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Wisconsin was the first state to
pass an income tax in 1911. Fast forward 100 years, few changes
have been made to the tax. The one constant has been to pass
more taxes under the guise of being a “temporary” assessment.
Because of past fiscal mismanagement, the state currently has a
$3.6 billion shortfall. Even as revenues dropped during economic
lows, Wisconsin kept spending beyond its means with accounting
tricks. Ploys such as using the federal stimulus money to plug
a deficit and raiding segregated funds pushed hard choices from
Wisconsin’s past to current day decisions.
From the earliest Petersen’s E-Press, I have written about the
manner in which the budget problems were approached and how the
stunts simply masked our fiscal woes instead of remedying them.
Prudent governance means doing what’s right in lieu of what’s
popular.
Wisconsin government is finally going through the budgeting
steps every family endures during their own economic hard times.
Proposed in the next biennium budget are spending reductions for
all funds spending of $4.2 billion, or 6.7%.
For far too long, Wisconsin spent its way into a spiraling
deficit. By definition, expenditures exceeded revenue. The
projected budget addresses the deficit, decreasing it by 90% -
from $2.5 billion to $250 million. Furthermore, Wisconsin
families and employers have been pushed to their limits on
taxes. Therefore, the deficit will be reduced without raising
taxes and fees.
And finally, the proposed budget is putting an end to the
illegal raids on segregated funds that prior budgets depended
on. Segregated funds, according to State Statute Section
20.001(2) (d) “consist of revenues which, by law, are
deposited into funds other than the general fund and are
available for the purposes for which such funds are created.”
The recently passed Budget Repair Bill is an integral part of
this budget. While it’s true the proposed budget reduces aid to
local government by just over $1.25 billion dollars, it provides
almost $1.5 billion in savings through the budget repair bill.
Local school boards and municipalities are given the tools and
flexibility to balance the aid reductions.
While I agree with much of Governor Walker’s proposed 2011-2013
budget, including cutting spending and reducing the deficit,
while not raising taxes and fees or raiding segregated funds,
there are parts that will need to be addressed. For example, as
someone who believes in recycling, I plan to work with fellow
legislators to maintain the state’s recycling programs.
This budget is about the future of Wisconsin, and creating a
stable fiscal environment for both employers and families.
Financial stability is the ultimate key to bringing new family
supporting jobs to Wisconsin.
What do you think about this issue?
Click here and send an email
with your thoughts.
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Respectfully,
Kevin Petersen
State Representative
40th Assembly District
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