Thursday, February 09, 2006
Governor’s Budget: Spend and Spin, Spin and Spend
The Governor just released his proposed fiscal 2006-2007 budget proclaiming expenditure cuts in many departments while holding the line on taxes. However, on close inspection, this allegedly beautiful budget turns out to have warts. Spending is increased by nearly $1 billion over the current level and doesn’t include the significant tax cuts taxpayers deserve.
Two line items in particular jump out. First is the increase in debt service expenses of nearly 20 percent or $140 million over last year’s level. This is a clear indication that the heavy borrowing to “stimulate” economic growth comes at a large cost. Certainly, it is extremely unlikely that the subsidized development projects will ever generate $140 million a year in new tax revenue for the state. Instead of cutting taxes and improving Pennsylvania’s overall business climate, the Governor has pursued a strategy of handing out checks to select “economic winners”.
In another budget busting outrage, the Governor has proposed a 6.4 percent increase in basic education spending, a rise of $517 million above the current level. An increase large enough to cover inflation would be just $240 million. The state continues to pour more and more money into public education, yet our students show little significant progress. PSSA scores have been flat with less than 50 percent of the state’s 11th graders proficient in math and only 60 percent proficient in reading.
These two items alone represent $400 million in unnecessary and unjustified expenditures. That $400 million would have made a really nice down payment on a meaningful tax cut for Pennsylvanians.
The proposed budget does not bode well for Pennsylvanians. Spending should have been cut across the board and taxes lowered. Instead this budget is long on spending and platitudes and short on restoring money to Commonwealth taxpayers.
The Governor just released his proposed fiscal 2006-2007 budget proclaiming expenditure cuts in many departments while holding the line on taxes. However, on close inspection, this allegedly beautiful budget turns out to have warts. Spending is increased by nearly $1 billion over the current level and doesn’t include the significant tax cuts taxpayers deserve.
Two line items in particular jump out. First is the increase in debt service expenses of nearly 20 percent or $140 million over last year’s level. This is a clear indication that the heavy borrowing to “stimulate” economic growth comes at a large cost. Certainly, it is extremely unlikely that the subsidized development projects will ever generate $140 million a year in new tax revenue for the state. Instead of cutting taxes and improving Pennsylvania’s overall business climate, the Governor has pursued a strategy of handing out checks to select “economic winners”.
In another budget busting outrage, the Governor has proposed a 6.4 percent increase in basic education spending, a rise of $517 million above the current level. An increase large enough to cover inflation would be just $240 million. The state continues to pour more and more money into public education, yet our students show little significant progress. PSSA scores have been flat with less than 50 percent of the state’s 11th graders proficient in math and only 60 percent proficient in reading.
These two items alone represent $400 million in unnecessary and unjustified expenditures. That $400 million would have made a really nice down payment on a meaningful tax cut for Pennsylvanians.
The proposed budget does not bode well for Pennsylvanians. Spending should have been cut across the board and taxes lowered. Instead this budget is long on spending and platitudes and short on restoring money to Commonwealth taxpayers.
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Despite talk of new government, its the same old crap all politicians do: take money from pockets over here and give it to pockets over there, and saddle kids and grandkids with more debt to payoff.
Of course, there is one winner: the politicians and the parasitic beneficiaries of government largess, from governments own unionized workers on down to the the many feeding off the trough.
Thanks, you leeches.
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Of course, there is one winner: the politicians and the parasitic beneficiaries of government largess, from governments own unionized workers on down to the the many feeding off the trough.
Thanks, you leeches.
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