Wisconsin Budget Woes

Here we go.

Gov. Jim Doyle’s administration said today state government now faces a budget deficit of $5.4 billion through mid-2011- $400 million more than the governor estimated only days ago.

“This is the worst deficit in the state’s history,” state Administration Secretary Mike Morgan said in a report to Doyle.

The report documented falling tax collections expected through mid-2011 and state agency budget requests for $62.3 billion over that period - requests that cannot be met.

“For the first time in decades, revenue collections are expected to fall in two consecutive fiscal years,” said Morgan.

He blamed slumping worldwide and national economies, an American financial system that “nearly collapsed,” tighter credit for consumers, businesses and governments, and falling retail sales

Um, and don’t forget our elected officials’ refusal to actually balance the budget for the last several cycles. 

Here’s my favorite part:

The most likely ways to fix the budget deficit are :

• Deeper cuts to state spending, which could include layoffs of state workers.

• Tax increases or other revenue-raising changes - changes that could cancel or delaying tax breaks passed over the past two years. Revoking some of of billions of dollars in tax exemptions that have been on the books for years also would be a possibility.

Anyone want to take a guess as to which solution dominates the next budget?  In other words, dollar for dollar, will we see more spending cuts or tax increases? 

1. Ummmm...anyone notice that about $3.8 billion of that $5.4 billion number is actually NEW state spending?

   Posted by on November 20, 2008 at 1731 hrs




2. This is my prediction:

   Step A - tax the “rich” more

   Step B - lower the income threshold for what defines “the rich”

   Posted by on November 20, 2008 at 1750 hrs




3. What do you want to bet that the figure will continue to go up?  They are unable to accurately figure out how much of a deficit they have and they want us to trust them with MORE of our money?

   

   Posted by hsgbdmama on November 20, 2008 at 1821 hrs




4. Gee- let’s just raise prime rates, restrict free trade, raise subsidies, raise taxes on capital gains, and on and on.  Oh- Ithink that was called the “New Deal”.

   Posted by on November 20, 2008 at 1830 hrs




5. The theme for 2009 will be for everyone worldwide to live without about 30% less of what they had.  The State better start doing the same.

   Posted by on November 20, 2008 at 1922 hrs




6. Governor Doyle is smart to exploit the MSM, which does not understand and thus will never hold him to account for the structural deficits of his administration.  The MSM will define the new and larger deficit as a product of the Bush recession.  Can’t blame Doyle for letting reporters do the heavy lifting.

   Posted by on November 20, 2008 at 2122 hrs




7. Um, and don’t forget our elected officials’ refusal to actually balance the budget for the last several cycles. 

   I just want to point out again, because it’s fun, that you supported a version of the budget that was more out of balance than what was ultimately passed.

   Posted by on November 20, 2008 at 2218 hrs




8. Is there someone in Wisconsin who could actually try to grow business in this state? Could we just try? I don’t mean some cute slogan like “The Fresh Coast” or a new logo, or the Greater Milwaukee 7 or some other worthless pile of dung.

   ATV, point it out again, because it is true.

   Posted by on November 20, 2008 at 2327 hrs




9. I’m with mht, because honestly increasing taxes to those with lots of money (rich people) would balance the situation with the ones with a lower income.

   Posted by Motorcycle Cruiser Fairings on November 27, 2008 at 1022 hrs