reform do not go far enough to protect the needy.

"If we pass that plan and put it on autopilot, I think we'll find a lot of people on the streets," Malone said.

In an interview after the discussion, Malone defended his decision to keep state pension money invested in tobacco companies.

State Attorney General L. Scott Harshbarger '64 is suing several of the same tobacco companies to recoup state Medicaid expenses, and the governor's office is conducting a multimillion dollar anti-smoking campaign.

Although it is within his discretion to divest from the tobacco companies, Malone says it is a power he should not exercise.

"Once you leave it up to the whim of one individual, then it's a slippery slope," he said.

Malone said that if the State Legislature wants him to divest from tobacco companies, it should pass a law to that effect