Baseline Budgeting Is Bankrupting Us

We all know that America is in Critical Shape when it comes to our finances.  You might say that soon we’ll be on life support.  How did we get to this point?  I would like to borrow (and modify) the old Clinton political phrase, “its the economy stupid,”  and say “it’s the spending stupid.”

One of the major culprits in increased spending is something called Baseline Budgeting.  Baseline Budgeting projects inflation and an individual programs expanded use into its cost projections.  This means that every year a program will always cost more.

Politicians like to say that the guy across the aisle is cutting a program if that program was baseline projected to grow 50 million dollars but the guy across the aisle says, lets allow only 25 million dollars this year.  It’s still a 25 million dollar increase…Not a Cut in actual spending.  This is used year after year to demonize ones opponent.  We all know that a politician never wants to be known as the guy who cut money from a program, so as a result it’s very hard to keep spending under control.  When you’re in fiscal trouble why would you play that game?  It simply drives me nuts.

Here is a link to a simple and better explanation of Baseline Budgeting.  I am not very good at explaining it but it’s something one should know about and understand, since we as a country need to become more fiscally responsible.

Remember, next time you hear a politician talk about a cut, ask yourself, is it really a cut or is it a cut from the projected baseline?  I bet there aren’t too many programs that are really cut, if any.  Do you care about your tax dollars?  Just Asking.


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