Dear Source:
Some of our senators want to take bond money that was borrowed to support capital projects and use it for regular government expenses including pay increases – restoring the 8% cut. This may seem to be a good short term fix but is far from financially responsible in these difficult times.
Imagine that I borrow $100,000 to build a house. Then I find that I’m living beyond my means and my regular pay won’t cover all my bills. So before the house is built I decide to use 25% of that money ($25,000) to pay my regular bills for 6 months or so, spending it on things like food, utilities, car loan etc. This may seem like a good idea at the time, but what happens when I need that money to finish building my house. The lender I borrowed the money from has no collateral to cover the loan and I end up with a 75% finished house. Word quickly spreads that I’m financially irresponsible, my credit score drops, and no one will lend me any more money to finish the house without charging much higher interest rates to cover their risk.
Wouldn’t it have made more sense to have cut back on my expenses, or taken a second job, to make sure that my regular bills were paid. Much more responsible instead of taking money intended for a different purpose and hurting myself in the long run.
Senators, please realize that the solution to our governments financial crisis is not to repurpose funds or legislate more borrowing (leveraging the future of our islands), but to implement fiscally responsible cuts based on sound business practices, and increase revenue opportunities by encouraging responsible growth.
Of course that’s just my opinion – I could be wrong.
Scott Johnston, St. Croix
