Increased Revenues
The latest revenue projections show that Utah will bring in $285 million more revenue for the current fiscal year than had been anticipated and possibly $398 million more for the fiscal year that will start July 1, 2005. As the D-News puts it, "Utah coffers are bursting at seams."
No doubt, sugar-plum fairies are dancing in the heads of many state agency directors. But before we put all the money into on-going programs, I hope we don't forget the lessons we only recently learned. In 2001, we had similar surpluses -- and we spent them. By September 11th of that year (actually before that), we realized we shouldn't have built up those programs; the revenues were sliding.
None of us has a crystal ball. No one can predict the future will be all sunshine. Therefore, we need to exercise discipline and not spend like drunken sailors. First off, we need to do one of two things. We need to refund money to the taxpayers. Or, if we don't have the political muster to do that this year, we need to put the money where we can take it back next year (roads and buildings) and use that money next year to fund a tax cut, as part of the tax reform effort Gov. Huntsman and the legislature will engage in this year.
Regarding option 1, some might ask, "How can we give the money back when there's so much need?" Well, these recent revenue numbers show that people are doing a good job growing the economy with their money. If we let them hang on to a little more of it, they might just generate a lot more of it for themselves (and for state coffers).
No doubt, sugar-plum fairies are dancing in the heads of many state agency directors. But before we put all the money into on-going programs, I hope we don't forget the lessons we only recently learned. In 2001, we had similar surpluses -- and we spent them. By September 11th of that year (actually before that), we realized we shouldn't have built up those programs; the revenues were sliding.
None of us has a crystal ball. No one can predict the future will be all sunshine. Therefore, we need to exercise discipline and not spend like drunken sailors. First off, we need to do one of two things. We need to refund money to the taxpayers. Or, if we don't have the political muster to do that this year, we need to put the money where we can take it back next year (roads and buildings) and use that money next year to fund a tax cut, as part of the tax reform effort Gov. Huntsman and the legislature will engage in this year.
Regarding option 1, some might ask, "How can we give the money back when there's so much need?" Well, these recent revenue numbers show that people are doing a good job growing the economy with their money. If we let them hang on to a little more of it, they might just generate a lot more of it for themselves (and for state coffers).
posted by steve u. at 2/15/2005
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2 Comments:
Finally, a voice of reason! Refunding the money to the taxpayers is the reasonable option (although it will be bad-mouthed by people that think it belongs to the government instead of the taxpayers). The "need" will always be with us and will always expand proportionate to revenue increases. What we really need is more responsibile debate about needs and wants.
Its not a refund, its a return of money. The money that the state spends isn't the states money in the first place, its the peoples. Nobody can spend your money better than you can. Some should sponsor a bill that immediately returns any surplus say above 10% of budget to the people. Check in the mail within 30 days of the end of the fiscal year.
Even with the supposed surplus, our state should get the chopping block out and eliminate needless state organizations and limit overall buget growth to no more than the state or federal cpi increase.
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