A simple solution to a simple problem Wednesday, Nov 19 2008
1 9:14 am
Lately we’re hearing about an alleged $1.3 BILLION shortfall for next year’s state budget.
I say “alleged” because neither we citizens nor do even the leges even know if it is true. Only the governor’s office knows for certain.
The transparency of state spending promised by Bobby Jindal has yet to be seen.
The recent press releases about the new budgetary postings on the state’s website is nothing more, in fact, it is less than the information about the state budget that can be currently found on the state’s websites.
But I digress.
Let’s assume for the sake of argument that the 2009-10 state budget will have a shortfall in the neighborhood of $1 BILLION. That’s chump change in a budget of over $33 BILLION.
The last time we had a budget shortfall of a billion dollars was when Buddy Roemer took office as governor. At that time the state budget was still in the single-digit billions.
The fix
There is a simple, easy, way to fix the current alleged shortfall.
Not only is the fix easy, but it is common practice for all businesses and individuals in LA.
The fix will not only quickly balance the budget, but it just may force Jindal and leges to address some problems we citizens are facing in the private sector.
FREEZE THE BUDGET!!
Freeze vs. standstill
Don’t confuse a budget “freeze” with a “standstill” budget.
A “standstill” budget means each agency gets the same amount of money it got the year before, PLUS an “inflation factor†to pay for items such as auto-magic Civil Service pay raises, their accompanying benefits increase, higher costs of utilities, gasoline, insurance, etc.
In other words, the same inflationary factors (minus the pay raises) us individual taxpayers on static incomes face each year.
In the recent past (before the state budget had grown to over $30 BILLION) a “standstill” meant an extra $600 Million plus per year in additional spending. Today, I’d venture the figure will be closer to a billion dollars.
A “freeze” will require each agency head to look within their own budget to determine how to pay for the annual inflationary increases. Who better to know where is the fat than those who larded it up.
State spending in the current budget increased by $1 BILLION from the prior fiscal year. What items do they currently have that they did not have last year that they cannot function without?
Benefits from fix
There are twin benefits from the internal look at the budget.
First, it will mean a continuation of government services with no layoffs and no tax or fee increases.
Second it just might force Jindal and the leges to focus on the problems facing the individual taxpayers of LA.
What’s to lose?
I realize this idea is too simple for the politicians in LA. It relies on common sense, which is not in abundance at the state Capitol.
Until we citizens start demanding common sense solutions to simple problems caused by our government, we can only look forward to reduced government services, more debt and higher taxes and fees.
What do we have to lose?
C.B.
