Two Simple fixes for Government Budgets

These fixes address the basic weakness in any attempt to finance government fairly - Government wields power and even the best intentioned government cannot completely erase the bias of self-interest in establishing their own compensation.

The fixes are based on two assumptions:

1.  The private sector creates wealth, so the measure of compensation of the government should be based on the compensation of the private sector governed.   

2.  Government should be conservative in adopting policies that produce long term obligations.

1.  All governments must compensate employees based on fixed compensation schedules computed off a base of 99% of the average private sector compensation within the jurisdiction.  No government can hire any person at compensation in excess of 4 times the private sector average compensation unless the amount is specifically approved by the voters in the jurisdiction.  Average compensation  for all government employee's cannot exceed 99% of the average private sector compensation.

2.  No government can contract to pay any future employee compensation or benefit that is based on actuarial projections of future economic conditions.  Employee compensation obligations must be funded out of current tax reciepts or current reserve fund.