Wednesday, February 13, 2008

Lt. Gov. Bolling on Governor Kaine's Budget Mess-up

RICHMOND - Governor Tim Kaine released his revised budget forecast for the 2008 fiscal year and the 2008-2010 biennium. Because of declining revenue projections, the Governor has proposed making additional withdrawals from the Commonwealth’s Revenue Stabilization Fund (Rainy Day Fund) and scaling back previously proposed spending initiatives. In response to the Governor’s actions, Lieutenant Governor Bill Bolling issued the following statement:
“When Governor Kaine released his proposed budget in December of 2007, I expressed concern over the huge increase in spending that he had proposed for the upcoming biennium, as well as the manner in which he proposed to balance the state budget. I warned at the time that the Governor’s revenue projections would ultimately have to be revised and that reductions in his proposed spending initiatives would have to be made. Unfortunately, those warnings have come true, and we are now left with a budgetary mess.
“I am confident that the members of the General Assembly will do what has to be done to bring the state budget into balance without raising taxes. However, to do this we will have to make many difficult budget decisions in the coming days, including significant reductions in the Governor’s proposed spending initiatives, as well as the adoption of a realistic revenue projection for the upcoming biennium. Unfortunately, we are placed in this position because of the Governor’s failure to bring us a realistic and structurally sound budget to begin with.
“This will not be an easy task, but we remain committed to balancing the budget without raising taxes, adopting a budget that directs as many resources as possible to the Commonwealth’s highest priorities, and scales back spending in other areas. We ask for the patience and support of the people of Virginia as we begin making these difficult decisions.”
According to earlier reports in the Washinton Post, Kaine also plans to take money out of the transportation fund to make up the deficit, which he failed to acknowledge two years ago. Promises for such funding and improvemnts in Northern Virginia and the Tidewater by the governor during his campaign and since were apparently meaningless.

Wednesday, February 6, 2008

Budget Wonderland

Publication:The Oklahoman; Date:Feb 6, 2008; Section:Opinion; Page Number:10
OUR VIEWS
Federal spending avoids budget realities

SOMETIMES, Washington becomes Wonderland, with Alice and the Mad Hatter. Up is down, down is up. Someone’s always losing their head.

Money is spent like it grows on trees. Those elected to steward billions of taxpayer dollars go through it like there’s no tomorrow. There’s no shortage of illustrations. Oklahoma Sen. Tom Coburn’s list of wasteful spending earmarks will spin heads and turn stomachs.

Another example is this week’s convergence of President Bush’s fiscal 2009 budget and the economic stimulus package under consideration in Congress. The $3.1 trillion budget would add $407 billion to the federal debt, chiefly because of falling tax revenues in a slowing economy, increases in military spending — and about $160 billion to pay for the stimulus package.

That’s right, the cost of the stimulus stew now simmering on Capitol Hill — a hash of tax rebates, small-business incentives and other ingredients — would be added to the national debt.

We don’t lay all the blame on the green eyeshades at the White House. There’s no indication Congress has an alternative plan to pay for the stimulus package. Robbing Peter to pay Paul is part of Washington’s spending culture.

The stimulus isn’t the only problem. Bush proposes a 4.9 percent increase in domestic discretionary spending, mostly for defense, homeland security and veterans. Other programs are basically frozen, at less than 1 percent growth. The gorilla in the room is entitlement spending — Social Security, Medicare and Medicaid — whose long-term growth will dwarf projected deficits of $390 billion in 2012 and $788 billion in 2018. Bush’s budget almost certainly is dead on arrival with the Democrat-controlled Congress. Democrats aren’t more frugal, they just have different spending priorities. The insult to injury will come when Democrats argue the growing deficit, including the tab for the Bush-backed stimulus deal, argues for letting Bush’s 2001 and 2003 tax cuts expire. Ah, Wonderland.

Friday, February 1, 2008

Book Review "American Creation"

In his usual inimitable style Joseph Ellis lays out history for us so vividly that we see how it is repeating itself in our own world today. In his new book "American Creation: Triumphs and Tragedies at the Founding of the Republic", Ellis writes that Thomas Paine was a “...revolutionary presence in the radical camp.” John Adams was radical in that he knew complete separation was inevitable and he believe, rightly, that the moderates, who were still hoping for reconciliation with Britain even into 1776, would eventually agree. But, Paine, who was speaking of democracy (a hated concept at the time) saw the “...American Revolution as the opening shot in a radical transformation of political institutions throughout the world.” At the end of Common Sense, published in January, 1776 Paine wrote, “The cause of America is in a great measure the cause of all mankind...We have it in our power to begin the world over again.”
Paine decried the fact that the Founders did not deal with slavery. But, perhaps Paine would have seen the Civil War as another step in his idea of political evolution. Certainly, Woodrow Wilson and his League of Nations followed by FDR and the United Nations would qualify. It is undeniable that this strain of the idealism of popular sovereignty world-wide is an essential part of the idea of America. It is, after all, that idea that has propelled millions to our shores. This idealism has often been denigrated, but it persists as an integral part of the fabric our of nation.
I highly recommend this book for Ellis’ keen historical insights.