Facing potential deficit, Walker borrows $101 million
Taxpayer debt increases in costly “Scoop and Toss” borrowing scheme
MADISON – With more than a year left under the state’s current budget plan, Gov. Walker is resorting to a costly borrowing scheme to avert a potential budget deficit. Commonly referred to as a “scoop and toss” accounting maneuver, Gov. Walker’s irresponsible debt plan will delay state loan payments and increase the amount of interest owed by state taxpayers.
“Gov. Walker’s decision to campaign for President on the taxpayers’ dime continues to impact our state’s bottom line,” said Senate Democratic Leader Jennifer Shilling (D-La Crosse). “Rather than paying the state’s bills, Gov. Walker is once again resorting to risky and financially irresponsible borrowing schemes. This latest accounting gimmick will end up costing taxpayers millions over the next eight years and result in less funding available for schools, roads and worker training programs. At a time when other states are enjoying strong job creation, budget surpluses and robust economic growth, we see that Gov. Walker is once again mortgaging Wisconsin’s future to shore up the financial mess he’s created.”
The troubling “scoop and toss” announcement is an early indication of the upcoming budget challenges facing Wisconsin families and businesses in 2017. Unsustainable tax breaks benefiting the wealthy and out-of-state corporations combined with Wisconsin’s lagging economy have resulted in deep cuts to local schools, infrastructure projects and worker training programs. As a result of these cuts, Wisconsin has lagged the national average in job creation for 17 consecutive quarters and reported over 10,000 job layoffs in 2015.