Thursday, December 18, 2008

ZBB is Not for Me!

While every good politician loves the idea of 'zero based budgeting, (ZBB)' it has incredible public relations potential, and it sounds nice and saleable to the general public. It mostly and imaginary and wholly unattainable concept to expect State Government to actually be a able to accomplish. Here are some simplistic talking points:

- Minnesota's budget is too large and too complicated for politicians to use ZBB. Minnesota's general fund budget is $34 Billion and $58 Billion all funds. BTW that's roughly $11,500 per capita.

- ZBB is impractical for large bureaucratic institutions. There are way to many programs, expenses, and justifying expense by expense would be more excruciating than watching a Coleman v. Franken recount...I mean watching paint dry...I mean you know what I mean!

-ZBB is against human nature. Everybody wants to know what a particular agency was appropriated last year. Simply D's want to give them more and R's. want to give them no more. Moreover the risk of ZBB is that if you really don't know what they got in the past you could give too much thereby exacerbating the budget conundrum!

-ZBB would take too long. I mean let's be honest here folks. It already takes R's and D's 6 months or more with many special sessions and one government shutdown to pass a budget without the added time that ZBB would require. True ZBB could take MN politicians years to complete!

-ZBB is just a political ploy to convince the public of politicians goodwill and good intentions before they find a nice easy way to let Minnesotan's down gently to the simple fact that "cuts alone won't fix this budget crisis."

I do say it's very much against the traditional Democratic model to have DFLers committing to ZBB so early. On the other side of the coin ZBB comes naturally to Republicans who would prefer this approach even in boom times. To me that shows an incredible amount of discipline and strategy on the part of the DFL, one that cannot last.

I figure that long about the February Forecast, right at the point where Mr. Stinson annouces that the economy is X million dollars worse, many DFL leaders will confirm via press conference, press release, or their own media that the worsening economic conditions highlight the need for both cuts and increased revenues (taxes). Some undisciplined DFLers might call for tax increases much earlier but for now they are singing with one voice.

R's will continue to sing with one voice as well:
- "Minnesota Government needs to live within its means."
- "The State budget GF budget has more than doubled in ten years."
- "Raising taxes is the last thing to do in a failing economy."
- "Minnesota tax code is not conducive to locating your business here."
- "Minnesota is the 12th highest taxed state in the nation and climbing."

Who's right? Well that depends on your prospective. Minnesota's Legislative and Government Affairs world is always a very large gray area. In the end, who is right is answered by who 'wins the day' with many days to come.

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