When word of a budget deal first came out, we were told the budget would be balanced with no borrowing. What we were not told was that meant no borrowing from the usual sources–transportation funds or local governments. But I guess borrowing from the taxpayers is different.
By increasing withholding by 10% and requiring quarterly filers to increase payments and paying back any overage later, the state is essentially borrowing from taxpayers. And, it’s an interest free loan at that. When provisions were put in to protect local government from the state vultures, laws required that borrowed money would have to be returned with interest.
Then there are the items in the budget deal which stipulate that millionaires who see an income windfall will be required to make more of their tax payments sooner and businesses will be restricted from writing off losses for two years while recouping those revenue losses in future years.
All this on a day the stock market fell 500 points and Wall Street is in turmoil. I don’t think there will be too many windfall profits to hit up very soon. And, businesses probably will be suffering big losses and still have to come up with the money for taxes.
This, of course, will cause a huge budget headache next year. Is it too much to hope that perhaps a serious effort will be made to fix the budget next year because it is a non-election year? Oops, I forgot, apparently we will have a statewide election to okay other provisions of the deal like gaining revenue from the lottery.
Well, at least no one will be running for office so maybe they’ll focus on the budget. You think?
The governor has issues with the proposed budget and is considering a veto because the rainy day fund provision he championed is not bullet proof from raids by the legislature. He’s right to point out that this budget reform is not a real reform. But in the end, two-thirds of the legislature passed this budget and they will stick together to override any veto. The governor knows this.
So this will probably be the budget we live with.
I feel like one of those long-time suffering fans of the old Brooklyn Dodgers, who after another unsuccessful season cried out: “Wait til’ next year!”