What happens when an immovable object runs into unstoppable force in politics? We’ll find out over the coming weeks as the budget negotiations in Olympia come to a conclusion.
At the moment, we have two conservative principles that are at direct odds with each other and one of them has to give.
Run government like a business vs. no new taxes under any circumstances
For decades, we’ve heard calls demanding that government run more like a business. Leaner. More efficient. Trim the fat.
There’s certainly some validity to that argument. And state government has become leaner with massive revenue shortfalls in recent years.
- Despite population growth, which requires more services like roads, schools, and first responders, there are 8,000 fewer state employees than there were five years ago. (Nationwide, more than 300,000 education jobs have been lost since the start of the recession.)
- Since 2008, we’ve cut over $12 billion in state spending. If a business was falling on similar hard times, it would look for ways to cut spending.
But no good business would only look on one side of the ledger to make ends meet during difficult times. Businesses also look at what they’re charging for their products and consider adjusting prices where appropriate.
The state is in a similar situation. We have tax exemptions worth millions for oil companies – which they don’t need by the way – that have been on the books since the 1930s.
Does it make sense to continue these wasteful exemptions simply to honor a Grover Norquist-style promise to never raise taxes under any circumstances?
How long would you stay in business if you pledged to never change your prices? No matter what happens. Even if your costs for things like food, gas, and utilities go up. Your prices stay flat forever.
As costs go up, businesses must look for a balance between cutting their own costs with raising prices. It’s the smart business decision to make.
As budget negotiations continue, these are the choices that the legislature is facing. Continue cutting state services for kids, seniors, and working families, or holding firm on no new taxes even for oil companies.