Event Calendar
May 2012
(view month)
S M T W R F S
* * 01 02 03 04 05
06 07 08 09 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 31 * *
<< (add event) >>


User Blox 4
- Put stuff here

Barack Obama
"Lincoln Sells Out Slaves"
by: Rob Kailey - Sep 13
1 Comments
If You Haven't Seen This
by: Rob Kailey - Apr 28
5 Comments
Impeach the President?
by: Rob Kailey - Mar 16
15 Comments
It's the system, stupid!
by: Jay Stevens - Oct 25
7 Comments

Search




Advanced Search


Rob Kailey is a working schmuck with no ties or affiliations to any governmental or political organizations, save those of sympathy.

Eye on 2011: $400 Million Gap

by: Matt Singer

Tue Jun 15, 2010 at 11:12:42 AM MST


Anyone who has followed the news recently has seen that Montana is facing a very tight budget this next biennium. There are some solutions that we should be discussing that we aren't -- a second round of stimulus would be ideal, frankly, both for the state's long-term needs and for the economy.

But Washington, DC, seems cowed by short-term deficits and is willing to accept lots and lots of pain in order to avoid offending hypocrites like Congressman Rehberg, who supported deficit spending during good times only to oppose it when we need it (actually, this isn't so much hypocritical as it is stupid or opportunistic).

Regardless, we've got some painful options in Montana. One proposal I saw would make up less than 1/3 of the gap by cutting state support for education by roughly 1/3. That lost money would presumably be made up by either massively jacking local property taxes, consolidating classrooms, or simply killing children perhaps. I'm not sure how we ask schools to take 15% cuts to their budgets without significantly decimating their mission. Perhaps an "expert" on the right can inform me.

There are another set of options that need to be on the table -- eliminating the oil tax holiday; cracking down on high-income folks, especially non-residents, who got great tax breaks out of the Martz Administration; and maybe even a real estate transfer tax on high-end property sales.

The reality is that we can make some cuts, but we already run this state in a pretty lean fashion. I had a 1.5 hour wait at the DMV recently. I'd hate to turn that into half a day over budget cuts.

There will be a lot of meaningless rhetoric thrown around about waste in government. Here's my advice for anyone who honestly is aware of waste in government -- share your information with the Governor's office, with your legislator, and with MPEA and MEA-MFT. These folks will be looking more than anyone to eliminate true waste this year in order to move resources into valuable programs.

But vague sentences about waste don't actually help anyone find it. And if we just pull out a chainsaw and start cutting in the hopes of eliminating waste, my sense is that we'll cut a lot of damn important stuff out as well.

Update -- And here's Paul Krugman explaining why more stimulus is a good idea since many folks seem to think that we need to piss our pants over deficits these days.

Matt Singer :: Eye on 2011: $400 Million Gap
Tags: , , , (All Tags)
Bookmark and Share
Print Friendly View Send As Email

Elections have consequences. (0.00 / 0)

The State government functioned fine under Governor Martz, and generated a surplus.

Schweitzer increased state spending by 40+ percent, blew through the surplus, and next he'll be begging the legislature for a big tax hike.

We could have avoided these problems if we would have elected Roy Brown.


Actually (0.00 / 0)
the situation is due to fluctuation in oil and gas income, which varies greatly year to year.

[ Parent ]
What (0.00 / 0)
are you talking about?

[ Parent ]
The revenue from oil & gas leases (0.00 / 0)
goes to the schools.  You did know that, right?

[ Parent ]
I don't think that is completely correct, Rusty (0.00 / 0)
If the oil or gas lease is on state school trust land, then it's generating lease money for having the infrastructure located on its property...it's probably also getting a portion of the revenue (as is sometimes common in the commercial leasing world - take a percentage of the profit).  

But there is also a oil or gas or mineral royalty on whatever the entity takes out..which goes to the state general fund (i.e., not to schools).

And if isn't located on state land, then the only money that the state is getting is that royalty money.

Otter Creek is on state  school trust land...and that blood-money bonus bid was extra $ on top of the lease rate - that will all go to the schools if the courts don't stop the environmental disaster.  The royalty stuff will go right into the general.

If I remember correctly, there also some sort of tax (maybe it's just on coal?) that goes directly back to the coal board for distribution to the towns that can't afford things like police cars and fire trucks (because those coal jobs generate oh-so-many-jobs and pay oh-so-many-taxes).


[ Parent ]
Thank you Jhwygirl, (0.00 / 0)
I believe you are correct.  

http://revenue.mt.gov/forbusin...  


[ Parent ]
I wonder what a sarcastic comment like this... (0.00 / 0)
will look like when reviewed 5, 10, 20 years down the road?

since many folks seem to think that we need to piss our pants over deficits these days.


Do you care to predict? (0.00 / 0)


[ Parent ]
the half life of comments by unknowns is 2.3 seconds (0.00 / 0)


[ Parent ]
That depends (0.00 / 0)
If we decide to keep the deficit low and witness 20 years of stagnant employment and mounting long-term deficits, my guess is lots of folks will think I sound silly. Others who study economics will probably think I was making a fairly sane point.

Or maybe you've got some brilliant observations on short-term deficits that Paul Krugman lacks?


[ Parent ]
Matt - (0.00 / 0)

So Matt, are you of the opinion that the USA, pr Montana can borrow it's way to prosperity?

Please cite just one example of that working, for any government, anywhere - at any time -  


Is anyone suprised (0.00 / 0)
that this question remains unanswered?

[ Parent ]
Well, before you guys with your unhinged financial markets (0.00 / 0)
dragged the whole world economy down the gutter, Europe was doing just fine.  

[ Parent ]
Seems like Sen Tester is worried enough about the national debt... (0.00 / 0)
...to yank money from the unemployed.

http://missoulian.com/news/sta...

Snip:

"The Washington Post quoted Maurice Emsellem, policy co-director for the nonprofit National Employment Law Project, who criticized Tester's proposal.

"It's shocking what their priorities are," Emsellem was quoted as saying. "Unemployment is still close to 10 percent, and there's no indication that it's coming down anytime soon."

Emsellem wondered why Congress apparently doesn't have any similar plans to trim back expired tax breaks for businesses and individuals.


[ Parent ]
Menu

Make a New Account

Username:

Password:



Forget your username or password?


Bookmark and Share

Poll
Voting. Useful or not?
Yes!
No!
Maybe, but only if you vote my way.
There are theories that ...
Meh ...

Results

Blog Roll
  • A Secular Franciscan Life
  • Big Sky Blog
  • David Crisp's Billings Blog
  • Discovering Urbanism
  • Ecorover
  • Great Falls Firefly
  • Intelligent Discontent
  • Intermountain Energy
  • Lesley's Podcast
  • Livingston, I Presume
  • Great Falls Firefly
  • Montana Cowgirl
  • Montana Main St.
  • Montana Maven
  • Montana With kids
  • Patia Stephens
  • Prairie Mary
  • Speedkill
  • Sporky
  • The Alberton Papers
  • The Fighting Liberal
  • The Montana Capitol Blog
  • The Montana Misanthrope
  • Thoughts From the Middle of Nowhere
  • Treasure State Judaism
  • Writing and the West
  • Wrong Dog's Life Chest
  • Wulfgar!

  • Powered by: SoapBlox