Skip to main content

Spending It Like They Stole It


When does government have the right to spend taxpayer money? Or perhaps, more pressingly, when should the government be forbidden from spending taxpayer money? 

1889 Institute has previously written on the issue - developing five questions that should be asked before any government entity spends a single dime. These questions are: 

1. Is a program or agency consistent with the mission of Oklahoma’s state government? This purpose was spelled out in our state constitution: “Invoking the guidance of Almighty God, in order to secure and perpetuate the blessing of liberty; to secure just and rightful government; to promote our mutual welfare and happiness, we, the people of the State of Oklahoma, do ordain and establish this Constitution.” Secure and perpetuate liberty (notice this is the first order of business). Secure just and rightful government (not any government, not the domino of the majority over the minority - just and rightful). Promote (not provide, ordain or establish) mutual welfare and happiness. 

2. Is the program or agency fulfilling a need only government can effectively fill? Since government is funded through threat of force (if you continually refuse to pay your taxes, eventually men with guns will come to lock you away), it must be careful not to step in where it is not needed. Lawmakers should carefully consider whether the use of force to accomplish a given end is morally justified before committing taxpayer money to any expenditure.

3. Are the benefits from a program or agency unambiguous, obvious, and universal? Ideally, the benefits from government programs would also be measurable. When this is infeasible, they should be large and obvious. The benefits of courts, police and fire departments, and sewer systems, are obvious, though virtually impossible to measure. These benefits accrue to everyone. 

4. Do the benefits of a program or agency indisputably outweigh the costs? This is fairly obvious, but we must remember to factor in the total cost of the program, not only that portion which is financed at a given level of government. For instance, while the state of Oklahoma would only be on the hook for 10% of Medicaid expansion (as of now), the benefits to the state should be proven to a near certainty to outweigh the cost of both state and federal investment before Medicaid is expanded. Financial costs of an economic development program can be far outweighed by the negative impacts on businesses that do not enjoy the largesse of government, although those costs are not easily identified and quantified.

5. Does the existing program or agency show evidence of past success? 1889 has written previously about how to measure success. Job one is to make sure you’re measuring effects, not effort. Effects are the tangible results of a program, such as student performance on a national standards test that measures what they know. Effort is the input into the program, such as how many 4 year olds are enrolled in pre-k or how much money the state spends on each public school student. Effort may influence effects, if it is well directed. Yet, for all the spending on pre-k programming in Oklahoma, there has been no evidence of a positive impact. If the intention behind the program, and the measure of success is academic performance, the evidence is that the program has failed. It should therefore be cancelled.

Keep in mind, these principles to all levels of government and all forms of spending. There is no such thing as government spending that does not come directly out of the pockets of taxpayers. Federal money spent by the states? Do you pay federal taxes? I know I do. Money from corporate taxes? Do you buy things from corporations? I know I do. 

If Oklahomans are worried about how to get our fair share of federal money (a legitimate concern) perhaps we should hold our members of congress accountable to keep federal spending as low as possible, and to apply these same principles to federal spending. That way we won’t have to scramble to ensure we get our due. Government actors at all levels of government need to remember that it is taxpayer money they spend. They have a responsibility to spend it like they earned it, not like they stole it. 

Mike Davis is Research Fellow at 1889 Institute. He can be reached at mdavis@1889institute.org.

The opinions expressed in this blog are those of the author, and do not necessarily reflect the official position of 1889 Institute.

Popular posts from this blog

Present Reforms to Keep the Ghost of State Questions Past from Creating Future Headaches

Oklahoma, like many western states, allows its citizens to directly participate in the democratic process through citizen initiatives and referendums. In a referendum, the legislature directs a question to the people — usually to modify the state constitution, since the legislature can change statutes itself. An initiative requires no legislative involvement, but is initiated by the people via signature gathering, and can be used to modify statute or amend the constitution. Collectively, the initiatives and referendums that make it onto the ballot are known as State Questions.   Recently, there have been calls to make it more difficult to amend the constitution. At least two proposals are being discussed. One would diversify the signature requirement by demanding that a proportional amount of signatures come from each region of the state. The other would require a sixty percent majority to adopt a constitutional amendment rather than the fifty percent plus one currently in place. ...
Read more

Dear GT Bynum, Let the Children Play

I live close to a large City of Tulsa park that has a golf course, walking trail, green spaces, and a couple of playgrounds. My (almost) three-year old son loves the playgrounds, and often begs us during walks in our neighborhood to detour to “for-chun” (LaFortune Park). This seemingly innocent request can become a hassle when we don’t really have time, but we indulge him as much as possible. It’s good for kids to play outside, especially with other kids they might not otherwise come into contact with. But sometimes we have to contend with an upset toddler who doesn’t understand why we can’t go to the playground right this minute. I’m not complaining, every parent of young kids deals with similar stuff. But during the COVID lockdown, we’ve had to contend with an altogether different LaFortune Park situation with our son. As part of the mayor’s shelter-in-place overkill, all city-owned playgrounds were closed “ indefinitely .” This wasn’t a guideline or suggestion, the city meant busine...
Read more

Muddy, Shallow Thinking Versus Clarity in Education Reform

Monopolies are the best! If we are to gain maximum efficiency and create the greatest value for people, monopoly is the way to go. Competition creates administrative inefficiency since instead of one set of managers, there are as many as there are companies, and all of them cost money. Competitive companies make products that do the same basic things, but waste resources by making products with different features. Standardized products would save money. Were research and development under one roof, instead of many competitive ones, researchers could coordinate more closely, saving money and ultimately being even more innovative. Monopolies would therefore benefit everyone. Everything in the first paragraph is, of course, balderdash . Monopolies, especially those created by government, stifle innovation, develop bloated management, produce too little at low quality, and charge too much. Why? Because they can. They’re monopolists. Without competition and with nearly guaranteed ...
Read more

If Data Is Supposed to Be Our Guide, the Great Coronavirus Shutdown of 2020 Should End

According to the most widely cited model projecting the course of the coronavirus outbreak, today is supposed to be Oklahoma’s peak in daily deaths. Now is a good time to go back to the beginning of the Great Coronavirus Shutdown of 2020, review the goal of our policy, and assess our current status. If our policy should be “data-driven,” as we are constantly told, then let’s actually look at the data and determine our next policy steps accordingly. Spoiler alert: according to the terms set out by those advocating for the shutdown policy, the policy’s continuance is no longer justified. The stated goal of the shutdown policy was to “flatten the curve” so as to prevent hospitals from becoming overwhelmed with COVID patients. The fear was that the virus would spread so fast that at its peak, the number of cases would exceed the overall capacity of the healthcare system. If that peak could be stretched out over a longer period of time, lives would be saved. This concept was il...
Read more