Sustainable Spending: Respect the Cap

8/9/2019 Sustainable Spending: Respect the Cap

1/5

Yankee Institute Policy Brief

Sustainable Spending:Respect the Cap

By Suzanne BatesPolicy Director, Yankee Institute

January 2015


2/5

www.YankeeInstitute.org

January 2015| Yankee Institute for Public Policy | "

!"#$"%#&' )#*+#,- -.# /0+1

#$% &'()%()*'+, -%./)% '0 1221 '3%4 *56',*(7 / ,)/)% *(&'5% )/8 9/, 4%,':3%- *( 6/4) .%&/+,% '0 /(

*56'4)/() &'564'5*,%; < ,6%(-*(7 &/6 9'+:- /&&'56/(= )$% (%9 )/8 )$/) 9'+:- 6+) 4%/,'(/.:% :*5*),

'( )$% 74'9)$ '0 ,)/)% ,6%(-*(7> #$% ,6%(-*(7 &/6 6/,,%- '3%49$%:5*(7:= 9*)$ 5'4% )$/( ?@ 6%4&%() '0

3')%4, ,+66'4)*(7 *) *( A'3%5.%4 122"B %(,$4*(*(7 )$% &/6 *( )$% ,)/)%C, &'(,)*)+)*'(>

D%,6*)% )$%,% 7''- *()%()*'(,B 0'4 =%/4, )$% ,)/)% :%7*,:/)+4% $/, *7('4%- E'((%&)*&+)C, &'(,)*)+)*'(/::=

5/(-/)%- ,6%(-*(7 &/6B 9$%)$%4 .= 3')*(7 )' %8&%%- )$% &/6C, :*5*), )' 6/= 0'4 / (%9 64'74/5B '4 .=

+,*(7 &4%/)*3% /&&'+()*(7 )' 7%) /4'+(- )$% &/6>

#$% *56/&) $/, .%%( ,*7(*0*&/()> #$% ,)/)% &'+:- $/3% ,/3%- FG>" .*::*'( '3%4 )$% )9%()= =%/4, .%)9%%(

)$% &/6C, *(&%6)*'( *( 122" +()*: "@1"B *0 :/95/H%4, $/- 0'::'9%- )$%*4 &'(,)*)+)*'(/::= 5/(-/)%-

4%,6'(,*.*:*)= )' H%%6 ,6%(-*(7 +(-%4 )$% &/6>1

#$*, =%/4B )$% I%7*,:/)*3% J%,%/4&$ K00*&% %,)*5/)%, )$/) *0 ,)/)% :/95/H%4, -'(C) 4%*( *( ,6%(-*(7B )$%

.+-7%) 9*:: %8&%%- )$% &/6 *( 0*,&/: =%/4 "@1L .= FG2@ 5*::*'(B /(- *( 0*,&/: =%/4 "@1M .= FL2" 5*::*'(>"

N+) )' /&$*%3% )$*, :%3%: '0 ,6%(-*(7B :/95/H%4, 9'+:- $/3% )' )/8 4%,*-%(), 5'4% '4 &'::%&) /--*)*'(/:0%%,B ,*(&% )$% ,)/)% $/, 64'O%&)%- -%0*&*), '0 F1>P .*::*'( *( "@1L /(- F1>Q .*::*'( *( "@1M>

#$% .%))%4 6/)$ *, 0'4 :/95/H%4, )' 4%*( *( ,)/)% ,6%(-*(7B )' H%%6 )$% .+-7%) +(-%4 )$% &'(,)*)+)*'(/:

,6%(-*(7 &/6B /(- )' (') %(7/7% *( /(= R+%,)*'(/.:% /&&'+()*(7 64/&)*&%,> J%,6%&)*(7 )$% &/6C, :*5*) 9*::

64'3*-% 0/*4(%,, 0'4 )/86/=%4,B /(- 5/*()/*( / 5'4% ,+,)/*(/.:% ,)/)% 7'3%4(5%() 0'4 E'((%&)*&+)C,

&*)*S%(,>

2.# 3%*-4$5 46 -.# 7+#89%8: /0+

T( 1221B /, / 5'()$,U:'(7 ./)):% '3%4 )$% *(,)*)+)*'( '0 / ,)/)% *(&'5% )/8 4/7%- *( V/4)0'4-B ,'5%

:/95/H%4, 9$' '66',%- )$% *(&'5% )/8 9%4% %3%()+/::= /66%/,%- .= )$% :%7*,:/)+4%C, /664'3/: '0 /

,)/)% ,6%(-*(7 &/6> D%&> 1GB "@1Q> "@1QUJU@"2P>

$))6;ZZ999>&7/>&)>7'3Z':4ZD'&+5%(),Z=%/4ZYTZ"@1QYTU

"@1Q1"1G[Y/O'4\"@T,,+%,\"@0'4\"@"@1G>6-0


3/5

Sustainable Spending: Respect the Cap

3 | Yankee Institute for Public Policy | January 2015

#$% 3%4= 6+46',% '0 )$% &/6 *, )' ,5'')$ '+) )$% 0%3%4*,$ ,9*(7, .%)9%%( -%0*&*), /(- ,+46:+,%,

)$/) $/3% &$/4/&)%4*S%- E'((%&)*&+)C, 0*(/(&%,>

#$% )4%(- $/, .%%(; -%0*&*)B 0'::'9%- .= )/8 *(&4%/,%B 0'::'9%- .= ,+46:+,B 0'::'9%- .= 64'74/5

%86/(,*'(B 0'::'9%- .= -%0*&*)> T( )$%'4=B )$% &/6 ,$'+:- *()%44+6) )$% ,:*-% )'9/4- /(')$%4

-%0*&*) )$/) ,%%5, )' .%7*( 9*)$ %/&$ )/8 *(&4%/,%>P

V'9%3%4B O+,) /0)%4 )$% *(&'5% )/8 9/, *56:%5%()%-B )$% ,)/)% 9/, $*) $/4- .= )$% 4%&%,,*'( *( )$%

%/4:= 122@,> T) $/, (%3%4 0+::= 4%&'3%4%-> X*(&% 1221B 74'9)$ *( ,)/)% ,6%(-*(7 $/, %86:'-%- .= 1?M

6%4&%()B %3%( /, )$% E'((%&)*&+) %&'('5= $/, 0/*:%- )' 74'9 /, 0/,) /, )$% (/)*'(/: %&'('5=>

/488#,-%,;-+?0%8#9

E'((%&)*&+)C, ,6%(-*(7 &/6 *, *()%(-%- )' :*5*) .+-7%) 74'9)$ )' )$% $*7$%4 '0 %*)$%4 )$% &+44%() 4/)% '0

*(0:/)*'( '4 / 0*3%U=%/4 /3%4/7% '0 )$% /((+/: 6%4,'(/: *(&'5% 74'9)$ 0'4 )$% ,)/)%> E%4)/*( %86%(-*)+4%,

&/( 74'9 '+),*-% )$% &/6B *(&:+-*(7 -%.) ,%43*&% 6/=5%(),] 74/(), )' -*,)4%,,%- 5+(*&*6/:*)*%,] )$% 0*4,)

=%/4 '0 ,6%(-*(7 '( &'+4) '4-%4,] /(- )4/(,0%4, )' )$% .+-7%) 4%,%43% 0+(->

#$% &/6 9/, -%,*7(%- )' .% -*00*&+:) )' &*4&+53%()B /, 5'4% )$/( PZG '0 )$% :%7*,:/)+4% 5+,) 3')% )'

/664'3% ,6%(-*(7 '3%4 )$% &/6 *( %*)$%4 *( /( %5%47%(&= '4 +(-%4 ^%8)4/'4-*(/4= &*4&+5,)/(&%,>_ N+) *(

4%/:*)= )$% :%7*,:/)+4% /(- )$% 7'3%4('4 $/3% %3/-%- )$% &/6 ,%3%4/: )*5%,B 9$%)$%4 .= 3')*(7 )' %8&%%-

)$% &/6 '4 .= ,*56:= 5'3*(7 5'(%= /4'+(- )' /3'*- *)>

`'3> D/((%: Y/::'= $/, +,%- )$*, :/,) 5%)$'- 4%7+:/4:=B 5'3*(7 )%(, '0 5*::*'(, '0 -'::/4, 0'4 %-+&/)*'(

/(- .*::*'(, 0'4 Y%-*&/*- '+) '0 )$% ,6%(-*(7 &/6 0'45+:/ ,' )$/) $*, .+-7%), -*-(C) a '( 6/6%4 a .+,)

)$% &/6>QN+) '3> Y/::'= 9/, O+,) 0'::'9*(7 64%&%-%() a )$% ,6%(-*(7 &/6 9/, ,*5*:/4:= -*,4%7/4-%-

+(-%4 '3> b'-* J%:: /(- `'3> b'$( J'9:/(->

I''6$':%, :*H% )$%,% ,$'9 )$/) )$% &/6 *, (') /, %00%&)*3% /, *) ,$'+:- .%> #$*, &'+:- .% 4%5%-*%- .=

,)4%(7)$%(*(7 )$% &/6B '4 .= &'(,)*)+%(), /(- )$% 5%-*/ $':-*(7 :/95/H%4, /&&'+()/.:% 9$%( )$%= +,%

/&&'+()*(7 5/(%+3%4, )' %3/-% )$% &/6>

T( /--*)*'(B .%&/+,% )$% &/6 -'%, (') &'3%4 -%.) ,%43*&% 6/=5%(),B ,+&&%,,*3% 7'3%4('4, /(-

:%7*,:/)+4%, $/3% 4%:*%- '( .'44'9%- 5'(%= .')$ 0'4 :'(7U)%45 64'O%&), /(- ,$'4)U)%45 ,6%(-*(7> #$%

,)/)% *, ('9 ,6%(-*(7 F">P .*::*'( / =%/4 '( -%.) ,%43*&%B 9$*&$ *, 5'4% )$/( 1@ 6%4&%() '0 )$% ,)/)%

.+-7%)>

PW*::*/5,B I/44=> ^X)/)% .+-7%) *( 6:/&%B .+) 4%- *(H &':'4, 4',= 64'O%&)*'(,>_ #$% V/4)0'4- E'+4/()B Y/=

1@B 122"> 6>

Qc$/(%+0B d%*)$> ^E# ,6%(-*(7 &/6 )$4%/)%(, )' ,R+%%S% %-+&/)*'(B ')$%4priorities in next .+-7%)>_

E#Y*44'4> D%&> 1B "@1Q> $))6;ZZ&)5*44'4>'47Z"@1QZ1"Z@1Z,6%(-*(7U&/6U)$4%/)%(,U)'U,R+%%S%U%-+&/)*'(U

')$%4U64*'4*)*%,U*(U(%8)U&)U.+-7%)Z


4/5

www.YankeeInstitute.org

January 2015| Yankee Institute for Public Policy | Q

2.# /0+ /4;?9 30"# @4$A#9

T0 :/95/H%4, $/- /-$%4%- )' )$% &/6 *( )$% 122@, /(- )$% "@@@,B E'((%&)*&+) 9'+:- $/3% $/- / 5+&$

5'4% ,+.,)/()*/: 4/*(= -/= 0+(- *( 6:/&% 9$%( )$% "@@? 4%&%,,*'( $*)B 9$*&$ 9'+:- $/3% (%7/)%- )$%

(%%- )' 4/*,% )/8%,>

N= "@@?B )$% ,)/)% &'+:- $/3% ,/3%- /( /--*)*'(/: F">Q .*::*'( *0 *) /-$%4%- )' )$% &/6 04'5 122"U"@@?>

I''H*(7 /) 122"U"@1GB )$% ,/3*(7, &'+:- $/3% .%%( FG>" .*::*'( $/- :/95/H%4, H%6) ,6%(-*(7 +(-%4 )$%

&/6>

#$',% ,/3*(7, 9'+:- $/3% 5%/() 5'4% 0:%8*.*:*)= 0'4 :%7*,:/)'4,B 0%9%4 )/8 *(&4%/,%, /(- / ,)4'(7%4B

5'4% ,+,)/*(/.:% 0*(/(&*/: 6',*)*'( 0'4 0+)+4% 7%(%4/)*'(,>

/BCC=D 7C=EDFEG H%8 -.4;*089*IJ

X6%(-*(7 *0 E/6 K.,%43%- G FLBL1?>G

KLLONLP FMB@@P>M FMBPPG>"

KLLPNLJ FMBPQQ>1 FMBL21>M

KLLJNLQ FMBL@M>M FMBM??>Q

KLLQNLR FMB?L?>M F?B@M@>?

KLLRNLS F?B1?1>1 F?BQ@Q>G

KLLSNLL F?BGM?>M F?B?"1>"

KLLLNMTTT F2B@1Q>G F2BP11>"

MTTTNTK F2BG@?>Q F2B?"1>L

MTTKNTM F1@B@1G>" F1@B"LP>P

MTTMNTO F1@BLPL>" F1@B?QP>GMTTONTP F11B12L>M F11B@"?>@

MTTPNTJ F11BL2L>1 F11BQ@?>1

MTTJNTQ F1"B1M1>@ F11B?2L>L

MTTQNTR F1"BLQP>" F1"BMLG>L

MTTRNTS F1PB@L1>M F1PBQL@>L

MTTSNTL F1PBLL">G F1QB21P>2

MTTLNKT F1QBQL?>L F1GB??P>G

MTKTNKK F1GB1"Q>@ F1GB@1G>?

MTKKNKMU F1GBLPL>M F1GBM@2>?

MTKMNKOU F1LB@?@>? F1LB"M2>L

24-0?' F""?B11?>@ F"PPBP11>@

D%66#$#8,# FGB12P>@

5D/)/ &'56*:%- .= e/&$/4= b/('9,H* /) )$% E'((%&)*&+) X)/)% I*.4/4=>


5/5

Sustainable Spending: Respect the Cap

5 | Yankee Institute for Public Policy | January 2015

V44A%8: B.#09

#$% 64*5/4= :%,,'( '0 )$% :/,) "P =%/4, *, )$/) )$% ,6%(-*(7 &/6 &'+:- $/3% -'(% 9$/) *) 9/, 5%/() )'

-'; X5'')$ '+) 4%3%(+% .%)9%%( .''5 /(- .+,) =%/4, /(- %(,+4% / ,+,)/*(/.:% 7'3%4(5%() )$/) )4%/),

)/86/=%4, 0/*4:=>

I/95/H%4, (%%- )' 4%&'55*) )' H%%6*(7 ,)/)% %86%(-*)+4%, +(-%4 )$% &'(,)*)+)*'(/: &/6B /(- )' ,)'6

0*(-*(7 &4%/)*3% 9/=, )' &*4&+53%() )$% &/6C, :*5*),> D'*(7 )$*, 9*:: 4%R+*4% :%7*,:/)'4, )' %8%4&*,% 0*,&/:

4%,)4/*()B .+) *) 9*:: /:,' /::'9 E'((%&)*&+) )' .+*:- +6 / 4/*(= -/= 0+(-> #$*, *, / (%&%,,/4= 0*4,) ,)%6

)'9/4- 5/H*(7 ,)/)% 7'3%4(5%() 5'4% ,+,)/*(/.:% *( )$% :'(7 4+( .= 64'3*-*(7 64%-*&)/.*:*)=B 0/*4(%,,B

/(- ,)/.*:*)= 0'4 )$% ,)/)%C, 4%,*-%(),>

Sustainable Spending: Respect the Cap

Documents

Transcript of Sustainable Spending: Respect the Cap