No government has ever spent its way to prosperity. Our proposals help governments be fiscally responsible so citizens can be prosperous.
In Arizona, education bureaucracy growth has greatly exceeded student growth. Between 2004 and 2008 growth in six key education components in Arizona outpaced the growth of the number of students plus inflation. At what point do we question the amount of bureaucracy in the education system?
Over the last five years, student population has increased 11 percent, but administrators and managers combined have increased nearly 46 percent.
As Janet Napolitano leaves Arizona for greener pastures, we should acknowledge that she was an innovative governor who changed the culture of her office. But not in a good way.
Her predecessors recognized the need for responsible management of the budget. Napolitano's reaction to both lean and fat budget years was basically the same: spend, spend, and spend some more. The result is Arizona's huge budget deficit.
From 2000 to 2008, spending by the Arizona Health Care Cost Containment System (Arizonas state-funded health program for low-income families, AHCCCS) is expected to nearly triple. For all that spending, youd think wed have made some progress in increasing the percentage of Arizonans with health insurance. The graph below is evidence to the contrary.
The Arizona Republic reports that a recent study shows Arizona has a relatively high share of "bad" jobs. These are jobs that pay less than $34,000 per year and have no health or retirement benefits.
We don't like to think about it, but Medicare Part A has an unfunded liability over the next 75 years of $11.6 trillion. That means if we don't do anything, don't add new benefits, don't include new beneficiary groups, don't raise or lower any taxes, there will be an $11.6 trillion gap between the cost of hospital services we promised to people already alive and money available to pay for it.
A week ago Phoenix Mayor Phil Gordon distributed a news release via email about the stalemate in Congress over illegal immigration. The email directed readers to the Mayor's very own website. When I say the Mayor's own website, I mean www.MayorGordon.com.
During law school, I mostly fell asleep during trusts, wills, and estates. But one lesson pierced the slumber: when you have a trustee relationship with someone, you'd better take it seriously.
Unfortunately, Governor Janet Napolitano and the lawyer members of the state legislature seem to have missed that class altogether. For in their zeal to close the state's soaring budget deficit without serious spending cuts, they "swept"-actually, the better term is "swiped"-funds held by the state in trust for Arizona farmers.
Just like someone who has stiffed her friends on an expensive dinner tab, former Gov. Janet Napolitano must be chuckling as Arizona recedes into her rear-view mirror. For the howls of protest about the state's budget mess are being directed not toward the politicians of years past who are responsible for it, but to the current legislators who are faced with the grim task of making cuts.
The Tucson Citizen recently reported that the impending budget deficit for the next fiscal year could exceed $1 billion. Much of that deficit will arise from hundreds of millions of dollars in budgeting gimmicks used to balance the books this year, such as the "rollover" of debt-an accounting maneuver that involves delaying payment of obligations incurred in one fiscal year into the next fiscal year. But the state did not just stumble into the current crisis.
Al Gore made a big deal of the United Nations hockey stick graph of the earths temperature record in his movie An Inconvenient Truth. The hockey stick represented the apparent sudden upsurge in the earths temperature in recent decades. Riddled with errors, that graph has since been thoroughly debunked. But heres a real hockey stick graph that should make everybody nervous.