As
citizens go to the polls this week, their votes
will largely determine the direction governments
at all levels will take. There are many public
policy questions at play — especially in state
and local elections.
For
many the size and growth of government spending
and programs will be a dominant issue. Under the
Bush administration the federal budget has grown
at staggering rates. In recent years the
Commonwealth’s budget has been on a dramatic
uphill climb too, reaching $70 billion for the
first time. Just over a decade ago Virginia’s
budget was below $35 billion. While the shocking
size of our spending increase may be unusual, the
overall trend is not.
Something
special may happen this year. Fed up with
ballooning government, taxpayers may say, "Enough,"
and, “Vote the bums out.” Voters in three
states will have a unique opportunity to take back
control of their respective governments from
spendthrift politicians.
Taxpayers
in Maine, Nebraska, and Oregon will vote on
whether reasonable limits should be placed on how
fast and by how much government should be able to
grow. And if not for what the Wall Street
Journal’s Stephen Moore calls “dubious
legal technicalities,” similar measures would
also have made it to the ballot in at least six
other states. In future elections, we’re
sure to see more efforts to place initiatives on
the ballot. This trend signals a growing belief
among taxpayers that government growth is not
inevitable.
While
discussing a similar effort to curb the growth of
government in his home state, South Carolina Gov.
Mark Sanford said that “government shouldn't
grow faster than the people's pocketbooks and
wallets — and what we've found is people, when
they compare their wallets with the growth of
government, nearly always agree!”
Seems
easy enough — has your family’s budget doubled
in the last 10 years? Have you seen double digit
percentage increases in your paycheck?
Without
reasonable limits, governments largely function on
auto-pilot. They find new and creative ways to
spend each new dollar that comes in.
Maybe
it’s time for the Commonwealth to get on the
bandwagon. Each April, many Virginians suffer from
a form of sticker shock once they discover how
much their state and local taxes cost. Our booming
economy and a robust real estate market has given
state and local officials a windfall of added
revenue, and many seem determined to spend it
instead of lowering the tax rate so taxpayers may
keep more of their hard-earned money. The rapid
growth of our budget is testament to that.
The
problem is that, once established, programs rarely
go away. As Ronald Reagan once said, “The
nearest thing to eternal life we will ever see on
this earth is a government program.”
That’s
because officials typically fail to ask
fundamental questions about government’s proper
role and scope. Contrast that to the private
sector, where business leaders often ask
themselves the question suggested by management
guru Peter Drucker: “If we weren’t doing this
yesterday, would we do it today?” While
government operates differently from business,
this test still applies and ought to be used.
Unfortunately, it isn’t. And when governments
constantly roll out new programs, while continuing
their existing ones, that spells growth.
There
are three ways Virginia could establish reasonable
spending restraints.
First,
the General Assembly can allow citizens to vote on
a constitutional amendment that would place limits
on how much government budgets can increase
annually. The constitutional route is by far the
strongest; however, it would take several years to
take effect. Thus, it doesn’t offer taxpayers
any immediate relief.
Second,
the General Assembly can place a statutory
restriction on itself. While not as strong, this
could protect taxpayers while the constitutional
amendment is going through its process. Indeed,
Maine taxpayers have chosen this route. Rather
than amend the constitution, voters are deciding
on a “Citizens’ Initiative” which has the
effect of statutory law.
Third,
our lawmakers can pledge that they’ll simply
hold themselves to reasonable limits. If history
is any lesson, however, they’ll be unable to
truly hold the line on spending.
Keeping
Virginia’s cost of government low is essential
to keeping our economy vibrant. Low cost of
government enables lower taxes, encouraging
investment and job creation from the private
sector.
While
we have much to be proud of, and our governments
do many things reasonably well — especially when
compared to other states — we must continue to
scrutinize all spending and continuously ask if
there’s a better way. A tax-and-spending
limitation measure will once and for all force
policy-makers to get serious about spending
reform.
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November 6, 2006
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