March 30, 2009
The Taxman Cometh

Seattle Times:

Senate Democrats delivered on a promise to slash state spending, unveiling a proposed budget this morning that includes more than $1.3 billion in cuts to public schools and higher education.
Something tells me that these well-publicized cuts to education are designed to build political support for the Senate Democrats' wet-dream of a staggering tax hike.

A challenge to the readership: Try to identify $1.3 billion in patronage spending that isn't being cut because it can't as easily be sold to voters as "for the children".

Posted by Stefan Sharkansky at March 30, 2009 07:27 PM | Email This
Comments
1. After seeing another $1100 increase in my cabin on Camano Island, per year I might add, Mum has become the word from Mary Margaret Haugan, my so called representative, has nothing to say but "I can't do anything about that! Gee were they not marching out elderly people with their 1% sign at election time.

Do imagine if I got an $1100 increase in one year, the by far most massive hike I have ever recieved, if this was a 1% hike, I will soon be a billionaire. That isn't happening, I will soon be losing my job, but

What Liars these Democrats can be.

They are touting 7000 layoffs but their listserver is publishing $50k to $100k jobs every day. No hiring freeze in this state. They say they are laying off, while they are hiring like crazy.

Posted by: GS on March 30, 2009 09:47 PM
2. if anyone's been tracking, higher ed tuition rates have always been 2-3 times the inflation rate; so--where is the wiggle room in their budgets for ANY cuts?

note that state spending is always called "investment" and "budget cuts" are usually slowing planned increases in spending;

like an Amazing Randy, one always has to watch the magician's OTHER hand...

Posted by: jimmie howya doin on March 30, 2009 10:51 PM
3. Stefan, "duh." The problem is of course, many people don't realize it. When I last lived in MA, there was an initiative to repeal the turnpike tolls. Rationale: the money was slated to go to pay off the turnpike construction costs, which was done years ago.

The opposition ran ads that said only, "if you vote for this initiative, it will take money away from schools."

People actually BELIEVE this stuff.

Posted by: pudge on March 30, 2009 11:38 PM
4. I gotta wonder: we're told the $500,000,000 whack to higher ed pays for "10,000" college students.

Are we REALLY paying $50,000 for EACH college student?

Seriously?

Posted by: hinton on March 30, 2009 11:44 PM
5. How about eliminating every last dime in spending for the light rail to nowhere.

Posted by: Jeff B. on March 30, 2009 11:50 PM
6. How about eliminating unnecessary welfare. You have to pass a piss test and be a citizen to get your money.

Posted by: Joe Vontry on March 31, 2009 12:01 AM
7. It's simple... Start with the budget of 2004 ($24 billion). Add 10% for inflation since that year, taking us to $26.4 billion. Add another 6% for the population growth, bringing us to $28 billion.

Hmmm... That's $6 billion LESS than the projected $34 billion budget they're trying to pass! Now, I don't remember the State being an inhospitable hell hole at the end of Gary Locke's reign in 2004, so perhaps we should just expect the same level of "service", but adjusted for inflation and population growth? After all, our deficit is $6 billion. Well, guess what - cut back to 2004, add the inflation and population growth, and YOU HAVE NO DEFICIT.

It really seems simple to me... Government growth should be limited to inflation plus population growth. No more than that. And if we held to that, we'd be in great shape, both at a State and Federal level. But apparently that's not good enough for our "masters", so they will take more.

Posted by: Shanghai Dan on March 31, 2009 02:38 AM
8. I want to know what Dino Rossi's thoughts are about these cuts. Does he have a better plan and if so will he make it known for the benefit of the State.

Posted by: PIFan on March 31, 2009 05:13 AM
9. Shanghai Dan @ #7 nicely illustrates and reminds us of the fundamental problem:

It's not revenue (even in a recession):
It's the totally, insanely out-of-control spending by State government; which went up by ONE-THIRD during Gregoire's 1st term.

Any and all tax increase proposals that get anywhere NEAR a ballot this year (or next):
Just say NO.....

Posted by: Methow Ken on March 31, 2009 07:38 AM
10. Stricter means testing for the basic health plan. People earning something like $60k a year can get on it - ridiculous. While they're at it, they could do citizenship testing as well, and that would get alot more people off it.

Posted by: Palouse on March 31, 2009 07:53 AM
11. PIFan,

Why Dino's plan? He's not in Government, and when he was running, Gregoire said there was no problem coming at all.

Gregoire made this mess, and Gregoire denied this mess existed. She should be the one to fix it, or come clean publicly about where and when this deficit came from.

Then do the right thing, appoint Dino Rossi to be her budget director, take control of the issue, then resign once the new Dino budget is passed.

Posted by: Shanghai Dan on March 31, 2009 08:19 AM
12. Stricter testing on the school meals program could do some good.

I know of two people who were out of work during the 2001 internet bubble burst who put there kids on the meals program then, got good jobs and STILL their kids are getting the meals. I'm sure there have to be more people like this out there.

It might only add up to a few million dollars in savings, but you know the old government mantra. "A million here, a million there, and pretty soon you're talking about some REAL money."

Posted by: johnny on March 31, 2009 09:17 AM
13. I want to know what Dino Rossi's thoughts are about these cuts. Does he have a better plan and if so will he make it known for the benefit of the State. - Posted by PIFan

He already did it once. With Gary Locke and Frank Chopp. But apparently, that wasn't good enough for people like you. So now? We're stuck with this crap.

You made it. You own it. Now fix it.

Posted by: jimg on March 31, 2009 09:37 AM
14. Well, that certainly is a most cooperative way at solving our problems. Do you do that where you work? Nothing like being a team player; can you ever put politics aside for the benefit of possibly helping the overall cause. Apparently not!

Posted by: PIFan on March 31, 2009 09:47 AM
15. Tax man is two words.

Posted by: Defalt Damager on March 31, 2009 10:15 AM
16. Tax man is two words.

Posted by: Defalt Damager on March 31, 2009 10:16 AM
17. Yeah, and 'Defalt' is missing a 'u'.

Posted by: Palouse on March 31, 2009 10:27 AM
18. PIFan-
The dems have had a chance to reach across the isle for a long time. Instead, their approach has been to steamroll the opposition.

So is it your position that the republicans should them dems a hand because the dems have been giving them a single finger (the middle one) for 5 years now?

Posted by: johnny on March 31, 2009 10:30 AM
19. Yes! Wouldn't that be the bigger gesture. Who cares who gets the credit.

Posted by: PIFan on March 31, 2009 10:48 AM
20. PIfan, the voters could have had Dino's leadership on the budget, they chose otherwise. I'm sure Dino's got more important things to do, like provide for his family.

Posted by: Palouse on March 31, 2009 11:04 AM
21. If indeed HE has solutions, he would be helping his family and MORE!

Posted by: PIFan on March 31, 2009 11:10 AM
22. Spare me your 'let's fix this all together' nonsense.

Your original call-out for Dino's solutions was a thinly veiled attempt to distract from Gregoire's and the Legislature's failures.

And regarding teamwork? Don't make me laugh.

For one, I run my own business. By myself. I contract out work and the results are strictly performance based. If those contractors fail, I find another. No mushy-mouthed 'we're all in this together' pap.

Two, only a fool would continue to play on a team that deliberately tries to lose.

You had your opportunities for alternative solutions. You turned them down, and you ignored the predictions of what was going to happen.

Again, you made it. You own it. Now, fix it.

Posted by: jimg on March 31, 2009 11:38 AM
23. Again I see you are not a team player. Why don't you face the facts, nither you or Dino (or anybody else for that matter) has the solutions and in your case all you can do (in retrospect no less) is cast aspersions and blame. No wonder the Republican cause is such a failure.

Posted by: PIFan on March 31, 2009 11:45 AM
24. The Republicans in Olympia have proposed many alternatives that would cut spending and not raise taxes to balance the budget. Many of those same alternatives are things Dino has proposed in the past. It's too bad they fall on deaf ears by the liberal Democrats because they cut areas where they get alot of their campaign contributions.

Posted by: Palouse on March 31, 2009 12:22 PM
25. Palouse, you're suggesting that politicians focus first on satisfying their supporters?

Wow, I'm sure though that this is limited to just one side of the aisle.


Posted by: BA on March 31, 2009 01:08 PM
26. That's their option BA. They are the party in power. Just don't expect me to vote for any tax increases to pay for it.

Posted by: Palouse on March 31, 2009 01:33 PM
27. BA
Palouse, you're suggesting that politicians focus first on satisfying their supporters?

Wow, I'm sure though that this is limited to just one side of the aisle.
++++++++++++++++++++++++++++++++++++++

Yep, and on YOUR side it's spend to the max. Then like PIfan. HELP us, be a team player.

I'll Christy has to do is pick up the phone and call Dino. Right now all we have is dead air!

Posted by: Medic/Vet on March 31, 2009 01:42 PM
28. I love Shanghai Dan's plan @7, because it illustrates the whole folly of Democrats. Indeed, it is exactly what the average Joe is doing right now with their own personal budget. We had plenty of government, and things were just fine after Locke's term. But it's never enough for Democrats, because it is about control.

They think they are doing important work when they are merely banning plastic bags. Such meddling will do very little, and only serves to increase the bureaucracy. The bag ban program must have some new government worker, paid some wage to administer and go around to all of the stores and check them, fine them, etc. It's ridiculous, and that's why we have billions of dollars in new deficits.

At this point, there's really not a whole lot to do other than watch Democrats run it all in to the ground. They don't seem to be willing to propose real budget cuts, only threatening cuts, designed to play political games and scare the electorate in to an income tax. We will watch as Boeing leaves the state, as so do many others in search of more business friendly places.

Posted by: Jeff B. on March 31, 2009 04:25 PM
29. My side? My side of what?

Seems to me that the political process in our country is one where folks support those politicians that they feel best represent them - and then, expect that they do just that if they're elected.

Nothing wrong with that - the alternative is nonsensical.

I don't think either political party in this country has a lock on expansive government spending - they're both guilty.

Posted by: BA on March 31, 2009 04:27 PM
30. BA, you just went over the top. Those of us here at SP have complained to high heaven about Bush's 200 billion deficits he was racking up. Man, that is like chump change when you consider the deficits the Democrats are racking up. 200 billion verson 1.5 trillion and then add in the State frenzy.

BA, your boys will destroy America if they haven't already done so.

Posted by: swatter on March 31, 2009 04:49 PM
31. Shanghai Dan's limiting government to inflation plus population growth is wrong.

Limiting it to inflation is OK, presuming functions are otherwise static.

But, population growth doesn't really have to drive more government in all circumstances. Last time I looked we have the same number of governors for our current population as we did for one half the size - so population doesn't drive more government in that simple case.

Take the Department of Resources, if the quantity of acreage under management is the same from one year to the next, the number of managers shouldn't grow because the population grows.

I'm sure there are plenty of examples like this where the cost of government isn't tied directly to population.

It's these simple measurements, expressed at Horse's Ass or by Shanghai Dan, that lull us into accepting a higher rate of growth of government automatically.

Starting from scratch for each budget - asking what we're trying to accomplish - is way better than just tacking on an increase from last year's spending.

Posted by: BA on March 31, 2009 04:56 PM
32. Swatter, I think you and I would be very happy if the budget deficits had been limited to $200b a year during Bush's time in office, or even during the shorter duration that the Republican Party controlled Congress as well and presumably had the ability to write tighter budgets.

Your number isn't even half of the annual borrowing that occurred during that time.

I'll stick with my view that out of control spending is a shared characteristic of both parties.


Posted by: BA on March 31, 2009 05:22 PM
33. They say it will cut 7000 state jobs, join their listserver they are hiring like crazy again. They lay off 7000 and and hire twice that amount back.

Posted by: GS on March 31, 2009 06:18 PM
34. PIFan,

Last I heard, Dino Rossi is a PRIVATE CITIZEN. The GOP in the State Legislature suggested budget solutions, and those were declared DOA by the Slavery Party majority. So if you want to play together, get the Slavers agreeing.

BA,

If you serve hamburgers at McDonald's, you have a fixed cost per customer. If you double the number of customers, you nearly double the cost per customer (rent of course if a fixed flat rate whether you have no one or full capacity).

Letting Government grow even at the higher rate of inflation plus population growth STILL results in a lower total spending growth than the Slavery Party has taken the State to.

Posted by: Shanghai Dan on March 31, 2009 07:47 PM
35. Shanghai Dan, your cost per customer isn't fixed at all when you serve hamburgers. It certainly doesn't double as you write. Your marginal cost is what's important and with added volume your fixed costs continue to decrease, becoming an increasing lower percentage of your marginal costs.

At some point it's mostly just the cost of the food itself. Of course higher volume isn't necessarily the point of maximum profit.

I'm thinking you know this.

My point is any "rules of thumb" leads to excuses to allow for growth faster than scrutiny might otherwise suggest.

Posted by: BA on March 31, 2009 09:18 PM
36. 12-johnny--

i once asked (to crickets responding) why my local school freebie lunch program participation rate was 2 TIMES the poverty rate in my city; to me, a tax-paying bumpkin, it didn't add up nor match our demographics; so--multiply this across the nation, and we're talking some serious dollars...and places to cut the free well of lazy charity;

Posted by: jimmie howya doin on March 31, 2009 10:01 PM
37. BA,

You're thinking about the union... At the State level, you can bet that you'd have to double staff to double number of users. No way would State or Federal union workers allow themselves to double their own workloads!

But the point is, even if you are VERY conservative in your budgeting and allow full inflation plus population growth, you're STILL well below what this State and Nation are doing. We're greatly exceeding what should be even full funding increases.

If you look at historical trends (over the last 100 years or so), the GDP grows faster than inflation plus population growth. It's why our standard of living has been increasing. If Government could be held to just inflation plus population growth, the State and the Nation would be out of a deficit in less than 6 years, and the Nation would be debt free in about 35 years.

Yes, the GDP does grow that much faster. Unfortunately the ruling elite have decreed that spending should increase faster than the GDP, and we end up with the situation we have today. And somehow, the idiots in charge now think even MORE spending will solve the problem!

Posted by: Shanghai Dan on April 1, 2009 09:51 AM
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