More Budgeting Gimmicks from Augusta

The current administration announced last week a plan to borrow $3 million from next year’s budget to restore “longevity pay” – automatic raises to workers who have been in state government for more than 15 years. 

Well, that’s not exactly what they announced. 

In political-speak they announced something called a “payroll push”.  It’s a budgeting gimmick that “pushes” $3 million in payroll costs on to next year’s budget in order pay for the automatic raises this year.  The administration is claiming this financial shell game “results in a net savings”.  That doesn’t pass the laugh test.  Taxpayers aren’t saving anything.  The payroll checks will still go out as planned.  The administration is borrowing from future budgets to pay for the raises. 

Apart from being another example of poor fiscal management, it also highlights two additional problems with business-as-usual in Augusta.  First, the budget gimmick is intended to hide the real purpose of borrowing the money.  In effect, the administration is borrowing money to pay for the automatic raises, but they call it a “payroll push” to give the appearance that it’s about covering the cost of current salaries.  That’s dishonest.

Second, it’s an obvious political payoff to a favored constituency.  Rather than stand up for what’s best for the long-term prosperity of all Maine citizens, administration officials are bowing to political pressure applied by a group of preferred individuals. 

Such examples only strengthen the call for proper management of our state.  Good private-sector managers approach these financial issues in a way that career politicians from Augusta or Washington do not.  Skilled managers are focused on the success of the overall enterprise and not just what will make their friends happy.  Only an experienced and competent manager can provide the leadership and long-term vision - free of political calculations - that will build a prosperous and sustainable economy in Maine. 

If the Governor is serious about saving money by cutting payroll, perhaps he should start at the top. 

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