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Monday, June 25, 2012

Legislating by Default

Posted by on Mon, Jun 25, 2012 at 2:13 PM

I've put these numbers before Slog readers before, but since I'm constantly told how non-credible I am, I thought I'd just quote a couple of University of Washington regents from a recent guest column in our local dead tree daily:

The cost of educating a student at the University of Washington is about $400 less today, in inflation adjusted dollars, than it was 20 years ago. As executives and directors of large business and philanthropic organizations in Washington state, our board members can attest that this could not have happened without a strong commitment to efficiency and cost control.

The next time anyone questions why public university tuition is rising faster than inflation, remember this: Twenty years ago, the state government paid 80 percent of the cost of a student's education and a student paid 20 percent. Today, the state pays 30 percent of the cost, and the student pays 70 percent. The state has systematically disinvested in our children's future, and we view this trend with disappointment and alarm.

All true. Except, the thing is, it's not like we've disinvested in higher education by design. It's not like any legislator ever stood up and made the case for why it's in the interest of the state and its citizens to slash support for public colleges and universities, or why middle class students should be priced out of a college education. In fact, I'd wager that there isn't a single legislator in either party who would campaign in favor of perpetual annual double-digit tuition increases.

And yet these double-digit tuition increases are the inevitable result of other policies legislators in both parties do speechify and campaign on: our absolute refusal to raise the tax revenue necessary to fund state services at a constant level. Essentially, we are systematically disinvesting in our children's future by default. Same goes with the rest of the Republican drown-government-in-a-bathtub agenda that we are gradually implementing regardless of how many Democratic legislators and governors we elect.

That of course is the genius of the "reform first" agenda. Washington's tax structure, with its over-reliance on the sales tax (a tax base that is steadily shrinking as a portion of the overall economy), is simply unsustainable. So Republicans don't have to justify defunding popular services like higher education in order to assure that they are ultimately defunded. For the longer we continue to segregate the revenue debate from the spending debate (as if they weren't two sides of the same budget), the longer we'll continue to get the Republican agenda by default.

 

Comments (4) RSS

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prompt 1
Good evaluation.
Posted by prompt on June 25, 2012 at 2:18 PM
Timrrr 2
And on the other side of the coin are the bankers, more than willing to take up the slack & fill that gap. In fact, they've more than encouraged it's growth.

See, believe it or not there was once a time when bankers needed skills & talent to make a buck. You had to choose who to loan to & how much very, very carefully because there was always the risk that, if you chose poorly, they wouldn't repay and you'd be out the cash.

But then they created credit rating agencies and tied everything a person did to that rating so, theoretically, no one could default on anything as big as a mortgage without screwing their credit rating -- and who would ever want to do that!?!?

So, filled with confidence and a lazy disposition, they hurried off and sold mortgages to everyone who could lift a pen. No need for a traditional banker's skills or talents; it was all money in the bank. (so to speak) Just issue a mortgage & rake in the cash!

Then the most damn fool thing in the world happened -- people discovered they could default on their loans just fine, declare bankruptcy & then just... you know... get on with their lives after all.

The horror!
Now the bankers only had two choices:

1) Go back to being skilled & talented, or
2) Find a type of loan NO ONE could discharge via bankruptcy -- the kind of loan you're stuck with forever, no matter what, by federal law -- and push the hell outta that until every kid gets saddled with one and they can lean back in their padded leather executive chairs once more and just count all the cash rolling in.

So is it any surprise to anyone which of those two options they've chosen?
Posted by Timrrr on June 25, 2012 at 3:25 PM
3
"Same goes with the rest of the Republican drown-government-in-a-bathtub agenda that we are gradually implementing regardless of how many Democratic legislators and governors we elect."

No. It is not "regardless of how many".
It is because of the ones that are elected.

Remember how the lottery was supposed to be used to fund education?
Instead, once the money was available, it was spent on whatever was deemed to be the priority at that moment.
And it was not education.

If you want to talk tax reform then it has to be TOTAL tax reform.
No mix and match.
No part sales tax and a little part income tax and a bit of property tax and so forth.

Everyone knows that the state is paying smaller portions of fewer items..

And everyone knows that the state is looking for more money to pay for the reduced expenditures.
Posted by fairly.unbalanced on June 25, 2012 at 3:47 PM
4
To reduce the prison population, and the drain they produce on the public coffers, I propose a return to spectacle violence, especially humiliating spectacle violence.

Additionally, and this is a serious problem among many western states, pensions for public employees were typically promised according to a growth model of the stock market that was in no way realistic. For reference I refer to Zakaria: http://fareedzakaria.com/2012/06/17/why-…

FTA:
"The numbers are staggering. In California, total pension liabilities—the money the state is legally required to pay its public-sector retirees—are 30 times its annual budget deficit. Annual pension costs rose by 2,000% from 1999 to 2009. In Illinois, they are already 15% of general revenue and growing. Ohio’s pension liabilities are now 35% of the state’s entire GDP."
Posted by Central Scrutinizer on June 26, 2012 at 12:24 AM

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