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The surplus and the highway shortfall
Submitted by Kevin Richert on Thu, 07/24/2008 - 10:17am.
A year ago, as Gov. Butch Otter was just starting to lay the groundwork for new taxes and fees for road repairs, state Controller Donna Jones went out of her way to get crosswise with the guv.
She fired out a press release touting a $247 million surplus and recommended putting $200 million into roads.
Jones didn't quite go so far this July. But with Otter and his transportation crew touring the state to get the word out about a $240-million-a-year road shortfall, Jones is again making life more difficult for Otter.
On July 14, the same day the Otter road show hit Caldwell, Jones trumpeted the state's year-end surplus of $223.8 million. (Click here for the press release.)
The suggestion — albeit unstated — is that the surplus is again a dandy way to fill the Idaho Transportation Department's budget potholes. But it seems like we're comparing apples and oranges and saying both resemble watermelons.
A little reality check:
• The surplus, while certainly robust, isn't permanent money. The state's road and bridge needs are ongoing, requiring a permanent spending solution.
• Legislators anticipated a surplus during the 2008 session, and have committed most of this money already. This is what lawmakers do with a projected surplus; they don't wait until the June 30 end of a budget year to make plans. A result, only about $50 million of this surplus is "new money. (See Heath Druzin's story for a more detailed breakdown)
• The $223.8 million surplus sits in the general fund. Idaho does not pay for highways and bridges from its general fund. Starting to use general fund dollars is a significant precedent — and a treacherous one, putting our state's road needs in direct competition with public schools, higher education, Medicaid and prisons.
Consistent with his "everything-on-the-table" mantra, Otter isn't ruling out using some surplus dollars to reduce the need for additional taxes and fees for roads.
Fair enough. But let's not fool ourselves. The state has serious highway problems, and there's not much mileage we can get from using this year's surplus dollars.
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Surplus and roads
First off there is no such thing as a government budget surplus. It is an unanticipated overcharge of the taxpayers. Generally it should be returned to us.
Our big spending legislature should never have pre-spent our anticipated overcharge. However, if the money is to be kept it should be spent to fix one-time items, such as repairing a bridge, highway, etc.
But do not come to me with a surplus and in the same conversation talk about a tax increase or new fees.
The ongoing permanent solution Richert calls for is found in our existing taxes, and the increase the state gets every year with new folks and businesses moving into Idaho. The state gets a tax increase every day a working person moves here. Use that money, develop some businesslike economic efficiencies, and spend the money on those items that are the pervue of state government.
It's not that hard.
Don't be a socialist, If we have 'extra money" we'll use it now.
It will cost more later.
Then the smart who don't use taxes like a lottery ticket will learn to adjust their payments and use them in real time, as needed.
If they actually are smart about it. Most think it's a late Christmas present.
The Roads are TOAST
Here is a tiny little thing called a fact, which may be impossible for many to understand.
America cannot maintain a 'minimum level of service' on our roads, even if we shifted all government funds to this problem.
We crossed the Rubicon when oil went above $50 per barrel and it was run as a huge story by nearly every newspaper in the country.
If you do not maintain a 'minimum level of service', roads will quickly disintegrate.
Our roads are TOAST and spending huge amounts of money to try and prolong their inevitable death is insane.
Bikes won't tear it up unless you're 600 lbs and bad MTB shocks.
Don't ride a Wal-Mart BMX and it will work.
Actually...
the freeze thaw cycle around here does a lot of the destruction, plants and trees do a lot too.