Unofficial Voice of the Utah Senate Majority
Welcome to The Senate Site
Twitter/
Friday, October 16, 2009Budget Train Wreck?
By Lyle Hillyard
Senate Chair of Executive Appropriations This past week, I attended 3 presentations. I was told that there are essential State programs that, if they were not funded either with a continuing back fill or new money, serious problems would occur. The trouble is that I agreed with them. We have identified societal issues where state intervention is making a difference and loss of that State help will have quite an impact. The other problem is that we don’t print money so we are restricted to spending only the money we have. That money comes from the people either with the current tax revenues, which are appearing to continue to decrease, or some type of revenue enhancements. The decreases are so great that such “enhancements” must be large to fill in the gap. Gov. Herbert has initially stated that he does not plan to seek such enhancements so none will come unless he actively pushes for them. How do we solve the dilemma? The only solution I can offer is that people who know how to deliver these necessary services must find a way to focus these services to those who truly need them and can be delivered within the available revenues. I am pleased when I see agencies realize the dilemma and step up with proposals that will work. Lisa-Michele Church put it fairly when she asked the legislature to amend the law and thus decide where her priorities as an agency should be. She accepted our challenge to make recommendations, but I agree that the ultimate decision should be made by the legislature, if her department cannot adequately provide the services allowed under the mandates of the law. I feel sorry for groups who think that these threatened dire consequences will motivate the legislature to find money to continue business as usual. They are probably in for a rude awakening. We will try our best but things will be different. I still remember Gov. Matheson did not want to be the first Governor to have a $1.0 B budget in 1984. Now our budget is $12.0 B. That was only 25 years ago. Somehow we survived, but I have not seen that by spending more money, the problems have gone away. I strongly request that we all look very carefully at the services we really want from Government and measure that against what we (not the rich guy behind the tree) are willing to pay. If agencies and the people who rely on governmental services are not preparing for what may happen with the reduction of state revenues next January, there will be a rude awakening, but hopefully not a train wreck.
posted by The Senate Site at 4:35 PM | Link
|
Government 2.0 AccessoriesRadio Free SenatePast Five Twitter UpdatesKeep in TouchYour Government 2.0 Lab
Current Discussions
Senate Site Feed
|
© 2008. All rights reserved. Designed by Jeremy Wright & His Brother-In-Law
8 Comments:
The only solution Senator Hillyard can offer is to direct agencies to help fewer people who need help because their funding has to be cut.
Is that truly the only solution? What about the Utah income tax system that is one of the least progressive in the nation? The wealthiest of our citizens pay the same rate as those below the national poverty level. What about the millions in tax cuts the Republican legislature has given back during the years with a surplus? Why can't that door swing both ways on years when there is not enough to meet essential services? How about all of the millions of dollars in financial incentives given to corporations from the state coffers? Some of us feel that the priorities are out of whack when the Republican Majority can find the resources to do buildings, roads, corporate incentives at the same time the state's neediest citizens are asked to do without.
Let's look at asking those who have been Utah's most successful to give a bit more back to the state that helped to make that success possible. Let's attract corporations by offering clean air and clean water and a well educated work force, rather than with million dollar tax credits.
Let's look at which capital projects can be postponed or bonded for in order to use dollars to help people in need rather than go to bricks and asphalt.
Senator Hillyard needs to recognize that there are indeed other solutions available. All one has to do is to put human needs a bit higher on their list of priorities.
Rich and poor do not pay the same EFFECTIVE income tax rate. The nominal rate is 5%, but then there are credits which are phased out as income increases.
The effective income tax rate is much more important than the nominal income tax rate.
Unfortunately, Lisa-Michele is unwilling to provide recommendations to the legislature regarding how to amend the law. Her actions speak louder than her words.
"Revenue enhancements" are "tax increases". Call them what they truly. Don't sugarcoat what you are saying.
Also, Utah doesn't have a revenue problem, it has a spending problem. Why are some so arrogant to believe that elected officials know better how to spend the citizens' hard earned money than those citizens? Do we believe so little in liberty and voluntary cooperation that we must exert more oppressive burdens and compel greater subservience to the state?
My income has not increased 12 fold since 1985, so the simple question is why has Senator Hillyard and the others who have been there much of that time allowed spending to increase that much?
With all due respect Senator Hillyard, you and yor fellow senators created this problem by not being able or willing to say no. Government programs are your drug of choice. It gives you a rush to use our money to satisfy your craving to do good.
Remember, when you rob Peter to pay Paul, Paul always benefits and will be adversely affected when you stop robbing Peter. But that is not justification to keep robbing Peter.
Its time for you to man up and cut back even "worthy" programs to the core purpose of government, to ensure fundamental safety and survival that we cannot do on our own, in other words, police and corrections, and sustenance of those who because of real disability cannot fend for themselves. All of the rest of the government programs you have instituted over the last twentyfive years, even if laudatory, are surplus and must be cost if we are to survive.
Perhaps we might consider some of the following services/appropriations to be "non-essential":
-Motion-picture Incentive Fund: $3 M
-Utah Summer Games: $50 K
-State women's golf tournament: $5 K
-Quagga/zebra mussel management plan/sage grouse coordinator: $1.4 M
-Wasatch golf reinvestment: $180 K
-High school rodeo: $10 K
-West Jordan Sugar Factory: $40K
-Utah Cowboy Hall of Fame: $50K
-Antelope Island Balloon Festival: $25K
There are always upsides to the train wreck. Living within a budget is an art. It requires a deep understanding of what is core, what is not, and what is at the top of the non-core list of things to pay for. A "train wreck" in the budget is not necessarily bad. It's the brush-fire that spurs new growth or, in this case, the reevaluation of what is core and cutting back what is not. The problem, as raised in these comments, is that people differ on what is core and what is non-core.
Thanks all, for your comments here. From the direct personal comments and conversations I am receiving, I believe this post is having the impact I hoped it would.
We will balance the budget both in the current FY 2010 and for FY 2011 that we will create in January. There might be some more back fill and some small revenue enhancements but the majority of the gap will be met with budget cuts.
The agencies who now see this and are preparing to take the reductions by changing how they deliver services will be the real survivors. I sincerely appreciate their sober, prudent preparation.
Post a Comment
<< Home