There Will Be Wailing and Gnashing of Teeth
Lemoyne (2.08.12) – No we aren’t talking about the apocalypse. But, you can expect to hear big government special interests raging about the Governor’s 2012 budget that was proposed yesterday.
The Governor had the audacity to propose a budget that called for spending the same amount of money as last year. Families and businesses all across the Commonwealth have had to tighten their belts over the course of the last several years, and it is long past time our state government adopt that same frugality.
Those who would clamor for more and more money from your pocket, failed to mention that spending growth from 2000 until last year far outpaced the rate of inflation. If the legislature had limited spending increases to the rate of inflation, we would be spending $10 billion a year less than the governor proposed yesterday. (For some great charts and fast facts, check out Commonwealth Foundation’s State Budget Background.)
As the budget process unfolds you can expect to see headlines proposing cuts to all sorts of popular programs. This is a diversionary tactic employed by the political class to distract tax-payers. While they are proposing cuts to programs for “widows and orphans”, they fail to discuss or take an ax to millions of dollars a year spent on corporate welfare. Furthermore, if the legislature wanted to stretch out the money spent by state agencies and local governments there are a number of reforms that have languished, which would make that happen.
For example, school districts along with state and local government overpay for the cost of labor on every project costing more than $25,000. Pennsylvania government outlawed the use of the free market to determine labor rates in 1961 by adopting so-called “prevailing wage” laws. Repealing these laws would save tax-payers over a $1 billion per year.
For further savings the state should look to substantially reform public welfare programs. Public welfare spending is the single largest area of the budget. Without substantial reforms to combat fraud within the welfare system, tax-payer money will continue to go to those who abuse the system.
Finally, it is long past time that our state gets out of the liquor business. Privatizing liquor sales could result in revenue of $1 billion or more. Privatizing liquor stores is not controversial. Almost 70 percent of Pennsylvanians support selling off the state run liquor stores.
Our state government needs to recognize that tax-payers are already stretched thin. The legislature needs to prioritize every dollar they elect to spend and enact reforms that more effectively use the limited resources available. It’s time for the Legislature to earn their exorbitant salary and enact some real reforms that will benefit those of us who are picking up the tab.
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