Monday, July 10, 2006
A rainy day?
I have lots to say about the so-called state surplus, which may eventually exceed $700 million by the time the legislature meets next year. The governor has called for rebates to taxpayers and I am not enthusiastic. Let’s leave that for another day.
Another bad idea is what professional managers call the “rainy day fund.” That is a bit different from your savings account because you cannot just tell the boss to give you a wad of cash for your savings. Folks like us need to be prudent and hang on to every dime. Government has the power to tax and having a big old pile of hot steaming loot lying around is just too much temptation for the ordinary politician. It is nothing more than human nature. If there is easy money available, people spend it.
Arkansas already has a Revenue Stabilization Act and that requires spending to be put in categories, and, if money is short, the lower priorities do not get funded. That used to happen regularly. A small cash reserve is probably a good idea for such things as earthquakes, and the sudden influx of hurricane refugees. Otherwise, it is just another bunch of pork barrel self-indulgence and we’re all against that.
(Network Broadcast July 7, 2006)
Another bad idea is what professional managers call the “rainy day fund.” That is a bit different from your savings account because you cannot just tell the boss to give you a wad of cash for your savings. Folks like us need to be prudent and hang on to every dime. Government has the power to tax and having a big old pile of hot steaming loot lying around is just too much temptation for the ordinary politician. It is nothing more than human nature. If there is easy money available, people spend it.
Arkansas already has a Revenue Stabilization Act and that requires spending to be put in categories, and, if money is short, the lower priorities do not get funded. That used to happen regularly. A small cash reserve is probably a good idea for such things as earthquakes, and the sudden influx of hurricane refugees. Otherwise, it is just another bunch of pork barrel self-indulgence and we’re all against that.
(Network Broadcast July 7, 2006)
