States in a Fiscal Hole They Dug

States in a Fiscal Hole They Dug
Steve Chapman
Thursday, July 30, 2009

Everywhere you look, states are being crunched by fiscal emergencies that range from painful to excruciating. California, which has been paying bills with IOUs, is now preparing to close state parks and furlough state employees -- which is what you have to do when your budget deficit is bigger than the entire budget of some states.

It's not alone. "At least 39 states have imposed cuts that hurt vulnerable residents," trumpeted a recent report from the liberal Center on Budget and Policy Priorities. California, New York and Delaware have approved income-tax increases, and Pennsylvania and Illinois are considering doing likewise.

We all know the reason for the squeeze: An unexpected, severe national recession has dried up revenues just when states need funds to help out-of-work citizens. That's true: You would expect the worst downturn in decades to have a negative effect on tax collections. But it's a long way from the whole truth.

The crisis in state budgets is not an accident, and it wasn't unforeseeable. For years, most states have spent like there's no tomorrow, and now tomorrow is here. They bring to mind the lament of Mickey Mantle, who said, "If I knew I was going to live this long, I'd have taken better care of myself."

If they had known the revenue flood wasn't a permanent fact of life, governors and legislators might have prepared for drought. Instead, like overstretched homeowners, they took on obligations they could meet only in the best-case scenario -- which is not what has come to pass.

Over the last decade, state budgets have expanded rapidly. We have had good times and bad times, including a recession in 2001, but according to the National Association of State Budget Officers, this will be the first year since 1983 that total state outlays have not increased.

The days of wine and roses have been affordable due to a cascade of tax revenue. In state after state, the government's take has ballooned. Overall, the average person's state tax burden has risen by 42 percent since 1999 -- nearly 50 percent beyond what the state would have needed just to keep spending constant, with allowances for inflation.

Even low-tax states like Texas and Nevada have followed the same course. No one has been inclined to say, "Taxpayers don't need to send us more money. We've got plenty."

All that growth should have been enough to pay for essential programs and furnish ample reserves, allowing state governments to weather a downturn without major adjustments. But the states put a priority on burning through all the cash they could get. Last year, they spent about 77 percent more than they did 10 years before.

California illustrates the problem. Adam Summers of the libertarian Reason Foundation in Los Angeles has calculated that if it "had simply limited its spending increases to the 4.38 percent average annual increase in the state's consumer price index and population growth each years since fiscal year 1990-91, the state would be sitting on a $15 billion budget surplus right now."

Illinois is another problem child. The state's general fund appropriation is some two-thirds higher today than it would be if the state had just kept those outlays in line with inflation over the last two decades. That increase, as in California, is the difference between a gaping deficit and a comfortable surplus.

Then there is New York. Last fall, Democratic Gov. David Paterson called for an end to the "unsustainable growth in state spending" in recent years. Since the mid-90s, he noted, the state budget has doubled, outstripping the inflation rate by nearly twofold. And New York was not exactly notorious for its frugality 15 years ago.

Unlike the federal government, states can't simply run deficits indefinitely. For that reason, they have a powerful duty to pile up surpluses during fat years, which would allow them to make up the revenue that goes missing during lean years. But for many lawmakers, the future extends only to the next election. So any money they have, they feel an insatiable need to lavish on someone.

Politicians are happy to blame the recession for depriving citizens of programs they have come to expect. The recession didn't create the gap between state government commitments and state government resources. It only exposed it.

July 7, 2009

OP-ED COLUMNIST

In Search of Dignity

By DAVID BROOKS

When George Washington was a young man, he copied out a list of 110 “Rules of Civility and Decent Behavior in Company and Conversation.” Some of the rules in his list dealt with the niceties of going to a dinner party or meeting somebody on the street.

“Lean not upon anyone,” was one of the rules. “Read no letter, books or papers in company,” was another. “If any one come to speak to you while you are sitting, stand up,” was a third.

But, as the biographer Richard Brookhiser has noted, these rules, which Washington derived from a 16th-century guidebook, were not just etiquette tips. They were designed to improve inner morals by shaping the outward man. Washington took them very seriously. He worked hard to follow them. Throughout his life, he remained acutely conscious of his own rectitude.

In so doing, he turned himself into a new kind of hero. He wasn’t primarily a military hero or a political hero. As the historian Gordon Wood has written, “Washington became a great man and was acclaimed as a classical hero because of the way he conducted himself during times of temptation. It was his moral character that set him off from other men.”

Washington absorbed, and later came to personify what you might call the dignity code. The code was based on the same premise as the nation’s Constitution — that human beings are flawed creatures who live in constant peril of falling into disasters caused by their own passions. Artificial systems have to be created to balance and restrain their desires.

The dignity code commanded its followers to be disinterested — to endeavor to put national interests above personal interests. It commanded its followers to be reticent — to never degrade intimate emotions by parading them in public. It also commanded its followers to be dispassionate — to distrust rashness, zealotry, fury and political enthusiasm.

Remnants of the dignity code lasted for decades. For most of American history, politicians did not publicly campaign for president. It was thought that the act of publicly promoting oneself was ruinously corrupting. For most of American history, memoirists passed over the intimacies of private life. Even in the 19th century, people were appalled that journalists might pollute a wedding by covering it in the press.

Today, Americans still lavishly admire people who are naturally dignified, whether they are in sports (Joe DiMaggio and Tom Landry), entertainment (Lauren Bacall and Tom Hanks) or politics (Ronald Reagan and Martin Luther King Jr.).

But the dignity code itself has been completely obliterated. The rules that guided Washington and generations of people after him are simply gone.

We can all list the causes of its demise. First, there is capitalism. We are all encouraged to become managers of our own brand, to do self-promoting end zone dances to broadcast our own talents. Second, there is the cult of naturalism. We are all encouraged to discard artifice and repression and to instead liberate our own feelings. Third, there is charismatic evangelism with its penchant for public confession. Fourth, there is radical egalitarianism and its hostility to aristocratic manners.

The old dignity code has not survived modern life. The costs of its demise are there for all to see. Every week there are new scandals featuring people who simply do not know how to act. For example, during the first few weeks of summer, three stories have dominated public conversation, and each one exemplifies another branch of indignity.

First, there was Mark Sanford’s press conference. Here was a guy utterly lacking in any sense of reticence, who was given to rambling self-exposure even in his moment of disgrace. Then there was the death of Michael Jackson and the discussion of his life. Here was a guy who was apparently untouched by any pressure to live according to the rules and restraints of adulthood. Then there was Sarah Palin’s press conference. Here was a woman who aspires to a high public role but is unfamiliar with the traits of equipoise and constancy, which are the sources of authority and trust.

In each of these events, one sees people who simply have no social norms to guide them as they try to navigate the currents of their own passions.

Americans still admire dignity. But the word has become unmoored from any larger set of rules or ethical system.

But it’s not right to end on a note of cultural pessimism because there is the fact of President Obama. Whatever policy differences people may have with him, we can all agree that he exemplifies reticence, dispassion and the other traits associated with dignity. The cultural effects of his presidency are not yet clear, but they may surpass his policy impact. He may revitalize the concept of dignity for a new generation and embody a new set of rules for self-mastery.

Memorization & Knowledge? So overrated...

My favorite part: This is the sort of thing Justice Ruth Bader Ginsburg described in the text as just the workings of politics. Writing in Slate, Yale Law faculty member Emily Bazelon goes further. She laments that the promotion test rewarded memorization and that it favored "'fire buffs' -- guys who read fire suppression manuals on their down time."

She is outraged that a fire department might want to promote firefighters who know more about suppressing fires, rescuing victims and protecting their colleagues rather than simply promote a predetermined number of members of specific racial groups whose self-appointed political spokesmen back the politicians in office.

Firefighter Case Shows Seamy Side of Racial Politics
Michael Barone
Thursday, July 02, 2009

The Supreme Court's decision in Ricci v. DeStefano, the case of the New Haven firefighters, was a ringing endorsement of the Civil Rights Act of 1964's ban on racial discrimination and a repudiation of Supreme Court nominee Sonia Sotomayor's decision in the Second Circuit U.S. Court of Appeals. While five justices flatly rejected Sotomayor's ruling, even the four dissenters wouldn't have let stand her ruling allowing the results of a promotion exam to be set aside because no black firefighter had a top score.

Ricci is also something else: a riveting lesson in political sociology, thanks to the concurring opinion by Justice Samuel Alito. It shows how a combination of vote-hungry politicians and local political agitators -- you might call them community organizers -- worked with the approval of elite legal professionals like Sotomayor to employ racial quotas and preferences in defiance of the words of the Civil Rights Act.

One of the chief actors was the Rev. Boise Kimber, a supporter of Mayor John DeStefano. The mayor testified for him as a character witness in a 1996 trial in which he was convicted of stealing prepaid funeral expenses from an elderly woman. DeStefano later appointed Kimber the head of the board of fire commissioners, but Kimber resigned after saying he wouldn't hire certain recruits because "they just have too many vowels in their name."

After the results of the promotion test were announced, showing that 19 white and one Hispanic firefighter qualified for promotion, Kimber called the mayor's chief administrative officer opposing certification of the test results.

The record shows that DeStefano and his appointees went to work, holding secret meetings and concealing their motives, to get the Civil Service Board to decertify the test results. Kimber appeared at a board meeting and made "a loud, minutes-long outburst" and had to be ruled out of order three times.

City officials ignored the inconvenient fact that they had hired an independent and experienced firm -- this is a thriving business -- to draw up a bias-free test and paid a competing firm to draw up another test. Its head testified that the first firm's test was biased without seeing it. The board capitulated and decertified the test. DeStefano was prepared to overrule it if it had gone the other way.

Such is governance these days in a liberal university town. It may remind some of us old enough to remember of the machinations and contrivances of Southern white officials and agitators employed to prevent blacks from registering and voting.

This is the sort of thing Justice Ruth Bader Ginsburg described in the text as just the workings of politics. Writing in Slate, Yale Law faculty member Emily Bazelon goes further. She laments that the promotion test rewarded memorization and that it favored "'fire buffs' -- guys who read fire suppression manuals on their down time."

She is outraged that a fire department might want to promote firefighters who know more about suppressing fires, rescuing victims and protecting their colleagues rather than simply promote a predetermined number of members of specific racial groups whose self-appointed political spokesmen back the politicians in office.

Bazelon and Sotomayor, who voted to uphold the city's decertification of the promotion test, are typical of liberal elites who are ready to ratify squalid political deals -- and blatant racial discrimination -- in return for the political support and the votes that can be rallied by the likes of Kimber. You supply the numbers on Election Day, and we'll supply the verbiage to put a pretty label on your shenanigans.

Usually the people who are hurt by this are not as sympathetic as Frank Ricci, the dyslexic firefighter who paid a friend $1,000 to read the training manuals and studied hard enough to get the highest score on the test.

But I think we ought to reserve some of our sympathy for the purported beneficiaries of this wretched discrimination, the black firefighters. Their champions -- Kimber and DeStefano, Bazelon and Sotomayor -- are telling them that their way up in life should not be determined by the content of their character or by mastery of their worthy craft, but by the color of their skin. Not by a fair and unbiased test, but by dishonest wire-pulling and threats of political retaliation.

Thanks to Justice Alito, for pulling back the curtain and showing the ugly reality of racial discrimination in America today.