WE WERE DISTURBED to learn last week that the General Assembly
has been even more unwilling than most realized to deal with the
state's financial turmoil.
We knew lawmakers had not made the kind of smart, targeted cuts
(or, alternatively, tax increases) that were necessary to deal
responsibly with the gaping holes in the budget. We are embarrassed
to admit, though, that we had naively assumed that they had repaid
the $150 million deficit from the fiscal year that ended in June
2002. Instead, the state has continued to essentially float a check
to cover those unpaid bills.
Now that Comptroller General Richard Eckstrom has let the cat out
of the bag -- and announced that there's another $22 million in
unpaid bills from the fiscal year just ended that is being covered
in the same manner -- it is unclear what precisely should be
done.
Oh, it's clear that the state must pay the bills. What's not
clear is whether the Budget and Control Board should pay them when
it meets Wednesday, or whether it should defer action to the
Legislature, which won't meet until January, almost certainly would
not address the issue before June and apparently is under no legal
obligation to do a thing about it.
The second option cannot be considered palatable, both because it
allows an inexcusable dodge of responsibility to continue for
practically another full year, and, perhaps more disturbingly,
because there is absolutely no way of guaranteeing that the
Legislature will choose to do its duty next year.
Budget and Control Board action is problematic, too, though.
First, some members question whether the board has the authority to
pay off debts from a previous year, or whether its authority is
limited to preventing future debts from occurring. Beyond that, it
is difficult to endorse using the blunt instrument of
across-the-board cuts -- the only tool the board has at its disposal
-- to pay past-due bills. Particularly when it could be argued that
the temporary failure to pay them does not do any immediate harm,
the main damage of that inaction being the enabling effect it has on
an already irresponsible Legislature.
This much is clear: The board must deal immediately with the $108
million shortfall in the current year's budget, which the Board of
Economic Advisors declared Friday. And in January, the Legislature
must change the law to make sure the state can never again refuse to
at least start repaying its bills immediately.
Legislators say they didn't repay their $150 million debt this
past session because doing so -- on top of the cuts they had to make
just to deal with declining revenues -- would have been too
traumatic a blow for state government. That argument makes perfectly
good sense -- if you believe, as most legislators do, that they have
no money and no way of raising money. But that simply is not true.
They can come up with the money to pay the state's bills in one of
two ways: They can raise taxes, or they can identify and eliminate
those programs and agencies that are not absolutely essential.
Whether the Budget and Control Board does the dirty work
Wednesday and pays the state's past-due bills or leaves that to
legislators, who are ultimately responsible, this news of an even
deeper financial crisis should serve to underscore the fact that
legislators can no longer trim around the edges, spread the pain
through all state agencies and hold their breath and hope to survive
until the economy turns
around.