Pay later
Last week Arkansas Gov. Mike Huckabee called a Dec. 13 special election to issue higher education bonds and reauthorize highway bonds.
The bond issue will produce $150 million for state colleges and universities to use however they like, and another $100 million will pay off existing highway debt so the state can spend more in that area.
Huckabee emphasized that this was a painless process, because it involves "no new taxes" and "it's taking money we're already spending." He expects no opposition to the plan.
It is not a bad thing to spend more on higher education and better highways, which are two of the biggest priorities in Arkansas. But let's be honest. The debt will have to be paid off from the state's general revenue fund, so as the years pass, the money dedicated to the debt won't be able to be spent on other needs. And as interest rates rise, a future governor won't be able to issue more bonds to cover the difference, as Huckabee is doing now. In effect, Huckabee is putting the tab on a credit card and letting someone else figure out how to pay for it.
Like most Southern states, Arkansas has a regressive tax system that makes it difficult to raise taxes, except for the sales tax. But if we are ever going to convey the need for a better tax structure, the argument will have to built around the need to finance uncontroversial needs like higher education and highways. Instead of making that point, Huckabee opted for the easy (and less honest) option.
And if he is so confident the bonds will pass, why schedule an election during the holiday season, when turnout is sure to be as low as possible?
posted by Warwick Sabin @ 11:34 AM
1 comments
1 Comments:
Wouldn't you admit it's a nice touch for an out-going Guv itching to be President? Unfortunately, as ever, the electorate has no real idea how government works and mundane topics like the tax system isn't a sexy issue to hang your hat on (unless it's a tax cut being discussed---sigh). The more bullshit slung, the better and much bullshit will be slung by Asa(!) this time. Beebe has tried to eschew filthy politics to date, but it's really early and he'll find it necessary to get dirty. Americans love filthy politics devoid of issues and Arkansans are no different as exemplified by their history. It seems the best 'issues campaigns' occured when the Democratic Party got a wake-up call from Rockefeller in '66 and produced our best governors. Huck is a personable guy who merely brushstrokes real issues(except the schools---he should have got ALL he wanted with consolidation). Are we going to overcome Huck's lessons of how to sail to victories and return to good form? In the present climate, not likely. The attitude in NW AR is that if we don't improve our infrastructure and institutions of higher ed on our own, the Federal government won't be there to help us in the future. I haven't heard an AR Repub. or Dem. whine a bit about the highway pork money in NW AR. Our debts for war (and soon, NOLA and the rest of the Gulf coast) are assumed on the Pacific Rim as it is. What's the answer here, Warwick? I really want to hear from all politicians, academics, and journalists in our great state about where we go from here and how we get there.
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