Declining revenues should not spark a tax increase

As budget negotiators were deep into the tedious task of working through a spending plan that would be acceptable to representatives and senators, along with Gov. Mike Easley, word came from the governor's budget office that revenues will be about $70 million less than expected.

That's bad news on a couple of fronts.

First, it's an indicator that the economy has slowed down.

Second, it'll cause politicians in Raleigh who like spending every penny of taxpayer money they can get their hands on a bit of indigestion. There'll be fewer pennies to divvy out.

Invariably, when the state government revenues don't look as pleasing as the big spenders would like, there'll be calls to raise taxes to meet the "critical needs" of the state. What they often mean is that they need more taxpayer money to fulfill political promises.

Of course, it didn't take the latest revenue figures to prompt some of the gang in Raleigh to raise taxes this year. You may remember back in May, just before the 2008 short session of the General Assembly was to convene, Easley called for an increase in the cigarette tax and the alcohol tax. He tried to link the two taxes to increases in teacher pay and more money for mental health programs.

The Democratic leadership in both legislative chambers, backed by the Republican minority in the General Assembly, wisely rejected this tax increase ploy. They set priorities and balanced the budget without increasing tax rates.

Setting priorities will be the biggest factor in finding ways to cut the $70 million that the governor's budget office says the state will have to do without.

Now, $70 million is nothing to sneeze at. But it represents just a little more than three-tenths of 1 percent of the $21 billion budget.

If lawmakers are unable to find the money by agreeing to a set of priorities, they can surely ask departments across state government to find three-tenths of 1 percent in their own budgets.

Private businesses across the state have to cut their own budgets to make ends meet. North Carolina families are having to make budget adjustments to meet higher food and energy costs.

State government should do the same.