Bob Burns on the upcoming Train Wreck

Senate Appropriations Chairman Bob Burns is playing the role of Cassandra in this year's budget negotiations.  Read his column, but focus on these two statistics. 

The state's historical revenue growth is about 7 percent or approximately $700 million per year;

The debt service in (the Governor's) plan will add as much as $215 million annually to state spending, which will be added to the already $500 million to $600 million annual increase that takes place without any legislative action.

Burns has been making this speech for months.  Unless the legislature is willing to make some actual cuts the budget is heading for a train wreck.  The legislature can balance this year's budget by using the rainy day fund, accounting gimmicks and new debt.  But every $100 million that the state borrows costs nearly $10 million a year in interest.  Next year the formula-driven increases and the debt service will use the entire normal revenue increase--without any increases to any other program in state government.   

Comments

[ron]

The recession is being fueled by governments, local and federal, chasing the same dollars as the business community driving up interest rates which will drive up the cost of doing business for everyone.

If this state government doesn't want to fuel the recession, it needs to pay its own way beginning this spring.

Another issue is this: what are is the state borrowing money for? If we are borrowing money 'to buy coal', we are in big trouble.

Mr. Burns's words need to heeded.

[Jim]

The Governor is going to be in quite a bind here soon.

[Tim S.]

Meanwhile, count on Pete Hershberger, Jennifer Burns, Marian McClure and a few other liberal Republicans to whine and cry about how we're still not spending enough and how we're cheating "the children"! Thank God for term limits!