Milton Friedman’s Vision in a Time of Crisis
Remarks Prepared for the Milton Friedman Birthday celebration, sponsored by the Friedman Foundation and the Independence Institute.
Colorado’s Budget: TABOR Still Working
The federal bailout is not stabilizing our state budget, but is in fact exacerbating the structural deficit in the budget.
People Want to Believe in Government
Why Are bad ideas so universally popular?
The 6-percent Cap Works
The lesson is clear: if politicians truly are interested in the poor they should pursue policies to promote economic growth, not policies to retard economic growth — like SB 228.
What Is At Stake In The Current Battle Over Colorado’s Tax and Spending Limits?
This year the Colorado legislature is debating a bill, (SB228) that would eliminate the Arveschoug-Bird Amendment. That Amendment was enacted by the legislature in 1992, a few months before the voters of Colorado enacted the Taxpayer’s Bill of Rights (TABOR) Amendment. Arveschoug-Bird caps the growth of general fund spending at 6 percent per year. With the 6 percent cap in place, surplus revenue above this limit is transferred into the Highway Users Trust Fund and to capital construction.
There are several reasons why this bill would be fiscally irresponsible. The bill would eliminate what has proven to be a very effective constraint on the growth in general fund expenditures, and also on how state revenues are allocated between transportation and capital projects, and other expenditures. The bill also raises constitutional issues and the role of the initiative and referendum process in amending the constitution.
What Now For PERA: Déjà Vu All Over Again?
Colorado’s Public Employee Retirement Association (PERA) is experiencing a financial crisis. The current financial crisis has resulted in a significant decrease in the value of PERA’s portfolio. But the financial crisis in PERA is not just the result of the current financial crisis. PERA’s defined benefit pension plan is fundamentally flawed; the problems in the plan have emerged over several decades. While the current financial crisis has exacerbated these problems, PERA is facing a long-run deterioration in its financial condition.
The legislature has enacted several reforms over the past decade to address PERA’s financial problems. These reforms have included changes in benefits, increased contribution rates, and administrative changes. Unfortunately, these reforms have failed to address the fundamental flaw in PERA’s defined benefit plan.
This Issue Paper explores the financial crisis in PERA. Different measures of the magnitude of the crisis are examined, and the flaws in PERA’s defined benefit plan are analyzed. The failed legislative reforms of PERA are critically evaluated. The Issue Paper concludes that the legislature should consider declaring a financial emergency and enacting the fundamental reforms needed to solve PERA’s financial crisis. Other states have successfully reformed their own state employee pension plans by replacing a defined benefit plan with a defined contribution plan.
$24 billion dollars and counting: Time to Reform PERA
Colorado citizens no longer can afford a state pension system dominated by special interests.
How the State Can Save $600 Million a Year
Colorado faces a significant shortfall in the state budget. In December, legislative staff economists projected a $631 million deficit in the fiscal year 2008-09 state budget.
What the White House Didn’t Want to Hear
“SUCK IT UP.”
Amendment 59 Would Give the Education Lobby a Blank Check
Amendment 59 will exacerbate budget problems such as those encountered during the recent recession.
The Case for Pretty People Making Lots of Cash!
If you think it’s wrong for pretty actors to be worth millions…
Kazakhstan Economy Benefits All Citizens
“Boom town” is too small a phrase to describe the cities I saw. I think if there were such a phrase as “boom country” Kazakhstan would be it.
