Posted by Ray Haynes at 12:00 am on Dec 09, 2008 Comments Off on History
History. That is the secret to the budget solution in this
case. It is a real simple solution. A difficult one
politically, but simple in its explanation.
This is how it is done. First, get a reasonable estimate
of the revenue. Second, find the last budget year in which
that amount of revenue was received by the state. Next, find
the budget from that year, and go through it line item by line
item. Finally, set the budget amounts of each line item this
year at that year’s level. That is the solution. There
can be variations on that theme. The money from line items
that are eliminated or reduced because those items are not that
important can be added to other items so that the hit on those
items is not as great, but the baseline can be that year.
Here is the good news. I haven’t done the research, but I
can just about guarantee that the year in which the baseline can be
set will be one of the last three years. Look at budget year
2005-06, or 06-07, or even 07-08, the year is one of those
three. Wind back the hands of time. The world didn’t
collapse because of spending levels in those years, people could
understand and… Read More