UPDATED: The Budget Middle Way
I have an email out to the Gov’s office asking for his take on the Kowalko/Liberalgeek plan. I have to think that the sheer practicality of some of the suggestions made will carry some weight. – jason330
Governor Markell has always said that the last thing that he wants is to have to cut state salaries to make up the budget deficit. He said that this is the best that he has been able to do and if it is to be avoided, bring ideas and data. So far, only John Kowalko has done so.
Some of Markell’s opposition to Kowalko’s ideas (this is opposition to certain tax increases that predates the actual Kowalko presentation) is a fear that businesses will leave Delaware if business taxes are increased. Perhaps this is true, but I have yet to see any solid data to convince me either way.
One of Gov. Markell’s complaints was that he has not had adequate time to do a top-down analysis of state budgets. He said that most Governors have a full year to work on the budget, but that he had a small fraction of that before he had to submit a budget. Fair enough.
I propose that this year, we adopt the Kowalko changes (pick enough of them to eliminate the need for a pay cut) and we put a one year limit on all of them. This starts the clock for Governor Markell and his staff to find their measures to redesign government to be meaner and leaner. Governor Markell will get a lot of pressure from the business community/lobby to not raise taxes, but he can deflect those concerns with the one year time limit. Sure, these are tax increases, but their short-term status will offset any companies that are considering a move. For example, companies with $660M or more in worth, they would pay an extra 60K in franchise tax due to a raised cap (Markell’s proposal would raise it by 15K). This 60K is about what these companies would spend on an entry level accountant. They are not going to leave the state of Delaware (and tens of thousands of lawyer fees) to relocate to Nevada. This is especially true if we make this a single year event.
Some of this could be for naught if the financial picture gets worse in 2010, but we can have a real discussion about this in the next year to decide what things we want to live without in our government. It is a discussion that we need to have, but not one that needs to be done while we walk a tightrope. If we can come to a consensus now (not impossible) we can actually get started on remaking government sooner, rather than later.
Tags: Corporate America, Delaware, Delaware Budget, kowalko, taxes
Pretty dang good Mr. Geek. The fourth is with you.
Great idea!
Send it along to gov’s office. He wants input, and so far you’ve done more than 61 of 62 state legislators.
Great idea. Temporary solutions can buy time for resposible long term resolutions.
You are brilliant… ever think about running for office?
Very good — implementing enough of the Kowalko proposals to alleviate the salary cuts with a sunset is a decent approach and gives the Governor time to deliver on some streamlining.
Kowalko should be dumped. His universal health care proposal would have massive taxes. Now a new proposal to attack businesses and prevent even temporary cuts in spending. This guy is walking disaster who had one good idea and now proves the Peter Principle.
I think the Governor knows that this proposal would extend the recession while the rest of the states recovers. MI could use company in a perpetual recession. It seems NY, CA and some people in DE want to give them that.
Funny. I was just wondering what people who are wrong about everything were thinking about this proposal.
“implementing enough of the Kowalko proposals to alleviate the salary cuts with a sunset is a decent approach and gives the Governor time to deliver on some streamlining.”
Which from some of the rumblings I’m hearing will be quite huge. I’ve heard the total # of employees targeted to be at least 2000. Most of these through retirements, etc. I wouldn’t even be surprised if next fiscal year they attempt (or at least look at) some sort of early retirement legislation
It’s a number I think they can get to without sacrificing state services. I’ll give you a quick example
Agency A has 4 IT related positions. After a review, they (whatever reviewing body is doing this) comes back and says that Agency A can get by with 3 positions
Agency B has 5 IT related positions, 3 which are vacant. Reviewing body says that Agency B needs 4 IT positions. They need to fill 2 IT slots. They will fill one of them from Agency A as they are 1 IT position over. The person goes over and Agency A loses the position. This would count against the 2000 position figure. Imagine that with the accounting, HR, etc positions, and you may see how that could happen without sacrificing too many state services.
Problem with this is that the Agencies themselves will never be able to do this, they’d need an outside body to do so. As far as I know, this review is in progress right now.
I applaud John for a lot of work for his proposal
Kowalko is earning his fast-track to leadership if he can pull this off. Everyone call down to Dover and add your support for these alternatives and Geeks idea to sunset some wiggle room.
David – Your party could use a Kowalko. Instead, you have been inundated by the embodiment of peter-principle-types who stand in the back of the room mumbling about taxes, late-term abortion and government waste like some sort of political tourettes patient as people like Kowalko are busy working numbers to make the state viable. When you can get one of your guys to sit down and come up with a few ideas that have a basis in reality, I’ll look into it. Until then, you are still the party of NO and not the party of ideas.
Enjoy the cheap seats.
Hey it your guys show. Ruin it if you must and we will pick up the pieces. We already have people who are proposing that we break Delawaresbadhabit.com
Over at Delawarepolitics.net we have written proposals over the last two years while you guys denied there was a problem. The Democrat party is the party of lies and denial and now the Blue Hens have come home to roost.
You, sir, are becoming hysterical. And, not to be picky, but there isn’t a single idea amongst your dire predictions.
Remember, most of this issue is caused by crappy laws and crappier legislation supported by the Republicans nationally, who drove us off an economic cliff.
We are picking up the pieces.
Indeed — and we are trying to clean up after crappy policy and legislation fully supported by David and his friends, so he is making stuff up AGAIN about any proposals they may have had to do anything but line their own pockets.
Viva Bonini! He doesn’t go far enough yet but he is lightyears ahead of every Democrat and most Republicans. We need to adopt medicaid reforms and restructure the way we purchase to allow for cost savings. Our bid process actually excludes purchasing items in ways that save money.
I can’t discuss the Bonini plan because you have no block for it. I guess you have to drop by Stoptaxing to do it. You would rather poke fun of serious proposals than discuss them. That is your right, but I think that addressing up or down the LEAD report, early retirement, restructuring of state departments so that employees are where they are needed, and other proposals are vital to the long run stability of our state.
The Senator is correct when he points out that if we followed the Castle budget projections, we would have a surplus not a deficit. Spending is our problem not taxation.
If there were an open thread, I would use it to note that the S&P 500 is now higher than it was when Obama took office.
But there isn’t, so I won’t.
You can’t discuss the Bonini plan because there is none. Just a bunch of the usual ideological BS with no budget numbers attached.
And he would not be correct about the Castle budget. Since he doesn’t even have the budget to work a baseline from.
But have fun with your delusions!
David – Bonini said nothing that will solve this deficit. I know it is wonderful in la-la land, but the rest of us have to live in the real world, where the government has a role. The only countries that “stop taxing” are failed states.
Another Bush term and we may have been one…
The middle way if it involves more taxes is a lost way not a new way.
Does anyone think state government is the right size or doing an adequate job delivering needed services. The only failed states and countries are those who tax and spend faster than economic growth allows which is why we have God awful borrowing and such high debt.
The smarter way is to offer buy outs, early retirements and realize that next year you won’t have almost $200 million in federal money to help bail you out.
You can’t offer a solution which does not do something about personnel costs when 46% of the budget is personnel costs.
Mike Protack
Mike – Stop acting like a fool. Offer a suggestion to get us through the next year and you can then start talking about the following year. Otherwise, shut up and let the adults talk.
Nice job, Geek. You did well.. 🙂
Obviously, Mike is correct. That is what concerns you. State employees will have to sacrifice. The question is will it be for meaningful reform or a quick fix that will mean painful sacrifice will have to be revisited. We need to make significant reforms to our major programs not just ask for give backs. We can’t blindly have a hiring freeze with no regard for uneven effects. We need to restructure so that employees are were we need them. Yes, early retirement is an option if done correctly.
Sunset provisions, who doesn’t love sunset provisions?
Bandaids are only good for short term, they get nasty as they get older.
I would agree. Let’s find a way to get through the next two months within the letter of the law, and hammer out long term solutions with a real analysis with pros and cons.
I forgot Jack arrived in Delaware last year.
Oh, that’s right, he was State Treasurer for 8 years.
Of course, he knows nothing of Delaware’s revenue structure.
I think there is some wisdom in this post that is undeniable.
Jack called for good ideas and John took him seriously. That is what is supposed to happen.
“They are not going to leave the state of Delaware (and tens of thousands of lawyer fees) to relocate to Nevada. This is especially true if we make this a single year event.”
Wrong. It’s equally true in either case. Nobody is going to let the fleeting nature of the charge influence their thinking.
Very humorous to see the two biggest mouths/emptiest heads in the Delaware GOP weigh in on this with the same tired, data-less drivel their leaders barfed up.
We’re not discussing governmental philosophy, you dumb asshats. We’re talking about an actual budget — actual governance, which is something you’re clearly unprepared to discuss. Produce numbers — real ones, not the ephemeral bullshit about prevailing wage savings — or STFU. It’s that simple.
Speaking of which, Shameless Mike, where do you get your 46% figure for personnel costs? The number I’ve seen repeatedly is 75%.
“Does anyone think state government is the right size or doing an adequate job delivering needed services. ”
Typical political horseshit statement, Little Mike. Tell us, please, which state agencies are doing a poor job and aren’t the correct size. Bonus points for providing numbers.
We’re not discussing governmental philosophy, you dumb asshats. We’re talking about an actual budget,
I think this sums up the modern GOP. There is nothing outside of theory. There is no “real world” No consequences. Effect does not follow cause.
So when the theories fail, as they must, it is only because people didn’t believe in them strongly enough. Republican theories never fail – it is weak humanity that fails.
I’m just going to keep commenting on this thread to keep it on the “recent comments” list until I figure out what to do next.
Good idea, Jason.
I’m for bumping this up. Hey, if Nemski can double post… 😉
Seconded.
David, a few days ago I visited the “DE Bad Habit” web site and there was no there there.
Only an invitation to sign a petition saying NO. Seriously.
I would guess that the best place to start stripping costs is in the overlap in muni, county and state services.
For instance, what the hell was DelDOT doing ‘creating a PC manual”? Or how about the number of police in NCC all told (muni, county, state) ?
Planning and land use has a lot of overlap and bottom line, the sprawling residential UNPLANNED growth across the state is not paying for its own infrastructure and THAT is sucking up most of the resources we are paying for.
Development industry is getting a free ride. Impact fees should be paying their way, not our taxes. That goes for state and county land use staffers, DelDOT And DNREC professionals in a myriad of areas impacted by construction proposals etc.
Another Bush term and we may have been one…
(Failed state)
Another Bush term and we would all line Market Street with tin cups…
Still no word from the Gov’s office on reaction to the Kowlako/Liberalgeek plan. They must be pretty busy.
It’s May 7th at 7:00 am.
Has the Gov’s office responded to Jason’s email?
If not–it’s time for Jason to show up dressed in a barrel. Pssst, Jason, I knew you couldn’t do chest thing again, and the barrel has Monopoly impact.
Nothing yet. Rather than jump all the way to a barrel, maybe I’ll try another email first.
It’s May 9th at 7:00 pm.
Has the Gov’s office responded to Jason’s email?
Yes, actually. I’ll try to get the post up soon…