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Rep. Tranel Introduces Constitutional Amendment
Wisconsin FIRST - Fiscal Responsibility and Stability Fund Amendment
Cuba City, WI – Today State Representative Travis Tranel
(R-49) testified before the Wisconsin Ways and Means
Committee in support of his bill called the Wisconsin First
– Fiscal Responsibility and Stability Fund Amendment. (AJR –
21) This bill would create a constitutionally protected
“rainy day” fund in Wisconsin.
“Most families, farmers, and small business owners in the
State of Wisconsin understand that there are good and bad
economic cycles. When times are good they plan for the
future and put a small amount of money aside for
emergencies. Maybe there is an illness in the family, a
piece of machinery breaks, someone loses a job, or sales
drop off suddenly. Having a “rainy day” fund set aside for
these tough times can help to weather the unexpected storm.
It is common sense in my book,” said Tranel.
Currently, Wisconsin has a rainy day fund, but it has not
been properly funded over the years. The politicians from
both parties have not had the fiscal discipline or foresight
to consistently set aside tax dollars in good economic
times. This is why it is important that the fund be
constitutionally protected and funded.
“I think that by working to pass a constitutionally
protected rainy day fund today, we can prevent our state
from finding itself in another very difficult financial
situation in the future. As our state’s economy begins to
grow, it is only prudent that we look at enacting serious
long term budget reforms. I don’t want my kids and grandkids
to have to go through the polarizing debates that we have
seen taking place over the last few months up here at the
capitol,” said Tranel.
Representative Tranel’s amendment creates a constitutionally
protected rainy day fund by putting into place budgetary
reforms to help ensure the ability of state government to
weather future economic downturns.
It controls spending, stabilizes the state budget, and
provides future property tax relief. The amendment is
beneficial for the long term stability of our state and
prevents us from having to make the very difficult and
painful measures we are currently enacting to balance the
state’s budget.
How it works:
• State tax collections in excess of 6.5 percent of state
wide personal incomes are deposited into the Fiscal
Responsibility Fund. If taxes are below that level, a small
minimum deposit is made instead.
• During a recession, money can be withdrawn from the Fund
to help balance the budget.
• Any accumulated balance over a set maximum must be
returned as a property tax credit.
• The fund can only be tapped in a recession, or fiscal
emergency with the approval of 2/3 of the legislature.
“Responsible budgeting and planning for the future is
something that the citizens of my district told me that they
wanted to see state government do,” said Tranel.
For more information on Representative Tranel’s bill please
feel free to contact him at 608-266-1170 or Rep.Tranel@legis.wi.gov
Rep. Tranel represents the 49th Assembly District that
includes all of Grant County, and parts of Richland, Iowa,
and Lafayette Counties.