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Wisconsin has a state budget shortfall of 1.8 billion

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Z

zero shift

Banned
I guess those tax cuts have been accounted for:
Madison — The expected shortfall for the next two-year state budget starting in July has risen to nearly $1.8 billion, or about half of what it was when Gov. Scott Walker took office in January 2011.

Meanwhile, the state's projected gap in its current budget ending June has risen to $396 million — or about 1.2% of the spending planned for the 2013-'15 budget.

The Republican governor resolved a more than $3 billion budget shortfall in the months after taking office, but the latest projections show the state is running through the resulting surplus. The state is again facing a gap in the 2015-'17 budget because of tax cuts enacted by Walker and lawmakers and lagging growth in other state taxes in recent months.

The projected weakness in the state budget matters because it eventually could lead to cuts in spending on priorities such as schools or increases in state taxes or fees.

The latest estimates by the Legislature's nonpartisan budget office jumped by more than $1.1 billion over the previous estimate of a $642 million gap released in May. The projections from the Legislative Fiscal Bureau were released Monday for the budget beginning in July 2015 and ending in June 2017.

These estimates aren't final — they could still get better or worse depending on the whims of the global economy. The so-called "structural deficit" projections aren't perfect, either — they don't attempt to estimate how much state tax revenue may grow if the economy picks up or how much state costs might rise due to inflation in spending programs such as state health coverage for the needy.

Walker spokeswoman Laurel Patrick downplayed the report, saying the state could still see revenue grow in future years and take new steps to control spending.

"We have a proven track record of managing the taxpayers' money well. By continuing to grow the economy, finding further efficiencies in government, continuing to eliminate waste, we will take care of any future structural issues," Patrick said.

The memo describing this so-called "structural deficit" has been issued regularly by the fiscal bureau going back to the 1990s. It could have a political impact as well. Walker has campaigned for re-election on his handling of the budget. His challenger, Mary Burke, a Democrat, is running on the idea that she can do better.

Burke, a former Trek Bicycle executive, seized on the new projections.

"Governor Walker's fiscally irresponsible approach and his failed stewardship of a lagging economy have resulted in a state budget picture that is a mess," she said in a statement. "I have spent my career balancing budgets and insisting on accountability; setting priorities and getting the biggest bang for the buck. Gov. Walker has spent money we don't have. In the business world, if a CEO created this big of a financial mess, he would be fired."

The memos released at the end of a legislative session or after a budget often change by the time the governor and lawmakers take up the budget in February of odd-numbered years.

For instance, a memo released at the same point in 2010 put the expected shortfall facing Walker in 2011 at $2.5 billion, or more than a half-billion dollars less than it actually was.

This latest projected shortfall is the third highest predicted in a comparable fiscal bureau memo since 1997.

To help handle the potential deficit, the state could draw on some $280 million in reserves that sit in the state's rainy-day fund.

Lawmakers concern
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LINK
 
P

Pakkidis

Member
This is a problem with just about every government in north america. Cut taxes is only a short term fix in the long run you eventually have to pay your bills.
 
P

Paskil

Member
I will be voting, the same as every election. Make sure you vote too, if you're a Wisconsinite (regardless of your political affiliation).

Heard this the other day. Not really surprising. As soon as I hear a Republican talk about no new taxes and additional tax cuts, it always results in a deficit. I'm sure a ton of fees will be going up in price, like the ever increasing DMV/parks fees.
 
Z

Zombie James

Banned
The Republican governor resolved a more than $3 billion budget shortfall in the months after taking office, but the latest projections show the state is running through the resulting surplus. The state is again facing a gap in the 2015-'17 budget because of tax cuts enacted by Walker and lawmakers and lagging growth in other state taxes in recent months.
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You mean trickle-down economics doesn't work?

fe91a3dc38b1981226c5cdcstl.gif
 
Z

zero shift

Banned
Lactose_Intolerant said:
The tax cuts seem to wash away all the good things the governor did to fix the 3 billion shortfall.

Maybe Good things is pushing it
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The only good thing he did was freeze university tuition rates.

dIEHARD said:
Utah has had some of the our biggest tax cuts ever in the last decade, and are doing exceedingly well in the business sector.
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The tax cut game is a dangerous one. If companies chose to flock to the area then an era of economic is ushered.If not than an era o f mass debt is. At the end of the day businesses go to where is most appealing which is usually a combination of overhead costs and resources.
 
A

Ace Harding

Member
That's a 2-year projected cumulative deficit. The budget shortfall (for the year) is projected to be $400m. As far as relatively large state budgets go, that's not that bad. Shouldn't be running deficits in this environment/economy though.
 
J

Jarate

Banned
Just moved to Wisconsin and I have to deal with this douchebag

People on the right though love him for some reason. Like absolutely adore him, I don't see that admiration for Burke that you see for Walker

I hope he goes down in flames, his policies are bad for Wisconsin because no businesses want to work in Wisconsin other then rural small businesses. Utah is a booming state and a beautiful state, and Wisconsin is basically Canada
 
A

Anjelus_

Junior Member
It doesn't really reflect well on all that budgeting "hubaloo" he started back in 2011, does it? That was a very fun time to be in Madison as I recall.
 
Y

Yamauchi

Banned
Same thing happened in Kansas. The governor there made large tax cuts promising increased revenue from business growth. Almost every month since the cuts were enacted revenue has been significantly below projections. Job growth has not improved, either.
 
K

kirblar

Member
Pakkidis said:
This is a problem with just about every government in north america. Cut taxes is only a short term fix in the long run you eventually have to pay your bills.
Click to expand...
No it's not- it's only the ones that got GOP control and slashed taxes in an Ayn Rand experiment.
 
S

Sir Abacus

Member
Ace Harding said:
That's a 2-year projected cumulative deficit. The budget shortfall (for the year) is projected to be $400m. As far as relatively large state budgets go, that's not that bad. Shouldn't be running deficits in this environment/economy though.
Click to expand...

Errrrr.... What? Wisconsin is still at pre-recession job levels and If anything the government should be running the money tap wide open.
 
Z

Zhengi

Member
From the article:

The more than $3 billion projected budget shortfall that Walker inherited as governor represented the gap between the state's expected tax revenue over the next two years and what state agencies were asking to spend over that period. The gap worked out to about 10% of the overall budget in the state's main account.

The new projected shortfall works out to about 5.8% of the 2015-'17 state budget.

To summarize, the state closed a roughly $3 billion shortfall in Walker's first budget, is now a little out of balance in his second budget — the current one — and is expected to face a shortfall in the next budget that is about half the size of the initial one.
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There is indeed a shortfall in the budget, but the guy inherited a bigger shortfall in the budget and has lowered that shortfall to 1.8 billion in subsequent years.
 
Z

zero shift

Banned
^^^True, but pretty much every state in the country had a budget crisis during the recession. Things have gotten better for everyone, yet while this is true for Wisconsin it is still performing quite mediocre in the category of debt for someone who pledged to reduce it by gutting programs.
 
P

Paskil

Member
If you're going to go the austerity route, it can be a good idea to get rid of your debt in a responsible fashion before dumping all the feed in the trough. If the intent was to just gut programs and decrease the effectiveness and mobility of government, then going the austerity route and cutting taxes and regulations is a good way of making that happen.
 
I

IAmRandom31

Banned
It's almost scary how much blind hatred is spewed toward republicans for any reason at all on this forum.

Its like the word Republican is used in a sentence and you automatically have BURN THAT MAN! mentality hit.

It is always nice to keep being reminded that in this great country only 1 person has any direct influence over all aspects of the workings of a state / country. The president has complete control over business, education, law, economy, health, everything. Same with governors. Quite amazing.
 
K

kess

Member
IAmRandom31 said:
It's almost scary how much blind hatred is spewed toward republicans for any reason at all on this forum.
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Economics aside, if people in Walker's administration weren't such shitbirds towards the LGBT community, and so hard right on social issues, many people would be far less disposed to hate them.
 
A

Acorn

Member
IAmRandom31 said:
It's almost scary how much blind hatred is spewed toward republicans for any reason at all on this forum.

Its like the word Republican is used in a sentence and you automatically have BURN THAT MAN! mentality hit.

It is always nice to keep being reminded that in this great country only 1 person has any direct influence over all aspects of the workings of a state / country. The president has complete control over business, education, law, economy, health, everything. Same with governors. Quite amazing.
Click to expand...
Are you arguing for less accountability?
 
H

HylianTom

Banned
kess said:
Economics aside, if people in Walker's administration weren't such shitbirds towards the LGBT community, and so hard right on social issues, many people would be far less disposed to hate them.
Click to expand...

Pretty much.

I get to "fly undercover" as a white gay guy, and when it's just white men alone together (especially in rural locales), you get to hear some really fucking nasty, reprehensible things about people who aren't white men. Repeatedly. Year after year. In private homes. In public businesses. In clubhouses. In different settings, it's the same damn things. Women, homosexuals, people of color, people who don't worship correctly..

So after a lifetime of exposure to the party's vile base, any respect I have for folks who associate with this party goes out the window.

And that's even without delving into the whole "Earth-is-6000-years-old"/"Jesus rode a dinosaur"/"Evolution is a myth" anti-science bullshit.

Anyone whining about the heat thrown Republicans' way gets zero pity for me.
 
B

billeh

Member
silkysmooth said:
Illinois is broke as fuck too. And they've had Democrat governors forever.
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It doesn't help that every gubernatorial election is between a douche (Rauner) and a turd sandwich (Quinn).

Most democrats here are 'in name only.' You'll sweep Chicago regardless of your policies so long as you have a 'D' next to your name.
 
R

reggieandTFE

Member
silkysmooth said:
Illinois is broke as fuck too. And they've had Democrat governors forever.
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IL has had a democratic governor for 3 terms after 8 terms of Republicans. Forever is an odd term to use.

Republican governors don't care about facts or #s in the long run. Just look at the Georgia governor going full tinfoil hat conspiracy about the fact that CA now has a lower unemployment rate than his.
 
F

FLEABttn

Banned
IAmRandom31 said:
It's almost scary how much blind hatred is spewed toward republicans for any reason at all on this forum.

Its like the word Republican is used in a sentence and you automatically have BURN THAT MAN! mentality hit.

It is always nice to keep being reminded that in this great country only 1 person has any direct influence over all aspects of the workings of a state / country. The president has complete control over business, education, law, economy, health, everything. Same with governors. Quite amazing.
Click to expand...

You're upset people are being too mean?
 
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