The Rhode Island Public Expenditure Council is out with its latest report on the way the state spends your tax dollars. RIPEC’s findings include the fact that the state budget has increased by $1.6 billion or 46 percent since 1996.
While an increase in spending year-to-year is expected, it is alarming that our state government’s spending growth outpaces both personal income and inflation. The bulk of the increased spending has gone to entitlement programs and in aid to municipal school departments over the time period.
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In one section of its report, RIPEC states: “A fiscal scenario characterized by spending increases at a faster rate than inflation and personal income coupled with projected operating shortfalls is not sustainable. Therefore, state officials will need to demonstrate restraint in developing the state’s annual fiscal plan.”
More fiscal restraint. What a refreshing approach for government to adopt. Why is it that state government is inevitably so reluctant to follow the same fiscal practices that any successful business – that any family, for that matter– must follow in order to keep itself in the black?
RIPEC offers Rhode Island’s policymakers some sound suggestions.
The independent, nonpartisan group suggests that the state develop fiscally realistic policies regarding entitlement spending and limiting new state spending initiatives. RIPEC would also like to see the state do a better job of controlling its overhead and maintain tighter control of its debt. Lastly, RIPEC suggests the state demand more fiscal accountability from cities and towns – particularly the school districts.
Policymakers need to do a better job in adhering to such suggestions – none of which is unreasonable. In some areas the state should be commended for paying down certain debts, notably that of DEPCO.
But spending at a rate greater than that of inflation or personal income is a formula that can only lead us into trouble.
