The economic stimulus is a fact; the choice of how to use this “found money” is only partially dictated by the federal government. Each state has a lot to say about how and where to spend this money.
If North Carolina decides to use this money to plug holes in the budget and expand state programs then we the citizens of N.C. will be faced with funding the cost of this action with a “forever” tax (the stimulus is a one-time occurrence). A few thinking governors have actually read this bill and determined that accepting all the money will require them to increase their liability for funding some programs (increased unemployment benefits) in the future. Providing raises for state employees or hiring more will result in a permanent expense not covered by existing revenue, meaning additional future taxes. Creating new programs or expanding existing ones will require new taxes in the future; anything that expands state-sponsored entitlement programs will require future taxes.
Spending mentality
Worthwhile programs requiring funding can always be found. Politicians, like drunken sailors on leave, will find a way to spend every penny they have and more. This isn’t fiscal responsibility.
As a volunteer at ABCCM’s Crisis Center, being able to hand out money for every need that people bring in would be popular, but there is just not enough money available. It is not enjoyable telling a mother with two children she must be responsible for her own rent or power bill when she just can’t afford them on $1,000 a month month total income and might be evicted or have her power shut off.
If our N.C. politicians act intelligently, looking out for us, they will use the stimulus money for one-time projects that do not result in recurring future expense. They will not use stimulus money to make up our present budget deficit caused by overspending that should be solved by cutting back state spending to balance state revenue.
N.C. has plenty of one-time needs such as road and bridge repair or replacement, upgrading educational equipment and buildings, upgrading obsolete water systems, etc. for using stimulus money.
If our governor and legislators succumb to the temptation to pay off political debts and increase entitlement programs we will be doing the same political dance we saw when we were sold on the Education Lottery and the Rainy Day Fund now being used for general expenses
Find real benefits
My humble suggestion for the “one-time found money” from U.S. future taxpayers is to provide them with some of the benefits resulting from its use.
The state should determine projects that need to be accomplished, and will result in a long term benefit for N.C. Contracts should be issued with a fixed price for each project and no new, permanent (future expense) government employees should be hired. Contractors and subcontractors must verify the legal status of all employees. Preference should be given to N.C.-based companies bidding on these contracts.
Providing subsidies for hiring individuals released from prison will improve rehabilitation and reincarceration rates.
Fund on-the-job training for individuals who just can’t return to school for valid reasons.
Projects already proposed should be given funding priority (it is easy to find new ways to spend money if it is just handed to you). New proposed projects need to show benefits other than just employing people.
Education top priority
Priority needs to be given to improving the education of our citizens, enabling them to obtain good jobs in the future. Providing financial assistance to individuals returning for additional education must be tied to attendance and grades, not just a handout.
Our state should require a high school diploma or GED as a mandatory minimum with an additional two-year associate degree as the average and a four-year college or university degree as a goal for all.
Finally, N.C. should reject any funds that require future permanent expenses or change laws that make us less business-friendly.
We must always remember that government (taxpayer) money always comes with strings attached and one of them is a loss of freedom of choice for each dollar accepted.
When describing a problem, always propose a solution is my philosophy.
Allyn M. Aldrich is a retired aerospace engineer and technical consultant. He has a BS in mechanical engineering and a masters of business administration. He lives in Asheville.
Source: Asheville Citizen Times
