Capitol Update

A Closer Look at Spending in Wisconsin
Budgeting is a common occurrence for all of our families. Matching what we take in as income with what we spend as expenses is an important exercise. This budgeting requires us to choose priorities and decide what is most important. As we’ve been discussing these past months, the State of Wisconsin is no different. Our budget should reflect our priorities and we should not be spending more than we can afford.
 
Overall, spending in Wisconsin is high compared to the rest of the country. According to the National Association of State Budget Officers, Wisconsin was the 11th highest spending state in the country per citizen in 2013, the most recently available year. Wisconsin spent $7,448 per citizen, compared to an average of $5,344 per person nationally. I’m often asked, what are the state’s priorities, where does all that money go? A closer look at expenses reveals not only Wisconsin’s priorities, but sheds light on some trends.

The chart below shows how every General Fund dollar is spent and budgeted by the State of Wisconsin since the year 2000. This is broken up into six major priorities of spending: K-12 Education, UW System, Health Services, Local Government Shared Revenue, Department of Corrections, and other agencies. Transportation appears small on the chart because the transportation fund is separate from General Purpose Revenue. The chart also shows what percentage of spending each category accounted for in 2000 and will account for in 2017.

*Source: Legislative Fiscal Bureau

There are a few points to highlight in this data. Overall, since 2000, spending by state government will have increased from $21 billion to nearly $37 billion in 2017. These numbers also highlight challenging trends in health services spending not only in Wisconsin, but across the country. Not only has health care gotten more expensive but enrollment in health programs has risen steadily over the years. In 2000, spending on health services accounted for just 15% of the State’s General Fund. By 2017, health spending will account for 22.1% of state dollars. That rise represents an increase from $1.7 billion in 2000 to nearly $4 billion budgeted in 2017, by far the biggest increase of any agency.

*Source: Legislative Fiscal Bureau

The pressure this puts on other spending priorities for our state is unmistakable. Dollars that are spent on health services cannot also be spent on our roads or education. This shows the work that still needs to be done to keep state spending under control and ensure we’re budgeting responsibly.

Wisconsin Realtors Association: Housing Data for the 17th Senate District
Data for home sales was recently released for 2015. Home sales continue to grow at a steady pace and reached their highest year-to-date level since 2006. Home prices have generally been on the rise on an annual basis for more than three years. I have included the year-to-date data on home sales in each one of the counties in the 17th senate district. I have also included the year-to-date data on home sales for the same period of time for 2014. As a reflection of the economic environment, I am encouraged by this trend of growth in the housing market and I hope it continues.

Number of Home Sales, Year to Date 2015 & 2014

Source: Wisconsin Realtors Association

 

*Senator Marklein is pleased to provide this legislative E-Update to the constituents of the 17th State Senate District. Please feel free to share this update with other interested citizens and taxpayers. You are receiving this update because you have either subscribed or contacted Senator Marklein directly.

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