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 Post subject: Rob's Comment-State Budgets 2003+
PostPosted: Wed Jan 01, 2003 12:58 am 

>With the state budget woes and the BushII >recession, train money is unlikely. (Rob Davis)

I might take some issue with part of the Rob's comment-above-the label-the current malaise started with the decline in the markets that started in March 2000. Bush didn't take office until March 2001. However, IMHO both parties are driven by the practical realities of pleasing neatly packaged electoral groups eager to trade votes for booty. I believe H.L. Mencken once quipped that every election is an auction in advance of stolen goods.

That having been said, I now work for the Office of the Budget (a division not connected with fiscal oversight of historic funding) in a large state and there is significant truth to the idea that there will be no train money. I'm just learning "how it works" but some things are becoming clear. States in general, with governors of both parties have been spending money like drunken sailors on leave.

The states are now searching for new ways to make money. Oregon, for example is floating the idea for GPS units to be attached to vehicles so that they can assess roadway taxes based upon miles driven, as opposed to gas taxes, since a shift to more efficient vehicles reduces consumption.

If you noticed, this past week, several incoming governors were making the rounds crying poverty to soften us up for tax increases. The tobacco monies are, in some cases almost gone. Look for another round of cigarette tax and other "sin" tax proposals, the expansion of gambling and user fees.

Our incoming guv campaigned on reducing property taxes (taking local control away from schools on behalf of the NEA and subsidizing cities). Employment with this state has always been considered secure, but there's quite a few people anticipating that may change with pressure to make good on this promise, when sales taxes are falling.

Worse, this is likely to continue. Neither party sees the need to curtail the open borders that are fueling the explosion in medical and general assistance. The democrats are owned by trial lawyers (not Kevin's side) so serious tort reform, apart from responsible juries is unlikely.

We are small and rather inconspicous, which are qualifies us for disproportionate fiscal "discipline" in hard times. If you are a publicly funded organization and not exploring partnerships and other funding-your not planning for the future.

Still, few interests generate the dedication and perseverance that RR preservation does so there's hope still...

As somber as I think things are, I remain hopeful we will be innovative in our business practices as marketing-so as to become less dependent on government funding-wherever possible and practicable.



superheater@beer.com


  
 
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