Where we allocate our resources is a reflection of our priorities. That's why everyone in Wisconsin has a stake in the ongoing state budget process. The thousands of provisions tucked into the 1700+ page document contain good and bad for our region and the state. As always, I want to know your perspective, so send me an email with your thoughts at sen.schultz@legis.wi.gov.

Budget Outcomes
07.03.09

I received many contacts about provisions in the state budget bill as it moved through the legislative process. On Monday, June 29, Governor Doyle announced his vetoes and signed the bill into Act 28. This post provides a link to my website to explain the outcome of several issues important to you and thousands of others.

Thanks to your help, a few of the serious concerns with the budget were stopped. I listened to your views in areas such as education funding, tax increases that punish job creators, non-fiscal policy and a 6.8 percent spending increase. My 'no' vote on the budget best represented the interests of you and the other residents of our region.

Select an issue to see the outcome.

Senators Cast Budget Vote
06.17.2009

At the Wisconsin’s capitol today I voted to take bad policy and pork out of the budget. But, on vote after vote, members of the majority party voted to keep in the budget measures that will raise taxes, hurt consumers and hurt job creation efforts.

The final bill passed narrowly, 17-16.

Public Lands Should be Open to the Public
06.09.2009

Your access to lands purchased with your tax dollars can be restricted by state bureaucrats under provisions added to the pending state budget bill.  The provision is among changes to the state’s Stewardship Program, made by legislators on the budget writing Joint Committee on Finance in a late night session.

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Listen to Job Creators
06.05.2009

More jobs will help families, communities and the state to put the recession behind us.

I have been holding Economic Growth Forums in communities throughout the rural region I represent, inviting business leaders, economic development professionals and other local officials that have been partnering effectively for years to keep good jobs in their communities and attract new jobs.

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Legislators Want to Raid Transportation Fund - Again
06.04.2009

In Madison, a majority of legislators on the budget-writing Joint Committee on Finance are proposing to steal over $200 million of the money we pay for roads to increase state spending on unrelated programs.

Not content to stop with just raiding cash from the transportation fund, the same 12 legislators would have us replace the cash with more borrowing, adding to the transportation fund debt. Interest payment on the additional debt during the next two years alone will be nearly $5 million.

The use of debt to build our state's roads has risen dramatically in the last six year to the point where only 88 cents of every dollar we pay in gas tax and other transportation fees helps build our roads. The other 12 cents goes to the debt on past road projects.

A friend of mine calls it a "Stick to the Next Generations" transportation plan.

Don’t Tax You; Don’t Tax Me; Tax the Sick and Elderly
05.25.2009

The state budget pending in Madison contains a special hit on sick and elderly people living in nursing homes across Wisconsin.  The monthly tax on every nursing home bed would double from $75 to $150 per monthstarting July 1, 2009 if legislators adopt the plan introduced by Governor Doyle.  The bed tax would rise further, to $170 per month, in July 2010.

The bed tax enables the state to capture federal dollars for state medical assistance costs. That might make sense if all the additional federal funds supported nursing home residents, but that’s not the plan.

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Governor should reconsider entire budget plan
05.25.2009

A $6.6 billion dollar state budget deficit can be managed if Governor Doyle agrees to eliminate his proposed 7 percent spending increase, according to State Senator Dale Schultz.  With a weak economy and news of falling state tax revenues, the Governor’s plan is not workable.   

This is an unprecedented time.  The Governor revealed his initial plan in February, but since then the budget deficit has grown and we’ve lost a significant number of jobs.  By calling off his spending increase the Governor can reset the debate.

The Governor should submit a revised plan that freezes all state spending at current levels to save $4.5 billion. 

At that point we can have a constructive debate about where to scale back and how to most responsibly use the $3.6 billion in stimulus funds Wisconsin received from the federal government.

I will join the Governor and other state employees in furloughing sixteen days of pay in the next two years because shared sacrifice is the approach that will minimize the impact.  I appreciate the Governor’s willingness to forgo sixteen days of pay, and I’ll be doing the same.

Just Two Problems with “Big Oil” Tax
05.22.2009

There’s an old joke about a football team with just two problems – its offense and its defense. Like that football team, the oil tax in the pending state budget has just two problems – it’s unenforceable and most likely unconstitutional.

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Liability law changes are anti consumer
05.15.2009

Major changes that tip the scales of justice are among public policy items that don’t belong in the rapidly developing budget bill in Madison.

Three changes in an area of law known as joint and several liability would lead to many more personal injury lawsuits and a much greater chance a lawsuit may name you, the business where you work, or the business you own as a defendant.

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Budget deficit grows by $1.6 billion dollars.
05.11.09

The Legislative Fiscal Bureau says the state budget shortfall is $6.6. billion - up from an earlier estimate of just more than $5 billion.  The LFB report cites lower than anticipated tax collections as the cause for the additional $1.6 billion deficit.

Year-to-date income tax collections are 8.3% below the collections last year.

Last week Governor Doyle announced a few details on how he plans to revise his earlier budget proposal to account for lower revenues. That includes cuts to K-12 education and furloughing state workers. Expect more details soon.

READ THE LFB REPORT

Wisconsin budget plan is not sustainable.
05.04.2009

If you’ve followed news on the 2009-2011 state budget process, you’ve heard a couple messages that don’t seem to add up:

1) The state budget deficit is over $5 billion, and

2) The proposed state budget increases spending by 7.7%.

A report this week by the non-partisan Legislative Fiscal Bureau (LFB) partly explains the seeming contradiction. The report lays out how the state budget proposal would allocate Wisconsin’s $3.6 billion share of federal stimulus dollars. The American Recovery and Reinvestment Act (ARRA) funds are intended to create jobs and hasten economic recovery.

The federal funds that went directly to state governments were said to be for "shovel ready" projects that would put people to work immediately and rebuild infrastructure. Instead, much of Wisconsin’s share is being used to prop up state programs normally funded from state tax revenues. For example, the budget plan is to allocate some of the $3.6 federal money these state programs:

Education and help to our most vulnerable fellow community members, as these programs fund, are priorities to me and the state contribution is essential to avoid shifting costs to property tax payers.

My point is the federal funds are being diverted from the intended purpose – job creation. And, instead of making difficult decisions about what are our highest priorities now, this budget lives off an unsustainable funding source – a federal bailout. The plan with this budget is to put off the day of reckoning another two years when another $3.6 billion federal bailout is unlikely. In 2011 it will be even more painful when we finally come to grips with balancing spending with our own revenue sources.

One-time federal funds are only part of this story. For more on how our state budget could grow 7.7% in this economic downturn see my previous post on the $1.7 billion in new taxes and fees and check back for my next post on how budgeting with stolen funds...

Boat Registration Increase Sought
04.27.2009

Boat owners will pay more under the proposed 2009-2011 budget. The annual boat registration cost will go up between $2 and $7.67 depending on boat size. At first glance, that may seem modest, but it's an example of how this budget seeks to "nickel and dime" taxpayers out of more of their paycheck. The total revenue raised by the new fee is anticipated to increase state revenue by $1 million per year. That's money that won't circulate in our economy.

In a previous post, I noted the budget includes $1.7 billion in new taxes and fees. This is just and example of one of those fees. Families and businesses must cut their spending during this bad recession. State government can and should trim its spending too, instead of simply taking more money from boat owners and the family owned businesses that rent boats, create jobs and contribute to Wisconsin's tourism industry.

Joint Finance Committee Votes
04.21.2009

The Joint Finance Committee is beginning to reshape Governor Doyle's budget proposal. In the next several weeks the committee will consider individual provisions of the budget and, in some cases, vote on amendments. I'll keep you posted as significant issues emerge.

Yesterday, the committee took a controversial vote (9-6) that will collect over $100 million from a $.75 fee on your phone bill. Proponents say the fee will fund a statewide 911 system, but numerous Republicans and Democrats immediately questioned whether that level of funding is necessary. There were also questions about whether the funds would be used for the stated purpose or become a slush fund to pay for other state government programs.

I want to know what you think because a common complaint I hear is the increasing number of state fees that are popping up on the bills you get in the mail. At the same time, reliable 911 services are essential.

I'd love to hear your thoughts on funding 911. Let me know what you think by email at sen.schultz@legis.wi.gov.

View the text of the motion.

Prevailing Wage Has Got to Go!
04.17.2009

Changes to prevailing wage law in the budget being hurried through the legislature in Madison will kill jobs and burden property taxpayers, especially in rural Wisconsin. The changes make all local government work subject to the same wages paid in wealthier urban areas and extend prevailing wage even to many private construction projects. Local governments often look to small contractors who can build projects for less than urban contractors where wage rates are higher. The changes would be like an added tax, in the range of 5 to 10 percent on community development goals including affordable housing, public safety, road and school projects. The changes would mean property taxpayers will pay more, or community development projects will have to be scaled back or put off. There’s no good reason for the state to mandate labor rates. Instead, we should let local labor rates apply. More...

Tax Freedom Day comes late for Wisconsin
04.13.2009

Tax Freedom Day for Wisconsin taxpayers came and went on April 13 with little fanfare, but then it's hardly a reason to celebrate.  Tax Freedom Day is the day of the year when the average taxpayer has earned enough to pay off their tax burden for the year, including federal, state, county and municipal taxes. More...