Thursday, August 20, 2009

Editorial: Balanced budget requirement being bypassed | Scott Walker for Wisconsin Governor

Editorial: Balanced budget requirement being bypassed | Scott Walker for Wisconsin Governor: "That said, a budget with a $200 million hole is not balanced. According to the WTA, the Legislative Fiscal Bureau covered the budget shortfall by simply adding a line that says $100 million in 'other' revenues will flow into the state during each of the next two years. How?

The WTA poses several questions in response to this maneuver.

'First, what prevents any legislature or governor from developing a budget deficit and then, to balance it, 'plugging' into the budget an unspecified promise of future cuts or transfers sufficient to produce an ending surplus?

'And, if the governor can promise $200 million in future lapses this year, why can't a future chief executive or legislature promise $500 million to cover a $500 deficit? Or $1 billion to avoid a $1 billion shortfall?'"

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