Lessons from the Garden State

Big spending, high-tax states across the country continue to find themselves in budget binds as the economy struggles.

Take New Jersey. The state is $32 billion in debt and has one of the nation's highest tax burdens, making it difficult to squeeze much more out of the productive class.

On Tuesday, Gov. Jon Corzine -- a liberal Democrat -- proposed an actual budget reduction for the coming year. He wants to spend $33 billion in fiscal year 2008, down from the current budget of $33.5 billion.

Yes, that's only a 1.5 percent cut, but it would mark just the fourth time since 1951 that the state spent less money than the year before.

What does that tell you?

In addition, the governor wants to cut 3,000 state jobs and eliminate the departments of personnel, agriculture and commerce. Already, according to The Wall Street Journal, Gov. Corzine has attacked the skyrocketing cost of public-sector benefits by raising the retirement age for new hires; switching elected officials from defined-benefit to defined-contribution retirement plans; and demanding that state workers actually pay a portion of their own health insurance costs.

All this may be too little, too late, but give Gov. Corzine some credit.

In contrast, many Nevada pols and special-interest groups insist that the Silver State address its budget shortfall through higher and new taxes, happily speeding the state toward the same brick wall that has crumpled New Jersey and others.

Real dollar budget reductions? Eliminating useless state boards, commissions or departments? Seriously addressing the looming crisis created by generous public-sector health care and retirement benefits?

Perish the thought in Nevada.