Wednesday, October 27, 2010

The Case for Voting Yes on Ballots 1 & 2 in Massachusetts

Not only the administration of Governor, Deval Patrick, but BOTH parties of the Massachusetts Legislature are irresponsible in managing our state's finances. To begin with, according to the Massachusetts Budget and Policy Center, in fiscal year 2011 the state budget is dependent upon a whopping $9.02 billion of federal money, or nearly 32% of the states $28.4 billion budget! First and foremost this shows how Massachusetts is hooked on the "drug" of federal money, from a bankrupt federal government that is in the deepest debt in history. Obviously this is a formula headed for financial collapse.

Even with this massive amount of federal money, the fiscal year budget started out with a $2.7 billion shortfall that sent Deval Patrick and the Legislature scrambling on what to do. Still further, this by no means is the end of the financial crisis in Massachusetts. As we go forward into the fiscal year it will be discovered that there will be an income / revenue shortfall due to unrealistic budgeting. This includes unplanned shortfalls through the obvious economy affects of unemployment, people leaving the state, people shopping in other states due to increase in taxes, business sales and profit decreases, and even business closings in the state. This will all lead to a major decrease in the expected budget revenue.

There has been a failure to manage our states finances and each year we seem to get further into the depths of "budget fraud", i.e. a budget that is sold to the citizens of the state that is knowingly unrealistic. What needs to be done is create a total shock to the system that will cause responsible financial management and budgeting of our state. This calls for a situation that is devoid of the dependency on federal money, a significant cut in costs and the state's bureaucracy, the elimination of corruption, and a realistic and balanced budget.

It is not out of the question to suggest that 50% of the state's government bureaucracy should be cut. What currently exists is duplication of state functions; political favoritism appointments; nepotism; and a system of early retirement of state employees at a young age only to be hired or appointed to still another state job (double dipping). There needs to be an attack on corruption that has been rampant, particularly with state sponsored construction jobs. The Big Dig, for example, was the "mother of all corruption jobs". There are many more where work is given out for unnecessary projects, or projects that are milked for all they are worth. Welfare fraud and related give-away's are also big in Massachusetts. The point is that there are plenty of areas where costs can be cut if the Governor and Legislature have the guts to do their jobs.

We are now confronted with two ballot questions, one concerning the elimination of sales tax on alcoholic beverages (there already is a state excise tax); the other lowering the sales and use tax from 6.25% to 3%. Many will say it is irrational to cut this revenue from the state for obvious reasons. Already there is a "go for the jugular" threat by some from the state warning that, as they always do, that this will mean cutbacks to schools, to police and fireman...all those things that the citizens recognize and depend upon...this is always their threat and many back off with this ploy. You will note that few representing state government will suggest cutbacks in spending as outlined above, actually having the guts to manage our state's finances.

It is suggested that people vote Yes on both Ballot Questions 1 and 2. The reason is we DO need to shock the system and create a financial crisis that will cause our Legislature to do their job and manage our state's finances. We also need to be very diligent and NOT ALLOW them to do their typically vindictive tact of using our schools and necessary services as their out for not doing their job. We need to force them to cut the state bureaucracy and corruption, and reduce costs in all other areas. It takes guts. That is why we elect them.

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