New Democrat Update - February 2003
THE RIGHT WAY TO BALANCE BUDGETS
The budget shortfall is overwhelming almost everything in Colorado state and local governments. For example, the economic slowdown, combined with the $500 million permanent tax cuts of 1999, have reduced state revenues by 13 percent. Mix in exploding health-care costs and $850 million of spending must be cut this year alone to achieve a constitutionally-mandated balanced budget.
While the problem may be unprecedented, the leadership of Governor Bill Owens and the Republican legislature has been far from inspiring. Twenty-five percent of the GOP’s total “cuts” are creative accounting changes. Of course, they are not cuts at all - no money is really saved.
For example, shifting this June 30's state employee payday to July 1, eliminates one month’s payroll from this year (the state’s fiscal year is from July 1 to June 30) but that trick can only be played once. Another $116 million comes from changing how Medicaid revenues are reported and raiding the state’s education fund. Again, no actual savings are realized - only a shell game of shifting existing funds.
Republicans argue that those who dislike the bookkeeping gymnastics must come up with their own budget cut proposals. That argument is false and misleading. Until the very nature of the Owens’ and GOP majority’s budget-cutting process is completely overhauled, participation from Democratic legislators will not help much.
The other focus of Republicans has been to superficially look at the existing budget and cut costs haphazardly here and there, until total spending fits the available revenue. In addition to their counterproductive accounting tricks, they are using the other usual ineffective band-aids - hiring freezes, pay freezes, across-the-board cuts, travel bans and purchasing delays.
Such tunnel-vision budgeting fails to consider the real priorities of services, miss cost-saving opportunities, and neglect eliminating overlap and waste across state government. Reductions in costs - and the programs and services they support - happen agency by agency without taking a comprehensive look at the big picture. We should be buying the best results for Coloradans with the resources we have, rather than assume spending cuts to deal with the resources we do not have.
In reality, these budgetary shenanigans only avoid the real problems, postpone the day of reckoning and make future budgeting even more difficult. Already, the GOP chairman of the legislature’s Joint Budget Committee has acknowledged that next year will start $600 million in the hole!
While cutting budgets is never fun, these very serious GOP failures provide Democrats a fascinating opportunity. It gives our party a chance to demonstrate that we are committed to smart, lean government and are dedicated to spending taxpayer money as wisely as possible. Just as important, that effort will boost our party’s ability to win public support when we do propose new and necessary investments.
Democrats should call on Owens and the legislature to stop playing games and, along with local governments across the state, reach across the aisle and build realistic budgets that can withstand the pressures of a tough economy. Rather than starting with current spending to try to meet the forecasted revenue, we should be looking at how government should be spending all of the taxpayers’ money in the first place.
Specifically, officials should estimate how much revenue is expected, involve Coloradans in the priority-setting process, determine what results people most want and need, examine the tasks government performs and then “purchase” those services and programs that contribute most to the desired results. That way, the more important services will go into the shopping cart first and those with lower priorities will be left on the shelf - keeping the cost of government within its means.
Washington Governor Gary Locke is successfully using this strategy to fix a budget deficit even larger than Colorado’s. First, this New Democrat directed state agencies to rate their 1,400 activities as high, medium or lower priority (at least a third of an agency’s budget was required to be listed as lower priority).
Locke then enlisted teams of business leaders and government officials to identify state government’s 10 broad goals - ranging from boosting student achievement to improving the business climate to strengthening homeland security - against which all spending recommendations would be measured. Another set of teams developed “purchasing plans” to produce results that contributed to the 10 broad goals.
They undertook a top-to-bottom review of every state service, ranking each government function and suggesting which should be kept and which should be cut. The services and programs were prioritized by function, not by agency, empowering the teams to focus on state government as a single enterprise, achieve results, at less costs through creative solutions, reprioritize spending, eliminate programs and consolidate similar activities in different agencies. A report provides more details on this effective and proven process.
Instead of waiting for the other side to get its act together, Democrats in the legislature and in towns across the state should implement this thorough, comprehensive and thoughtful process, producing budgets that reflect citizens’ priorities, make the necessary tough choices, stay within our means, and redefine the truly important roles of government. Our party should take the opportunity this challenge presents, to remake government services as if the public really mattered.
Certainly, Coloradans deserve much more than they are getting now.
WHY COLORADO NEEDS NEW DEMOCRATS
A large majority of Coloradans are increasingly dissatisfied with their political choices. They are disgusted with Democrats who advocate traditional tax-and-spend policies and something-for-nothing, special-interest politics. At the same time, voters are less than satisfied with Republicans who support "trickle down" economics and intolerant social views. It is no wonder that voter participation is at a record low.
The New Democratic movement challenges the conventional wisdom of those on the right, as well as those on the traditional left. It gets beyond the stale debates over safeguarding or slashing this or that program or regulation, moving to solutions that keep people safe from criminals and terrorism, help our economy grow, educate our children, and more.
These new messages and solutions further the fundamental principles of progressivism, but in a way that is responsive to the challenges of the 21st century, not the 1930s or 1960s. They confront both the policy choices of the new Information Age and the political challenges of conservatism.
For example, New Democrats call for a strong sense of mutual obligation - no more something-for-nothing regardless of your income or status - equal opportunity for all, special privilege for none. This thinking rejects both the outdated conservative ethic of "every man for himself and if you don't make it so be it," as well as the old, worn-out liberal mantra of "don't worry about it, if you don't make it, the government will do it for you."
Reciprocal responsibility sharply contrasts with entitlement-driven politics, as well as the neglectful mentality of the right-wing which is more interested in policies that merely favor those who already have it made. True patriotism is citizens giving something back to their communities and state, not just flag-waving.
Similarly, New Democrats believe that the private sector is the primary engine of economic opportunity for all - we should be expanding trade, not restricting it. However, government has the important responsibility of creating a climate of opportunities for ordinary citizens. That perspective is much different from Democrats who believe that government can solve every problem or Republicans repeatedly saying government is the problem.
Today’s very real problems are crying out for this governing philosophy. That’s why New Democrats will keep fighting this very important fight.