It's been over a year since I wrote a post called The Road To Bankruptcy.
But the easy choices have already been made; the gimmicks will soon be gone; the rainy day fund will soon be spent. It's time for real leadership. Instead, the Governor is saying "Nothing Down! No Payments until 2010."
Of course, she'll be gone in 2010 and we will be the ones paying off the credit cards.
Considering that I wrote that post five months before Obama even secured the Democratic nomination, I think it turned out to be a pretty darn good prediction.
So now the legislauture is working on the 2010 budget, Napolitano is indeed gone and Arizonans are still looking for leadership to solve the budget crisis.
The Arizona Daily Star thinks it has found leadership in the House Democrats' budget proposal.
Democrats in Arizona's House of Representatives last week unveiled a creative proposal for closing the state's expected $3 billion deficit in fiscal 2010.
We were pleased to see House Democrats take this kind of leadership initiative.
Indeed, I have to give them credit; the House Democrats have proposed an honest budget. They solve the budget short fall by raising taxes--lots of taxes. They start by raising the income tax rate 13% for the top filers, raising utility bills by $10 to $15 a month*, taxing warranties and other service contracts and raising the school equalization tax by $250 million.
Good for them.
If voters want to see an honest debate about the way the current crisis should be handled, the House Democrats have provided an honest proposal.
The Star considers the Democrat's proposal to be a sign of leadership, and think that it's a productive part of the negotiations. Republican Senator Jonathan Paton has a great idea to take the Democratic proposal even further--put it on the board and see how many votes it has.
The Democrats have come up with an honest proposal and have called for a massive tax increase. They are getting credit for offering a real solution, so let's see how many of them are willing to vote for it.
Senator Barbara Leff is termed out, so the District 11 (Arcadia, Paradise Valley) Senate seat is going to be open. The house seats for that district are split between Republican Adam Driggs and Democrat Eric Meyer, and the two were only separated by a few hundred votes in the last general election. Let's fire up the board of truth and see how Meyer stands on raising taxes for his constituents.
District 24 in Yuma is struggling economically and currently pays some of the highest electric rates in the state. That district also has split representation; let's see how Russ Jones and Lynne Pancrazi vote.
The same situation hold in the Oro Valley, north Tucson section of District 26. Let's see how Nancy Young Wright's constituents feel about her support of a massive tax increase. I'm sure Vic Williams will give her plenty of chances to talk about it.
So light up the board and see if the Democrats have made a proposal that they are willing to stand behind, or if they are just playing one more round of partisan games.
What a great idea. You know that Jonathan Paton's a pretty bright guy. I guess they don't call it
military intelligence for nothing.
*Democratic analysts claim that charging a 1 cent per KWH tax would cost the typical consumer about $1.25 a month. But the typical Arizona consumer
uses over 1,000 KWH a month** and while I admit that law school decreased my math skills, I think that one cent times 1,000 is more like $10 a month.
This proposal is especially ironic since utilities are an essential commodity much like food. That means the tax is highly regressive and unavoidable. An interesting tidbit that I learned in my days as RUCO Director is that poor people oftentimes have higher electric bills than the middle class. That's because the poor often live in substandard housing that lacks adequate insulation and uses older, less efficient appliances--that means that this tax would be doubly regressive.
**One of the comenters claims that the article that I linked to doesn't back up my 1,000 kwh claim. People, read the articles before you comment. Here's the key sentence. "The typical residential customer uses about 980 kWh a month." Remember that article is from Tucson where it's a bit cooler and the houses are a bit smaller. The typical Arizona consumer uses over 1,000 KWH a month.
UPdate: The latest comment says that the Democratic proposal is actually 1/10 cent per KWH. If so, then the Star got it wrong. The Star article says that the Democratic plan proposes "Adding a 1-cent per kilowatt-hour excise tax on nonrenewable energy."
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