Elephant Ears

This blog is dedicated to the political happenings in the Valley and Southwest Virginia. As the the name implies, this blog will have posts based on what is heard by this elephant's (GOPer's) ears. It is also a great treat to get while at the county fair or a carnival.

Tuesday, November 20, 2007

The Road to Majority

Now that we have lost the Senate majority, we need to find a way to get it back. This is obviously a long process that will not happen for at least 4 years (unless an unforseen opening occurs). Even so, the GOP needs to start doing things to position themselves to retake the Senate in 2011; and also hold the House in 2009.

As I said in my last post, the key to achieving our goal is putting forward a positive limited government platform that will resonate with people. We cannot be the party of simply lower taxes and social issues; we have to be the party that efficiently uses our tax dollars and that defends why we need strong moral values.

The best example of this is in the budgetary process. One of the biggest problems our state's (and every government) budget is faced with is social backlash. If the government gives anyone or anything less money than last time around; its a cut in funding. In fact, if something is given less money than they asked for but is still more than last year it is viewed as a cut. The problem is, no one cheers when we cut funding for something; they only complain. Certainly there are people who favor cutting stuff, but they are usually silent when it happens.
We have to be the party that explains why something is being cut (either literally or by media standards). This can only be accomplished one way: prioritized spending.

In our own families, we prioritize what we need to spend money on and we spend it in that order. If we are lucky enough to have some left over, we save it. If not, we have to cut out something. For example, most people would say their house payment is pretty important, so they make sure they have enough money for that. If that means they have to cut back on going to Outback Steakhouse, thats what they do. Every voter does this, and its a pretty simple concept to understand.
Unfortunately, government rarely works this way. We say, "well education needs more money and so does the transportation. I guess we have to borrow money or raise taxes, b/c we can't cut anything." No family runs their personal life this way, so why should government?

What I propose is that our party's leadership has to put forth a platform of priorites. If transportation truly is our biggest "crisis", then we should first budget our money for that. If education is second, then we should fully fund that. If this style ends up resulting in money running out when we get to the Art Foundation's funding, then they don't get any.
This is what feeds into tax policy. If we approached government like this, it would severely limit tax increases b/c you would have to show the people what you were raising taxes for. If we fund everything but the Art Foundation and they still want money, our Delegates and Senators have to essentially vote to raise taxes to fund that program. It makes it much tougher to approve something like that, when it is viewed that way. On the other hand, if we get halfway through education and run out of money, then if people want more money for schools and are willing to pay for it, then they can. In another scenario, if we fully fund everything and we still have money left over; we can return it by cutting taxes. This way, we are being efficient with our tax money and ensuring that the most important things get done.

This also has the effect of making people look for ways to reduce spending. Right now, there is very little incentive to find waste; b/c everything is rolled up together. Under this system, cutting waste may be what allows your project to get funded when it otherwise would not have.

Until our party looks at the budget like a family, it will get tougher and tougher to get the people to trust us to handle their money.

7 Comments:

  • At 11/22/2007 10:41 AM, Anonymous Anonymous said…

    You don't understand the budget process. K-12 is driven by standards of quality and must be met, medicaid is driven by medical inflation and increased utilization and must be matched by the state in order to participate, increased revenue from federal earmarks and gas tax revenue must be matched. There you have the lions share of the money spent. Of course, you do not have to accept federal transportation money, participate in the medicaid program or fund constitutionally driven k-12 spending. These are by far the major budget drivers. What is left is spent on public safety and finally administrative costs.

    The amount spent on the cultural organizations is much less than 1%.

    I am not saying there is no inefficiency or waste, but that the state budget growth is somewhat beyond the control of the state -- if you want to participate in federal programs. This is the real problem. 10th amendment anyone?

     
  • At 11/22/2007 8:52 PM, Anonymous Anonymous said…

    I disagree. Check the facts on the state's budget website:

    http://www.dpb.state.va.us/Budget/vabud/vabud.cfm

    The programs you cite comprise slightly less than half of the budget; K-12 education has increased less than over all state spending in the last ten years.

    The best kept, dirty little secret in Richmond is that Virginia's budget has more than doubled in the last 10 years -- and there is still not enough money for transportation. Something is very wrong with this picture. The era of big government is here, and the budget has bi-partisan finger prints all over it.

    The fact is that the budget is on autopilot -- efforts to make government more efficient or challenge the effectiveness of programs (such as the use of Inspectors General employed at the federal level) are virtually non-existent.

    If the GOP stands for limited government, this statement needs to mean something. How about limiting the growth of overall (non-transportation) state spending to inflation plus population growth? Within this limit, some programs could increase faster, but others would need to increase slower, and force the choices that elected officials are presumably elected to make. If we had implemented such a provision 10 years ago, there would be $10 BILLION unspent dollars this year. Hmmmm....maybe to be used to get rid of the remaining car tax, or build a few roads.

     
  • At 11/22/2007 10:27 PM, Anonymous Anonymous said…

    25 billion out of 32 billion (in round numbers) is not less than half and does not include public safety.

    10 billion in unspent dollars? Subtract 10 billion from 32 billion and the state would not have enough to cover federal "obligations" and education.

    Fact is federal matching requirements and rebenchmarking on k-12 are where we need to look. The federal government has no business telling states how to spend their taxpayers' money.

     
  • At 11/22/2007 10:38 PM, Anonymous Anonymous said…

    Chichester and the RINO's let the colleges go on a spending spree to build out of control with bonds. Bonds have to be paid back so a lot of the budget goes to pay back construction costs.

     
  • At 11/23/2007 6:09 PM, Anonymous Anonymous said…

    I'm with you on the point of federal mandates. But I believe they are smaller than meets the eye. The Health and Human Resources item is not all medicare. See line item 602 for medicare. Direct assistance to schools (not colleges) is line 197. VDOT is line 501. These combined total $15.8B in FY2008 -- about 44% of all spending. In FY98 these programs were $8.8B. This $7B increase in 10 years represents a 79% increase.

    For the sake of discussion, let's say these increases couldn't be prevented, and might even be justified.

    Excluding these three programs, the budget grew from $8.8B in FY98 to $20.2B in FY08 -- a 130% increase. If the budget excluding these three programs was limited to inflation plus population growth (about 50% over 10 years), the FY08 funds would total $13.2B.

    The total FY08 budget would then be $29B, with $7B less than the existing FY08 plan -- $7B unspent dollars in FY08 alone without touching medicare, K-12, or transportatation. The cumulative total of unspent dollars over 10 years would have been closer to $15B.

    The shocker is that spending outside these three prorgams grew 130% during the period, while the three programs grew 79%.

    I rest my case.

     
  • At 11/23/2007 10:34 PM, Anonymous Anonymous said…

    Don't rest just yet. This is a good discussion. First its medicaid (not to get to snippy). But assuming what you say is true. What would you cut to zero in the Health and Human services or Education budget? Where in public safety would you cut? Courts? This is where we conservatives often fall down and get flack.

    Finally, don't forget the population growth in your argument.

     
  • At 11/24/2007 11:04 PM, Anonymous Anonymous said…

    You're right -- medicaid. I don't think it makes sense to redo the last ten years. Instead, the GOP should take the lead in establishing a budget rule that limits growth in state spending going forward to inflation plus population growth. This should be our definition of "limited government." Inflation is about 3% and population growth is about 1%. I would exclude transportation infrastructure, because we need to catch up.

    In other words, Republicans should be shocked that the state budget has doubled in 10 years (and there still isn't enough money for transportation), and take the position that we won't leave it on autopilot do double again in the next ten years. Capping the budget forces the govenrment and the legislature to spend only up to a limit. Hmmm...just like we run our family and business finances.

    I realize that in the Dictionary of Amerian Liberalism, holding spending growth to inflation plus population growth is defined as a "cut." Fine. Let's debate the liberals on this issue. I think we'll win.

     

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