An Eventful Year
A legislative column by Senator Mary Lazich (R-New Berlin)
As 2010 came to a close, the Packers were fighting for a spot in the playoffs, Osama bin Laden was on the run, and voters were wondering whether newly elected Governor Walker and Republican majorities in the state legislature would follow through on campaign promises to cut taxes, balance the budget, and get people back to work.
A lot has happened since then. The Packers made the playoffs, won the Super Bowl, and are the best team in football this year. U.S. Navy SEALs caught up with bin Laden. And, Republicans followed through on campaign promises by reducing state spending and approving numerous jobs initiatives.
With the start of the 2011 legislative session, two major budget hurdles faced the Republican-led legislature. The first major 2011 Legislative hurdle, following the November 2010 campaign promise to reduce taxes, was finding a remedy to a $137 million budget gap. Republicans did not simply hit taxpayers in the pocketbook to balance the remainder of budget cycle. Republicans made meaningful, lasting reforms to state expenditures. Reforms requiring public employees to participate with pension costs and requiring public employees contribute about the same amount as the national average employee contribution to health insurance costs. Wisconsin met its obligations for the rest of the fiscal year that ended June 31, 2011, and set the stage for the July 1, 2011 thru June 30, 2013 state budget.
Faced with a structural $3 billion deficit, skyrocketing costs in the state’s medical assistance program, and taxpayers feeling the pinch from past property tax increases, the 2011-13 budget posed challenges for the legislature. Despite roadblocks, the 2011-13 state budget, balanced and provided a structural surplus for the first time in decades. Making it even more remarkable is that the budget did not increase property taxes and provided an additional billion dollars to Medicaid and other health programs.
While opponents complain about a significant reduction in state aid to local school districts, it is important to remember state aid reductions were designed to be offset, dollar for dollar, by employee participation with pension and health insurance costs and collective bargaining reform measures allowing school districts to better manage finances and better manage educational opportunities for students. Numerous school districts report success stories. Administrators and business managers, via reforms, are able to provide more in the classroom. The vast majority of parents feel school districts are as good or better now than last year.
The sound budget is part of an overall strategy to make Wisconsin a more attractive place to live, work, and play, a more attractive place for businesses to create jobs. Two legislative special sessions focused solely on job creation. The Department of Commerce is reformed as the Wisconsin Economic Development Corporation, with a singular focus on job creation. Business leaders took note. Wisconsin improved from one of the 10 worst states to do business, to the middle of the pack. The percent of business leaders that feel good about the direction of Wisconsin increased from 10 percent to 88 percent. Wisconsin’s unemployment rate is lower now than at any time during the last three years, and the state is on target to add jobs for the first time in three years.
The Republican-led Legislature went to work during January of this year to turn the state around. The work is far from done; however, a lot was accomplished during the first year of the two-year legislative session. Taxes and state spending are not skyrocketing, the state budget balanced, and Wisconsinites are getting back to work. Wisconsin health assistance programs protecting the vulnerable in our state have a nearly 50 percent increase in funding, and Wisconsin schools are doing great. It is a lot of change in one year. It is proof the Republican-led Legislature not only talk the talk, we walk the walk.