Unclear on the concept
Thursday, Apr 28, 2011
* Greg Hinz follows up with Comptroller Judy Baar Topinka about her projection yesterday that the state would have $8 billion in unpaid bills at the end of this fiscal year...
As we’ve discussed time and time again, the tax hike was designed to all but eliminate the structural deficit. The unpaid bills were supposed to be paid off with a big loan, the payments for which were actually included in the tax hike.
Also, the tax hike took effect January 1, but employers didn’t adjust their payroll programs until early March. We know this because income tax receipts spiked way up in March. So, the state will have just four months of additional tax hike revenues. That new money will not reduce the overdue bill backlog. It was never designed to do that.
That being said, Topinka is right that this will be extremely difficult to explain to voters. Heck, it’s difficult to explain to legislators and reporters. “You raised my taxes and still can’t pay your past-due bills? What the heck?”