Sunday, May 29, 2011

Oregon's State Budget, and Facing Reality

Here is an interesting read. It claims our state deficit needn't exist:

The Fallacy of a $3.5 Billion State Budget Deficit
[...] The official assumptions assume we will continue to do almost everything the state is doing now, in the same manner it is doing them now. This is not only a recipe for a huge deficit, but it is also a recipe for shortchanging everyone who has a right to expect that their state government will focus on its core responsibilities and do so in a fiscally responsible manner.

As set forth in Facing Reality, we identify a number of ways the state can reform how it performs certain services, how it pays for them, and how it can spin off or end other services to reduce costs and/or improve service. Included are items such as privatizing liquor distribution and sales and the DMV, reducing corrections costs, eliminating a number of costly tax credits and new programs, and targeted reductions in public employee compensation. All together these reforms could save some $2 billion in the upcoming biennium.

In Facing Reality we also propose a reasonable limit on the future growth of state expenditures, and the reduction or elimination of perhaps the most damaging symbol of Oregon’s perceived unfriendliness to business and entrepreneurship: the highest-in-the-nation 11 percent capital gains tax. [...]

Read the whole thing for the details; it's excellent. Now we just have to find a way to force our politicians to face reality.

Also see:

Oregon tax hikes lead to cut jobs, higher prices

Oregon nears highest income tax in the nation

Oregon; following California's example?

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