By Staff
Riley's cuts show serious commitment
And nothing is worse for Alabama's finances than to allow that waste to continue.
For Gov. Bob Riley, who spoke those strong words at a recent editorial board meeting, cutting state spending is the first step in a plan to offset Alabama's $500 million budget shortfall.
To describe Riley's plan as a critical first step underemphasizes the importance of what he has set about to accomplish. Government is often ripe with opportunities for expense cuts, and Riley's team is targeting those opportunities with the fearless confidence of business executives who have lived and learned that the simplest way to increase profitability - or in this case avoid bankruptcy - is to spend less than you take in.
Line-by-line, item by item, Riley and his team are examining the state's expenses, and they are ordering cuts:
So far, Riley's team has found about $127 million annually in expense savings. The cuts are not enough, of course. Even with increases in state tax collections, we need to find an additional $280 million to offset the budget shortfall.
In our view, the cuts show the taxpayers of Alabama a serious commitment to create a government worthy of the public's trust and that commitment will prove important when the governor has to ask for changes in tax structure to generate the additional revenue we need to end Alabama's financial crisis.