"Spending control law needed," says CTF
Author:
John Carpay
2001/06/27
EDMONTON: Alberta government spending on programs in 2000-01 was 41% higher than four years ago, in 1996-97. According to the Alberta Finance Department's final statistics for 2000-01 released today, total program spending on health, infrastructure, education and other programs was $18 billion, compared to $12.8 billion in 1996-97.
After considering inflation and population growth, spending in real terms was up 20%, from $5,114 per person in 1996-97, to $6,133 in 2000-01 (numbers in constant 2001 dollars).
"Clearly, Alberta needs a law to limit the growth in spending," stated John Carpay, Alberta director of the Canadian Taxpayers Federation (CTF). "Obviously good intentions are not good enough - legislation is needed to index spending increases to inflation plus population growth. If inflation is 2.4% and population grows by 2.5%, then spending should increase by 5%, not by 10% or 15% or 20%."
"Albertans have said their top priorities are debt repayment and tax cuts, but instead this government continues to increase spending year after year, at a rate far higher than inflation and population growth," added Carpay.
"As long as the government spends more and more, there is no pressure to spend better and spend smarter. Why bother trying to get more bang for the buck, when taxpayers are providing more and more bucks " asked Carpay.
In Washington state, the majority of voters in 1993 approved a citizens' initiative to index the growth in government spending to inflation plus population increase. In effect since 1995, the law has forced politicians to prioritize spending rather than continuing to take more and more money from taxpayers.