Dealing with the State’s budget shortage
March 18, 2011 Leave a comment
The budget issues and solutions to that generally fall in to either of:
- Cut spending
- Raise taxes (and fees)
The other solution is to get our economy moving again, increasing the number of employed workers, decreasing the number of unemployed, and decreasing the number of underemployed. Workers earning wages and providing solutions to real problems lead to greater tax collections. We want and need to have all of our human resources put to productive uses and preferably their most productive use.
How to do that? Perhaps not much can be done in the short term but we will want to ensure that decisions related to (1) and (2) above do not cause harm to long term economic growth in the state.
Unfortunately, the discussion on what to do about the tax revenue short fall is focused on (1) and (2) without much consideration given to the ultimate solution: getting our economy growing again.
What do you think? What should we do?
Update: There is one other possibility: better efficiency. I won’t say much but once upon a time I worked for a bit for a government agency. It was the least efficient and least effective organization I had ever seen and there was zero interest in improving anything to better serve stakeholders. Have we really wrung all appropriate inefficiencies out of our organizations?