March 1

Here We Go Again!

Recent legislative sessions have been divided by two distinct approaches to preparing the State’s budget. The current session appears to be no different.

On one side of the aisle, the approach is to determine the priorities and needs of our society and then determine how much it will cost to meet those priorities and needs.

On the other side of the aisle, the approach is to determine how much money is available and fund the identified needs at that level even if the funding level is inadequate.

Good arguments can be made for both approaches. The political reality, however, is that those on either side of the issue refuse to acknowledge that there is merit to the other side’s position. The result is a lot of rancor, press conferences, and posturing by both sides.

Maybe it’s time to re-consider the entire budget process. This Legislature convened in January 2005 to adopt a budget for the State for the period July 1, 2005 through June 30, 2007. In other words, we are trying to estimate revenues and project expenditures two and one-half years into the future. When one considers outside influences such as various initiative measures that may affect revenues during that period, or Federal fiscal policy, or Congressional mandates, or other unforeseen events, the whole budget process takes on an air of ‘by guess and by golly’.

And neither side of the aisle has a better crystal ball than the other.

A possible remedy that has been discussed for years is to continue to convene the Legislature in January of the odd-numbered year as we do now and to re-convene in January of each even-numbered year to deal only with revisions to the two-year budget. As a member of the Ways & Means committee responsible for developing the State’s budget, I think the idea of a limited legislative session to review revenues and expenditures midway through the budget period has some merit.

Knowing that the legislature was to meet midway through the budget cycle to review budget issues only, perhaps both sides of the aisle would be more willing to hear each other’s arguments as the budget is being developed. If revenues are higher than originally anticipated, the legislature could fill the holes that need filling or make a deposit into a rainy day fund everyone seems to think we should have. If revenues are less than anticipated, the legislature would be able to make corrections early enough in the budget cycle to ease the pain significantly.

As always, your thoughts regarding this issue and others of concern to you are encouraged and welcomed.

Senator Betsy Johnson