Truth in Spending
In efforts to curb spending, lawmakers often focus on the wrong targets-usually the “tip of the iceberg” services that are detailed each year in the budget. In fact, some real budget busters are never scrutinized because they are hard to find. States should:
- Confront Contract Spending
Contract spending costs states $300 billion per year and local governments $200 billion. Taxpayers have no idea if we’re getting our money’s worth from the contractors. States should fully disclose contract information and make sure that contracts meet cost and performance standards. - Scrutinize Special Interest Tax Breaks
Tax expenditures cost state treasuries another $300 billion per year. States need to report and regularly evaluate tax exemptions and repeal those that are ineffective or overly expensive. - End "No Strings Attached" Development Subsidies
Subsidies cost state and local governments $50 billion per year. Lawmakers are under intense pressure to hand corporations lucrative development deals, but the corporations often fail to deliver the promised jobs. States need to disclose these subsidies, require that they’re used to create good jobs and make corporations keep their promises or give the money back.