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Tuesday, May 27, 2003 |
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Posted on May 23, 2003 Bill passed by House would restrict government growth
While money was coming in, lawmakers spent it. They started new spending programs and agencies, enlarging the state government and the size of the budget it takes to fund that government. Now that the economy has faltered, and state revenues are declining, lawmakers find themselves at a loss to fund this larger state government. That lesson can't be lost when the economy improves and state revenues begin to grow again. A bill passed by the House would make sure that future government growth is limited, helping to prevent the kind of fiscal crisis the state is facing now. The bill would put limits on how much the General Assembly can increase spending in any given year. The legislation is intended to allow the state budget to grow each year only as much as the state's population and spending grows. It establishes a formula based on census data and the consumer price index. Lawmakers could increase spending each year by that formula or by 6 percent, whichever is less. Six percent seems like a lot, but the state budget has grown by as much as 9 percent in recent years. This legislation should be enacted. It would provide a necessary curb on lawmakers' spending. In the past few years, the General Assembly hasn't only spent all the money available to it. It has spent money that wasn't available. Lawmakers created programs that they knew they had no money for in the next year, but they depended on economic growth to bring in more state revenue to cover the gap. That's part of the reason the poor economy hit the state so hard. A realistic spending limitation like the one included in the House bill would force lawmakers to restrain themselves in good times. It would put the brakes on government growth. And it would make lean years like this one easier to handle. |
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All material ©2003 Spartanburg Herald-Journal | ![]() |
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