Government Spending

No government has ever spent its way to prosperity. Our proposals help governments be fiscally responsible so citizens can be prosperous.

<p>No government has ever spent its way to prosperity. Our proposals help governments be fiscally responsible so citizens can be prosperous.</p>
Californians have leaped ahead of Arizonans in reforming local government pensions. Ballot measures in San Diego and San Jose asked residents to put new government employees into the equivalent of a 401(k) system and require old employees to opt into the new plan or contribute more to their existing plan so that it would become financially sustainable. The reforms passed the same day Wisconsin Governor Scott Walker prevailed in his recall election. If these pension reforms  survive promised legal challenges, they could set precedent for Arizona and the rest of the Nation.

While state lawmakers are to be congratulated for passing a balanced budget and largely holding the line on spending increases, there is an unnecessary $11 million spending increase tucked in the nooks and crannies. That’s the additional contribution to the state’s financially troubled retirement funds for state workers.

Recent news from the solar industry includes headlines about Germany cutting solar subsidies and Arizona-based First Solar laying off 30 percent of its employees.

How do you close a $35 million budget gap? Perhaps the better question is why that hole was dug in the first place. One answer for the City of Glendale is hockey. In fiscal year 2012, the city added $20 million (up from only $1.2 million the year before) to its operating budget for the Jobing.com Arena, where the Phoenix Coyotes hockey team plays. The NHL has been demanding financial support from the city since 2009, when the team filed for bankruptcy.

Amid calls for increased state spending and fears of 2014 program cuts, some are calling for extending 2010’s sales tax increase indefinitely. However, Arizonans should understand how much their state and local governments cost before we let them charge us even more.

The graph below shows state and local governments’ direct expenditures as a percentage of private GDP for four states and the 50-state U.S. average from 1985 through 2009. This cost-of-government measure reflects government’s affordability to taxpayers.

The radio show Main Street Out Loud led a discussion on the federal health care law and the Independent Payment Advisory Board. Host Rudi K. was joined by Diane Cohen, senior attorney for the Goldwater Institute; Dr. Byron Schlomach, Director of the Center for Economic Prosperity at the Goldwater Institute; and Dr. John Ammon, Medical Director and President of Docs 4 Patient Care (Arizona Chapter).

The radio show Main Street Out Loud led a discussion on the federal health care law and the Independent Payment Advisory Board. Host Rudi K. was joined by Diane Cohen, senior attorney for the Goldwater Institute; Dr. Byron Schlomach, Director of the Center for Economic Prosperity at the Goldwater Institute; and Dr. John Ammon, Medical Director and President of Docs 4 Patient Care (Arizona Chapter).

When economists take a look at the experience of numerous cities across the nation over the past 50 years, they discover that the presence of sports teams, stadiums, and arenas – particularly when subsidized by local governments – don't drive growth in employment or personal income.

If you’ve ever signed up for a magazine subscription, cable TV, or purchased something from an infomercial, you’ve probably encountered the automatic renewal process. After the initial subscription period ends, some companies continue charging you until you jump through myriad time-consuming hoops. And you may never get your money back.

It’s no secret that government unions need reform. Government workers earn nearly twice as much as their private sector counterparts, and taxpayers are paying for it. These inflated salaries and benefits are threatening to bankrupt Arizona cities. On top of that, unions spend millions to influence the outcome of elections, estimated to be $400 million this year alone, and support issues that are at odds with the limited government policies you and I support.