Sunday's Wisconsin State Journal published an insightful article State budget blame game, plenty to go around
At least $1.6 billion of the state’s massive budget shortfall stems from a spend-now, pay-later attitude pervasive in both political parties in the state Capitol, analysts said.
Gov. Jim Doyle and other state leaders have blamed the two-year projected budget shortfall, which threatens everyone from taxpayers to students and the poor, on the country’s souring economy.
There will be the usual budget cuts.
The only way to solve this problem is to increase taxes, end the accounting techniques that mask the problem, and institute a quality management program that improves the effectiveness and efficiency of Wisconsin government.
Before any of this happens, legislators from both parties must demonstrate the will to fix the structural problems.
If Republicans hang back, hoping to pin a tax increase on the Democrats, nothing will happen. If Democrats refuse to insist upon tax increases that are both progressive but also give consideration to Wisconsin's business environment, nothing will happen.
The difference is most other states are better prepared for the economic crisis, having set aside in rainy day funds and reserves an average of 11.5 percent of yearly spending from their main accounts, the report found.
By comparison, as of June 30, Wisconsin had set aside just $130 million in reserves, or less than 1 percent of the $13.5 billion of state spending that year.
It was Republicans in the legislature who prevented the adoption of a budget with realistic estimates for the 'rainy day fund.' It is those same Republicans who insisted upon cutting taxes when a tax increase was needed.
We all know what happened with the so-called 'hospital tax' that was killed by the extreme right wing in the Assembly last session.
Now it is up to the Democrats to apply pressure to these Republicans and insist that they be part of a realistic solution.
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How can we reform the property tax so that homes receive some protection from market and political forces? Could a basic level of square feet per household be taxed at a minimum level? Like with sales and income taxes a certain level of necessities can be exempted or prorated to keep people from losing human dignity.
How many of us will be forced into substandard housing because of property tax on homes as 'property'?
Luxury housing, above some number square feet per person etc., should be taxed at a progressive level of ability to pay. Minimum housing should be protected for all.
Posted by: jim guilfoil | January 29, 2009 at 09:28 AM