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Editorial: A Later Deadline, a More Responsible Budget
Mon, 12 May 2008 16:14:00
A lot of fuss was made about the budget being a week and a half late.
Turns out that it was about 11 and a half weeks early.
The only way to responsibly plan a budget is to have an accurate sense of revenues before determining spending. There is a reason why 46 of the 50 states synchronize their budget deadlines with the end of the fiscal year on June 30—and why three of the remaining four wait until even later in the year. The logic here is simple: before these states allocate money, they wait to see how much there is to allocate.
Then there is New York. Only our spending decisions are made in the dark, based on revenue projections and assumptions, when they are based on anything at all. Commitments are made, deals are struck, money is spent left and right. But only when all the taxes come in three months later do we get to see how much is actually in the bank. With such a fundamentally backward way of handling our finances, the surprise should not be that this year’s budget needs to be adjusted. The surprise should be that we do not have to go through this every year—though each year seems to bring new taxes imposed to keep up with the spending.
Of course, simply changing the deadline will not cure all the state’s financial problems. Especially with the economy in its current condition, states which already use the June 30 deadline will run into deficits and shortfalls, despite finalizing their budgets with a better sense of revenues in hand. Whatever miscalculations there are in other states, though, are likely to be less severe.
Undertaking future budget negotiations around a June 30 deadline will help shake New York from the habit of letting the state budget grow more quickly than the rate of inflation. Perhaps if state leaders know just how small the pie is, they will be less willing to dole out pieces.
Along with moving the deadline, lawmakers should consider strengthening the provisions that ensure the state budget is finished on time. Other people suffer costs when the state budget runs late—perhaps lawmakers should be docked pay for each day past the new deadline that budget negotiations run. That idea has been tried elsewhere. New York’s leaders may want to consider this idea for themselves.
Gov. David Paterson (D) and all those who have joined him in calling for a re-examination of the budget agreement are on the right track. Too bad they needed a recession breathing down their necks to get there. Going forward, they should lead the charge for a Constitutional amendment to make June 30 the new budget deadline. The state’s approach to its finances needs to stop resembling a college student coming to terms with his first credit card bill. New York’s government is responsible for more people and money than many world nations are. Its leaders should start acting the part.
Turns out that it was about 11 and a half weeks early.
The only way to responsibly plan a budget is to have an accurate sense of revenues before determining spending. There is a reason why 46 of the 50 states synchronize their budget deadlines with the end of the fiscal year on June 30—and why three of the remaining four wait until even later in the year. The logic here is simple: before these states allocate money, they wait to see how much there is to allocate.
Then there is New York. Only our spending decisions are made in the dark, based on revenue projections and assumptions, when they are based on anything at all. Commitments are made, deals are struck, money is spent left and right. But only when all the taxes come in three months later do we get to see how much is actually in the bank. With such a fundamentally backward way of handling our finances, the surprise should not be that this year’s budget needs to be adjusted. The surprise should be that we do not have to go through this every year—though each year seems to bring new taxes imposed to keep up with the spending.
Of course, simply changing the deadline will not cure all the state’s financial problems. Especially with the economy in its current condition, states which already use the June 30 deadline will run into deficits and shortfalls, despite finalizing their budgets with a better sense of revenues in hand. Whatever miscalculations there are in other states, though, are likely to be less severe.
Undertaking future budget negotiations around a June 30 deadline will help shake New York from the habit of letting the state budget grow more quickly than the rate of inflation. Perhaps if state leaders know just how small the pie is, they will be less willing to dole out pieces.
Along with moving the deadline, lawmakers should consider strengthening the provisions that ensure the state budget is finished on time. Other people suffer costs when the state budget runs late—perhaps lawmakers should be docked pay for each day past the new deadline that budget negotiations run. That idea has been tried elsewhere. New York’s leaders may want to consider this idea for themselves.
Gov. David Paterson (D) and all those who have joined him in calling for a re-examination of the budget agreement are on the right track. Too bad they needed a recession breathing down their necks to get there. Going forward, they should lead the charge for a Constitutional amendment to make June 30 the new budget deadline. The state’s approach to its finances needs to stop resembling a college student coming to terms with his first credit card bill. New York’s government is responsible for more people and money than many world nations are. Its leaders should start acting the part.
