I-1033 sounds good when it talks about limiting growth in government to a number of people plus cost of living increases based on a standard. I like the sound of it too, but it DOES NOT make sense when real economics come into play.
Consider our current budget shortfall, impacting every agency in government. Fishing resources have been cut along with everything else. Here is what will happen according to the Secretary of State's office:
Here is an example of why I-1033 does not work:Fiscal impact
Due to the limitations on annual state growth, state officials report that I-1033 is expected to reduce general fund revenues by approximately $5.9 billion by 2015. The general fund supports education, social, health, environmental and general government services. Revenues that support public safety and infrastructure will also be reduced by an estimated $694 million for counties and $2.1 billion for cities.[5]
Today an employee makes $35,000 a year income, with a $650 a month insurance package for the worker alone. Next year, the employee received a contractually negotiated pay increase that matches the cost of living. The health insurance company raises their rates on an annual basis, bringing the insurance premium to $702, a mere 8% increase (much lower than the national average).
If I-1033 passes, the city government increases the amount of revenue generated through the legal channels by cost of living. This pays for the employee pay increase, but not the health care premium increase. In order to pay for the health care premium the city has 3 options: reduce coverage, drop coverage, or reduce employees.
Fiscally its impossible to operate any agency, private or public, basing their income stream on cost of living. Without income above cost of living, how can the city pay for the following?:
increased electricity rates
increased health care premiums
increase in fuel costs
vehicle replacement
facility maintenance
increased natural gas rates
As well as:
replacement of road surfaces
new infrastructure
new street lights
new intersections
improved parks and recreation areas
IT DOESN'T MAKE SENSE...
If you were a private business, would you be able to take on the task of running a company, but could only increase your revenue by 1.5% a year (last year's CPU-I cost of living allowance)? Does it make sense to hamstring your local services like Police, Fire, Roads, Parks, Permitting, Snow removal, Sewer, Water, and all of the other vital services your area provides?
This caps GROWTH, the one thing our state needs the most.
PLEASE VOTE NO ON I-1033
Want more info?
Colorado has tried this, and fell to 49th in the nation in education spending, reversing the legislation in 5 years, after the damage had been done:
http://www.cbpp.org/cms/?fa=view&id=753
Don't just take my word for it, here is a broad spectrum of articles, ranging from left to right, even including business journals, notoriously conservative groups that have money at heart.
http://seattle.bizjournals.com/seattle/ ... rial5.html#
http://www.seattlepi.com/connelly/408001_joel10.html
http://www.pnwlocalnews.com/south_king/ ... 90337.html
http://blog.thenewstribune.com/opinion/ ... ing-beast/#
http://whitmanpioneer.com/opinion/colum ... ve-i-1033/
http://www.spokesman.com/stories/2009/j ... ax-reform/
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