We urge Alabamians to vote "yes" today on a constitutional amendment transferring money from the Alabama Trust Fund to the General Fund.
The prevalent sentiment among those indicating they will vote "no" is that the Legislature has failed to cut enough from the state budget, and that the amendment's passage will ease the pressure on it to make the hard decisions.
We see two problems with this argument.
First, state budgetary cuts do not take effect immediately. Gov. Robert Bentley says the state already has made cuts that will save the state $674 million annually, but most of these reductions necessarily have a delayed impact. Some additional tightening may be possible — such as consolidation of technology services and police services — but they will involve complex legislation and restructuring. Even when accomplished, the savings will not show up in the budget for several years.
Second, those who want a minimalist state government are ignoring evidence that they already have one. The per-capita tax burden on Alabama residents is 49th in the nation; only South Carolinians pay less.
When an economy struggles with a recession and its aftermath, two things happen to a state budget. One, tax revenue goes down. Two, expenses — especially in Medicaid — go up.
Thus, a state government that is as streamlined as it possibly can be in normal economic conditions necessarily will have a shortfall when the economy turns sour.
Alabama, along with every other state, is in its fourth year of a lousy economy. One-time windfalls, mainly from the federal government, made up for the budget deficits in the previous years. In fiscal 2013, no windfalls are expected.
While many opponents are interpreting the shortfall as evidence that the state is spending beyond its means, a more reasonable interpretation is that it is spending as little as it can, with the least possible tax revenue, during normal economic conditions.
In a surge of anti-government frustration, Alabama voters in 2010 successfully elected candidates who want to minimize the extent to which the state takes care of its own. We think this was a mistake, but we see no evidence that elected officials have broken their promises.
In order to maintain taxes that are near the lowest in the nation, lawmakers need a revenue supplement when the economy falters. The Alabama Trust Fund is the only option available if voters continue to resist tax reform.
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Vote NO! Don't be mislead. Dont allow them to take from your
savings to pay their salaries. They are going to raise taxes sooner or later.
Bubba says watch out
And yet the Decatur Daily continues to support Obama and the people whose errant Marxist policies have made the recession that started in 2008 even worse! “Surge of anti-government frustration” is the way you see 2010? It was an election to correct the spendthrift ways of the liberal Democrat good old boys that had controlled this state as far back as anyone can remember, and controlled it with an iron fist using the AEA like a hammer. Like all liberal media outlets you forget that the intent of government was NOT to be a charitable institution, redistributing private property with the use of force. You never have reported the last “loan” our state government took from this fund. Currently, the fund is owed over $600 million with no evidence of intent to repay it. The fund is the best asset our state has to move the next generation into the future, and if we start depleting it now, there will be no stop and no repayment. I will go vote NO today and continue to demand accountability from those we elect.
If the people of Alabama do not see these times as an economic crisis worthy of breaking the piggy bank, there is no reason for the state to keep a savings account at all.
Vote yes if you think the state was wise to put money back for an emergency like this economic crisis. Vote no if you want the government to start spending every dime when times are good and then raise taxes when times are bad.
So today we get the Daily's double whammy “power of the press” front page above the fold story coupled with the feature editorial [third time in a week] again hawking voters and readers to get out and support your progressive, tax and spend [re-distribute] everything possible [today its Amendment 1] anti-capitalist agenda. You continue to promote the socialist economic system that not only has not worked anywhere, but has dragged down or ruined every government that has used Marx’s model. For openers this includes Russia, Eastern Europe and the Balkan States. Cuba is in shambles, North Korea’s people are destitute and starving. Europe is an economic basket case and here you are pressing us in Alabama to agree and join the PIIGS [Portugal, Ireland, Italy, Greece and Spain] en-route to economic slaughter. Even Communist China has converted to a capitalistic based economic model. No, is the only reasonable, rational answer to this proposition and Alabamians can register that sentiment today by voting NO on Amendment 1. We must send the Alabama House and Senate, our sister states, the sitting president and his administration the message that this is the wrong way to go.
These are definitely times of "economic crisis," but this crisis has been brought on by the cowardly representation allowed to exist in our governments! These "public servants" (who, by the way, continue to find the money during this "economic crisis" to give themselves raises) need to suck it up and do their jobs. Balance budgets in the time allotted with funds available. This would involve honesty, hard work and sacrifice so don't look for it anytime soon. I will vote NO because I have been expected to do more work, with no merit raise or COLA for the past five years. Accountability MUST begin NOW!!
I would be inclined to vote YES if the state had paid back the trust fund the last time they "borrowed" from it and if this particular request didn't include the provision not to pay any of that OR this second "loan" back. Therefore, I'm going to vote NO.
Time to suck it up and figure out a way to pay Paul without having to borrow from Peter. To continue in this established habit of borrow now and figure out how to make it work later is irresponsible. And I realize this may mean people will lose their job and programs will be cut. All I can say to those that will be impacted is "Get pissed and start voting in a way that puts fiscally responsible people in the legislature!" That's the only way things are going to get better.
Can’t help but notice the Daily and those wanting to spend this money have failed to even mention the previous $598,956,702 loan from the Alabama Trust Fund [ATF] and that payments on it begin coming due in 2015; wait, aren’t we borrowing this now to pay on the previous? If we vote yes on this today, we can kiss controlling our economic future goodbye. What a shame, the consequence will be that our grandchildren and their decedents won’t know economic liberty and personal freedom. Our whole lives will be ceded to control of those holding the reins of power backed by the force of government. That is precisely what the progressives and liberals want.
45% of state spending goes to education and we come in 48th in the nation in 8th grade math competency. In contrast, 5% of state spending goes to medicaid. Guess who gets cut if we vote no? Medicaid gets cut because it is not in the separate education budget. We need to combine the budgets and get the union out of the schools. We then might actually spend less and get better in math (which would also help with budgeting).
Oh yes one more thing: Reported in the news this morning, today Alaska’s government is calculating each citizen’s share [payment] from Alaska’s energy trust fund. For the record, Alaskans do not pay state taxes because state government runs Alaska on their energy Trust monies and make a payment to each Alaskan citizen with the left overs. Now that’s the way to run a Trust. Think about it, no state taxes!! Ours is not as big, but certainly it could be used more like that than using the ATF as a piggy bank to break like some seven year old kid who wants to buy…….well, whatever!
Maybe we should ask the man that runs the state retirment system on budget issues.. I know he has made a few mistakes then the economy fell out but all in all he is good at making money. I have a brother that does the same for Paramouynt Pictures
Tracy, you should stop being critical of the daily. We know who you are.
Michael, for many years Bronner has underperformed the national average for similar retirement systems' funds. We would do better to find one of the better performing fund managers for advice.
The Daily will be remembered as the voice of free lunch....