Archive for February 2005

One Budget, Not Two: Recognizing a Simple Budget Truth

by Doug Hall and Charlie Arlinghaus

Until 1999, state education funding was an integral part of the general state budget. In 1999, in response to the Claremont lawsuit, aid was separated into an education trust fund and a series of tax increases were dedicated to that fund along with a transfer from the general fund. It made sense at the time to create an accounting tool to show that the tax increases were being used for their stated purpose. However, today that accounting tool is no longer necessary, is misleading, and ought to be eliminated.