As we begin the two year legislative cycle, the focus is always on the budget. Wisconsin’s economy is growing at a robust rate and is expected to take in an additional $1.2 billion in the next biennium. This budget could almost be balanced with an across the board spending freeze that would allow the level of expected revenue to catch up with spending without any of the tax increases that the Democrats are proposing. Sounds good doesn’t it? That is what would happen if the legislature does not pass a budget this summer. All spending levels would remain the same as last year, and there would be no increase in any fees or other tax hikes.
Regardless of what the Democrat’s and their supporters are saying, Wisconsin has a $1.9 billion structural deficit that has been successfully pushed out to future budgets. Do we go along with the Democrat’s approach and ask to increase spending at $4.5 billion and raise taxes another $1.7 billion or do we freeze the budget to last years spending levels by not passing a budget at all or at least not one until the Democrat’s come to their senses and accept a more reasonable budget?
I’m leaning toward the latter! Wouldn’t it be prudent to allow a state agency that has been fiscally responsible and may have a positive balance at the end of the fiscal year to be allowed to transfer that money into next year’s budget rather than to have it taken away and given to a state agency that can’t seem to spend within its means?
As your state Representative, I will be asked to vote on a budget for the two year period from July 1, 2007 thru June 30, 2009. I will not vote for a budget that increases any taxes or fees, raids segregated funds or that can’t be balanced with the additional $1.2 billion in revenue growth.
Even though this should be good news for the fiscal conservatives in the 99th assembly district, don’t start spending any anticipated tax savings just yet. The Governor’s veto pen can create new words, numbers and sentences. When the Governor is finished with the budget it may not look anything like it did when the legislature voted to approve it. As a matter of fact, the Governor used his veto pen to override the sound fiscal principals in the last budget, and took care of his friends while the taxpayers ended up with a budget deficit of $1.9 billion. The Governor hid the deficit until after the election and now we are perplexed with two choices. We can send him a balanced budget and take our chances or we can just simply not pass a budget at all. Spending freeze anyone?
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