So we found an extra $600 million under the couch...now
what?
Last week, the non-partisan
Legislative Fiscal Bureau updated their revenue projections for the next
budget. Between an increase in projected revenue from individual
income tax filers, and a decrease in projected corporate tax and sales tax
revenue, the LFB came up with an additional $636 million in additional
revenue for the fiscal years of 2011-2013. This is great news, but we
all must be reminded that this is only a projection. Like most of our
projections on revenues and economic growth, it factors in a 4% growth year
to year in GDP, and $4/gallon gas. Even a one-tenth drop in GDP brings
the projection off hundreds of millions of dollars, and we have all seen
what a spike in gas prices does to the economy.
Many in Madison would like to
see us spend this newfound money in this budget. That may be the
politically expedient way of doing business, but it is not what is in the
best interest of our state. Closing the budget gap is only part of the
fiscal problem we have in Wisconsin. The other, and in some ways
greater problem, is the growth of our state debt. Our debt has over
doubled in the last 10 years from $6,206,581,481 in 2001 to $13,205,374,981
at the end of 2010.
This debt obligation is
unsustainable. We are approaching the point where if we spent an
entire year's budget on eliminating our debt we would still not be able to
cover it. We must continue the push of getting our short term fiscal
house in order by balancing the budget, but at the same time look to the
future and begin to pay down this massive debt.
Budget Listening Sessions
I will be holding two listening sessions soon that will
provide an opportunity for you to give comments on the 2011-13 Biennial
Budget. I have previously held sessions in Winneconne and Greenville,
and will make every effort to rotate meetings throughout the district every
term.
Grand Chute Listening Session
Monday May 23rd at 6:00 – 8:00 pm
Grand Chute Town Hall
1900 Grand Chute Blvd
Grand Chute, WI 54913
Winchester Listening Session
Tuesday May 24th at 6:00 – 8:00 pm
Winchester Town Hall
8522 Park Way
Larsen, WI 54947
I look forward to seeing you there!
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