What HB 366 and SB 151 mean to us

There's no easy way to say it - the State of Kentucky is just bad at handling money. In case any of you missed it over the last few days, we are still fighting about SB 151 that strips funding for schools and public employee/teacher pensions. Now, on top of this they are arguing HB 366 looking to raise different taxes and fees to bring more money into the state treasury.

The whole thing stinks to me. We are trying to spend more money than we have and it is time for solutions. We need to upgrade our thinking and start budgeting and planning like it is 2016, these straight budgets aren't going to get us anywhere and it is a system that is outdated in budgetary practice. Here are my thoughts on what really needs done:

1. Rolling Budgets and Flexible Budgets - This is simple operational accounting. Everyone that likes to put their word in on politics likes to say "Balanced Budget!" but that is only the first, and the most basic, step that needs taken. Accounting has come a long way since the 1800's and its time we act like our government is even the slightest bit educated. A rolling budget is a budget that updates quarterly or biannually. This would mean assessing portions of our budget to see what is on track, what is below budget, and what needs adjusting so that we can continue to be fiscally set all year. A flexible budget is a budget is essentially multiple budgets wrapped into one that automatically change based on what revenues are brought in. Essentially it would say, if we bring is W in taxes we will spend Y on these programs, but if we bring in X in taxes we will spend Z on these programs. This needs to be done for tax revenues, licenses and fees, and for all of our more flexible spending (aka programs we want, but don't necessarily need).
   
2. Cost Reduction Bonuses - I'm not usually for the government handing out bonuses, but this one is justified. Often, when you work for a company, if you do a cost improvement project and it saves money a bonus is given out for a percentage of that savings. For example a company would love to pay $100 to someone who implements a change that saves $1000... thats not a budgetary loss. This would work for schools as well. If the staff of a school can come up with a formal plan that reduces a certain cost below their budget, they should get a portion of that back to split among themselves. It encourages good spending habits and helps groups like teachers make more money.
   
3. Base Government Pay on GDP Per Capita - The State of Kentucky ranks 42nd place in the country for GDP per capita, yet the Governor's salary is currently the 25th highest and historically is often in the top 15. The first thing to go in the rough budgetary times are the salaries and compensation of elected officials. These are people that are supposed to represent the population, people that knew their job was public service and has risks, and that should feel the weight of an under performing budget first.

Let me be clear though, salaries and compensation promised to those on the front lines - the police, the teachers, the firefighter - those should be the last thing cut in our budget. These are first responders in our community and are the ones that mold our futures. Politicians and art projects can go without.

Feel free to tweet me or to comment, I'd love to hear thoughts (https://twitter.com/LibertariansRed)