Saturday, October 25, 2008

Pledge with Texans Spotlight: Limiting the Growth of Government

Limit the Growth of Governments

Impose strict constitutional spending restraints to further slow the growth of state government; ensure that dedicated funds are spent for their intended purpose or return the money to taxpayers; return to a true zero-based budgeting process to force agencies to justify all spending requests each legislative session; close loopholes in welfare programs; increase resources for child support collection to reduce reliance on government programs; and, end double taxation on phone bills by eliminating the sales tax on telecommunications fees and surcharges.


In the recently released Pledge with Texans, the Texas Conservative Coalition highlights limiting the growth of government as one of the key planks to the Legislative Agenda for conservatives in the 81st Texas Legislature. I could not agree more with this statement.

The best plan of the 80th Legislative Session was proposed by State Representative Ken Paxton (R-McKinney). Paxton's plan would have limited state spending to the rate of inflation plus the increase in population. This amounts to about a 5% increase per year. If the Legislature has an emergency and needed to spend beyond the 5% increase, there would need to be a 2/3 super-majority to increase the appropriation beyond that point. Any additional money that was brought in from taxes under the Paxton plan would automatically go into tax-relief funds, under the oversight of the Comptroller, which would be evenly dispersed to all citizens to lower their property, business, and sales taxes. Representative Paxton's bill, HJR 53, would have also put the caps in place on local governments as well.

The current constitutional spending cap that limits Legislative appropriations is very tough to comprehend and is easily broken every year by a simple majority. Which ever party happens to be in power choses to break the cap by voting to increase the limit on the appropriation before the budget is heard. In 2007, the Republicans in teh House voted to break the constitutional spending cap to pass property tax relief.

Regardless of the intent to increase government spending, an increase in spending is still an increase in spending. Why is this important? Taxpayers complain about high taxes. Taxpayers have the potential every year of having their homes taken by the government because of climbling property taxes. Business owners are now subject to the gross margins business tax so revenue can continue to come into the Texas coffers. Why? Because Texas spends a lot of money.

If a true constitutional spending cap that limits state spending to the rate of inflation plus the rate of population growth that also takes a 2/3 super majority to break had been put in place in 1978, the Texas budget would be about 1/2 the size that it currently is. The current state budget is roughly $168 billion and growing.

There is no better way to limit the authority and power of government and the role of government in our daily lives then to limit the growth of the budget. Without increasing spending, the government cannot grow because the government does not produce a marketable product that, on its own merits, will make money for itself. All government programs are subsidized by taxpayers. If the subsidies go away, the program will too. If the program was truly necessary, a non-profit or business will quickly fill in to continue the job and will produce better results than the government agency.

Now is the time to take bold initiatives and bold steps to create the most business friendly climate that we can in Texas. With the national economy sputtering and jobs going oversees, it is imperative that Texans give the rest of the country an example of how to attract businesses and limit the role of government to give our citizens a better quality of life for all.

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