
Local Government Borrowing – Cry Me A River
There has been a lot of conversation taking place, especially on the GOP side, about the billions of borrowing from local governments that takes place in this current budget deal.
Let me start out by saying that if I were to articulate the biggest problem with it — it is the "borrowing" part of it. The last thing that the state should be doing, if we are going to solve our chronic budget woes, is borrow money that has to be repaid (I guess this applies to education as well). Ideally you want to cut state spending to match available revenues — and we already know the state is maxed out on taxes. In the case of the education piece, I would put a repeal of Proposition 98 on the ballot…
Anyways, once we get past the borrowing problem, you get into the question of "from where" you are borrowing the money — for the purposes of this diatribe, local government.
As a taxpayer, I guess being the simple guy that I am, I had a ledger with only two sides — my money, and the money I give to government. I don’t distinguish what… Read More