State spending simply not sustainable

By Jeffrey Davis Perry

State Budget Summary and editorial

With little time left in the legislative session the House and Senate have finally reached an agreement on the $28.3 billion Fiscal Year 2009 budget. In my six years in office, the State budget has grown each and every year in its size and scope. This year is no different. The fact is that the State budget has never been larger and is full of earmarks and special interest spending. Despite a slowing economy, the pace of unsustainable spending continues. Although it is politically easier to vote "yes" at the end of the annual budget debate, this year's budget presents an irresponsible spending and taxation plan. A favorable vote would not have been responsible.

This bloated State budget is a 5.3% increase from last year's budget, with more than $290 million of revenue coming from new corporate taxes and $174 million in increased taxes on cigarettes. Corporate and tobacco tax increases are just the start of the fiscal problem. The real potential crisis is that the Commonwealth is essentially spending money it does not have by counting on "projected" new tax revenues, as well as dipping into the State's rainy day fund to make up the difference for their excess spending.

In fact, when the money withdrawn from the State's savings account is added to the interest not reinvested, the budget writers are spending some $508 million from the rainy day fund to balance this year's budget. This includes a $310 million withdrawal from the state stabilization fund, $107 million that will be spent instead of being transferred into the fund, and $91 million in fund interest not reinvested.

While many are more than willing to push the "yes" button in favor of any spending proposal, I believe we as elected officials need to do a better job at thinking about those who are struggling to make ends meet. Taxpayers need relief on their property taxes, gasoline taxes and income taxes, none of which are on the horizon as long as State government continues to increase the State budget year after year.

I am not suggesting that the entire State budget is bad news. The local aid distributions to our schools and towns continue to show improvement. Some additional and much needed funding for our judicial system and National Guard was also included. However, when all the appropriate spending items are added together with all the earmarks, new social welfare programs and the double digit increases in health care costs, something has to give sooner or later.

In the face of a slowing economy and likely declining State revenue collections, the Commonwealth is increasing spending and taxation at a rate of 5.3 percent increase over the $26.8 billion budget approved last July for fiscal 2008. This level of spending increase is unsustainable and I suspect that further tax increases may be soon proposed in order to support current spending levels. Rumors around the State House include increases to the meals tax, another cent on the sales tax and a new telecommunications tax to name just a few.

I do my very best to remain consistent and protect the taxpayers' hard earned dollars. Massachusetts and our Nation need more people in office that refuse to go along with unsustainable spending proposals. Voting "no" is difficult, but necessary when we simply cannot afford to enact a new spending proposal. Until we see more fiscal restraint, we likely will not have the financial resources to address the appropriate roles of government, such as education, public safety, transportation and care for those who cannot care for themselves. For each time we expend funds for a wasteful or unnecessary program, it reduces our ability to deliver core services to those really in need. There is a direct connection that when government spends your tax dollars inappropriately, it either reduces spending to core services or raises taxes. Neither is an acceptable choice.

Representative Jeffrey Davis Perry

5th Barnstable District