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MY LETTER TO BW:

NOTE: Do not edit this letter in any way, shape, or form for publication.

Dear BW:

Your analysis of the budget situations of state and local governments is way off-base, to the point that it's hard to know where to begin.

First, state spending per capita did increase in real terms in many states from the mid-90s through 2002, particularly here in Ohio.

Second, measuring increased employment in state and local jobs vs. the private sector ignores the privatization of many services that has occurred during this period.

Third, even ignoring privatization, state employment should not have increased at all if there were any kind of meaningful increase in productivity. Even a 1.5% per year improvement, which is significantly less than the private sector routinely achieves, should have meant stable employment, even considering population increases.

States and localities have done the nearly impossible by squandering billions in gambling and tobacco-suit windfalls and still coming up broke. They have failed to make any concessions to economic reality for years. Now that the chickens are finally coming home to roost, they think increasing taxes further will solve their problems. Baloney.

++++++++++

I should have added, "the only way to force productivity gains is to starve the public sector into giving in," but I want the letter to have a chance of being printed.

1 posted on 06/07/2003 4:30:32 PM PDT by litany_of_lies
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To: litany_of_lies
Here in Georgia the State, County, and City governments spent like a bunch of drunk sailors during the 1990's- it was fueled by Lotto money, raising up the sales taxes obscenely, and of course there were tobacco tax revenues, permit fee increases- the usual stuff. And the dot-bomb bubble, too.

Then it all imploded and they "just aren't getting enough money anymore" to fund the level of services to which nearly-infinite layers of bureaucrats, sycophants, and hangers-on have grown used to.

Any family, or small business faced with this situation would cut spending to the bone...

...they won't even talk about it...

2 posted on 06/07/2003 4:39:54 PM PDT by backhoe ("It's so easy to spend someone else's money..." ( My Dad ))
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To: litany_of_lies
>> There's no evidence that state and local spending is out of control. <<

What planet is this guy on?
3 posted on 06/07/2003 4:48:33 PM PDT by appalachian_dweller (Watch therefore: for ye know not what hour your Lord doth come. [Matthew 24:42])
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To: litany_of_lies
I think we err when we let the liars set the terms of the debate: number of employees, etc. versus money spent. I frankly don't give a damn how many "public" employees there are. I care how much I have to pay for it. That is the basis of complaints, and their answering a complaint that wasn't made is flat dishonest.
4 posted on 06/07/2003 4:53:34 PM PDT by jammer
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To: litany_of_lies
"Spending isn't the problem"

They have got to be shi++ing us!

Maybe it is satire?

5 posted on 06/07/2003 6:48:06 PM PDT by BenLurkin (Socialism is slavery.)
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To: litany_of_lies
...state and local sector outside of public schools and the criminal justice system...

Here is the root of the problem. I actually beleive this. We are spending absurd amounts of money on schools that do not improve the education of children. Are there really that many more garbage collectors, dog catchers, road crews, etc. If you look at any town budget the majority of the money goes to "education".

6 posted on 06/07/2003 8:21:51 PM PDT by raybbr
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