Raising Taxes is Not the Answer

By David Sander

Using simple principles, we can control government spending, and ensure that tax dollars are actually helping serve the public, rather than just expanding bureaucracy.

The state could learn a lesson from cities like Rancho Cordova. We live within our means and built a large reserve to protect taxpayers and vital programs from economic uncertainty.

During my term as Mayor, Rancho Cordova had a $10.5 million budget surplus and built up over $81 million in reserves. We accomplished this with three simple mechanisms:

1. The Yellow Pages Test Government often duplicates the private sector, but government by nature is not efficient + there is no natural price or competitive pressure to control costs, improve service or increase efficiency. So we first figuratively look in the yellow pages to see if services can be provided by the private sector before creating costly new public bureaucracies.

2. The Checkbook Principle Individuals control their spending -- why can't government? In Rancho Cordova, we have a simple strategy: we spend less than we bring in. Period. We know there are only so many dollars and, unlike Congress, we only spend each dollar once.

3. The Measurement Rule In my city, if we can't measure the results, we don't spend the money. If you can't measure the impact of the spending, then you never know if you are accomplishing anything.

Using these simple principles, we can control government spending, and ensure that tax dollars are actually helping serve the public, rather than just expanding bureaucracy