Saturday, January 23, 2010

Are spending cuts harmful or is this an opportunity?


“AARP is warning legislators and the Governor of the dire effects the proposed cuts and sending them a simple message:  Don’t balance the budget on the backs of the state’s most vulnerable residents.”  (AARP Jan. 21, 2010 news release)
This is the tone of the AARP and many other social activists within the state.  They seem to think that the state has no fat; that budget cuts are harmful to the poor and elderly; and only bad can come from declining revenues.  I disagree.  This year is a wonderful time to reevaluate our priorities, cut the fat out of the bloated state government, and develop new ways of doing business that can improve services while reducing costs.  Let’s look at the facts. 
The state revenues have fallen from an expected $2.959 billion budget in 2009 to $2.28 billion in 2010.  This is a $679 million decline in the last two years or a 22 percent budget decline.   I maintain that the first $500 million worth of cuts caused minimal disruption of services to the citizens of Idaho.  Yes, it will be difficult to cut another $150 to $200 million; however, I am convinced that it can be done.  It will benefit the taxpayer, improve government services, fix some problems that can’t be done in years of high prosperity, and focus our attention on the most important functions of state government.   
The only other alternative is to raise taxes. 

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