Applying Revenue Based Budget Principles
Yesterday, I talked about Republicans changing the process of how budgets are decided. Today, most government budgets start with baseline spending, and then try to figure out how to make a combination of "cuts and revenue increases to balance the budget." That mindset has led to the tax and spend mentality that predominates in government, whether the government is run by the Republicans and Democrats. If the starting point of any budget discussion is how much to spend, every decision made after that is driven by a discussion about spending. In fact, the language of budgets is the language of preserving spending levels, not finding ways to "live within our means."
However, if the budgeters look at revenue, and then try to figure out how to match the spending to the revenue, the whole mindset changes. I promised yesterday to apply this principle to the Governor’s budget. Here it is. The numbers are derived from the Governor’s budget. Remember, I don’t have thousands of staff to analyze this multiple volume document. If the numbers are not precise, use the principles to find the… Read More