Lawmakers still can’t fix budget woes
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“My greatest concern is we’re going to get in a quagmire where we’re forced to trim $800 million from the budget and that’s going to turn the state on its ear,” said Curtiss. “I honestly believe now that’s where we’re heading.”
Curtiss and state Rep. Shelby Rhinehart both voted to support the income tax. Curtiss said an income tax isn’t the way he would ideally balance the budget, but said he voted for the measure because it sure beats the alternative of picking apart state services.
“I’ve had people call who are madder than a hornet at me,” said Curtiss. “I wasn’t voting for an income tax. I was voting to prevent cutting $800 million. The concern I’ve got now is we’re not going to get a majority on anything.”
Curtiss said he prefers removing some sales tax exemptions as the best way to generate more state revenue. He doesn’t hold much hope that will happen either.
Rhinehart had a little more optimism yesterday. He feels lawmakers will pass a budget which will keep education and health care from crumbling.
“You’ve got to maintain your services to the people, even if it beats you,” said Rhinehart. “Some have said they don’t want to vote for it because it will get them beat, but you’ve got to do what you were sent there to do and that’s serve the people. If it gets you beat, that’s how it goes. Voting for anything can get you beat.”
Like Curtiss, Rhinehart said an income tax is not his first choice. He said removing some sales tax exemptions could easily compensate for the millions the state needs.
“If we remove some of the exemptions, tweak it somewhat, we’ll be all right,” said Rhinehart, who also indicated not doing anything to generate more revenue would be irresponsible. “It would shut down the state as far as education and health care is concerned.”
The state must raise $800 million in new revenue just to fund the same level of services currently offered.
As far as income tax alternatives, there has been a bill proposed which would extend the state’s 6 percent sales tax to professional services and exempted items. That bill could only get around 30 House members committed to voting for it.
In the 99-member House, 50 votes are needed to pass a bill.
Another alternative is the Downsizing Ongoing Government Services or DOGS budget. It would eliminate the departments of tourism and economic development and cut $400 million from K-12 education.
The DOGS budget would still result in higher taxes because it would force significant property tax increases at the local level. Curtiss said this would hurt because people would be paying more taxes, but the state wouldn’t be able to receive as much money in matching federal funds.
“When you talk about cutting $800 million, it’s more than just that because of all the matching federal funds we receive,” said Curtiss. “When we start messing with things that much, you’re going to have hospitals and nursing homes shutting down.”
The state requires a balanced budget by June 30 or state government will shut down and state employees will stop receiving a paycheck.