WHEREAS:

The current period of national economic growth, now in its eighth year, has boosted federal, state and local revenue collections far in excess of earlier estimates; and

WHEREAS:

This broad-based economic growth has been evident in nearly every state over the past three years, leaving most state and local governments in their best fiscal shape in a decade; and

WHEREAS:

During the current fiscal year the federal government is expected to run its first surplus since 1969; and

WHEREAS:

This unexpectedly high revenue growth has come during a period when expenditure growth at all levels of government has remained fairly stagnant; and

WHEREAS:

As a result of these trends, Congress, along with many state legislatures and local officials, is faced with a question of how to most effectively employ significant accumulations of unexpended cash.

THEREFORE BE IT RESOLVED:

That AFSCME encourages federal, state and local policy makers to support responsible and prudent policies to make use of these unexpected revenues; and

BE IT FURTHER RESOLVED:

That the first order of business in dealing with unexpected revenues should be to satisfy unmet spending needs in high-priority areas, which were neglected during leaner economic times; and

BE IT FURTHER RESOLVED:

That state and local governments should next engage in efforts to build up fiscal reserves as a cushion against the impact of future economic downturns, and to pay down existing debt ahead of schedule to lower debt service costs and free up additional revenues for high priority purposes; and

BE IT FINALLY RESOLVED:

That AFSCME cautions federal, state and local legislators against succumbing to the temptation to enact costly, permanent tax cuts that would result in severe revenue shortfalls and require harmful reductions in vital public services during the next economic downturn.

SUBMITTED BY:

Stanley W. Hill, Executive Director and Delegate 
AFSCME Council 37
New York