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3/15/2007
Legislature missed the mark on "budget repair"
The Governor robbed dedicated special funds to pay for overspending in the General Fund. He did this via the Budget Repair Bill, which shifts money around for the final months of the 2005-07 budget. We talked about this funds-transfer business at the end of last year, when, to stay afloat, the governor (and legislature) robbed dedicated funds of $406 million! Dang it.
Ok, this current bill, tidying up loose ends, is comparatively minor - and the dollars are comparatively minor.
But all observers cared about in this last feckless run with the budget was to be sure A.G. Van Hollen got his FTE’s to start working on that DNA backlog. The repair bill passed 24 - 9 in the Senate and 85 - 14 in the Assembly. Republicans voting against the blatant fund rip-offs in the bill were forced, accordingly, to vote against added personnel for DNA analysis. And the Democrats are already attacking them for it. Geeez. (Kapanke attacked; Vukmir attacked)
Well, here’s the scoop on fund transfers, pointed out Tuesday on the Senate floor by Senators Cowles, Fitzgerald and Leibham. They unsuccessfully attempted an amendment that would have deleted fund transfers from the bill. Senator Cowles said these shenanigans (my word) were “part and parcel of what’s wrong with the budget process.” Cowles has been pounding away at fund raids for years. He says fund raids are just plain wrong because they
- Take money away from the purpose for which it was raised, and
- Exacerbate the budget process, using one-time smoke and mirrors to balance the budget one year, increasing the funding problem in future years.
Revenue comes in to special funds to be spent for very specific purposes. But no matter how high and how strong the barricade is to prevent its being used for other programs, a very real risk exists that any fund will be raided for completely different programs. For example, as well intentioned (well, maybe) as the $1.25 cigarette tax is, the raid is exactly the problem. The new tax is plain and simple one more new source of revenue for the governor and legislature to spend.
I digress. The fund raids for the current budget (we haven’t even gotten to the 07-09 budget!) start with Recycling. The government has raided this fund repeatedly. Dang it. This time it was another $1.5M, peanuts compared to the $20M already taken in FY ’05-06. The fund’s money comes from an add-on to tipping fees – paid by municipalities all over the state. In other words, paid by guess who.
The Agrichemical Management Fund – that one was raided to the tune of $1.5M.
The Insurance Commissioner’s license fees were raided by $8M! These are fees (just recently increased) paid by the insurance industry. They are absolutely not meant to fund shortages in the General Fund. Grrrrr.
And lastly, the Forestry Account. This is a line on your tax bill that usually says “State.” It’s $20 or so, depending on your assessed value. Under $100, anyway. But it mounts up. And it’s our property tax dollars, meant to be used specifically for forest maintenance. $10.6 million of it was stolen to pay for forestry stuff that the General Fund is supposed to budget for.
That’s a total of $21.6M stolen from specific funds to make up shortfalls in the General Fund and to make the governor look good, increasing his ending balance by $10M, from a measly $65M to an almost as measly $75M. Batten down the hatches for the upcoming really big (2007-2009) budget discussion.
Of course, FoxPolitics readers know a “positive ending fund balance,” no matter how big or small, exists only in smoke and mirrors. Ours is a budget that hasn’t been balanced in decades. And that’s a whole separate, sad and dreary discussion.
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