Saturday, January 23, 2010

Balance the budget on the backs of the poor?

“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)

Is the AARP helping to solve the problem or just making sound bites with of little or no practical value? This statement sounds reasonable; but, what do the facts tell us? Of the Idaho general fund budget, 65 percent goes to Education and 20 percent to the Department of Health and Welfare (DHW) added together an astounding 85 percent of the budget! 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.

This means that if every other department in State government were totally eliminated including the Idaho State Police, Corrections, Park and Recs, the State Legislature, and the Courts, the legislature would still have to cut $236 million from Education and DHW.

Since Education by definition is for the young and DHW funding is for the poor and defenseless, then the only other choice AARP seems to accept is to raise taxes. The reality is that if taxes are raised, it will probably harm the economy resulting in fewer tax collections in coming years. We can no longer raise taxes. We cannot hold Education and DHW harmless. The third choice, the reasonable choice, is to work together to prioritize services and then improve services at less cost.

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