You're exactly right. Never mind actually cutting spending, if the state budget had been only increasing by the rate of inflation over the past years, there would be piles of money that could be re-allocated toward property tax relief.
Fred seems to believe that NJ doesn't collect enough tax money from us. I suspect (I hope) his opinion is in the minority.
By the way.....welcome aboard and good luck with the blog.
Posted by
scott ireland
on
January 26, 2007 7:07 AM
Actually neither of you is right. The rate of inflation when applied to the full range of services and products in the economy is one number. The rate of inflation when applied to what the government spends money on is quite a much more narrow range of items, hence a much higher rate of inflation.
Posted by
Anonymous
on
January 26, 2007 11:39 AM
My inflation reference was to the Consumer Price Index, which (correct me if I'm wrong) has recently fallen to less than 3%
Ron said..."It seems to me that if the state spent less elsewhere they'd have more for school funding and tax relief....."
I agree with him.
Where are either one of us wrong?
Posted by
Scott Ireland
on
January 26, 2007 12:02 PM
Because of the limited range of services and products the state is engaged in providing some items will skew the rate of inflation in the cost of government as opposed to the reular calculation. Eg: health benefits are a greater percentage of state spending then would found in the Consumer Price Index. Wages, pensions and the like also and don't discount the fact that competitive bidding actually can create a situation where Government pays a higher price than competitive negotiation would. Especially in NJ's pay to play environment but it is still the law none the less.
Posted by
Anonymous
on
January 26, 2007 1:59 PM
Scott, Thank you for the good wishes. For those who are unfamiliar, Scott Ireland edits the blog for Mt. Olive, a town that makes Montville's politics look genteel by comparison.
Our anonymous poster makes some good points regarding the relatively narrow range of services which the state budget includes relative the the CPI as a whole.
If memory serves me, McGreevey's last budget called for a 19% increase in spending in a 3% inflationary climate. I'd be very interested to know if that limited range is responsible for that huge disparity.
Would any state or local politicians care to help us out?
