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Chapter 52 of 145 · The Freeman 1989 by Foundation for Economic Education

State Funding Threatens Community Groups; R. Schimenz

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161 State Funding Threatens Community Groups by Robert J. Schimenz Y our local Little League may be on the dole. And it is not alone. Other youth baseball, football, and soccer leagues, police athletic clubs, senior citizen groups, and similar community-based volunteer organiza tions are on the receiving end of "member items' '-state budget items in which elected of ficials are allotted funds to dole out to commu nity organizations in their districts. Community groups tend to have tight bud gets, and their leaders are usually very frugal with their organizations' funds. The appeal of the state offering thousands of dollars, for the completion of a few simple forms, has been too much for most groups to resist. If you question the legitimacy of state fund ing, you will likely hear one of two answers. The first response, typically from an organiza tion member who senses something is askew, is that the money has already been allotted, and some group is going to get it anyway.

This response ignores the long-term conse quences of state funding. The ease of collecting funds by using the state as a governmental United Way will lead to an increased demand for state support. This increased demand will put upward pressure on state budgets, translat ing into higher taxes. In the long run, we all pay. Mr. Schimenz, a graduate student at Long Island Univer sity, is vice president of Island Trees Little League in New York. The second response, generally heard from legislators, is that the state is always spending tax dollars on "bad" or "poor" people and it is only fair that we give some money to "good" middle class people and their activities. But be cause the bulk of the tax burden rests on the shoulders of the middle class, where is the gain? And because there is the cost of an added bu reaucracy to collect and distribute the funds, the community suffers a net loss.

Forcing the general public to collectively support community organizations, no matter how worthy they may be, does long-term eco nomic harm. Taxpayers are hurt by having less money to spend, and community organizations are hurt because they ultimately become depen dent upon the state, where decisions are based on politics, not on merit. The worth of community organizations is not at issue here. Worth is based on value and need. If people believe an organization is worthwhile, they will voluntarily donate their time or money. Businessmen will donate voluntarily, with an eye on their company's reputation. This is especially true for youth sports groups, where local businessmen often act as sponsors. But with state funding, the worth of an orga nization is decided by political processes, not by individual choices. More than our money, state funding takes away our freedom of choice. D 162 The Dam Builders by Cecil Kuhne T he federal government has built, and op erates, hundreds of dams across the United States. Entire river systems have been dammed. The Tennessee River has more miles of reservoir shore line than surrounds all five Great Lakes. Of the 2,446 miles of the Missouri River, only 149 miles still flow freely, while the remainder of the river has been tamed by dams. The Colorado River basin has been impounded' to such an extent that, with vast portions of its flow diverted, little 'waterreaches its outlet in the Gulf of California. The Colum bia has been reduced to a succession of reser voirs, with little or no moving water in be tween.

The Freeman 1989

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