Blue Mass Group

Reality-based commentary on politics.

We’re Not Alone… How Other U.S. States Are Dealing with Deficits

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Reading through the reforms, I was struck by the number of options being proposed by both legislators and governors, and by the effort that folks nationwide are putting into supporting their own states and local communities.

It obviously takes a lot of work to build – and pass – a plan for an adequate, balanced, and stable revenue structure.

What we can learn from the efforts of other states in implementing our own reforms?

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  1. Long sad story in the NYTimes today.

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    Seeking to close a final hole created by a last-minute rejection by lawmakers of two large revenue-producing measures, the governor made a slew of line-item cuts to programs for children and the poor to close a roughly $24 billion two-year gap.

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    p>more of the details…………

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    The governor reduced the Department of Aging by $6.3 million, to $4.1 million. He cut the Department of Public Health by about $7 million, to $47.4 million. He slashed $80 million from a program for abused and neglected children and $16 million from domestic-violence programs. While the Legislature fought bitterly to stave off Mr. Schwarzenegger’s stated desire to eliminate health insurance for poor children, he reduced that program – Healthy Families – by $178.6 million, to $225.3 million, which will be matched by $737.7 million in federal money.

    The state parks will see a budget reduction of about $6 million, to $422,517,000. About 100 parks will likely be closed.

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    p>The choices before us in Massachusetts are just as simple……….more cuts or an adequate, balanced stable revenue package.  

    • Of course we can learn about the painful implications of budget gaps – and the repercussions of years of tax cuts – from just about any state.

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      p>I was hoping that we could have a good discussion about the range of specific funding options that are being considered or implemented by other states – best practices in revenue.

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      p>In building an adequate revenue package, how have other states balanced stability and progressivity? What issues have other states run into in implementing revenue reform? How are options like gas excise taxes, service taxes, wealth/graduated income taxes working in other states?  

      • to stabilize state finances ike Arizona is planning?

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        p>According to Commonwealth Unbound in part

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        How to avoid tax increases: Pawn government buildings

        Arizona legislators, desperate to avoid raising taxes, float the idea of selling government property — including legislative offices — and then renting the space from the new owners. The goal would be “a fast infusion of as much as $735 million” to the state’s coffers, according to the report in the Arizona Republic.

        The plan is for the state to eventually regain ownership of the properties, but only after investors in the properties enjoy a nice return from the state’s rental payments.

        • In principle the state should always own its own governing facilities.  To rent puts them at the mercy of landlords, plus in my mind it just looks terrible.

  2. That’s the lesson from California.  Taxpayers don’t support spending if they can’t tell how it’s spent.

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    p>Take Massachusetts.  Here’s the transparency question:  why all the alleged “cuts” when in fact the budgeted 2010 spending exceeds 2009 budget by $554 million, and 2010 budget to 2009 actual spending by $2.7 Billion?!

    • I agree with you that transparent budget making processes complete with searchable data bases are key to rebuilding the public’s confidence in government’s decisions.

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      p>I am curious to learn how closely California’s residents are able to follow the budget making process there, but I bet it’s not easy for “ordinary people” to track the process and have an opportunity to influence the choices their elected officials are making.

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      p>ONE Mass’s experience running around the state implementing budget and tax policy literacy trainings to community based organizations and individual or organizational activists already involved in civic affairs has taught us that even extraordinarily involved folk want to understand the basic facts before they can advocate for additional revenues with confidence.

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      p>Addressing your second question about why Massachusetts got in this mess I refer you to 2 documents from the Mass Budget and Policy Center.

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      p>First a one pager on  Substantial Surpluses to Dangerous Deficits: A Look at State Fiscal Policies from 1998 to 2008,and a longer piece on the steps that have been taken on transparency and suggestions for what we might still do to make our budget making process more transparent.Budget Transparency and Balance: The FY 2010 Budget Proposals.

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  3. The CT method above is currently contrary to the MA constitution, though I for one wouldn’t mind changing that.

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