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Walker’s office: Wis. will have budget surplus

Published: May 11, 2012
By: Associated Press
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By TODD RICHMOND

Associated Press

Gov. Scott Walker visits with workers at Endres Manufacturing in Waunakee Wednesday during a tour organized to tout the state's manufacturing industry. Walker's office estimates a $275.1 million surplus for the state on June 30, 2012, and a $154.5 million surplus on June 30, 2013. (AP Photo/Wisconsin State Journal, John Hart)

MADISON, Wis. (AP) – Republican Gov. Scott Walker’s administration said Thursday that its new revenue projections show the state will finish the 2011-2013 budget years with a surplus rather than the deficit predicted earlier this year.

The projections were based on stronger-than-anticipated personal income growth last year, Walker officials said. The numbers could give the governor a boost as he heads into a June 5 recall election against Milwaukee Mayor Tom Barrett. The Democrat has been pounding Walker over his inability to jumpstart the Wisconsin economy.

“This is great news for the state,” said Walker campaign spokeswoman Ciara Matthews. “(This) is why voters in 2010 chose Scott Walker to be governor and why they will stand with him again on June 5.”

Barrett campaign spokesman Phil Walzak questioned the accuracy of the projections, which were compiled by the Wisconsin Department of Revenue, an agency within Walker’s administration.

Assembly Minority Leader Peter Barca, D-Kenosha, issued a statement calling the announcement a political gambit.

“The timing of this announcement from Gov. Walker’s partisan budget office is highly suspect given the fact that the governor is in the middle of a campaign,” Barca said.

The nonpartisan Legislative Fiscal Bureau estimated in February the state would finish the two-year budget period that ends June 30, 2013, with a $143 million deficit.

But the state Department of Revenue now estimates that the state will take in about $265 million more than the bureau expected, which should translate to a $275.1 million surplus on June 30, 2012, and a $154.5 million surplus on June 30, 2013, Department of Administration Secretary Mike Huebsch wrote in a letter to Walker.

Huebsch said revenue officials based the projections on larger-than-anticipated tax collections through April and revised federal Bureau of Economic Analysis forecasts showing better-than-expected personal income growth in 2011.

State law requires that if revenue exceeds initial projections, half of the surplus must be deposited in the state’s rainy day fund. If Walker’s projections hold, about $45.4 million would go into that fund after June 30.

That would mark the first time in state history that state officials have added to the fund in consecutive years, DOA spokeswoman Jocelyn Webster said. The Walker administration added $14.78 million at the close of the 2011 fiscal year, she said.

Walzak, Barrett’s spokesman, said that if there is a surplus, then the governor should help balance the budget by using the extra money to restore the $26 million he pulled out of the state’s share of a national settlement to help homeowners affected by mortgage abuses. Walzak also suggested that Walker use the money to offset University of Wisconsin System tuition increases.

Webster wouldn’t say how the administration might spend the leftover surplus money, cautioning that the numbers were projections.

“We’ll continue to monitor it and make decisions when the time is appropriate,” she said.

Rep. Robin Vos, R-Rochester, co-chairman of the Legislature’s powerful budget committee, issued a statement trumpeting the new numbers.

“While critics want to talk down to Wisconsin and root against our state, we are showing once again that we’re heading in the right direction,” he said.

Vos couldn’t be reached for comment Thursday evening on how the state might spend the extra money. Co-chairwoman Sen. Alberta Darling, R-River Hills, didn’t immediately return a message left at her Capitol office after hours.

Democrats upset with a contentious law that Walker and Republican legislators passed last year that stripped most public workers of nearly all their union rights have forced the governor and four other Republican officeholders into recalls.

Walker and Republican leaders say they had to pass the law to help balance the state’s budget, but Democrats portrayed the changes as a direct assault on organized labor, one of their key constituencies.

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Comments

  • This is misleading, because when the state cut funding on programs … education, as just one example … that still had to be paid for, those burdens have now fallen even more on Wisconsin’s struggling property-taxpayers as cities, counties and school districts raise their taxes to cover expenses that the state once covered with revenue from sales and income taxes that everybody paid, not just the overburdened homeowners.

    Scott Walker’s claim that he balanced the state budget is like a tenant claiming he balanced his household budget by not paying his rent while his landlord carries the costs of heat, power and water.

    Posted on 05/11/12 at 6:06 pm
  • fondued cheesehead says:

    Karen–you obviously have Jim Doyle and Scott Walker confused. By the way my property taxes went down.

    How would you balance the budget ?

    Posted on 05/14/12 at 4:41 pm
  • Let’s talk Walkernomics. Home values are down by 2.2% for a tax saving of $11 for a $3,500 drop in value, while simultaneously Wisconsin property tax levies rose by 2.2% while the Scott Walker budget cut low-income-family tax credits by $56.2 million, thereby raising taxes on the lowest-income families est residents in 2012. (Source: Center on Budget and Policy Priorities).

    There actually was a little dip in taxes according to the Legislative Fiscal Bureau … along with a huge raise in fees. In Walkernomics, the claim is that cutting collective bargaining rights saved over $1 billion including $1.3 in Sheboygan … but Sheboygan reports otherwise, that the actual savings were more like $420,000 because Walker was “***/u/ming” that city workers weren’t paying into health insurance. Yeah, right … they were paying between eight and ten percent, and the city manager said Walker was exaggerating.

    In Onalaska, the mayor says that Walker’s treatment of public workers will cost as the best and brightest leave to where they’ll be appreciated and treated like the professionals they are, that they’ll save pennies and lose dollars.

    The schools are losing teachers. Sixty percent have left already. There are 1,446 fewer teachers this year than there were last year. We’re losing library workers, career counselors, technical education teachers, special education, and reading teachers. The elementary schools have lost over 400 teachers in public schools.

    This is not a sign of a prosperous state.

    The U.S. Bureau of Labor Statistics says Wisconsin lost the most jobs over the last year, mostly from the public sector. During this time, 27 states had significant job gains. Wisconsin lost 23,900 jobs, the country’s largest percentage decrease and the third-worst employment loss for March compared to the previous month, with 4,500 fewer jobs than it had in February. Only tea-party-led Ohio and Chris Christie’s New Jersey were worse, with 9,500 and 8,600 fewer jobs.

    Wisconsin prisons are so understaffed that they’re asking the legislature for $1.2 million dollars just for overtime.

    Sure, there will always be True Believers who support Scott Walker no matter what, even those who dismiss his infamous “divide and conquer” comment, which was just uncovered. To them, I’ll quote Dr. Josef Goebbels: “If you tell a lie big enough and keep repeating it, people will eventually come to believe it.”

    Posted on 05/14/12 at 7:33 pm
  • wiswiresteel@wi.rr.com says:

    Scott Walker did not raid the Doctor’s Patients Compensation or Tobacco Settlement fund to balance the budget. Karen thinks that it is ok for the tennant to dip into the landlord’s bank account to borrow the money to pay the rent, and make his car payments.

    Teachers, come to the realization that when you teach about birth control, you are teaching yourself out of a job. The Baby Boomers and their children are having fewer children, therefore, less money is needed for education, because you have less students to educate.

    Look at the US Postal Service, the Letter Carriers do a great job, but the internet and e-mail have changed how many letters we send. We have to come to the realization that eventually, the Post Office will go away. Things change, People have to understand that nothing lasts forever.

    Posted on 05/14/12 at 7:41 pm
  • fondued cheesehead says:

    Karen–so what should we do differently ?

    Posted on 05/15/12 at 5:23 pm
  • Another thing about Scott Walker’s newest embarrassment, the video (thank you, reporters) in which Scott Walker tells Diane Hendricks that his goal of diminishing public-employee rights is only the “first step” to “divide and conquer” them:

    Turns out that Diane Hendricks recently gave Scott Walker $500,000, which makes Hendricks Scott Walker’s number-one campaign donor, and Hendricks’ company, ABC Supply …. with annual sales of close to $5 billion but with income-tax returns that claim that not a dime in profits are realized …. paid *zero* corporate state income taxes in the years 2005, 2006, 2007 and 2008, says the Wis. Department of Revenue. (The WDR still hasn’t released information from 2009 to the present.)

    To see who else doesn’t pay any taxes in Scott Walker’s world, check http://www.wisconsinsfuture.org/ .

    Posted on 05/15/12 at 6:16 pm
  • fondued cheesehead says:

    Karen—Wasn’t Jim Doyle the gov in 2005, 2006, 2007,2008 ? You are good at criticizing but have completely ignored my 2 requests of what you think the State should do differently. If Tom Barrett wins what do you want him to do ?

    Posted on 05/17/12 at 4:22 pm
  • fondued cheesehead says:

    If you want to play the tax card, how about the following Wisconsin individuals who signed the recall Walker petitions and collectively owe over $16 Million in back taxes. Gee— that would about cover the cost of the recalls.

    Posted on 05/17/12 at 4:32 pm
  • fondued cheesehead says:

    Here’s the link I forgot on above post. http://www.putwisconsinfirst.com/taxdelinquents/

    Posted on 05/17/12 at 4:35 pm
  • Hoodlum75 says:

    Karen, please site the source where 60% of teachers have left? That number seems oddly high given the number of classrooms that I see have teachers in them.

    The districts in the most trouble, that are asking for higher property taxes, tend to be the same districts where contracts were signed without utilizing the tools the govenor gave them to help balance their budgets; like obtaining multiple proposals for insurance instead of just renewing their policies with WEA Trust (a union owned and run company).

    Onalaska is going to lose their public workers to where? If they do go, there is a line forming to take their positions from people hurting in the private sector. And these people can plow, pickup trash, mow grass, and cover the maintenance of buildings as well as the public employees can. In fact, if the public employees think they are getting such a bad deal, by all means, exercise the same right the private sector has, leave and look for other work.

    Posted on 05/23/12 at 4:46 pm
  • Irwin Fletcher says:

    Ms Jefferies, what you fail to realize is that while Act 10 reduced funding to municipalities, it also gave municipalities the means to cut expenses. Lower income + lower expenses = little, if any fiscal impact at the local level. The only municipalities hurt were the ones that failed to take advantage of Act 10′s expense cutting measures. Too bad for them, but it was their choice.

    What the good people of Wisconsin have learned over the last 16 months is that Act 10 is working. Wisconsin is in far better fiscal shape without people being overly burdened.

    To see the Jim Doyle/Tom Barrett “Same Ole, Same Ole” look no further than Illinois.

    Posted on 05/31/12 at 8:23 am
  • Irwin Fletcher says:

    Fondued,

    Ms. Jefferies cannot answer what Tom Barrett would do differently, as even Tom Barrett cannot answer that. For his proported #1 issue, jobs, he has no plan.

    Posted on 05/31/12 at 8:33 am
  • fondued cheesehead says:

    Irwin, Good point.

    Posted on 06/01/12 at 10:19 am
  • I suspect that Ms. Jeffries wasn’t about to expend any effort defending her position to someone who considers him/herself to be a ‘hoodlum’ and a ‘fondued cheesehead’.

    Posted on 06/11/12 at 5:32 pm

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