Kansas Budget Woes

The expenses go on, but the income falters. The result: a budget gap. The solution: reduce expenditures and increase revenue. Sounds pretty simple, but it isn't. Cuts in spending hurt, especially when personnel reductions are involved. Government workers with specialized skills have a hard time finding another government employer. Some things can't be cut, i.e. utility costs. Capital spending like for vehicles can be postponed, but maintenance costs are likely to increase. Actually, tax rates on income and property can be increased to support essential services like education, disability and elderly services, public safety and transportation. However, revenue increases have limited potential for solving budget problems due to the political backlash of fewer paying more. It's probably a good time to raise user fees and charges. But, if the demand for services and the means of service delivery are both reduced that can moderate the amount of money received. Anyone should be able to understand the dilemmas and decisions required by a budget pinch. So, the Kansas Legislature, the Governor, the budget staff, the special interest groups and the public will have a real go-around before the budget is adopted.

Just for fun, let's imagine what things would be like if we hadn't had tax cut after tax cut for the past umpteen years. An adequate reserve of cash would be available to carry us through this recession with only minor adjustments and without all the disruption of government and political turmoil. Of course, there is a problem with collecting more revenue than is needed on an annual basis. I doubt if our politicians are mature enough to actually keep the excess in reserve for times like these. If there are excess funds, politicians are apt to spend it, which defeats the idea of having excess funds to weather a recession that reduces revenue. Maybe some day maturity will rule, but politics has always had the flavor of a fight amount 4th graders.