posted June 12, 2006 by Joseph Coletti
Economic growth has given the General Assembly $2.4 billion more to spend. Higher sales and income taxes have contributed to this surplus. The Senate adds $1.4 billion in new spending, and relies on nonrecurring revenues for $400 million in new recurring obligations. Drawing on the John Locke Foundation’s Freedom Budget 2005, this paper offers an alternative budget that would end the sales tax and income tax increases from 2001, eliminate Medicaid’s burden on counties, and keep spending growth to 4.3 percent – all within the limit of population growth and inflation.