In Wisconsin, budget season is two years long. The current budget window was opened on July 1, 2009, and will close on June 30 of this year. If for unexpected reason, the state finds itself faced with a severe deficit within a biennial window, the legislature must pass what's known a "budget repair bill" -- to close the gap with spending cuts or other emergency measures.
The state has not crossed that threshold.
The previous governor, Democrat Jim Doyle, passed a budget that left the state poised for a surplus this year. When Walker took office in January he chipped away at that surplus with three conservative tax expenditure bills, but not severely enough to trigger a budget repair bill. The current, small shortfall was "manufactured by Governor Walker's own insistence on making the deficit worse with the bills he passed in January," Kreitlow said. But Walker cited that shortfall to introduce a "budget repair bill" anyhow -- a fully elective move that includes his plan to end collective bargaining rights for state employees.
"The trigger had not been reached prior to Governor Walker adding to the previous year's deficit by passing bills that didn't create a single job," Kreitlow said.
Walker will soon have to introduce an actual budget, which will outline spending and revenue policy for the two years between July 1, 2011 and June 30, 2013. And the state's Legislative Fiscal Bureau -- the official scorekeeper -- does project that he'll face a $3 billion shortfall. But Democrats faced a shortfall twice as large ahead of the previous budget cycle and managed to close the gap.
"The $3 billion is a projection based on requests and forecasts, but it's the governor who has to do the hard work of putting together a plan," Kreitow explained. "it is just practically half of the projected deficit that we closed in the last budget bill, which we did by making serious cuts and some very deliberate choices. That's what we expect leaders to do." In 2009, Wisconsin Dems did get just over a billion in help from the stimulus bill, but they made up the rest by giving state agencies less money than they asked for, and through furloughs and other real austerity measures.
"We know it could be closed again by making tough choices," Kreitow said. "But not included in those tough choices would be stripping away labor rights that have allowed there to be labor peace in Wisconsin for over 50 years."
To recap: Wisconsin had a $6 billion shortfall in 2009-2011. It was closed when Democrats made painful cuts. Democrats balanced the budget and even had a small surplus as a result. Voters rewarded them by putting Republicans in charge, including Scott Walker, because voters don't like cuts, and they don't like tax increases. Democrats in Wisconsin did both, but they solved the state's fiscal problems and they balanced the two-year budget.
Scott Walker's first act was to pass tax cuts that eliminated the surplus and caused a shortfall for the June 30, 2011 deadline. He then used that shortfall as an excuse to go after state worker benefits and collective bargaining rights. Yes, the 2011-2013 budget is going to be messy, mainly because states actually have to pay for tax cuts. Walker's tax cuts are going to cost Wisconsin dearly, too.
So if tax cuts create jobs and revenue, how come Wisconsin is going broke?
That's it.
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17 comments:
You are once again a LIAR.
The only reason Jim Doyle was able to balance Wisconsin's state budget was $4 billion in stimulus money.
And all that did was pass the $4 billion or so shortfall that Doyle punted on to Walker's 2011-2013 budget.
So yes, now Walker has to make the cuts that Democrat Jim Doyle would not, because he doesn't have Obama's taxpayer slush fund to help him.
And that means state unions have to go.
Once again you are a proven pathological fucking LIAR and I will call you out every time.
See what happens when you use Beutler as a source? You come up with garbage like this:
The current, small shortfall was "manufactured by Governor Walker's own insistence on making the deficit worse with the bills he passed in January," Kreitlow said.
Let's see. According to the piece, this Kreitlow is a former Democratic Wisconsin state Senator. Which makes any statement he makes highly suspect. Even lefty Ezra Klein picked up on that:
I've been persuaded that the surplus-to-deficit picture is more complicated that I initially understood. The budget report is working with two time periods simultaneously: 2010-2011, and then 2011-13. The $130 million deficit now projected for 2011 isn't the fault of the tax breaks passed during Walker's special session, though his special session created about $120 million in deficit spending between 2011 and 2013 -- and perhaps more than that, if his policies are extended. That is to say, the deficit spending he created in his special session is about equal to the deficit Wisconsin faces this year, but it's not technically correct to say that Walker created 2011's deficit. Rather, he added $120 million to the 2011-2013 deficits, and perhaps more in the years after that.
Here's the funny part; that's exactly what I said in another thread. But of course Zandar would rather link to bullshit artists like the scum at TPM. That way, he can keep the narrative going without having to worry about the truth.
Zandar lies again. Drink up.
If the state is going to be so deep in debt, why did Walker start off his administration with tax cuts instead of tax hikes?
You have to love how Zandar chases after the lefty Brian Beutler and regurgitate TPM's bullshit.
Zandar:
To recap: Wisconsin had a $6 billion shortfall in 2009-2011. It was closed when Democrats made painful cuts. Democrats balanced the budget and even had a small surplus as a result.
Yeah, well, that isn't close to being right:
Wisconsin Gov. Jim Doyle has signed the state budget bill for the 2009-2011 biennium, vetoing a 0.65 percent sales tax in Milwaukee County and killing the proposed transit authority for the county.
Overall, the new state budget cuts overall spending by $3 billion, doing so while cutting 1,000 state employees, imposing across-the-board budget cuts for state agencies and the rolling back of 2 percent pay raises for state employees that were to take effect this month.
So Doyle dumped a transit project, vetoed a sales tax increase, and laid off 1000 workers. But he increased taxes, including raising icome tax rates on the wealthy:
Tax increases include: $310 million by raising the $1.77-per-pack cigarette tax to $2.52; $287 million by creating a new, 7.75% income tax bracket for the wealthiest taxpayers; $242 million by cutting in half the tax exemption for capital-gains investments; and $105 million with a 75-cent monthly fee on telephone lines that will start Sept. 1.
This closed $2 billion of the $6 billion gap.
Here's how Doyle closed that $6 billion hole:
They filled the hole with $2.1 billion in tax and fee increases [These are the ones I mentioned before], $2.2 billion in federal stimulus dollars and cuts in state agency spending and aid to local governments and schools.
Zandar would have us believe Doyle cut $6 billion in spending. Not even close to being true. There were at most $1.7 billion in cuts, while a third came from stimulus (Porkulus) money (more evidence the stimulus was a failure). Worse for Doyle and Scott:
The Wisconsin Supreme Court ruled Tuesday that the state must repay a medical malpractice fund more than $200 million it took to balance the budget three years ago, potentially throwing the current budget into disarray...
The state budget is projected to finish the current fiscal year on June 30 with a balance of $45 million, not enough to absorb a $200 million hit.
So that surplus Zandar and TPM talk about? A lie. Take a drink; actually take several since this post is chock full of lies.
So when Zandar thinks he knows what's going on in Wisconsin, he's full of crap.
Me:
So when Zandar thinks he knows what's going on in Wisconsin, he's full of crap.
And the crap, the shit, is Brian Beutler and the liars at TPM.
JoyfulA:
If the state is going to be so deep in debt, why did Walker start off his administration with tax cuts instead of tax hikes?
Since Doyle raised taxes, including increasing tax rates on the wealthy, where the hell is the fucking money? Why did Doyle leave Scott with $3 billion in deficits for the 2011-2013 budget? Care to explain that one?
Zandar:
So if tax cuts create jobs and revenue, how come Wisconsin is going broke?
Lie to me again how Doyle and Democrats increasing income tax rates and taxing capital gains investments create jobs and revenue. Even though Wisconsin is still going broke and Doyle still had to layoff 1000 workers. Go ahead; lie to me again about that.
Where is the fucking money?
So at this point Steve AR and I have proven beyond a doubt that Zandar doesn't know a fucking thing about economics, politics, budgetary matters, or anything else for that matter.
But Zandar sure knows how to lie.
Go ahead, make another post full of lies about Gov. Walker and Wisconsin Republicans.
FACT: State employee health care benefits are costing Wisconsin taxpayers billions while employees are only paying 6% of the cost for premiums.
FACT: Governor Jim Doyle left Wisconsin with a $3.6 billion shortfall he was able to pass along with the help of Obama's stimulus slush fund and $2 billion in tax increases. His spending cuts still left a $3.6 billion hole for the next biennium.
FACT: Zandar is a clueless fuck.
FACT: you guys are both crazy.
get help, really.
And just to put your ass to bed, here's Politifact calling you, Brian Beutler, and Rachel Maddow what you are: LIARS.
"Here’s the bottom line:
There is fierce debate over the approach Walker took to address the short-term budget deficit. But there should be no debate on whether or not there is a shortfall. While not historically large, the shortfall in the current budget needed to be addressed in some fashion. Walker’s tax cuts will boost the size of the projected deficit in the next budget, but they’re not part of this problem and did not create it.
We rate Maddow’s take False."
And you will not post about Wisconsin again, I suspect.
Shut the blog down. Now.
You have no credibility and no readers left.
You're done.
are you sure you're not zandar himself playing a completely crazy troll? i honestly find it doubtful that you're a real person and this is what you think is a valid contribution to whatever the hell it is you believe in.
you really seem kind of, um, crazy.
Oh my, it certainly is sockputtey in here.
Interesting Blog Fact: Joe Jervis of Joe. My. God. will post the IPs of particularly tedious trolls.
I wish Google would let me do that. I'd have to pay for a more effective comments system that would get rid of these idiots.
Then again it has finally gotten to the point where these two are driving readers away.
You could ask Cleek for a piefilter.
And if this platform allows you to edit comments, there's a very harsh and ethically questionable solution.
Wow. So! Time to look for solutions!
This looks like a start.
Also, I really, really hate Blogger.
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