Budget Smoke and Mirrors

I suppose anyone interested or concerned about the future of our state could spend endless hours blogging or simply bemoaning the new state budget to be signed into law by Governor Easley this coming week. It's a huge document spending over $20 billion of tax revenue and setting the course for the next two year budget cycle. It is a product of the Democrat power brokers in the House and Senate, the Easley Administration and special interests. Republicans, despite their best efforts had little impact or influence on the process to the point of being totally excluded from the House - Senate negotiations. Even Michael Decker wasn't around to at least serve as a quasi Republican Trojan horse, turned Democrat, to at least demonstrate a tiny bit of bi-partisanship in the process.

Frankly, why we all know that there are many aspects of the budget to commend, it has to be at least a little alarming that there is a substantial increase in spending (10 per cent) from the prior budget and very little in the way of true reform. The hyperbolic quotes from the Governor's office are laughable at best..."[the budget] fulfills our historic promise...." and "[it's] a truly transformational document...." In reality it's a lot of smoke and mirrors along with the traditional "sausage making" process of putting together a budget.

The rich get...whoa how about this...a whole quarter of a per cent off the income tax rate, down from 8 to 7.75 per cent. That ought to really stem the flow of wealthy citizens to Florida and encourage corporate executives to locate businesses here. And the poor, well they get an earned income tax credit that will put more money in their pockets. Oh, but don't forget we're going to increase payouts and winners in the lottery scratch off games to increase participation, so you can anticipate that the State's coffers will be getting lots of dollars back from those same beneficiaries in the form of lottery losings. Of course there is also a healthy dose of tax breaks pushed through primarily for selected big businesses but I never read about any debates or discussions about who gets what and why they get the break as opposed to other businesses.

Finally, the General Assembly showed the "strength" of their political courage by relieving the counties of their Medicaid responsibilities...but in return get a half cent in county sales tax revenue back. But then the Honorables are "letting" the counties have the right (what a bargain) to raise the sales tax or impose a land transfer tax if the public is willing to vote for the tax increase. Funding for teacher pay and state employees goes up and more money is to be spent for More at Four, drop out prevention and reducing classroom size. Good stuff but are we really addressing the state's problem both short and long term?

The truth of the matter is that this budget's solutions boil down to the simple proposition of spending more money. There is no real reform anywhere in this budget significantly addressing public education failures, declining transportation and infrastructure issues, meaningful tax reform, or any of the really serious problems we face. The most glaring fact reported this morning in the News & Observer is that the budget came out $350 million more than any budget proposal put forward by the House, Senate or Governor's Office. Now that's a failure of leadership.