Posts Tagged ‘Budget’

Budget Shortfalls: The Unkindest Cut

September 21, 2009

Dear Jana:

It was recently announced that this year’s state budget is short millions of dollars due to a shortage in revenue. The current administration has already made cuts to some state agencies and is currently discussing additional cuts. As governor, how would you approach the problem of this revenue shortfall?

We’ve seen a number of across-the-board cuts to our budget in Idaho. I believe wholesale, across-the-board cuts aren’t in the best interest of the state going forward. Before cuts are made, a clear analysis of every state government function needs to be conducted in order to determine exactly where cuts should be made. 

As governor, I would go directly to the state employees who know what’s working and what’s not working in their agencies. For instance, we should not be cutting agencies that make money for Idaho. A good example is the State Tax Commission. The State Tax Commission generates revenue for the state, yet staff has been cut recently. Cutting staff in that agency doesn’t help us generate revenue for the state.

There are some agencies that could be logically combined together in order to create greater efficiencies from an administrative standpoint and greater efficiencies in how services are provided.

My conservative estimate is that we could save $1 to $2 million per year in ongoing, cumulative savings by combining certain agencies.

Some agencies must be analyzed with particular care before any cuts are made. The Department of Health and Welfare, for example.

Across-the-board cuts in that agency diminish services to the extent that it allows the children of Idaho to be underserved and unprotected.