The States: Doing Their Own Thing...

[Handyman]

Re: The States: Doing Their Own Thing...

Why?

Honestly when I hear that any state has a $1.4 billion surplus of "revenue" over taxes, I want to scream. Government isn't a business where the goal is maximize revenue. Our target should be that revenue meets, or maybe just slightly exceeds, our expenditures.

The way the governor and legislature should operate is figure how much money is an appropriate amount to spend in the state each year, through compromise generally, then figure out how that money will be raised through the combination of taxes/fees, etc..., used to generate revenue for the state.

If we only did budgets and had the legislature meet every 10 years or so, then yes having some money in the bank or having a surplus to cover us for unexpected economic downturns over the next ten years would be nice and even appropriate. But we don't have that. If the economy goes in the tank, we don't need $1.4 billion sitting in the bank. The legislature can adjust it's taxes or spending accordingly.

The problem with the state having $1.4 billion sitting around is the same problem with me having $1.4 billion sitting around. Pretty good chance I'm going to spend large chunks of it on stuff I probably didn't need in the first place. And with a state, most expenditures are not one time expenses. Once you start spending money on a program, pretty good chance that program is with you for the long haul.

The point of a surplus is to keep the coffers filled for when things are needed or go bad. This isnt some thought experiment where everything happens in a vacuum year to year things change and you might need money for things that come up out of the blue. (as they often do) Plus when there is a surplus it usually means things are going quite well economically speaking. (and it makes our credit pretty impeccable) Whenever the surplus is wasted the economy tanks.

But even if we take what you say on face value, it isnt like the MNGP is giving the money back to the people...they are just giving it back to their donors and some businesses. The people who actually pay taxes are getting nothing back. And even if they were, that only serves to make things worse. The MNGOP destroyed the state economy before and they are trying to do it again.

 

[Handyman]

Re: The States: Doing Their Own Thing...

Why? The last time they did this they destroyed the credit rating of the state.

Why do they need a surplus? Common Sense. They are the largest business in the state and they need that surplus to assure that if there is an economic recession they are able to stay operational. The number one thing you need during an economic recession is money. If they drain the rainy day fund, and there is a recession they will not have the funds they need for a stimulus.

Basic common sense.

I love it when my state has money laying around. That's a good thing. I don't want to live in ****ing Kansas.

This.

 

[Deutsche Gopher Fan]

Why? The last time they did this they destroyed the credit rating of the state.

Why do they need a surplus? Common Sense. They are the largest business in the state and they need that surplus to assure that if there is an economic recession they are able to stay operational. The number one thing you need during an economic recession is money. If they drain the rainy day fund, and there is a recession they will not have the funds they need for a stimulus.

Basic common sense.

I love it when my state has money laying around. That's a good thing. I don't want to live in ****ing Kansas.

If republicans in Minnesota think Kansas is so great I wish they’d all move there. I hear the schools and healthcare are just superb