Where are your tax dollars being spent, exactly? Sometimes it’s easier to find out than others.
The economic recovery package raised the bar for public disclosure of how federal stimulus dollars were being put to use across the country. As a precondition for accepting funds, each state was required to create a Web site to report on its spending progress.
This transparency allowed PIRGIM and the federation of state PIRGs to report on how well states were spending stimulus dollars on transportation (too few were spending flexible funds on public transit, as we’ve reported on our Web site).
Other times, a lack of transparency makes the picture murkier. As PIRGIM’s federal tax and budget analyst, Nicole Tichon, can attest, there are a lot of question marks about how trillions of dollars were spent on the bank bailout.
That’s troubling, because it means that recipients of bailout funds could potentially continue to engage in the practices that led to the financial meltdown, even after getting backing from taxpayers.
Transparency 2.0
The ability to see how government uses the public purse is fundamental to democracy. Budget transparency checks corruption, bolsters public confidence in government, and promotes fiscal responsibility.
In the private sector, Internet search technology has revolutionized the accessibility and transparency of information. We take it for granted that we’ll be able to track deliveries and check cell phone minutes online. But in many places, when it comes to tracking government expenditures online, we are still left in the dark.
Here in Michigan, legislation and executive orders have already lifted the electronic veil on where tax dollars go. At least 25 states currently mandate that citizens be able to access a searchable online database of government expenditures.
Experience from the leading states in this field demonstrates that these Web portals are an effective, low-cost tool to bolster citizen confidence, reduce contracting costs and improve public oversight. They also help to ensure that companies receiving tax breaks or other subsidies actually deliver on their promises. We expect these tools to become indispensable for citizen watchdogs and journalists in the years to come.
