Wednesday, March 29, 2006

Stating the obvious

The Journal-World reports Healthy economy could help pay for school funding plan, and also that:
Unprecedented tax increases, budget cuts, expanded gambling or a combination of the three will be needed to pay for a proposed three-year, $610 million school finance plan.

At least that is what opponents of the plan approved by the House last week said.
Of course spending more money requires a cut in other spending or an increase in revenue. This is fairly obvious to anyone other than the President and his Republican Congress.

And it's true that a booming economy will add revenue all on its own. But counting on a great economy to solve everything makes a big assumption, and you need a plan for when the economy isn't doing surprisingly well. A better solution is to make gradual plans for increasing income, whether from gaming or just pushing taxes higher, and provide a mechanism for slowing the rise when income exceed predictions.