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Follow the States, But Only the Right Ones

This report makes the point that, unlike the federal government, state officials have had to make hard choices to balance their books. The impression one gets listening to the mainstream media and incumbent politicians is that budget balancing is nearly impossible. The states have shown otherwise:

In the past three years, 29 states have raised fees on, or cut services for, the elderly and people with disabilities, says the Center on Budget and Policy Priorities, a liberal-leaning research group. Fifteen states raised sales or income taxes in 2009 or 2010, according to the Tax Foundation, a conservative-leaning Washington research outfit.

Let’s see if you notice the pattern:

One popular state tactic has obvious—and ironic—national implications. New Jersey, Indiana and Minnesota, among others, have trimmed state spending by sending less money to local governments. That pushes onto local officials politically tough decisions about raising taxes, cutting spending or finding major money-saving efficiencies. …

Now, in Illinois and California, “the political system has done little more than lurch to the end of the fiscal year.” While in Mississippi, Minnesota, New Jersey, and Indiana, governors pushed for real fiscal reform. A sample:

New Jersey’s Chris Christie has cut pensions for future state and local employees, vetoed a tax increase on income over $1 million and cut $1.26 billion in aid to schools and municipalities, which local officials said would drive up property taxes. …

In Indiana, Gov. Mitch Daniels, a second-term Republican and the former White House budget director for President George W. Bush, moved the state from deficit to surplus by paring spending in good times. Indiana swung from a nearly $200 million deficit in 2004, the year Mr. Daniels was first elected, to a $1.3 billion surplus last year. It was not without controversy: On his second day in office, Mr. Daniels issued an executive order that ended collective-bargaining rights for state employees. …

In May, Minnesota lawmakers approved a budget widely seen as a victory for outgoing Republican Gov. Tim Pawlenty, because it ratified spending cuts he had made unilaterally and it didn’t raise taxes.

And, likewise, Bob McDonnell got elected in 2009 in Virginia on the promise to balance the budget without raising taxes. And he has done just that.

OK, you see point. These budget balancers and spending cutters are successful Republican governors, all of whom have been mentioned as 2012 presidential contenders. And in the 2010 midterms, their ranks expanded with Republicans elected in New Mexico, Wisconsin, Ohio, Iowa, Pennsylvania, Michigan, Kansas, Oklahoma and Tennessee. That’s a lot of GOP governors who have the opportunity to lead on fiscal discipline.

Not only does this dispel the liberal myths that we need massive taxes to balance our books or that the public won’t accept reduced services; but is provides Republicans with a wealth of talent for the 2012 and future presidential races. The country seems poised to get serious on tax and budget reform and has grown weary of a president whose not much into governance. That suggests a unique opportunity for these GOP governors — provided they stick to their  sober approach to governance.

And on the other hand, we have the example of California which has yet to get its spending and public employee unions under control. It’s the beauty of federalism — 50 labratories in which we can see what works and what doesn’t. So far a lot of GOP governors are showing how to do it right.



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