Posts tagged ‘Budget Deficit’

June 18, 2011

Get Back in The Game!

by Steve Dana

My blog has been silent for a while now.  It’s not that I haven’t had anything to say, much to the contrary; I had so much I wanted to say I felt I needed to hold my tongue lest I say things I would regret later.  I have been overwhelmed with what was and is happening in our country today.  What bothers me is the fact that everyone else is not bothered.  What bothers me is the fact that our country is going into the tank because we are “too busy” to get involved.

For the most part, my ramblings have been politically driven.  Occasionally I offer things of an entertainment nature, but my interest is in enlightening my readers with my take on current events.  My old departed dad always told me “if you want to criticize, make sure you have alternative ideas to offer” and out of that came a forty year stream of criticisms and alternatives.

I got involved in local government because I criticized the status quo and thought I had a better idea.  When I was elected to office, I found that my ideas were as good as the other ones on the table.  I served eight years.

When I tried to run for higher office, I learned that politics is not about better ideas, it’s about amassing power.  Only idealistic folks like me get involved to look out for the common folks and not special interests.

I said a couple years ago that I was running for County Council because I didn’t see anyone else stepping up who would advocate for the people the way I felt I would.  When I lost that election the momentum for the TEA Party was just beginning to roll.  I was disappointed that it was too late to make a difference in my race but excited that it carried over to huge gains in 2010.

There has never been a more important time for people in our country to get involved in the public process.  The down-turn in the economy exposed the critical flaws in our government system that at the least allowed us to defer payment for public obligations without limits.  Public debt is crippling our country; not just at the federal level, but right on down to the local level through bond indebtedness that erodes current revenue buying power.  All so government can buy your silence.  Add to that the crushing regulatory burdens being heaped on all of us and it’s not surprising were going down.

We are dangerously close to the point where it won’t matter.  When we reach a point where current revenues are consumed by debt service costs there won’t be any services. 

I guess we can party on as the Titanic goes down….. or we can get involved by supporting candidates that support the U.S Constitution and the concepts embodied therein.

I would recommend that anyone who wants to get involved in a meaningful campaign in this local government election cycle get connected with the MIKE HOPE for Snohomish County Executive committee.  Mike has become a very accomplished elected official in a very short time period and is someone I support.  Mike will be the first Republican County Executive inSnohomishCounty history.  His election will change the tone of county government for the better.

I haven’t worked out my thoughts about the national political scene.  I know our country has suffered since President Obama was elected.  Unfortunately the entrenched Republicans have not demonstrated a willingness to do anything more than wring their hands.  The people in the country want action and the politicians want to preserve their jobs.

Senator Jim DeMint from South Carolina seems to be on the right path.  Rand Paul has some good things to offer as well.  I like Michele Bachmann.  Stay tuned.

April 1, 2011

A Fight Worth Fighting!

by Steve Dana

Days are passing one by one and we have yet to hear a word from the President or the Senate Democrats regarding their budget plan to carry through the end of the fiscal year; and no apparent concern about developing a budget for next year.

I suspect that failing to adopt a budget is not unprecedented otherwise the Republicans would be making a big deal of it.  But from a common sense perspective I (and I hope you) am disappointed that when they had a chance to write and adopt a budget to their liking last summer and fall they chose not to for political reasons.

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March 14, 2011

Balancing the Budget, Hard Choices!

by Steve Dana

I got an email today from Senator Patty Murray asking that I join with her to oppose the efforts by the Republican majority in the House of Representatives to reduce the deficit.

Her message came in the form of an appeal for veterans and how the slashing by those mean Republicans would hurt people if we let them get away with it.

I am only sorry that Senator Murray is not in the same situation as Governor Gregoire here in the other Washington.  Being forced to balance her budget, Governor Gregoire has come to the realization that the only way forward is to cut services that do affect people.  I doubt that anyone likes the part about affecting people, but forced fiscal discipline makes it necessary to make hard choices.

I suspect that if given the opportunity to go into debt to deliver the services as Senator Murray is more than willing to do, Governor Gregoire would also choose to borrow rather than cut programs.  That kind of thinking has to stop!

In the face of a $1.6 TRILLION SHORTFALL for 2011, Senator Murray needs to start identifying meaningful programs she is willing to cut.  There will always be seniors, children, veterans or some other group that needs help, but in the face of that staggering debt, can we really afford it? 

Senator Murray and her Senate colleagues need to offer a spending plan that meets the goal of cutting $61 billion for the existing budget year the House has on the table but preserving the funding for the veterans she is worried about in her email.  If the priorities of the Senate Democrats are different than the Republicans, they should offer different programs to cut; understanding that if she saves one here, it will cost somewhere else.  That is what balancing a budget does.  It forces us to prioritize.

Governor Gregoire has finally learned that the pot of state money is only so large.  She and her colleagues in the legislature are involved in that painful process right now.  They are weighing the pros and cons and trying to choose their expenditures wisely.  We haven’t seen the results of their efforts yet, but they will adopt a balanced budget on April 24th

This is the same lesson we are trying to convey to the free spenders in our national government.  Work within your budget.  Prioritize your spending.

If they are having such a hard time dealing with a minuscule $61 billion cut, imagine how much hurt they would be feeling if they actually had to balance their budget and cut the whole $1.6 TRILLION? 

Senator Murray is howling about $61 billion in cuts when the deficit for this year is estimated to be over $1 Trillion.  That is just 6% of the trillion.  There is a serious gap with these folks not just in their budgets, but in their thinking about what the federal government should be providing.

I would support the House of Representatives sticking to their proposed budget for the Continuing Resolution and if the Senate Democrats refuse to play ball, let the chips fall where they may.

When you only control half of the legislative process like the House Republicans do, you have to use whatever tools you have available to advocate for your agenda.  Neither the President nor the Senate is likely to give ground unless they are forced to.  I would stand by my campaign promises to the voters and let the other side take their chances.

Senator Murray doesn’t have to worry about re-election for a while, so she can be a free spender.  Let’s see if the twenty or so Democrats who are up for re-election in 2012 can afford to do the same.

February 28, 2011

Is This Really About Labor Unions?

by Steve Dana

So what’s the deal with these union guys?  Or what’s the deal with these wise guys in the Wisconsin Senate who have stuck it to their Republican colleagues in the past because they had the power to do who now have resorted to fleeing the state to prevent the Senate from taking action on the budget bill?

In all fairness, I don’t hold the union guys responsible for the trouble either Wisconsin faces or the rest of the country.  That responsibility falls on the elected representatives in both the executive branch (who negotiated the contracts) and the legislative branches for approving the contracts.

And that holds true for every level of government from the smallest to the largest.

I know from experience that the union reps sit down to the bargaining table with a list of “demands” for the upcoming contract.  The government side responds with a pitch counter-offering something less.  They dance back and forth a little and come to agreement.  The contract goes back to the union membership for approval and to the legislative branch for theirs and the deal is done.

So how tough can that be?

On the union side, things don’t get tough unless management refuses to budge on an important issue.  They have to decide how hard they want to fight for each issue.  Get the easy ones settled first then squeeze later for the harder ones.  Sometimes the parties are not able to come together and the union members exercise their rights under collective bargaining rules and stop work.  They are calculating that by stopping or slowing their work management will cave and agree to their demands.  Maybe, maybe not!

The rules of the game for the union are pretty much the same in both the private sector and the public sector with a few exceptions.

The difference between union negotiations with a public agency and a private company is the person negotiating on the private sector side is always a staunch advocate for the company shareholders and the company’s bottom line whereas on the public side, the person negotiating for the taxpayers may well be a union member themselves and not an advocate for the taxpayers at all.  You can imagine how some of those contracts might end up.

The negotiations in public sector contracts often are not negotiations at all.  The union puts their demands on the table and the government guy agrees then goes back to his legislative body and cries about how hard the negotiations were and how he got the best deal he could and we need to approve it.

As an elected official in my city, I was never allowed to sit in on union negotiations with my city manager.  Our council was only given limited details of the contract until it was voted on by the union.  We never had fiscal impact analyses prepared in advance so we could see how our long term liabilities were altered by the changing labor contract.

We were never actually allowed to see any of the details of the contracts until after we had approved them.

I understand that the union members are feeling Wisconsin Governor Scott Walker is attacking them because this change will affect them personally.  And I feel for them in that regard.

But I also know what it feels like to be an elected official with a budget to balance and lots of folks with their hand out.  It’s a no win situation.

For years I have been talking about the ticking time bomb with our government pension system.  The issue came up in about 1991 when I served on the Joint Fire Board as one of the representatives for the city.  A fire department in California had been run by Commissioners who were retired fire fighters.  Whenever the contracts came up for renegotiation, they got great settlements with the expectation that when the cash flow got tight, they would just go to the voters to lift the levy lid.  If you present fire department money requests in such a way that failing to approve might result in a family member not making it in an emergency, voters approve.

So when pension commitments started coming due, they had to come out of current revenues since the fire district didn’t put any of that money away as the commitments accumulated.  When voters didn’t go along with raising taxes again, a crisis arose.

So was that a spending crisis or a revenue crisis?

Now take that scenario and apply it to nearly every government agency you can think of and imagine how large the crisis really is.

Sadly, the elected officials who negotiated these sweetheart contracts are long gone and the union leaders only did what they always do in advocating for their members.

Unfortunately the rank and file union members will be the ones that have to bear the brunt of the correction that must take place in order to get government back on a sound fiscal footing.

Elected officials in every district, council and legislature facing budget emergencies now have to figure out how to work around a problem that’s been accumulating for decades. 

I don’t envy them a bit.