The myth of no new money
The idea that there is “no new money” is nothing but a myth perpetuated by those determined to reduce their personal exposure to the cost of maintaining the American way of life.

By CHRIS BONNEY
IT HAS BECOME a given in government funding conversations: “There’s no new money.” Whether talking about national defense, education, human services or, closer to home, deteriorating sewer lines and transportation, the assumption that there’s no new money to pay for things that Americans look to government to provide has become so pervasive that it’s accorded the respect of a truth.
In fact, nothing could be further from reality. In good times and bad, Americans have always stepped up for the things they believe in. When our parents and grandparents came home from two World Wars, instead of whining about hard times and the deprivations of war, they agreed to the most ambitious investments in public education, infrastructure, science and technology in our nation’s history.
The idea that there is “no new money” is nothing but a myth perpetuated by those determined to reduce their personal exposure to the cost of maintaining the American way of life.
This is not a recent phenomenon, but rather the resurgence of an extremist point of view that goes back more than 100 years. It’s not surprising that the movement has resurfaced to take advantage of this volatile time in history. What is surprising, however, is the extent to which the movement’s impact has influenced elected representatives at all levels of government.
Curious about the impact of the tea party and similar movements on local revenue initiatives, the International City/ County Management Association reviewed hundreds of local tax measures, bond issues and referenda from 2010 and 2011. Its findings were surprising. Rather than suffering blistering defeat at the hands of angry taxpayers, fully three-quarters of these initiatives were approved by voters.
Even Hampton Roads’ own congressman, Scott Rigell, who rode into office on the shoulders of tea partiers, recently conceded that tax increases will be necessary to resolve the nation’s budget challenges.
The analysis found three conditions present in successful revenue initiatives:
- A clear explanation of need and priority.
- High citizen trust in the local government or agency sponsoring the initiative.
- Voter access to accurate and timely information that enabled them to make informed decisions.
The analysis shows that taxpayers are willing to pay to get the services they expect government to provide so long as reasonable assurances are made. Elected leaders in Virginia localities, fearful of voter backlash but also mindful of the increased financial demands on localities, can take confidence from the results. And they may lead boldly and confidently if they do a good job explaining and justifying the needs.
As we have throughout history, Americans are willing to take responsibility for maintaining and updating government at the local, state and national levels. Let’s get past the idea that “there is no new money” and get on with building the future.
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Chris Bonney is an independent marketing researcher and board member of the Hampton Roads Center for Civic Engagement.

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