Time for a hard look at the way we spend

It’s hard to find a bright spot in the current national recession. But if there is a silver lining, perhaps it will be in a new approach to the way state government spends.

On Dec. 11, the state Budget & Control Board voted to reduce spending for the current fiscal year. The mandatory cuts came after the state’s economists calculated that the amount the state would collect in revenue would fall far short of the amount the state was set to spend. This most recent budget reduction – a 7 percent cut – was the third decrease since the fiscal year began in July.

Our budget crisis was not caused only by declining revenues, but by too much spending as well. When times are good, state government simply spends too much of what it take in. We seem to spend everything we take in, rather than just what we need to fund government.

It was as a result of this practice that, when the economy soured, we became unable to support state government at the size we had grown it. Thus, we were forced to cut – requiring employee furloughs and layoffs.

Our current fiscal straits underscore the need for more thoughtful spending practices. The current budget predicament should teach us the perils of spending every dime we take in, as if the good times will last forever. That’s no way to manage a state. We must set priorities, focus on the primary functions of government, direct resources where they are genuinely needed, and pare back frills.

Simply put, it’s time to reform the way we spend taxpayers' money.

Over the past several years, Gov. Sanford has worked to draw attention to state spending practices he accurately sees as unhealthy. His answer is to cap spending by indexing spending growth to inflation and population growth, which would keep government from growing at a faster pace than the underlying economy. Others would be wise to accept his advice.

A new year and a new legislative session are approaching, and with them comes an opportunity for new beginnings – for a new chapter in the history of state government. Common sense demands we use this golden opportunity to change the way we spend.