“We Must Make Every Dollar Count!”
Perhaps you’ve heard the ancient Chinese proverb: “May you live in interesting times.” It is ironic, because “interesting” actually means “dangerous,” “threatening” or “chaotic.”
To say we’re living in “interesting times” right now is putting it mildly! We are struggling through the worst economic recession in more than 25 years. Just 18 months ago, our nation experienced the worst financial collapse since the Great Depression started in 1929. “Interesting times” indeed!
The recession affects all of us in different ways. For example, unemployment is painfully high. That will make it especially hard for those of you who are graduating this spring to get a good job.
It is hurting your state government, too. It is funded by the money it collects from its citizens and companies through taxes and fees. For example, when you buy new clothes or a pizza, part of the sales tax on them helps finance our state government. It’s the same for the state income tax that is taken out of your paycheck every week.
The recession has cost many people their job. Folks who are out of work don’t pay income tax. Those who are holding onto their jobs have seen their work hours cut, or worry they could be laid off soon. So they are buying less, and that means less money for the state from the sales tax.
The bottom line: your state government is broke.
How bad is it? Just last month, the Alabama Legislative Fiscal Office projected the General Fund will have a shortfall of 31 percent this year; that’s $642 million dollars!
Alabama’s constitution prohibits our State Legislature from going into debt, so we can’t borrow the $642 million. That means we will have to cut spending to make up that difference.
What matters is the type of spending we eliminate. That is why our next governor must know our state’s budgets inside and out and have experience from reducing spending.
I have done that as state Treasurer. When I took office in 2003, I took a hard look at the way the Treasurer’s office operated and found lots of ways we could save money. First, we got rid of most of the state vehicles assigned to the office except for one (and it’s a clunker!) We started applying best business practices and implemented the competitive bid process. We went from 61 employees down to 47, updated our computer equipment and cross-trained the staff so more people could handle different duties. And you know what happened? We have saved the taxpayers of Alabama nearly $5 million so far (in addition to proration and mandatory budget cuts) – and the Treasurer’s Office operates just as efficiently and as productively as ever.
Now I want to apply my proven cost-cutting skills to all of state government and make sure we eliminate every last penny in wasteful “pork spending.” And our budgets are crammed full of it, too – more than $50 million worth, according to some estimates.
What is “pork spending”, you may ask? It is when a legislator spends money that only benefits the people of his or her district, not all Alabamians. Did you know the state legislature recently spent your tax dollars on local festivals celebrating mules, watermelons and aliens from outer space? It would almost be funny, if it weren’t true. Now, I don’t have anything against mules, watermelons or little green men from Mars… but do we really need to spend our very scarce tax dollars on celebrations for them when we are in a very serious financial crisis? No, we don’t! And you probably feel the same.
You see, we need to manage our state’s budgets the same way you manage yours. When you have a lot of cash on hand, it’s ok to buy the “extra” things that are fun and make life enjoyable. But when cash is tight, you cut back your spending and only buy essentials, the things you absolutely need to get by. You and I manage our finances this way; shouldn’t the state government that you and I fund with our taxes do the same thing?
Yes it should! As your next Governor, I will make sure it happens, too.
