Don't Spend, Amend!

[etgryphon]

Hey All,

Read a good article in the WSJ: Don't Spend It, Amend It!

Do you think that this is possible? I just wrote my Senators to look into it. Do think that it will happen but if we claimer enough.

-Gryph

It was ok until the following descent into hackery:

[ QUOTE ]
Another approach is the Taxpayers Bill of Rights, or Tabor, which Colorado put into place via a constitutional amendment in 1992. It limits annual state government spending to inflation plus population growth, with any extra revenue going back to the taxpayers. From 1995 to 2000 Colorado ranked first in the nation in GDP growth and second in personal income growth. Its success has generated a furious effort to allow more spending that will be on the 2006 ballot.

[/ QUOTE ]

No one, and I mean no one, paying attention actually believes that the above description of how this issue is playing out in Colorado is accurate.

[etgryphon]

I don't know much about Colorado. Are things not rosy over there?

I like Delaware's plan better...

-Gryph

No, things are not rosy here in Colorado. TABOR is a great idea and worked very well until the 2001 recession. It limits spending to the lesser of prior years spending plus inflation and population growth or current year revenues (ie. no deficit spending). It also requires voter approval for any tax increases. When revenues fell during the recession, the spending base was ratcheted down and now that revenue is back to pre-recession levels it can't be spent and must be refunded to the taxpayers. Coupled with mandated increases in education and medicare spending, the general fund is being squeezed. We have a very contentious measure on the ballot to give a 5 year "time out" to TABOR. The ratchet effect has caused a real problem, but the time out proposal goes too far in my opinion.

TABOR has been the best thing to control the politicians desire to spend and spend. Despite all the doom and gloom predictions, I have not seen any noticeable cuts in services until recently. There have also been many local governments that have gotten tax increases passed. Most of the succesful ones were very specific about how much money was being raised and how the money would be spent. That is a major problem with the current initiative. It asks for a 5 year time out and says "trust us" on how to spend it.