Thursday, April 2, 2009

STATE BUDGET NUMBERS FAULTY: House GOP offers $400 million in cost-saving reforms, efforts blocked by House Democrats.

6:51 PM | , , , , , , ,

The House Republican caucus today voiced their opposition to a plan by House Democrats that will blast open state spending. The GOP pointed both to the projected deficit of $1.5 billion for Fiscal Year ’10, and the FY '09 deficit, which is growing at a rate of $25 million-a-week.

"This budget does not reflect the priorities of working families," said House Republican Leader Kevin Elsenheimer. "As the Democrats continue this spending spree, they are forgetting about these families who are losing their jobs and forced to choose between their personal needs and wants."

Elsenheimer said Democrats continue to spend $5 million more every working day than the state is taking in, and have failed to address this deficit or the $1.5 billion deficit for next year. They've proposed inflated budgets that spend far more than even the governor's high recommendations, and failing to take into account a possible bankruptcy by one of the Big Three.

“Even the Obamabucks can’t keep up with this level of spending,” said Republican Vice-Chair of Appropriations Chuck Moss. “The fact is that we are knowingly spending more money than we have, and the answer is simple – we need to reduce spending now, and reduce the budget now to reflect state realities, and stop budgeting with rose-colored glasses. There are many lawmakers who want to take the easy way out by using federal stimulus funds or new taxes to fill the budget hole, but the responsible path is to reform government immediately."

The House Republican caucus recently called for:

· An immediate special revenue estimating conference to deal with the crisis now, rather than waiting until the end of May;

· A 5-percent reduction in general fund spending for all state departments;

· An immediate freeze on a scheduled 1-percent pay raise for state employees this year and elimination of the 3-percent raise scheduled for 2010.

The caucus also offered $400 million in specific cost-saving measures in committee, all of which were blocked by the Democrat majority.

“It is Accounting 101 – you can’t spend more than you have,” said House Republican Floor Leader Dave Hildenbrand. “The House keeps spending like there is no tomorrow, but the numbers aren’t adding up. This is D.C. accounting at its worst, and if we don't get our budget mess under control, we can't do the things we need to do to attract jobs to our state and fix our economy.”

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