Spending cuts needed

Kingsley Guy | COLUMNIST

November 11, 2007

I've been thinking about buying a flat-screen TV for the bedroom. It's in the budget. But I've also been feeling pain in a couple of molars when I bite down hard. Unfortunately, it's probably time for root canal work, but that isn't in the budget.I have several options.

I could raid my savings or pull out a credit card, have the root canals and buy the TV. But current gratification would mean less money down the line for life's necessities. So I think I'll bite the bullet (ouch!) and postpone the television purchase. My quality of life won't suffer appreciably if I don't have the TV, but it could suffer greatly if I don't get the root canals.

Another option for me, since I lack taxing authority, is to pick people's pockets so I could pay for both. But I have neither the skill nor inclination to improve my cash flow in this manner. Instead, I'll impose on myself a spending restraint.

Unfortunately, there are no mandatory spending restraints in Florida. The focus in the Legislature has been on reducing property taxes, but a constitutional ceiling on government outlays also is needed. Otherwise, the sky's the limit.

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Gov. Charlie Crist knows this. Last month, he proposed limiting local government spending to the rate of inflation plus population growth.

Democrats in the Legislature howled, and threatened to quash property tax reform if a spending restraint measure also made it into the proposed constitutional amendment.

The governor, however, is on the right track. The Taxation and Budget Reform Commission should place on the ballot a spending restraint linked to population growth, the consumer price index and/or the growth in personal income.

The constitutional spending limit should encompass both state and local governments, have strict but reasonable override provisions, and include a clause that forbids the Legislature from imposing mandates on local governments unless it pays for them. Tax surpluses during good economic times should be set aside to make up for shortfalls that occur in bad times.

Individuals have to choose between TVs and root canals, and state and local governments should, too.