BCT Editorial – 8/22/10

The editorial speaks of “the budget crunch.”  As is the Times habit, the editorial failed to note overspending is the problem, not a lack of revenue.  PA spending has outpaced inflation.  The 2002-2003 budget was $20.7 billion and the proposed 2010-2011 budget is $29 billion.  If spending increases had been limited to the increase of the CPI, the current budget would be about $25.1 billion, and instead of a $1 billion deficit we’d have either a $2.9 billion surplus or lower taxation, and lower taxation favors economic growth.