SPN State Fiscal Policy Exchange

Think Tank Toolkit SPN Fiscal Policy Exchange, Week of 01/10/05 SPN State Fiscal Policy Exchange – Week of 1/10/05

Week of 1/10/05

Projected State Deficits (as of 1/10/05)
Caution: It is important to remember these projected deficits are the difference between the amount governors/legislators wish to spend and the projected revenue. For example, in Washington state, the revenue forecast is estimated to increase by $1.5 billion over the next two years, but the governor wants to increase spending by $3.3 billion; hence a $1.8 billion deficit by his definition.

*Please send state budget deficit updates to Jason Mercier at jmercier@effwa.org (links to news articles are appreciated).

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Studies/Policy Updates

Americans for Prosperity (TX): A Taxpayer's Bill of Rights for Texas
In 1973, Gov. Ronald Reagan introduced Proposition 1 -- the nation's first tax and expenditure limitation (TEL), which was designed to restrain state government growth over time. Proposition 1 was voted down at the polls in November 1973. Days after the defeat, Governor Reagan wrote in the pages of National Review: "We have lost a battle, but this struggle will go on. The people will find a way to bring big government under control, to put a reasonable limit on how much of their income government may take in taxes. This idea will become a reality."

CATO: Political Discipline, not Just Less Pork
Suppose you think the federal government is a bloated monstrosity in need of a stomach-stapling, extreme makeover. What should be done? Small-government types - free-market conservatives and libertarians - are increasingly at odds on this question. Tax hawks like Grover Norquist, of Americans for Tax Reform, maintain that we should "starve the beast": create pressure on Congress to reduce spending by cutting the government's intake of taxes and running up deficits.

COST: FEEDING THE FISCAL BEAST - 2005 EDITION (registration required)
The year may be new, but little has changed for state legislatures. Despite robust growth in GDP, historically low unemployment, and strong increases in state revenues, balancing the budget will—for the fifth consecutive year—be difficult in a majority of the states. In this first Legislative Alert of 2005 we provide a brief overview of key trends driving state budgets as well as highlight a few pertinent issues that the Congress will attend to. Finally, we discuss COST’s legislative priorities for the 2005 legislative sessions.

EFF: Time to arm citizens to combat government fraud
When it comes to fighting government fraud, Washington state lacks a key weapon: a state False Claims law. The federal government, thirteen states and many local jurisdictions (including Washington, D.C. and San Francisco) have adopted False Claims laws. These measures allow anyone with unique knowledge and evidence of fraud against government to act as a "private attorney general" and sue the wrongdoer on behalf of the government.

Georgia Public Policy Foundation: Agenda 2005
The policies proposed in Agenda 2005 are based on fact and the Foundation’s belief in limited government, individual responsibility and free enterprise. The ideas expressed in previous versions of this report are representative of solid, mainstream Georgia and have been used by Democrats, Republicans, Libertarians and thinking people of all descriptions. Many of those ideas are now law.

Goldwater Institute: Private School Education at Half Price
Currently, Arizona ranks first nationally for highest capital outlay expenditures and second for interest on school debt expenditures, totaling nearly $2,000 per student. Arizona’s private schools educate five percent of the state’s K-12 student population. Developing policies that take advantage of existing and potential private school capacity could help ease the public school burden of educating significantly more students, while potentially saving hundreds of millions of dollars annually.

Heartland Institute: Study Shows Big Savings from Competitive Sourcing of Government Functions
A recently released study shows competitive sourcing of government activities has led to significant savings for the federal government. Using baseline costs, the average savings to the federal government was 44 percent over 10 years, for a total savings of $11.2 billion. The report also found few government employees lost their jobs, contrary to the fears of opponents of competitive sourcing.

National Taxpayers Union: Ten Simple Rules For Returning Sanity to Washington
In preparation for the 109th Congress, the House and Senate have been discussing several rules changes that could have a big impact on the way business is done (or not done) in the upcoming legislative session. Although most of the interest has been focused on reforming the dysfunctional Senate and its arcane 60-vote requirement for breaking logjams over major issues, the House also has a chance to strike a blow for good government by adopting a package of rules…

Pacific Research Institute: Arnold Drops a Nuke on Teacher Unions
Arnold Schwarzenegger is proving that he is truly the reformer that Californians hoped he would be when they elected him governor. While his rumored budget reforms got the most buzz before his state of the state address, his proposal to overturn teacher tenure and link teacher pay to merit and performance epitomizes his willingness to take on the powerful special interests that control Sacramento.

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Issue Update: Medicaid