Fiscal Policy

National Budget Deficit Trends

By Marc Comtois | August 23, 2010 |

Randell Hoven (h/t) uses CBO figures and a simple chart to put the lie to the now familiar claims that the Iraq and Afghanistan wars and Bush tax cuts caused a $3 Trillion budget deficit. The CBO breaks that cost down over the eight calendar years of 2003-2010. Below is a picture of federal deficits…

A Tale of Two Counties

By Marc Comtois | July 23, 2010 |

I missed this when it was published in May, but this Washington Post article detailing the fiscal differences between the economically and demographically similar D.C. ‘burbs of Fairfax County, VA and Montgomery County, MD is worth a read. Take a snapshot of one year, 2006, when times were flush. In Fairfax, the county executive, an…

Recent RI Budget History, Part 3 of 3

By Carroll Andrew Morse | July 22, 2010 |

The final graph in this series shows the recent history of Rhode Island’s combined state and local spending. Rhode Island’s Municipal Affairs Office provides annual data on total municipal spending with state aid broken out in a separate column, allowing the state-aid contribution to local budgets to be subtracted out, avoiding the double-counting of intra-governmental…

Recent RI Budget History, Part 2 of 3

By Carroll Andrew Morse | July 22, 2010 |

The graphs below show the recent histories of two important subcategories of spending by Rhode Island state government, spending from general revenues… …and spending from Federal Funds (both adjusted for inflation)…

Recent RI Budget History, Part 1 of 3

By Carroll Andrew Morse | July 21, 2010 |

This is the first of several sets of posts intended to be rolled out over the next few weeks (the traditional summer slow season for political writing, though that will hardly be the case in RI this year!), related to issue discussions that will hopefully occur during the 2010 campaign. For starters, here is a…

The Case for Gridlock, Kinda

By Marc Comtois | July 19, 2010 |

In response to recent GOP leadership pronouncements, Kevin Williamson asks why anyone would trust the GOP any more than the Democrats in making budget cuts. Now, the 2009 balloon isn’t shown in this chart (and it may go off the chart if it was), but this shows that no matter who is in control, spending…

Explaining Why the Pension System Should Not Be Reamortized

By Carroll Andrew Morse | May 5, 2010 |

To rigorously show that reamortizing a pension system costs almost all taxpayers more money, you would begin with the risk-free rate of return on money and the expected return from the pension fund (which are two separate quantities) and then apply an appropriate discounting formula to the appropriate combination of the two. However, going strictly…

If Ireland can do it…

By Marc Comtois | April 8, 2010 |

….why not us? According to the Wall Street Journal: Government employees on average have higher pay and bigger benefits than the private-sector employees who support them with taxes. This has become a well known fact. When private firms run extended losses—spending more money than they take in—their employees must share in the necessary adjustments. But…

Obama Stimulus Helps RI’s Invisible Districts

By Marc Comtois | November 17, 2009 |

Thanks to President Obama’s stimulus package, RI’s 86th Congressional District has netted $10.2 million in aid and has had 58 jobs created (or saved)! The district, which encompasses the Williams and Franklin households in Ashaway, was given funds based on a proposal to open a low footprint, “green” factory for the manufacture of 100% eco-friendly…

Pension Problems from Coast to Coast

By Carroll Andrew Morse | November 17, 2009 |

This can’t be a good sign. They’re now making fun of Rhode Island in New Jersey, that bastion of good government practices, because of our inept pension fund management. John Bury of the nj.com website writes that…Rhode Island’s public pension plans are a basket case. They were 50% funded before the market collapse and bankruptcy…

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